The article by Professor Eli Noam (Columbia) in FT.com, 'Market failure in the media sector', has attracted wide-spread publicity and BuzzMachine had an early, and excellent, post about it ('He's right that consolidation is a market reaction to this trend ... We will see the big get bigger, like supernovas exploding. But underneath them, we are seeing little guys grow on an entirely different scale. And that's where I think the professor is wrong: There is more demand for information and media than ever. The market is not collapsing. Yes, prices are. But so are costs. And so, some of this growing demand will be served in new ways.'). GigaOm today quotes this from Noam,
International phone call prices have dropped, and with internet telephony will move to near-zero. Web advertising prices have collapsed. Much of world and national news is provided for free. A lot of software is distributed or acquired gratis. Academic articles are being distributed online for free. TV and radio have always been free unless taxed.
Missing the point, because in order to make a phone call, you need to have some sort of network and connectivity to the network. The value has gone from the call to the conduit.