To: George Gilder who wrote (270 ) 10/30/1997 12:48:00 AM From: Maurice Winn Read Replies (1) | Respond to of 5853
George, Something new! Subscriber-priced wireless cdma for Globalstar and terrestrial networks. A kind of auction, run by basestations and handsets. At present, pricing is handed down to subscribers in a way which completely ignores the processing power of base stations, handsets and most importantly, subscribers' minds. You have commented how a general principle of the telecosm is to have simplicity at the centre and use distributed and network processing power. How about using an auction system to spread peak calls so that as demand rises, the price rises at such a rate that there is always room for another caller to make a call provided they are prepared to pay the instantaneous price? No more busy signals, no more dropped calls or dead zones from shrinking cdma cells, overall per minute costs are minimized, profits are maximized, system utilisation is maximized, competitive position is maximized. Subscribers are very happy! CDMA networks with their processing power represent the first time that a zero cost auction system for allocation of resources can be done. With Globalstar, once built, there is zero marginal cost in another subscriber minute being consumed, until the system is fully used. So that is especially a good network to handle by auction. I've offered $US100 reward for the first person who can come up with a show-stopping objection. The nearest to a good objection was that USA pricing plans need to be government approved, but that didn't win because they probably would not stop a pricing system which cut subscriber costs. Of course there would need to be fixed price plans for perhaps half the subscribers as some people don't like the unknown. They prefer to pay more money to live in a predictable world. They fool themselves, but you know what I mean. I've been pushing this line at the Globalstar and Qualcomm Silicon Investor threads. For a description from a subscriber's point of view:techstocks.com [read that one with a sense of humor] There are lots of posts by me on it in Globalstar around here:techstocks.com and in Qualcomm around here:techstocks.com Hopefully, Qualcomm and Globalstar will be the first to do it. Maybe it is even patentable. Meanwhile, thanks George for your writings which I much appreciate via the Web. Comments appreciated from anyone. Maurice