so in the summer of 2016 my doorbell rang I went to the door opened it and
rang I went to the door opened it and
rang I went to the door opened it and there was a salesman he was there to
there was a salesman he was there to
there was a salesman he was there to convince me that I said should switch my
convince me that I said should switch my
convince me that I said should switch my isp my internet service provider I
invited him in because I was curious the
invited him in because I was curious the deal he had was that he was gonna cut my
deal he had was that he was gonna cut my
deal he had was that he was gonna cut my price in half and he was going to double
price in half and he was going to double
price in half and he was going to double my speed I asked a few questions and I
my speed I asked a few questions and I
my speed I asked a few questions and I signed up three months later I’m walking
signed up three months later I’m walking
signed up three months later I’m walking through my kitchen and my wife is paying
through my kitchen and my wife is paying
through my kitchen and my wife is paying bills at the computer and I noticed an
bills at the computer and I noticed an
bills at the computer and I noticed an invoice from our new internet service
invoice from our new internet service
invoice from our new internet service provider I picked it up and I was
provider I picked it up and I was
provider I picked it up and I was surprised that they were charging me
surprised that they were charging me
surprised that they were charging me five times the deal that I had signed up
five times the deal that I had signed up
five times the deal that I had signed up for but they were giving me ten times
for but they were giving me ten times
for but they were giving me ten times the bandwidth if you do a search on the
the bandwidth if you do a search on the
the bandwidth if you do a search on the companies with the worst customer
companies with the worst customer
companies with the worst customer service in 2017 across all industries
service in 2017 across all industries
service in 2017 across all industries guess which industry has the top three
guess which industry has the top three
guess which industry has the top three spots that’s right Internet service
spots that’s right Internet service
spots that’s right Internet service providers and you may think this is an
providers and you may think this is an
providers and you may think this is an operational flaw but I don’t think so I
operational flaw but I don’t think so I
operational flaw but I don’t think so I think it has to do with the structure of
think it has to do with the structure of
think it has to do with the structure of the industry itself so what is an
the industry itself so what is an
the industry itself so what is an Internet service provider one way to
Internet service provider one way to
Internet service provider one way to think about it is that it’s the on-ramp
think about it is that it’s the on-ramp
think about it is that it’s the on-ramp to the Internet it’s the way that we
to the Internet it’s the way that we
to the Internet it’s the way that we access the Internet and something you
access the Internet and something you
access the Internet and something you need to understand is that if you’re
need to understand is that if you’re
need to understand is that if you’re gonna compete in this business you got
gonna compete in this business you got
gonna compete in this business you got to build your own infrastructure you got
to build your own infrastructure you got
to build your own infrastructure you got to get a signal or a wire to every one
to get a signal or a wire to every one
to get a signal or a wire to every one of your customers
of your customers
of your customers as you translate this photo you might
as you translate this photo you might
as you translate this photo you might think that UPS is doing something
think that UPS is doing something
think that UPS is doing something illegal but if we ran our shipping
illegal but if we ran our shipping
illegal but if we ran our shipping business the way we run our internet
business the way we run our internet
business the way we run our internet service provider business then FedEx
service provider business then FedEx
service provider business then FedEx would build their own highway and UPS
would build their own highway and UPS
would build their own highway and UPS would build their own highway and then
would build their own highway and then
would build their own highway and then the United States Postal Service would
the United States Postal Service would
the United States Postal Service would build their own highway and this makes
build their own highway and this makes
build their own highway and this makes absolutely no sense in the physical
absolutely no sense in the physical
absolutely no sense in the physical world and it no longer makes any sense
world and it no longer makes any sense
world and it no longer makes any sense in the digital world but this is an
in the digital world but this is an
in the digital world but this is an important point an Internet service
important point an Internet service
important point an Internet service provider is a service and it runs on
provider is a service and it runs on
provider is a service and it runs on infrastructure we’re used to thinking
infrastructure we’re used to thinking
infrastructure we’re used to thinking about those as one thing but
about those as one thing but
about those as one thing but infrastructure is one thing and the
infrastructure is one thing and the
infrastructure is one thing and the service is another thing so what are the
service is another thing so what are the
service is another thing so what are the consequences of this model that we have
consequences of this model that we have
consequences of this model that we have currently
well one consequence is that there’s not
well one consequence is that there’s not very much competition because the
very much competition because the
very much competition because the barriers to entry are so high and when
barriers to entry are so high and when
barriers to entry are so high and when there’s no competition
there’s no competition
there’s no competition we know the prices are going to be
we know the prices are going to be
we know the prices are going to be inflated another consequence is an the
inflated another consequence is an the
inflated another consequence is an the idea of bandwidth scarcity now when the
idea of bandwidth scarcity now when the
idea of bandwidth scarcity now when the internet first came out bandwidth was a
internet first came out bandwidth was a
internet first came out bandwidth was a scarce commodity or a scarce resource
scarce commodity or a scarce resource
scarce commodity or a scarce resource but today we have fiber optics and data
but today we have fiber optics and data
but today we have fiber optics and data scientists can push 5 million megabits
scientists can push 5 million megabits
scientists can push 5 million megabits per second over fiber optics in a
per second over fiber optics in a
per second over fiber optics in a laboratory environment and a hundred
laboratory environment and a hundred
laboratory environment and a hundred thousand megabits in a commercial
thousand megabits in a commercial
thousand megabits in a commercial environment then why is the national
environment then why is the national
environment then why is the national average in the u.s. around 25 megabits
average in the u.s. around 25 megabits
average in the u.s. around 25 megabits per second it should be affordable to
per second it should be affordable to
per second it should be affordable to have a gig to most homes in the United
have a gig to most homes in the United
have a gig to most homes in the United States we don’t need a gig
States we don’t need a gig
States we don’t need a gig we couldn’t use a gig but it should be
we couldn’t use a gig but it should be
we couldn’t use a gig but it should be affordable so why is the national
affordable so why is the national
affordable so why is the national average 25 well one reason is that
average 25 well one reason is that
average 25 well one reason is that there’s a lot of old infrastructure in
there’s a lot of old infrastructure in
there’s a lot of old infrastructure in the ground and companies continue to
the ground and companies continue to
the ground and companies continue to milk that infrastructure rather than to
milk that infrastructure rather than to
milk that infrastructure rather than to invest in fiber optics another reason is
invest in fiber optics another reason is
invest in fiber optics another reason is that these companies want us to believe
that these companies want us to believe
that these companies want us to believe that bandwidth is a scarce resource
that bandwidth is a scarce resource
that bandwidth is a scarce resource because if you think it’s a scarce
because if you think it’s a scarce
because if you think it’s a scarce resource when they charge you to give
resource when they charge you to give
resource when they charge you to give you more of it you’ll feel okay about it
you more of it you’ll feel okay about it
you more of it you’ll feel okay about it another reason the average is at 25 is
another reason the average is at 25 is
another reason the average is at 25 is something known as the digital divide
something known as the digital divide
something known as the digital divide and if you looked at a map of the United
and if you looked at a map of the United
and if you looked at a map of the United States and could see the digital divide
States and could see the digital divide
States and could see the digital divide you would see that urban areas are well
you would see that urban areas are well
you would see that urban areas are well connected and rural areas are not one of
connected and rural areas are not one of
connected and rural areas are not one of the most insidious parts the digital
the most insidious parts the digital
the most insidious parts the digital divide is that school children do all or
divide is that school children do all or
divide is that school children do all or some of their homework online and if
some of their homework online and if
some of their homework online and if you’re a parent the lives on the wrong
you’re a parent the lives on the wrong
you’re a parent the lives on the wrong side of the digital divide well you
side of the digital divide well you
side of the digital divide well you understand the problem structurally the
understand the problem structurally the
understand the problem structurally the thing that makes the least sense about
thing that makes the least sense about
thing that makes the least sense about the way this industry works is that the
the way this industry works is that the
the way this industry works is that the internet was based on openness that
internet was based on openness that
internet was based on openness that means it’s open to competition and it’s
means it’s open to competition and it’s
means it’s open to competition and it’s open to innovation what about our
open to innovation what about our
open to innovation what about our on-ramp to the Internet it works exactly
on-ramp to the Internet it works exactly
on-ramp to the Internet it works exactly the opposite our ISPs are based on a
the opposite our ISPs are based on a
the opposite our ISPs are based on a closed model close to competition and
closed model close to competition and
closed model close to competition and close to innovation at least outside
close to innovation at least outside
close to innovation at least outside innovation Rory Sutherland
innovation Rory Sutherland
innovation Rory Sutherland says that he talks about wealth as a
says that he talks about wealth as a
says that he talks about wealth as a function of the number of rewarding
function of the number of rewarding
function of the number of rewarding choices an individual can make and that
choices an individual can make and that
choices an individual can make and that technologies that are really valuable
technologies that are really valuable
technologies that are really valuable are those that allow us to do things
are those that allow us to do things
are those that allow us to do things that we care about that were not
that we care about that were not
that we care about that were not previously possible
eight years ago some colleagues and I
eight years ago some colleagues and I started a company which we called entry
started a company which we called entry
started a company which we called entry point networks and we wanted to rethink
point networks and we wanted to rethink
point networks and we wanted to rethink the entry point to the Internet we had
the entry point to the Internet we had
the entry point to the Internet we had two images in our mind when we started
two images in our mind when we started
two images in our mind when we started the company one going back to FedEx and
the company one going back to FedEx and
the company one going back to FedEx and UPS notice that there on one road the
UPS notice that there on one road the
UPS notice that there on one road the other image is the image of an airport
other image is the image of an airport
other image is the image of an airport in both of these images pay attention to
in both of these images pay attention to
in both of these images pay attention to the difference between infrastructure
the difference between infrastructure
the difference between infrastructure and services the infrastructure is
and services the infrastructure is
and services the infrastructure is robust and the services run on top of
robust and the services run on top of
robust and the services run on top of the infrastructure in both cases whether
the infrastructure in both cases whether
the infrastructure in both cases whether it’s trucking or airline companies they
it’s trucking or airline companies they
it’s trucking or airline companies they follow the rules they have open access
follow the rules they have open access
follow the rules they have open access or open use of the infrastructure as we
or open use of the infrastructure as we
or open use of the infrastructure as we progressed as a company we were
progressed as a company we were
progressed as a company we were fortunate to meet a group of researchers
fortunate to meet a group of researchers
fortunate to meet a group of researchers here at the University of Utah called
here at the University of Utah called
here at the University of Utah called the flux Research Group in the School of
the flux Research Group in the School of
the flux Research Group in the School of Computing and then we also met a city in
Computing and then we also met a city in
Computing and then we also met a city in southeastern Idaho a small city by the
southeastern Idaho a small city by the
southeastern Idaho a small city by the name of Ammon as a group we shared the
name of Ammon as a group we shared the
name of Ammon as a group we shared the same vision and that vision was that we
same vision and that vision was that we
same vision and that vision was that we wanted to move control from the isp to
wanted to move control from the isp to
wanted to move control from the isp to the consumer as we work together Ammon
the consumer as we work together Ammon
the consumer as we work together Ammon the leaders in Ammon had three goals
the leaders in Ammon had three goals
the leaders in Ammon had three goals they wanted to get robust infrastructure
they wanted to get robust infrastructure
they wanted to get robust infrastructure to every resident they wanted to make it
to every resident they wanted to make it
to every resident they wanted to make it voluntary to participate and they wanted
voluntary to participate and they wanted
voluntary to participate and they wanted to make the residents owners of the
to make the residents owners of the
to make the residents owners of the infrastructure rather than renters as we
infrastructure rather than renters as we
infrastructure rather than renters as we worked at the University of Utah we
worked at the University of Utah we
worked at the University of Utah we thought if we had robust infrastructure
thought if we had robust infrastructure
thought if we had robust infrastructure then we can create a cloud for services
then we can create a cloud for services
then we can create a cloud for services for four years we work together and then
for four years we work together and then
for four years we work together and then one year ago in the fall of 2016 our
one year ago in the fall of 2016 our
one year ago in the fall of 2016 our science experiment went live if you’re a
science experiment went live if you’re a
science experiment went live if you’re a resident that subscribes to the network
resident that subscribes to the network
resident that subscribes to the network in a man Idaho today you have a gig pipe
in a man Idaho today you have a gig pipe
in a man Idaho today you have a gig pipe to your house and you can change your
to your house and you can change your
to your house and you can change your internet service provider
internet service provider
internet service provider in 20 seconds you go into a portal you
in 20 seconds you go into a portal you
in 20 seconds you go into a portal you find the plan that you want you click
find the plan that you want you click
find the plan that you want you click subscribe a network is provisioned and
subscribe a network is provisioned and
subscribe a network is provisioned and you’re live if you get dissatisfied you
you’re live if you get dissatisfied you
you’re live if you get dissatisfied you click unsubscribe the network is torn
click unsubscribe the network is torn
click unsubscribe the network is torn down and then you can choose a new plan
down and then you can choose a new plan
down and then you can choose a new plan [Applause]
[Applause]
[Applause] if you can change your service provider
if you can change your service provider
if you can change your service provider in 20 seconds it fundamentally changes
in 20 seconds it fundamentally changes
in 20 seconds it fundamentally changes the value you get from that service
the value you get from that service
the value you get from that service provider what about price before Ammon
provider what about price before Ammon
provider what about price before Ammon launched its network the average cost of
launched its network the average cost of
launched its network the average cost of an ISP was 75 dollars for a 50 Meghan
an ISP was 75 dollars for a 50 Meghan
an ISP was 75 dollars for a 50 Meghan the day a man launched its network the
the day a man launched its network the
the day a man launched its network the first ISP came on with a 100 Meg
first ISP came on with a 100 Meg
first ISP came on with a 100 Meg connection priced at $45 within 10
connection priced at $45 within 10
connection priced at $45 within 10 months because of competition that 100
months because of competition that 100
months because of competition that 100 Meg ISP had fallen to $9.99
I mentioned that city leaders in Amman
I mentioned that city leaders in Amman wanted to make the residents owners and
wanted to make the residents owners and
wanted to make the residents owners and not renters of the infrastructure how
not renters of the infrastructure how
not renters of the infrastructure how does that work the residents pay $17 a
does that work the residents pay $17 a
does that work the residents pay $17 a month for their infrastructure until
month for their infrastructure until
month for their infrastructure until it’s paid off when it’s paid off it’s
it’s paid off when it’s paid off it’s
it’s paid off when it’s paid off it’s theirs it stays with the house they have
theirs it stays with the house they have
theirs it stays with the house they have em pay $16.50 for maintenance and
em pay $16.50 for maintenance and
em pay $16.50 for maintenance and operation of the network and then they
operation of the network and then they
operation of the network and then they go into the cloud and they choose the
go into the cloud and they choose the
go into the cloud and they choose the plan that they want in this case a 100
plan that they want in this case a 100
plan that they want in this case a 100 by 100 connection for $9.99 that’s less
by 100 connection for $9.99 that’s less
by 100 connection for $9.99 that’s less than forty four dollars for a one gig
than forty four dollars for a one gig
than forty four dollars for a one gig pipe and a 100 by 100 connection so
pipe and a 100 by 100 connection so
pipe and a 100 by 100 connection so we’re already spending enough money to
we’re already spending enough money to
we’re already spending enough money to have robust fiber optics in most parts
have robust fiber optics in most parts
have robust fiber optics in most parts of the country we just need to structure
of the country we just need to structure
of the country we just need to structure these systems different so what’s the
these systems different so what’s the
these systems different so what’s the significance of Amman and our science
significance of Amman and our science
significance of Amman and our science experiment one significance is that
experiment one significance is that
experiment one significance is that three groups a private company a
three groups a private company a
three groups a private company a research group from a university and a
research group from a university and a
research group from a university and a small city have worked together to solve
small city have worked together to solve
small city have worked together to solve important problems then there’s the
important problems then there’s the
important problems then there’s the significance to Amman itself that we
significance to Amman itself that we
significance to Amman itself that we effectively moved control from the isp
effectively moved control from the isp
effectively moved control from the isp to the consumer we’ve given them more
to the consumer we’ve given them more
to the consumer we’ve given them more value for less cost because Amman will
value for less cost because Amman will
value for less cost because Amman will have a fiber network throughout the
have a fiber network throughout the
have a fiber network throughout the whole city everything that the city
whole city everything that the city
whole city everything that the city cares about and that the residents care
cares about and that the residents care
cares about and that the residents care about will be connected to this network
about will be connected to this network
about will be connected to this network and because it’s open infrastructure
and because it’s open infrastructure
and because it’s open infrastructure we’re betting that we’re going to be
we’re betting that we’re going to be
we’re betting that we’re going to be surprised by the amount of innovation
surprised by the amount of innovation
surprised by the amount of innovation that happens on telemedicine education
that happens on telemedicine education
that happens on telemedicine education Public Safety Aging in Place and on we
Public Safety Aging in Place and on we
Public Safety Aging in Place and on we go one other significance is the Amman
go one other significance is the Amman
go one other significance is the Amman provides a model for other cities now at
provides a model for other cities now at
provides a model for other cities now at least a hundred cities have tried some
least a hundred cities have tried some
least a hundred cities have tried some form of municipal broadband but I
form of municipal broadband but I
form of municipal broadband but I believe Amman is the first to define the
believe Amman is the first to define the
believe Amman is the first to define the problem differently those other cities
problem differently those other cities
problem differently those other cities have focused on fast internet and many
have focused on fast internet and many
have focused on fast internet and many of them have just copied the traditional
of them have just copied the traditional
of them have just copied the traditional isp model
isp model
isp model a man defined the problem as open
a man defined the problem as open
a man defined the problem as open infrastructure creating competition
infrastructure creating competition
infrastructure creating competition moving control to the customer the last
moving control to the customer the last
moving control to the customer the last significance comes from Kevin Kelly he’s
significance comes from Kevin Kelly he’s
significance comes from Kevin Kelly he’s my favorite philosopher of technology
my favorite philosopher of technology
my favorite philosopher of technology when he talks about the importance of
when he talks about the importance of
when he talks about the importance of communication networks he says that they
communication networks he says that they
communication networks he says that they have a special place in economic history
have a special place in economic history
have a special place in economic history because this is a sector of the economy
because this is a sector of the economy
because this is a sector of the economy that’s transforming all of their sectors
that’s transforming all of their sectors
that’s transforming all of their sectors our argument is that this sector that’s
our argument is that this sector that’s
our argument is that this sector that’s transforming all other sectors itself
transforming all other sectors itself
transforming all other sectors itself needs to be transformed so the next time
needs to be transformed so the next time
needs to be transformed so the next time you get frustrated with customer service
you get frustrated with customer service
you get frustrated with customer service or you don’t like the value that you’re
or you don’t like the value that you’re
or you don’t like the value that you’re getting from your isp think of ammon and
getting from your isp think of ammon and
getting from your isp think of ammon and remember that if your city will move
remember that if your city will move
remember that if your city will move control to the customer you could fix
control to the customer you could fix
control to the customer you could fix that problem in 20 seconds thank you
”
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