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December 04, 2003

The Business Context of Identity

My November column for Connect is about the business context of identity.

I recently had the opportunity to sit with a group of CIOs and others involved in managing information technology and discuss digital identity.Ê What struck me was how much of the conversation was about security and liability rather than identity and opportunity.

In his book, "The Age of Access," Jeremy Rifkin argues that economic shifts over the last several decades have given rise to a regime where anonymous transactions are nearly impossible.Ê In a service-based economy, digital identity matters; I have to know who you are in order to sell you access to my service.Ê Since these services are increasingly delivered over digital networks, businesses need reliable, secure, and private means for creating, storing, transferring and using digital identities.Ê Understanding how your organization will manage and use digital identity is a crucial part of your business strategy.Ê

From Connect :: Resource/Article :: November Columnist - Phil Windley
Referenced Thu Dec 04 2003 17:21:51 GMT-0700

I'm somewhere in the middle of writing a book on digital identity management (Title: Digital Identity; ISBN: 1-881378-26-8). The book is aimed at CIOs, IT managers, product managers, and others who want to understand the concepts of digital identity and how businesses can benefit from creating and following an identity management strategy. I'll be writing more about this in the coming weeks and soliciting feedback on how best to approach this subject.

05:26 PM | Recommend This | Print This

The Economy Must Be Turning Around

I've had three calls from recruiters in the last two days. Back in the day, that was pretty normal, but over the last three years it has really tailed off. Maybe its picking up again. In every case, they found me through my blog.

05:10 PM | Recommend This | Print This

FCC Hearings on VoIP

The FCC is holding hearings on how much it should regulate VoIP telephony providers. This came to a head when a federal court declared that the Minnesota Public Utilities Commission had no jurisdiction to regulate a VoIP carrier, largely on the basis that it was a data carrier.

The problem with this discussion is two fold:

  1. Trying to base regulation on the basis of technical differences is always a bad idea. We're trying to maintain the status quo in the face of changing technologies. As Jon Udell points out putting services into buckets is a hopeless exercise. I wish more regulators would just decide to stop regulating on the basis of technology.
  2. Business is trying to use regulation to maintain their profit margins.

To that point, read this quote:

In November, SBC's senior vice president and chief financial officer called VoIP a "threat" to his company's residential phone service offerings, and at Monday's forum, John Hodulik, wireline telecommunications analyst at UBS Securities, predicted VoIP would "significantly" cut into the regional Bells' profit margins in the next five years. No direct representative of a regional Bell spoke at the forum, but Hodulik predicted the Bells would shift traffic to IP networks without an FCC decision on VoIP.

This is no different than RIAA using copyright to try to maintain a business model that technology has obsoleted.

There are some important public policy questions like how to make up for the universal service fee and the services it provides if states can't collect it. Universal service pays for telephone service in rural area, service to disadvantaged populations, school connectivity and so forth. I don't think its a bad thing for society to do, but I believe we have to find another way to fund it since I agree that states have a tough time justifying jurisdiction for VoIP.

Kevin Werbach testified at the FCC hearing and has posted a link to the streaming video from the CSPAN coverage.

For what its worth, in my opinion, the FCC ought to take a hands-off approach to VoIP and data services in general. Regulation will limit competition and innovation to be sure and there's simply no compelling reason to regulate it. There may be compelling reasons for the Universal Service Fund, but that tax ought to be applied fairly, not on the basis that these bits are encoding someone's voice and these bits aren't.

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