Network Demarcation Points


In the US, there is a particular point where the phone line becomes yours. You own the wiring from the phone to that point, the phone company owns the rest. This was the inevitable consequences of the AT&T network challenges. When AT&T couldn't win the right to declare everything, end to end was its property and unmodifiable, it was inevitable that every phone owner would end up with a portion of the network under his control and AT&T ruling the roost past that point.

This concept has been a great boon for competition but where the demarcation point (demarc point from here on out) exists is, essentially variable. The point is generally right where the line enters the house, just inside or just outside depending on various circumstances. At the beginning, it was declared to be the switchover point where the line stopped using outside wiring and started using the cheaper inside variety. Nowadays there are special demarc boxes that are placed on the outside of the building on most new residences.

Cable TV has the same sort of demarc system. You may need to pay for additional TVs but if you cut the inside wiring and add a splitter, you're not altering the cable company's wiring. You're altering your own.

In the case of the Internet, where is the demarc point? Here, there is no fixed definition in law. If you get DSL is the modem you buy from the carrier yours or the carrier's? It varies, and your rights on the internet vary right along with it. The Internet is unique in that all computers have the capacity to be both consumers of information passed on by producer computers and also be producer computers for other consumer computers. With costs quickly dropping under the pressure of Moore's law, what ends up happening is possibly the greatest haphazard capitalization of ordinary people that the world has ever seen.

But being a producer means that you are a competitor, even if only a potential competitor, to a variety of fat bloated, entrenched interests. Add a permanently connected networked computer with a digital video camera, you can be a competitor to TV stations, movies studios, and movie theaters. With a SIP phone, you're a competitor to the phone company. With a MIDI interface added you're a competitor to music production studios, radio stations, concert halls, and juke box operators. The list goes on and on.

Some of these markets don't know or don't care you exist (concert halls and juke box operators are examples). Some are accommodating and happy to integrate new entrants into the mix (music production studios, for example). But then there are those who know, understand, and find the potential of that many new entrants in the field deeply frightening and unacceptably threatening. These are the ones that are pushing back. And if they win, they will snatch defeat from the jaws of possibly the most world enriching innovation to come down the pike since the industrial revolution.



Posted: Fri - October 17, 2003 at 04:45 PM        


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