Sociable

Sunday, September 13, 2009

The Curious Case of Data Dumping

I have all the material ready for my next provocative blog. Yes the one that will make me controversial and unpopular!


A Sensational Title: Anti-data-dumping law to bridge the digital divide


Some background patronizing information: Most countries introduce anti-dumping duties to protect the local industry. Without getting into the history, open market arguments etc., the fact-of-the-matter is that anti-dumping duty is a reality. Commodity and manufacturing sector comes to ones mind when international trade pundits discuss anti-dumping. Developing countries bear the brunt of taxation trying to sell their low-cost produce in developed nation. Interestingly in the knowledge industry the dumping of knowledge products and services are in reverse direction.


The Case Opening Statement: Internet, the new media is controlled by developed economies and a handful of global players have cornered most of the new medium across the globe. This kills the chances of developing local industry and hence the underdeveloped markets will lose out most of the advertisement revenue and marketshare to the developed markets. I would like to argue that to protect small and local internet web services there is a need to introduce anti-dumping duty on global players.


Circumstantial Evidence: I collected some evidence to build my argument.









The above tables show that there is direct correlation between the internet advertisement revenue and explosion of content on the web pages. The global internet traffic and proliferation has grown as well adding to the demand side.

Hard Evidence: The next piece of evidence needed was to nail down the perpetrators. This came from an unusual sourceTeleGeography’s Global Internet Map.














Agreed, this is not an easy to read map, hence for analysis purpose I have used some spreadsheet tricks.



In mature market like Europe 75% of the bandwidth is consumed within the region. However the less matured markets like Asia and South America are largely dependent on the fat pipes from North America and Europe. Interestingly but not surprising USA exports 85% of internet traffic outside of North America.

The Usual Suspects: In any anti dumping situation there are beneficiary interest groups. I had the list of usual suspects in mind, however to establish the facts rested my case based on the latest Analytics Reports -

Cold Feet: I must admit that in spite of such strong case and so close to being self-appointed for the next round of Doha negotiations, I have developed a cold feet to continue pressing charges!! Why? Well, first of all USA is a net importing nation and secondly USA is net importer of "Advanced Technology Products" including Information Technology and Communications. This will perhaps come as a shock to most of the technology producers who look upon US funded venture capitalsocialists and track closely NASDAQ technology companies.




Let Go: I will conclude with a note of sympathy to world's largest producer of technology to reconsider its views on Software. It is up to US Knowledge Workers to decide if an eyeball attention is worth more than technology and knowledge!








The Great American Internet Brain Drain (loss of knowledge in return of eye-ball)!!

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