Mansell, Robin

The Internet and the Forces of Capitalism – The Policy Challenge

Abstract

The role of financial capital in the development of the Internet cannot be ignored. A focus on how economic power is playing an important role in shaping the configuration of new media markets illustrates that there are strong trends towards an oligopolistic industrial structure. This is inconsistent with the idea of a network ‘commons’ that is responsive to a wide range of social values. Current trends are favouring the consolidation of Internet Service Provider markets in the hands of financial investors. Their primary interest is in the rapid turnover time of capital rather than in the long-term development of diverse and low cost services for citizens.

The prevailing ‘forces of capitalism’ are creating pressures for reduced service variety, an outcome that runs counter to the view that the new media and the Internet’s open architecture are optimised to encourage diversity. In this keynote, some of the interdependencies of technological change, innovation and the role of finance are exposed. Investors’ expectations for strong revenue growth and rapid capitalisation have major implications for the way the Internet will evolve. A strong case for policy intervention can be made to ensure that the public Internet develops in line with a broad interpretation of the public interest and a respect for people’s rights to communicate.