Average unit cost

1
The economic benefits of owning a Network - Rev
growth is non-linear (Metcalfe Law) - Cost
Curves (better than capital based businesses)
Networks The Big Deal

• Average unit cost

Knowledge-based
Capital-based
Sales
- Sustainable Competitive Advantage (hard to
dislodge eBays customer reputations,
non-transferable)
2
The Fabric of the Network The Web Build-out
of the broadband IP network Extension of the WAN
and LAN Wireless devices, cell
phones Voice/Data/Video over the IP
networkNever before has the infrastructure
existed for the creation of so many NEW networks
The Continuing Rise of Networks
3
So, these Networks are so valuable, where will
the next Networks come from? Some possible
ideas.some recent trends - Cell phones /
Instant Messaging uPOC, iMode (Cartoons) -
People Keen / eBay for peopleCensus of
Brains - Raw Information Google (1.3b indexes
pages, 100b links) Other idea? What about more
specific information networks?.
The Continuing Rise of Networks
4
The Continuing Rise of Networks

• What about?.More specific information Networks
• Intellectual Property (Open Source, Linux)
• Demographics (how much was spent?, who wants
  what?)
• Capital Networks (yes, we have Nasdaq, but what
  about LiveCapital, myCFO, LendingTree)
• Detailed Content Networks (yes, we have Yahoo
  where you can search and find info about every
  Greatful Dead album.but what if you could view
  every piece of music that used the wordsSimple
  Twist of Fate
• ..think about Fractal Depth.