Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Tuesday, November 16, 2004

Regulatory Holes

Create business models:

"...The utility, which serves 1,500 ranchers, farmers and others in the Texas Panhandle, fared so well last year that it doled out a fat dividend to its customers, who also own it: an average $375 � more than the average $206 each customer paid in local phone fees.

Meantime, the co-op took in $2.6 million in federal universal service revenue. That's what people across the USA pay, through an 8.9% fee on long-distance bills. It subsidizes service in rural areas, where it's far costlier to run wires."

Link. We could discuss several other points - are subsidies optimal given the edges of the network fray under privatization and natural monopoly, how long will this hole stay open, since this model doesn't scale, what happens next, etc.

-- umair // 5:38 PM // 0 comments


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