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How the Internet Became Commercial: Innovation
© Copyright, Princeton University Press. No part of this book may be distributed, posted, or reproduced in any form by digital or mechanical means without prior written permission of the publisher. 1 Ubiquitous Clicks and How It All Started I think the press has a tendency to pick a person and paint them 10 feet tall. In fact, each of us does a little piece and I’ve done one thing, people add on that and then another. So you get credit for doing the whole damn thing, and that’s not so. —Paul Baran, after receiving the National Medal of Technology and Innovation1 ne day I watched my children use the Internet and soon found my- Oself talking with them about the Internet in the same effusive way my immigrant grandparents talked about the wonders of electricity and the magic of transcontinental air flights. My kids just shrugged their shoul- ders at their father’s dramatics and went back to surfing the web and play- ing online games. My children cannot imagine a world without the Internet. Clicks are fa- miliar. Hasn’t it always been so? Modern economies frequently change frontier technologies into widely used ones— from the mysterious to the unremarkable. The Internet was once exotic to all but a small set of cognoscenti, but long ago the technol- ogy spread to a majority of households and businesses. In the process of becoming ubiquitous it transformed how we work and live—changing how consumers behave, and altering how firms provide products and services. 1 The quote comes from Cassidy (2011). -
The Pre-Commercial Internet Under DARPA
Nurturing the Accumulation of Innovations: Lessons from the Internet by Shane Greenstein1 As the Internet diffused throughout the 1990s, it touched a wide breadth of economic activities. The diffusion transformed the use of information technology throughout the economy. It led to improvements in products, lower prices, the development of new capabilities, and the development of many innovations that enabled productivity improvements among business users. It diffused to the majority of homes and businesses, altering the way people shop, research, play, and relate socially. The Internet began as a government sponsored operation in the 1970s and 1980s and grew into a commercial industry in the 1990s. At first, the Internet lacked market-oriented focusing devices and/or economic inducement mechanisms typically associated with directing efforts toward the most valuable innovative outcomes.2 There were contracts for carrier services between government buyers and commercial suppliers, for example, but no general market orientation towards the pricing of the exchange of traffic between carriers. There also were a few providers of Internet equipment for government users, but no waves of inventive entrepreneurial entry. There were managers who understood the specific needs of their niche user communities, but no possibility for tailoring new products and services to every potential new set of users. How could an institutional setting that lacked market-orientation yield a set of innovations that supported the creation of massive market value only a few years later? This chapter helps explain the progression. The chapter divides the Internet’s development into a pre-commercial and commercial era. The pre-commercial period encompasses the 1970s and 1980s and some of the early 1990s, when the government controlled the research and development of the Internet and its components. -
Internet Trends 1995
Internet Trends 1995 Mary Meeker February 1996 MORGAN STANLEY U.S. Investment Research February 1996 Mary Meeker (212) 761-8042 / [email protected] Technology/New Media Chris DePuy (212) 761-6562 / [email protected] The Internet Report Morgan Stanley Global Technology Group: Other Contributors: Data Networking: George Kelly Economist: Steve Roach PC Software/Hardware & New Media: Mary Meeker Publishing: Doug Arthur Enterprise Software: Chuck Phillips Telecommunications Services: Stephanie Comfort Server Hardware: Steve Milunovich Cable Television: Rich Bilotti Telecommunications Equipment: Neil Danzger Financial Services: David Hilder Computer Services: Mark Wolfenberger Emerging Growth: Mike Sorell Semiconductors: Alan Rieper Semi. Equip., Wireless & Peripherals: Robert Maire Design Software: Alkesh Shah Distribution: Shelby Fleck Cross Industry: Bob Austrian European Technology: Angela Dean Japanese Technology: Takatoshi Yamamoto Japanese Technology: Mitsuko Morita Japanese Technology: Noriko Oki Asia/Pacific Electronics: Richard Wei This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. Morgan Stanley & Co. Inc. and others associated with it may have positions in and effect transactions in securities of companies mentioned and may also perform or seek to perform investment banking services for those companies. MORGAN STANLEY Acknowledgments The authors would like to thank the individuals who helped Morgan Stanley's Technology investment banking team has make this book possible. A report of this scope would not also been critical in helping us uncover emerging have been possible without a lot of hard work and a lot of companies in all areas of technology, most recently related support from many people. -
The Internet Bubble the Impact on the Development Path of the Telecommunication Sector
The Internet bubble the impact on the development path of the telecommunication sector Wolter Lemstra The Internet bubble and the impact on the development path of the telecommunication sector The Internet bubble and the impact on the development path of the telecommunication sector Proefschrift ter verkrijging van de graad van doctor aan de Technische Universiteit Delft, op gezag van de Rector Magnificus prof.dr.ir. J.T. Fokkema, voorzitter van het College voor Promoties, in het openbaar te verdedigen op maandag 16 oktober 2006 om 15:00 uur door Wolter LEMSTRA elektrotechnisch ingenieur geboren te Roodeschool Dit proefschrift is goedgekeurd door de promotoren: Prof.dr. W.H. Melody Prof.dr. J.P.M. Groenewegen Toegevoegd promotor: Dr. R.W. Künneke Samenstelling promotiecommissie: Rector Magnificus, voorzitter Prof.dr. W.H. Melody, Technische Universiteit Delft, promotor Prof.dr. J.P.M. Groenewegen, Technische Universiteit Delft, promotor Dr. R.W. Künneke, Technische Universiteit Delft, toegevoegd promotor Prof.dr. B. de Wit, Maastricht School of Management Prof.dr. J.C. Arnbak, Technische Universiteit Delft Prof.dr. L.L.G. Soete, Universiteit Maastricht Dr. S. Paltridge, Organisation for Economic Co-operation and Development Voor mijn ouders, die studeren stimuleerden en mogelijk maakten. Colophon Published and distributed by: Industry-Insights BV Wakkerendijk 94A NL-3755 DE EEMNES The Netherlands Phone: + 31 35 533 4751 Email: [email protected] English editor: Mrs. W.M.J. Meissner-Stibbe Cover design: Victor Wentink Printing: Febodruk BV, Enschede Keywords: telecommunication, internet, financial bubbles, paradigms, strategy, policy ISBN-10: 90-810895-1-X ISBN-13: 978-90-810895-1-7 Copyright © 2006 by Wolter Lemstra All rights reserved. -
AT&T's Implementation of NSA Spying on American Citizens
AT&T’s Implementation of NSA Spying on American Citizens 31 December 2005 I wrote the following document in 2004 when it became clear to me that AT&T, at the behest of the National Security Agency, had illegally installed secret computer gear designed to spy on internet traffic. At the time I thought this was an outgrowth of the notorious “Total Information Awareness” program which was attacked by defenders of civil liberties. But now it’s been revealed by the New York Times that the spying program is vastly bigger and was directly authorized by president Bush, as he himself has now admitted, in flagrant violation of specific statutes and Constitutional protections for civil liberties. I am presenting this information to facilitate the dismantling of this dangerous Orwellian project. AT&T Deploys Government Spy Gear on WorldNet Network --16 January, 2004 In 2003 AT&T built “secret rooms” hidden deep in the bowels of its central offices in various cities, housing computer gear for a government spy operation which taps into the company's popular WorldNet service and the entire Internet. These installations enable the government to look at every individual message on the Internet and analyze exactly what people are doing. Documents showing the hardwire installation in San Francisco suggest that there are similar locations being installed in numerous other cities. The physical arrangement, the timing of its construction, the government- imposed secrecy surrounding it, and other factors all strongly suggest that its origins are rooted in the Defense Department's “Total Information Awareness” (TIA) program which brought forth vigorous protests from defenders of Constitutionally-protected civil liberties last year: “As the director of the effort, Vice Adm. -
The Impact of Corporate Culture on the Execution of Strategy at a Telecommunications Company
THE IMPACT OF CORPORATE CULTURE ON THE EXECUTION OF STRATEGY AT A TELECOMMUNICATIONS COMPANY Joanna P. Lee B. Sc. in Computing Science, Simon Fraser University, 1997 Gary Perkins B. A. in Psychology, Simon Fraser University, 1999 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration Management of Technology Program O Joanna P. Lee and Gary Perkins 2005 SIMON FRASER UNIVERSITY Spring 2005 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the authors. APPROVAL Name: Joanna P. Lee and Gary Perkins Degree: Master of Business Administration Title of Project: The Impact of Corporate Culture on the Execution of Strategy at a Telecommunications Company Supervisory Committee: Dr. Mark Frein Senior Supervisor Adjunct Professor, Faculty of Business Administration Dr. Michael Brydon Second Reader Assistant Professor, Faculty of Business Administration Date Approved: SIMON FRASER UNIVERSITY Partial Copyright Licence The author, whose copyright is declared on the title page of this work, has granted to Simon Fraser University the right to lend this thesis, project or extended essay to users of the Simon Fraser University Library, and to make partial or single copies only for such users or in response to a request from the library of any other university, or other educational institution, on its own behalf or for one of its users. The author has further granted permission to Simon Fraser University to keep or make a digital copy for use in its circulating collection. The author has further agreed that permission for multiple copying of this work for scholarly purposes may be granted by either the author or the Dean of Graduate Studies. -
Landlords of the Internet: Big Data and Big Real Estate
Daniel Greene 1 This is a preprint of an article currently under review. The final version will differ. Landlords of the Internet: Big Data and Big Real Estate Abstract: The physical assets at the core of the internet, the warehouses that store and transmit data and interlink global networks, are owned not by technology firms like Google and Amazon, but by commercial real estate barons who compete with malls and property storage empires. While the infrastructural turn has brought data centers and transcontinental cables further into view in technology studies, the economic life of these massive projects has come under less scrutiny. Granted an empire by the US at the moment of the internet’s commercialization, these internet landlords and their particular business model shaped how the network of networks that we call the internet physically connects, and how personal and business data is stored and transmitted. Under their governance, internet exchanges, colocation facilities, and data centers take on a double life as financialized real estate assets that circle the globe even as their servers and cables are firmly rooted in place. This article relates the history of the landlords of the internet, showing how a fundamental reconsideration of the business model at the heart of the internet changes how we understand internet governance and contemporary capitalism writ large. Keywords: Internet history, infrastructure, real estate, political economy, big data Introduction At One Summer Street in downtown Boston, a squat, square building sits atop the subway. Its bottom four floors, roughly 400,000 square feet, are occupied by Macy’s. Above Macy’s, another 400,000 square feet house the internet. -
TEAM Ling TELEBOMB
TEAM LinG TELEBOMB The Truth Behind the $500-Billion Telecom Bust and What the Industry Must Do to Recover JOHN HANDLEY AMERICAN MANAGEMENT ASSOCIATION New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. TEAM LinG ................. 11283$ $$FM 04-12-05 13:06:22 PS PAGE i Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Various names used by companies to distinguish their software and other products can be claimed as trademarks. AMACOM uses such names throughout this book for editorial purposes only, with no intention of trademark violation. All such software or product names are in initial capital letters or ALL CAPITAL letters. Individual companies should be contacted for complete information regarding trademarks and registration. Library of Congress Cataloging-in-Publication Data Handley, John, 1961– Telebomb : the truth behind the $500-billion telecom bust and what the industry must do to recover / John Handley. p. cm. Includes index. ISBN 0-8144-0833-8 (hardcover) 1. Telecommunication—United States. -
Covad Communications Group, Inc. (NASDAQ: COVD) Initiating Coverage: SELL February 16, 2001
INSTITUTIONAL RESEARCH 244 Fifth Ave., 2nd Fl., Ste. 2801 • New York, NY 10001 • Tel: (212) 726 1408 • Fax: (413) 215 0880 Covad Communications Group, Inc. (NASDAQ: COVD) Initiating Coverage: SELL February 16, 2001 KEY CONSIDERATIONS Recent Price $2.88 • Covad is in the intensive care as the economy came down 52WK Low $1.25 crushing on the company’s expansion plans. New managements 52WK High $66.67 and a new business plan will attempt to slow expansion in order P/E N/A P/Book 0.77 to preserve cash and achieve profitability in expense of market P/Sales 2.26 share. Market Capitalization $511.85 M Shares Outstanding 178.03 M • Covad ended 2000 with 270,000 total lines in service, an increase Float 126.40 M of 33.66% from the end of Q3. Over 17,000 line-shared lines Daily Volume 7.43 M were installed, a substantial increase compared to 400 line- (3-month Average) shared lines installed in the third quarter. EPS 1999A -$2.74 • Delinquent accounts kept rising as more ISPs are going bankrupt, 2000E -$4.36 or they simply stop paying. The number of ISPs for which Covad 2001E -$5.40 is not recognizing revenue increased to 19, four of which have Current Ratio 4.26 filled for bankruptcy protection. The company does not realize Total Debt to Equity 2.03 revenue from 92,000 lines. LT Debt to Equity 1.98 Total Cash $975 M • Covad is still unprofitable and is expected to continue to incur substantial losses for the foreseeable future. -
Internet Traffic Exchange: Developments and Policy
DSTI/ICCP/TISP(98)1/FINAL Unclassified DSTI/ICCP/TISP(98)1/FINAL Organisation de Coopération et de Développement Economiques OLIS : Organisation for Economic Co-operation and Development Dist. : __________________________________________________________________________________________ Or. Eng. DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Working Party on Telecommunication and Information Services Policies INTERNET TRAFFIC EXCHANGE: DEVELOPMENTS AND POLICY 60993 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format 1 DSTI/ICCP/TISP(98)1/FINAL Copyright OECD, 1998 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Services, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France 2 DSTI/ICCP/TISP(98)1/FINAL TABLE OF CONTENTS FOREWORD.................................................................................................................................................. 5 MAIN POINTS............................................................................................................................................... 6 INTRODUCTION.......................................................................................................................................... 8 NATIONAL AND INTERNATIONAL TRAFFIC EXCHANGE.............................................................. 14 National traffic exchange: peering and transit -
Internet Traffic Exchange: Developments and Policy”, OECD Digital Economy Papers, No
Please cite this paper as: OECD (1998-04-01), “Internet Traffic Exchange: Developments and Policy”, OECD Digital Economy Papers, No. 34, OECD Publishing, Paris. http://dx.doi.org/10.1787/236767263531 OECD Digital Economy Papers No. 34 Internet Traffic Exchange DEVELOPMENTS AND POLICY OECD DSTI/ICCP/TISP(98)1/FINAL Unclassified DSTI/ICCP/TISP(98)1/FINAL Organisation de Coopération et de Développement Economiques OLIS : Organisation for Economic Co-operation and Development Dist. : __________________________________________________________________________________________ Or. Eng. DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Working Party on Telecommunication and Information Services Policies INTERNET TRAFFIC EXCHANGE: DEVELOPMENTS AND POLICY 60993 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format 1 DSTI/ICCP/TISP(98)1/FINAL Copyright OECD, 1998 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Services, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France 2 DSTI/ICCP/TISP(98)1/FINAL TABLE OF CONTENTS FOREWORD.................................................................................................................................................. 5 MAIN POINTS............................................................................................................................................... 6 INTRODUCTION......................................................................................................................................... -
THE DIGITAL Handshake: CONNECTING INTERNET BACKBONES
THE DIGITAL HANDsHAKE: CONNECTING INTERNET BACKBONES Michael Kende* I. INTRODUCTION a "handshake" environment. Internet backbones interconnect under two different arrangements: The Internet is not a monolithic, uniform net- peering or transit. In a peering arrangement, work; rather, it is a network of networks, owned backbones agree to exchange traffic with each and operated by different companies, including other at no cost. The backbones only exchange Internet backbone providers. Internet backbones traffic that is destined for each other's end users, deliver data traffic to and from their customers; not the end users of a third party. In a transit ar- often this traffic comes from, or travels to, cus- rangement, on the other hand, one backbone tomers of another backbone. Currently, there are pays another backbone for interconnection. In no domestic or international industry-specific reg- exchange for this payment, the transit supplier ulations that govern how Internet backbone prov- provides a connection to all end users on the In- iders interconnect to exchange traffic, unlike ternet. other network services, such as long distance voice The interconnection policies that have evolved services, for which interconnection is regulated.' in place of industry-specific regulations are ex- Rather, Internet backbone providers adopt and amined here in order to determine the impact of pursue their own interconnection policies, gov- these policies on the markets for Internet services. erned only by ordinary laws of contract and prop- In the past several years, a number of parties have erty, overseen by antitrust rules. This paper exam- questioned whether larger backbone providers ines the interconnection policies between In- are able to gain or exploit market power through ternet backbone providers that have evolved in the terms of interconnection that they offer to place of industry-specific regulations in order to smaller existing and new backbone providers.