The Web is on its way to becoming the Fourth Utility. Most markedly so in terms of enabling companies to store their data on someone elses network, and leverage unused processing power from the likes of Amazon.com with their services model. Google enables you to use their storage for email and essentially promotes their email service as your de facto email archive. But does this amount to a “utility” in the sense that power, water and telephones are? Almost but not quite we argue. Why?

There simply isn’t any true regulation around the Web and fundamentally around the infrastructure that constitutes the Web. One of the biggest battles brewing right now is Net Neutrality. Essentially this means giving all the “stuff” that sits behind the scenes (servers, routers, connectivity, security etc.) the ability to enable anyone to put any kind of applications (i.e. CRM tools) or gear onto that network for any type of purpose (business or leisure) to make money or not. This debate is raging the most in the United States and has pitted academics, Congress, the FCC and broadband providers such as Comcast, against each other. In the most recent FCC hearing, the broadband providers did not show up.

The FCC, academics and Web companies are frustrated with the broadband providers who they feel are trying to control how people connect to the Internet and what they can do on the Internet. What we are seeing today is that most applications connect easily, but depending on what service provider you use, a consumer or business will experience different levels of access and service depending on the providers policies. Some call this the Great Firewall of China. Especially in reference to some behaviour by Comcast to mess with P2P (peer-to-peer) networks.

While few organizations argue that we shouldn’t pay access fees, we’re still seeing a very haphazard Web with policies varying by region, country and carrier. All of this boils down to severe limitations on the growth of the Web into a viable “utility”. In order for electricity companies to succeed in providing hydro to everyone, they all settled on A/C current and standardization behind a lot of the infrastructure. This lead to incredible innovations, such as the toaster, electric iron, electric heating and eventually to computers. The electric utility companies didn’t limit what anyone could plug in to the system, as long as it worked within certain voltage parameters.

The broadband carriers and cable companies today might do well to open their history books and take some lessons from the Chicago Electric Supply Company formed in the 19th century that lead the revolution of electricity as a utility.

Then we will see the Web truly become a tool of greater innovation, more companies will move towards seeing the Web as a utility for information.