01 October, 2004: Here’s one for the
collector’s album! Step into the spotlight for a lifetime's achievement
award, “heritage networks”…
First, there were ‘networks’. These
were seen as good things. If not quite the quickest route between A and
B, they were OK. They did a job: they got there.
Next, there were ‘legacy networks’, also known as ‘the infrastructure
that dare not speak its name’ – not to be mentioned in polite
technology circles. The legacies in question were purportedly poisoned
chalices bequeathed to unsuspecting operators in the PSTN and mobile
fields.
Now they have become the ‘heritage networks’. Even while trying to
decide whether to file this one under ‘laugh’ or ‘cry’, it’s hard to
resist the thought that some bright individual, confronted by a vast
and pervasive system of twisted copper, decided that the term
‘heritage’ might help to shunt a lame-duck asset towards the upper half
of the balance sheet.
Old money, sunk costs, spare coppers
With the exception of the United States, where the basic telephone
network was scarcely within the active purview of the government (not
so much ‘Liberty Bell’ as ‘Ma Bell’), most developed countries saw
these ‘heritage networks’ grow up under the auspices of the state. In
the 1980s and 1990s, telco privatisation saw that this ‘heritage’ was
sold wholesale on the equity markets. Reregulation and deregulation
have added to the party by throwing them open to competition in the
form of parallel networks and network re-use (unbundling).
Two factors serve to either constrain this line of thinking or temper the temptation to take it to extremes.
The first is that the taxpayers responsible for funding investment in
the PSTN, now the ‘heritage network’, over a century or so were not
adequately compensated with the sale of public networks and their
operators to new shareholders on a near indiscriminate basis.
Compounding this, the once-maligned ‘legacy network’ is now the
platform for growth in broadband in a majority of western countries.
This decrepit copper is an engine of xDSL.
That’s quite a handsome legacy. Likewise, it represents a squandered
inheritance for a fair proportion of the world’s population.
Something old…
Polemics aside, it’s worth either embracing or exploding the
‘heritage network’ concept. GSM networks are legacy networks, but most
new 3G operators would move mountains to secure them and their
incumbent customers. Copper loops are legacy networks but they are a
broadband battleground now. Satellite systems support legacy networks
but still function and still attract the voracious interest of venture
capitalists.
This could be the crucial differentiator. Few individuals or
organisations would turn away a legacy if it was offered in good faith.
When that legacy is reclassified with ‘heritage’ status, things change.
All of a sudden, it needs investment to support and maintain. It’s weak
and waning. It needs sympathy in order to survive.
On the face of it, legacy and heritage networks are the same thing. The
difference is that the latter are halfway along the path to being put
in a museum, along with their owner-operators. The former are what
you’ve got and what you make the best of – or risk losing everything.
Almost everyone reading this will have experienced the sinking feeling
when, on buying a new computer, you open the newspaper next day to see
the new improved version of your ‘new’ PC being proudly displayed in
advertisements and so on. If you carry on home you will, admittedly,
possess a ‘legacy’ computer. If you remain dumbstruck and never touch
the thing, you’ve got the heritage version. Jim Chalmers
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