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by dredmorbius 2452 days ago
Until consumers are willing to spend on subscription services...

You cannot shift a Gresham's Law race-to-the-bottom dynamic by insisting on consumer (or producer) willpower. You've got to enforce a floor.

In other consumer (and industrial) products, this has tended to happen through the combined mechanisms of strict liability, certification, and independent inspection (in specific cases).

Where manufacturers, or as seems more likely given the industry concentration around sales points, retailers, are liable for the consequences of unfit-for-purpose devices and services, a reasonable set of minimum requirements (including life-of-product and update requirements) can be specified, then you might see a shift to some mix of time-of-sale plus subscription service pricing and payment models.

More likely you'll see devices bundled with services (which sometimes happens), though preferably in a far more user-friendly basis than is presently the case (e.g., cable service set-top boxes).

There's actually a long history of leased-equipment business in the IT sector, most notably as pioneered by IBM in the 1950s and 1960s.

3 comments

As soon as warranty/support expires, the device must be free for DRM/reverse-engineering. This will incentivize manufacturers to offer longer support.

Edit: Rather they should actually provide the spec, drivers etc

As support expires or EOL the manufacturer should be forced to release their firmware code to ensure older devices can be patched, if they want to keep operating and selling new devices. this requires legislation though.
There are a lot of routers using GPL code that have open source firmware available (ddwrt,openwrt,tomato,etc.) I think once support for a device ends it should be mandated that the company release the source code for future development.

There is a worrying increase in the amount of IoT devices that will remain forever unpatched due to the (cheap overseas) manufacturers never updating them or ending support for them.

Make that one year before ending support, so there is both time to prepare and incentive to open source early.
Ma Bell was leasing telephones since the days of Alexander Graham Bell. In fact you weren't allowed to use any telephone except one leased from your telco until the breakup of the Bell System in the 80s.

Not sure that is what we want to go back to.

There were definitely problems and abuses with the model.

But the hardware itself was robust and reliable.

Remember: "We don’t care. We don’t have to. We’re the Phone Company"

Fake commercial on Saturday Night Season 2 Episode 1.

(It wasn't called Saturday Night Live until later.)

I find the story of Walter Shaw Sr. even more instructive.

Independent inventor convicted and gaoled by AT&T for "misdemeanor attachment", the crime of attaching non-AT&T equipment to AT&T's phone network.

https://en.wikipedia.org/wiki/Walter_L._Shaw

More on this in the first bit of "The Inventor and the Thief" on Snap Judgement:

https://www.wnycstudios.org/podcasts/snapjudgment/episodes/l...

Because the hardware didn't do much of anything!
Contrast Minitel, a videotext online system provided by the French government phone monopoly Postes, Télégraphes et Téléphones in 1980.

https://en.wikipedia.org/wiki/Minitel

See also the Charter lawsuit where it was revealed that Charter was renting very old equipment to their customers for years and didn't care.
That's where the minimum standards aspect comes in. The problem of noncompetitive monopolies failing to innovate and actively quashing independent inventors (see: Walter Shaw, Sr., amongst many others) is a risk of this approach.
AT&T didn't just come out and install a newer telephone because they had a newer model. If the equipment is fit for the service why replace it?
If you rent a $100 device at $10 a month for 10 years you end up paying $1200 and still not owning it.

I can see why consumers and consumer advocate groups don’t like this.

The customer should always have the option to buy their own hardware - that's to me something that was fought for (and won) with Carterphone
Sorry, I managed to reply to the wrong comment.
AT&T later in its history, 1960s - 1970s, offered the option of uplines (touch-tone, "Streamline", "Princess", and eventually Mickey Mouse telephones) as service upgrades. So there wasn't no interest in innovation, though I'd agree with the general view that the interest was low.
None of those were real technical improvements over the 500/2500 set however, they were upgrades designed to please the customer aesthetically.

Meaning, all of those sets performed more or less (in some cases less, specifically in certain special service applications) identically to a 2500/500, and at least one of those was a 2500 in a mouse shaped box.

Touch-Tone was actually a value add for the telco because it reduced register holding times in crossbar switches, and could reduce the amount of common control hardware needed, yet they still charged more for it (and the service too)

(Also, I think you mean trimline not streamline)

Thanks, yes, Trimline.

I'm really not going to try to defend AT&T's specific level of innovation.

I'm noting, however, that the possibility of offering a range of hardware at a range of price levels and allowing for volitional subscriber updates is possible, and was practiced.

I should have said they were renting very old and inadequate equipment; it wasn't fine and they knew it.
And most consumers probably lease their routers through their ISP as modem/WiFi router combos, which essentially remain supported and updated by the ISP.

If we alternatively enforce a floor on security updates for user-purchased routers, let’s say we require security updates for the physical lifespan of the device (10 years?), they will be baked into the price of the device in some way, and I’m not sure the majority of home router customers who essentially look to spend around $20-40 will be willing to bear that cost.

An example of that in action would be purchasing a business SKU laptop compared to a consumer one, and taking a look at the length of driver support.