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No. 1 Story

Mobile operators get fixed price spectrum renewal in $3b Government windfall

The Government has offered Australia's three mobile operators, and vividwireless, renewal of their existing spectrum allocated on 15 year licences in the late 90s and early 2000s at set prices, while the Government expects to rake in $3 billion.

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Stuff yourself silly - how much free lunch can you cope with?

Opinion and Analysis

Unfortunately, in order to deliver the eagerly-desired content to the consumer, there are a few people who'd like to be paid (not including the afore-said ISP).

When it comes to online content, there's an interesting, but very dynamic, relationship between production quality and production cost.  Oddly, as quality goes up, so does cost.  In fact, production cost rises more sharply that quality; but then, perception and acceptance of content rise at about the same rate as cost; far in advance of the actual quality increase.

What does this mean?  Just that quality acceptance is more closely related to the cost of production than the outcome of production.  In my opinion, and within 'limits,' of course.

So, where's the 'free lunch?'

The trite answer of course is, "right where you left it," but that doesn't address the real issue here. 

There has been very little education done to help Internet consumers understand the issues here – and the unending emphasis on 'free' stuff (music, movies, software etc) hasn't helped.

It seems that whenever a content-rich site tries to improve its advertising offering, possibly with targeted adverts, there is a cry from the consumers – how dare they attempt to understand me enough to direct 'useful' adverts to me.  Fer goodness sake, I might be tempted to buy something!

Similarly I've heard anecdotal reports that when a well-known podcaster tried to insert a 15-second 'message' at the front of his audio stream, his listeners complained very loudly… never mind that he had to find enough funding to pay for 3 or 4 full-time staff to produce the podcast.

Overall, this is simply an education problem.  The difficulty is "who goes first?" No-one wants to be the first to start charging for content that consumers expect to be free.  And governments will accuse them of collusion if they all do it together.

Fun times indeed, but as they say, there ain't no such thing as a free lunch.

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