Reply-To: gaj@pcs.win.net (Gordon Jacobson) Date: Fri, 29 Oct 1993 16:01:29 Subject: Gilder' Article - Issaquah Miracle From: gaj@pcs.win.net (Gordon Jacobson) > Following yesterday's upload of "New Rule of Wireless," here is >the third article in George Gilder's series. This is the second of >four articles I would like to upload to comp.dcom.telecom. I >contacted the author and Forbes and as the preface below indicates >obtained permission to post on the Internet. Please note that the >preface must be included when cross posting this article to another >newsgroup. The following was received directly from Forbes ASAP on >Wednesday October 27, 1993. >Date: Wed Oct 27, 1993 9:17 pm GMT >From: Forbes ASAP / MCI ID: 579-9624 > > >TO: Gordon Jacobson >Subject: PLEASE UPLOAD TO INTERNET > > > > > The following article, ISSAQUAH MIRACLE, was first published >in Forbes ASAP, June 7, 1993. It is a portion of George Gilder's >book, Telecosm, which will be published next year by Simon & >Schuster, as a sequel to Microcosm, published in 1989 and Life >After Television published by Norton in 1992. Subsequent >chapters of Telecosm will be serialized in Forbes ASAP. > > > ISSAQUAH MIRACLE > > BY > > GEORGE GILDER > > In the spring of 1989 when Michael Bookey first visited the >Middle School in Issaquah, Wash., to help the school system with >its computers, he was reminded of his early ventures into >Communist China. After 20 years of working with computer >networks, to enter Issaquah seemed to me like encountering an >exotic tribe of primitives untouched by the modern world. > > The only sign of modern technology was a forlorn computer >room full of Radio Shack TRS-80 machines, most of which had >broken down. Then he learned that as a remedy for this problem, >the district had recently voted a levy of $2.7 million for >outlays on high technology. > > Lacking any better ideas, the school system had decided to >distribute the money equally among the teachers, to spend as they >wanted. What they wanted turned out to be VCRs, incompatible CD- >ROM drives and a random selection of computers, printers and >other gear to be scattered through the schools under the >influence of a flock of computer salespeople attracted to the >site by the pool of mandated money. > > To Bookey, this remedy seemed worse than the disease. It >meant that the bulk of the money would be wasted, further >estranging both taxpayers and students from the most powerful >technologies of their era. Bookey wanted school officials to >know that the most powerful technology is not computers, but >computers joined in networks. > > Explaining the magic of networks, Bookey asks you to imagine >a car plumped down in the jungle. Checking it out, you might >find it a very useful piece of equipment indeed. A multipurpose >wonder, it would supply lights, bedding, radio communications, >tape player, heat, air conditioning, a shield against arrows and >bullets, and a loud horn to frighten away fierce animals. In awe >of the features of this machine, you might never realize that the >real magic of a car comes in conjunction with asphalt. > > For the first 10 years of the personal computer era, >according to Bookey, we have used our computers like cars in the >jungle. We have plumbed their powers for processing words and >numbers. All too often, home computers have ended up in the >closet unused. We have often failed to recognize that most of >the magic of computing stems from the exponential benefits of >interconnection. > > In the microcosm, the interconnections come on individual >chips, as ever smaller transistors crammed ever closer together >work faster, cooler and cheaper, enhancing both the capability >and the speed of the processor. The microcosm strewed some 100 >million personal computers around the world and endowed >individuals at workstations with the creative power of factory >owners of the Industrial Age. > > Just as the microcosm generates exponential gains from >increasing connections on chips, the telecosm generates >exponential gains by increasing connections between chips, >powerful microcomputers in themselves. These links between >increasingly potent microchips will soon dominate the world of >communications. > > The networking industry therefore faces a drastic transition >from a people-to-people regime to computer-to-computer. This >change is so radical that it resembles a mutation that creates a >new species. People communicate in domains of time and space >entirely alien to the world of computers. To a person, a one- >second delay on a voice line seems hardly noticeable; to a >computer, one second may mean a billion computations that would >take hundreds of human lifetimes to accomplish by hand. > > Most important, people can transmit or receive only a small >stream of information at a time. They want relatively narrow >bandwidth connections for a relatively long period, a 64-kilobit- >per-second voice link, for example, for a 10-minute phone call. > > Computers, on the other hand, can handle hundreds of >millions or even billions of bits a second. They often need many >millions of bits of bandwidth for a short time fractions of >seconds. As industry shifts from a human scale of time and space >to a computer scale, the systems and structures in existing >telephone and broadcast networks become almost irrelevant. >Essentially, all other forms of networks: voice, text, video and >sound, are rapidly giving way to various new forms of multimedia >computer networks. > > Driving this overwhelming force of change is the alchemy of >interconnections, working in the telecosm with the same logic and >feedback loops as connections in the microcosm. hile dumb >terminals such as phones and TVs use up bandwidth without giving >anything back, computers are contributors to bandwidth, not >consumers of it. > > In general, the more computers, the more bandwidth. Not >only is the network a resource for each new computer attached to >it, but each new computer is also a resource for the network. >Each new computer expands the potential switching and processing >capacity of the system by a large multiple of the increasing >demands it makes on other switches and processors. > > As ever more powerful computers are linked ever more >closely, whether in digital cellular microcells or in webs of >fiber and coaxial cable, usable bandwidth expands explosively. >Governing the expansion of networks, the law of the telecosm is >just as potent as the law of the microcosm. Indeed, in enhancing >the productivity of organizations, the telecosm consummates the >microcosmic miracle. > > > >Microsoft Windows for Jungle Cars > > > The creator in the early 1970s of what may have been the >world's first fully functioning system of corporate electronic >mail, Bookey was quick to foresee this radical shift from person- >to-person to computer-to-computer communications. Pursuing his >vision of networks, Bookey in 1982 spurned a possible job at >Microsoft on the grounds that the company was outfitting cars for >the jungle, a decision that probably cost him several million >dollars. > > Instead, he joined Seafirst Bank in Seattle, where he made >history (in the form of a reference in John Sculley's >autobiography, Odyssey) by pushing the purchase of a thousand >Macintosh computers for bank networks at a crucial time for >Apple. > > In 1986 Bookey left the bank to join Doelz Co., a startup in >Irvine, Calif., that built advanced computer network equipment >that he had used at Seafirst. For Doelz, Bookey designed >software and spearheaded marketing. A so-called cell-based >network, the Doelz system broke up a stream of data into short, >equal-sized packets, each with its own address, to be sent >through the nodes of the net in nanoseconds, like letters >accelerated a trillionfold through the branches of the post >office. > > Bookey was not necessarily wrong in choosing this technology >over Microsoft's. In the form of asynchronous transfer mode >(ATM) systems, this essential approach, based on short, uniform >packets that can be switched at gigabit speeds in hardware, is >now the rage of planners in the computer networking industry. > > ATM is seen as the crucial enabler for digital networks >combining voice, data and video in so-called multimedia >applications. Bill Gates now calls multimedia the future of his >industry. Although many observers still see ATM as a futuristic >technology, Bookey believes its future is nearly now. From the >humblest personal digital phone to the most advanced >supercomputer, computer-to-computer links will dominate the >entire universe of telecommunications, and ATM will dominate >network switching. > > Doelz, however, was ahead of its time and failed to survive >a tangled legal imbroglio with AT&T in 1988. So Bookey took a >big profit on his California residence and returned with his wife >Robin and daughter Erin to Seattle, where he had grown up and set >records in the mile on the track at the University of Washington. >He bought his dream house on the top of Cougar Mountain in >Issaquah, with a view of the very Twin Peaks made famous in the >television series and put out his shingle as a network consultant >under the name Digital Network Architects (DNA). Almost as an >afterthought, the Bookeys sent Erin to Issaquah Middle School. > > Having designed networks around the world, Bookey had often >seen their powerful impact on business organizations, such as >banks. Bookey believed that networks could have a similar >revitalizing impact on schools. Like banks, schools are >essentially information systems that have brought their >Industrial Age hierarchy into the Information Age. > > Creating networks in schools, however, posed many special >problems. Most school systems, like Issaquah, were largely >unaccustomed to managing technology. The system would need to >create a large MIS (management information services) organization >just to keep the network functioning. Then, as the teachers at >Issaquah hastened to point out to Bookey, there was the problem >of students. Impulsive, mischievous and messy, they in no way >resembled the disciplined employees of a corporation. Speaking >from grim experience, some of the teachers told Bookey that his >network plans would succeed only if the computers were reserved >exclusively for teachers and if students were barred entirely. > > Bookey, however, thought there had to be a way to bring the >magic of networks to America's increasingly troubled school >systems. The secret would be to recognize that, just as >computers are not consumers of but contributors to bandwidth, >students should be seen not as a problem, but as a precious >resource in launching the networks that inform the Information >Age. > > > >Networks as Productivity Engines > > > Ever since Adam Smith first maintained that the division of >labor, the spread of specialization, is the catalyst of the >wealth of nations, economists have seen the breakdown of >functions into subfunctions and specialties as the driver of >efficiency and growth. The key force expanding specialization in >the contemporary capitalist economy is networks. Indeed, >networks, by their nature and purpose, refine the division of >labor. > > In the financial industry, for example, networks allowed the >proliferation of specialized institutions. In the ever-shifting >kaleidoscopes of American finance, some institutions went local, >some global. Some managed car loans, credit cards or other >consumer services; some handled mortgages, mutual funds or real >estate trusts; still others stressed computer leases, junk bonds, >venture capital or large corporate accounts. > > The pell-mell fragmentation of American finance during the >1980s into an ever more refined division of labor enabled the >U.S. to lead the world in levels of capital efficiency, with more >economic growth per dollar of savings than any other country. >Each financial business did not have to repeat all the work of >all the rest, and each became more efficient at a particular >task. > > Bookey believes that networks can have a similar effect on >that other great information-processing industry: education. Why >should every school have an all-purpose library and a French >teacher and a calculus scholar and a health center and an >administrative office? Why should every school have an entire >complement of buildings? > > With all the schools on networks, individual schools could >specialize in particular subjects, functions and resources, as >financial companies do. Education would not have to happen >exclusively, or even mostly, in schools. The explosive spread of >networks is now the prime mover of the U.S. economy, allowing all >industries to break down into patterns of specialization unbound >by place and time. And now the government wants to get into the >act. > > > >Superhighways in the Sky > > > Zoom through tax-hike tollgates and glide out onto data >superhighways; this is the new mantra of American industrial >policy. Add the further fillip of investment for educational >infrastructure and you can sweep up the ramp toward the federal >treasury and drive out with a bonanza. > > In this new era of the big bands, there are now some 10 >bills before Congress to foster vast new networks with large >bandwidth, or communications capacity. Some $2 billion has >already been authorized and $765 million appropriated this year >for various programs related to a National Research and >Educational Network (NREN). > > Candidate Bill Clinton presented the concept of NREN as Ra >national information network to link every home, business, lab, >classroom and library by the year 2015. President Bill Clinton, >vice-president Albert Gore and a raft of advisors all celebrate >the highway as the metaphor for the future information economy. >Gore points out that his father was a leader in building the >Interstate Highway System in the early 1950s; Albert Jr., wants >to play a key role in building the information highways of the >1990s. > > Indeed, data superhighways would seem to be the fulfillment >of the fibersphere; the way to create the vast new infrastructure >of fiber-optic lines that will bring the full promise of digital >video and multimedia communications to all citizens. > > Why, then, is Mike Bookey so worried? He would seem to be >the perfect NREN champion. Bookey has pursued networks through >most of his career and now is focusing on networks for education. >In explaining the importance of computer connections, he has even >long used Gore's favored highway metaphor. Bookey thinks that >the federal superhighwaymen do not grasp the nature of networks >and how they grow. In systems work we have a rule: You design >top down, but you build bottom up. > > Bookey sees the creation of networks as an organic process, >driven by public demand, shaped by human needs and rooted in a >moral universe of growth through sharing. It is the experience >of building the network that creates the expertise to maintain >and use it. In all these processes, big government is nearly >irrelevant. > > > >None of the Above > > > For the past 10 years, Washington, D.C. experts have been >wringing their hands over the supposedly unbearable costs of >building broadband networks and the urgent need for large federal >funding. Analysts have been ruminating over the question of who >would spearhead the creation of broadband nets; the phone >companies, the cable television companies or the government. > > Before any of these forces could act, however, it became >clear that the answer would be none of the above. The hardest >part of the job was accomplished, with astonishing speed, by >computer and networking companies. The rest of the work is well >under way, as cable and phone companies adopt the computer >technologies. > > As recently as 1989, only seven percent of America's >personal computers were connected to local area networks. By >1991 45 percent were connected, and by 1993, close to two-thirds >were linked to LANs. Growing even faster than LANs is the >internetworking business: the interconnection of existing local >area nets in wide area networks. > > Building internetworking gear or accessories, such companies >as Cisco Systems, Cabletron, Wellfleet, 3Com and SynOptics are >among the highest flyers in the technology stock market boom. >Cisco, for example, is growing some 50 percent a year and >commands a market value of almost $6 billion, comparable to that >of Digital Equipment Corp. Cabletron has hiked its revenues some >16-fold in the last five years. > > Most of these connections run at some 10 megabits per >second, enough for high-resolution digital video, but inadequate >for the more exotic traffic in images predicted for use later in >the decade. Increasingly, however, the connections are fiber- >optic lines or are broadband coax, which is nearly as good as >fiber for short-distance transport. The potential of fiber is >almost unlimited (see "Into the Fibersphere," Forbes ASAP, >December 7, 1992). > > Although moving more slowly than the computer firms, >telephone and cable companies are rushing to lay fiber ever >deeper into the nation's neighborhoods. Spending some $2 billion >(as much as NREN), Telecommunications Inc. (TCI) vows, according >to CEO John Malone, to have 90 percent of its subscriber >households served by fiber to the curb by 1995. > > Bringing fiber into the local loop at a slower pace, the >telephone companies, led by Bell Atlantic, also are forging ahead >with ingenious new ways to make their twisted-pair copper >connections carry as much as six megabits per second of digital >information. Wireless technology is also moving into the local >loop for video delivery (see "The New Rule of Wireless," Forbes >ASAP, March 29, 1993). > > The U.S. networking industry is not in need of fixing. The >U.S. currently commands some three-fourths of all the world's >LANs and perhaps 85 percent of its internetworks. Although Gore >and others justify their industrial policies by referring to the >imperious plans of Japan, the U.S. currently commands about three >times the computer power per capita as Japan, some 10 times as >many computers attached to networks, and an installed base of >broadband fiber and cable nearly 10 times as large. The >remarkable thing is that the U.S. government is so eager to fix a >fabulously flourishing system that is the envy of the world. > > The electronic and photonic networking industries actually >resemble highways in only the most superficial way. The highway >construction trade has not advanced substantially in 50 years. >By contrast, the networking trade is the fastest-moving part of >the ever-accelerating computer industry and doubles its cost- >effectiveness every year. Although interconnecting government >laboratories, contractors and supercomputer centers with fiber is >desirable, a massive government network is not. Issaquah offers >better guidance for the future.... But first it will be >necessary to deal with the abiding menace of the student problem. > > > >Overcoming the Student Problem > > > "What do you think you are doing? Answer me," the voice >insisted with the I've-got-you-squirming-now confidence of a >teacher who has caught a pupil red-handed. > > "Just lookin' around," grumbled Lee Dumas, the red-headed 13- >year-old, trying to sound natural. Glimpsing a telltale red >screen of network management among the array of blue displays >used in the keyboarding class, the teacher had walked up silently >behind Dumas as he broke into the student lists, software >programs and grades, and was on the verge of entering the >administrative server. > > Dumas was a bad kid. No one at Maywood Middle School (one >of the 16 campuses in Issaquah) doubted that. His teachers >called him "obnoxious" or even "brain-dead." He set what he >believes was an all-time record at Maywood by being detained >after class some 60 times for insubordination. Using the >approved psychobabble, he says, "I had problems with authority. >I couldn't accept teachers ordering me around." > > After being caught breaking into the computer system, Dumas >was dragged up to the principal's office. Neither the teacher >nor the principal could figure out the nature of the crime or >judge its seriousness. For help, they summoned Don Robertson, >the administrator assigned to Issaquah's Technology Information >Project (TIP). He considered the situation gravely and >recommended severe punishment. Toward the end of the meeting, >however, he turned to Dumas and said, "With your talent, you >should become the sheriff rather than the outlaw. Why don't you >come down and join TIP?" Since no one had previously detected >any talent in Dumas, this comment made a sharp impression. > > About a week later, he showed up sheepishly at Robertson's >door. To school administrators, kids like Dumas might be a >problem, but to Bookey, Issaquah's 9,000 students seemed a >wonderfully cheap resource. By training the students to build >and maintain the networks, he could make the $2.7 million the >foundation of an enduring educational resource. > > In the end, the Issaquah network was almost entirely built >by students between the ages of 12 and 17. Using students to >solve the problems of network maintenance and support and thus >reduce the real costs by some 80 percent was Mike Bookey's >solution to the perplexing problem of computers in schools. > > The first step in the Issaquah networking venture, in the >spring of 1990, cost no money and arose from pure necessity. >Just as in businesses across the country, the initial motive for >networking was the arrival of laser printers from Hewlett >Packard. Bookey began by giving his 10-person TIP team a pile of >manuals and having them install a basic network connecting two >PCs, an Apple II and a Macintosh to a laser printer. This step >enhanced the value of all the computers at a small fraction of >the cost of buying new dot-matrix printers for each. Four of the >ten students managed to cobble together the network in about a >month. They learned the intricacies of pulling twisted-pair >wiring for 10baseT Ethernet computer connections running at the >standard rate of 10 million bits (megabits) per second. > > The next step was to add a hard disk containing school files >and software programs. Using both Apples and IBM PCs, the >Issaquah network from the beginning, had to handle a variety of >communications protocols. If the network was to connect to >anything outside itself to the school's administration building >or the school system's libraries, for example, Issaquah would >have to install equipment that could sort out messages from >different computers. This meant Issaquah joined the market for >multiprotocol routers. A router is a device that sits on a >computer network and reads the addresses on all the message >packets that pass by. If the address is on another network with >a different protocol, the router creates a new envelope for the >packet and sends it to the other network. > > Nonetheless, with all their routers and Ethernet wiring, the >Issaquah networks slowed to a crawl as soon as they had to >connect outside a building. There, they had to depend on what is >known as the Public Switched Telephone Network, where everything >turns to analog and drowses down to some 2,400 bits per second. > > Bookey demonstrated that the school could save money on its >voice communications by buying a digital T-1 line that >multiplexes 24 phone circuits onto a 1.544-megabit-per-second >system. Since 12 of the 24 circuits would be enough to satisfy >the school's internal voice needs, the rest of the T-1 line, some >760 kilobits per second, could be devoted to the data >communications needs created by the school's new Ethernets. >Thus, while getting a cheaper solution for its voice traffic, the >school increased its data bandwidth by some sevenfold for free. > > Once these connections were in place, the students acquired >a Microsoft Mail program to incorporate E-mail in the system. >Soon, this became the heart of the network, with both students >and teachers using it constantly to handle papers, consult >teachers in other schools in the system, make reports to the >state and interact with parents and students. E-mail became so >central to the functioning of Issaquah that when the computers >were down teachers would talk of canceling classes. > > To E-mail were added connections to Internet, the global >research and education network launched some 33 years ago as >DARPA Net (the Pentagon's Defense Advanced Research Projects >Agency). Since Internet was civilianized in 1983, adopting the >TCP/IP networking standard, it has been expanding its traffic at >a pace of some 15 percent per month. Between 1981 and 1992 the >number of computers connected to Internet rose from 281 to 1.1 >million. Through Internet, the students could search through a >variety of databases for material for a paper or connect to Japan >for help in learning Japanese. > > Along with several other Issaquah students, Aaron Woodman, >Jr., a burly boy with his long blonde hair in a ponytail, became >so adept at using Internet that he now gives speeches to national >conferences on the subject. The speechmaking needs that grew out >of the Issaquah project have imparted valuable lessons in English >communications for the students. > > All these developments did not occur without administrative >resistance. But the administration eventually became a prime >beneficiary. Soon, the computer networks in the Issaquah system >were connected by a T-1 line to the Washington Schools >Information Processing Cooperative (WSIPC) 20 miles north in >Redmond, where attendance and other student records were kept for >the entire state. > > To make these WSIPC services more readily available to >schools across the state, Bookey proposed the creation of a >statewide educational network running on T-3 lines (45 megabits >per second), now known as WEDNET. This provides links all over >Washington, from Shaw Island and Stehekin to Seattle and >Issaquah, with a rogue line down to Portland, Oreg. > > As for Lee Dumas, according to his mother, his situation has >changed completely, "both in his attitude toward school and in >the school's attitude toward him." After joining TIP, Dumas >became one of its most active and enthusiastic members. Last >summer, he got a job at the Computer Store in Seattle teaching >the Macintosh HyperCard program to a student body consisting, >yes, of public school teachers. According to Dumas, they had no >problem accepting his authority as a fledgling computer guru. > > No longer one of the outlaws, Dumas became an official beta >tester for the new Microsoft DOS 6.0 and Windows NT operating >systems, specializing in their security procedures. Following >the path of another student who found the "Issaquah bug" in >Microsoft's LAN Manager program, Dumas believes he found three or >four bugs in NT. > > Having just finished his sophomore year, Dumas has gone to >work this summer at Microsoft for the company's network >development chief, Brian Valentine, who regards this once brain- >dead punk as a valued employee with high promise for the future. >This student who floundered in the usual educational system >flourished when his individual specialization was discovered. >The Issaquah economy released his energies, just as the national >economy releases its own energies through the specialization and >division of labor in computer networks. > > Since there are millions of Lee Dumases in the schools of >America, many of them being given up for lost by analysts such as >Labor Secretary Robert Reich, because they are not adept at the >usual curriculum for "symbolic analysts," Dumas' redemption by >technology bears crucial lessons. The lessons are Bookey's: >Students are a resource, not a rabble; specialized practical >experience is more edifying than most textbook learning; networks >are the critical technology both for economic growth and for >educational renewal. > > To these insights should be added Lewis Perelman's view, in >his book "School's Out" (1992, Morrow), that teachers should >increasingly abandon their role as a "sage on the stage" in favor >of service as a "guide on the side," steering their students >through a global cornucopia of educational resources. > > > >Education as a Network Driver > > > It may seem peculiar that Bookey, a network guru for large >corporations like U.S. West, should focus his attentions on such >problems as interconnecting school children in Issaquah with >libraries in Bellevue, parents on Squaw Mountain, teachers across >town and administrators at the Washington State Information >Processing Cooperative. Yet Bookey believes that the educational >application may well drive the creation of a true national >infrastructure of digital networks. > > The networking problems of schools closely resemble the >networking problems of a nation full of diverse systems. To >achieve their full promise, school networks must link computers >of many varieties owned by parents, students and teachers, to >administrative servers owned by state and local governments, to >printers, libraries and databases. School networks must connect >LANs to IBM SNA (Systems Network Architecture) links, to a >variety of telephone technologies, from T-1 lines of 1.5 megabits >per second to T-3 lines at 45 megabits per second and, soon, to >ATM switches and other potential gigabit systems. In all its >dimensions, including an acute financial constraint, this >challenge is altogether as difficult as interconnecting >supercomputers over fiber in an NREN. > > Bookey relished this challenge at Issaquah. Advocates of >NREN might disparage Issaquah as a relatively low-grade network. >After all, it currently has no fiber outside of the fiber links >in the telephone network that it uses. Without fiber, the >network will not be able to accommodate collaborative learning in >multimedia forms across the country. Bookey demurs. Buying a >fiber-optic network before personal computer technology can >manage broadband flows of data is premature. In five years, >fiber-optic links will probably cost about one-fifth of what they >cost today. When the network is needed, Issaquah will be able to >purchase it and, more important, also use it. Moreover, TCI >recently offered to install fiber throughout the Issaquah school >system for nothing as part of its general program of fiber to the >curb. > > The fact is that big-band technology will come to Issaquah >in due course, with or without NREN money. Critics, of course, >will carp that Issaquah is a special case "a relatively rich >community" that could afford to levy $2.7 million for technology. >Yet the Issaquah example is galvanizing schools across the state >of Washington and even in California and Arkansas, where Bookey >and his colleague Mason Conner have been consulting with >education officials. Emulating Issaquah, other districts in >Washington have since raised some $140 million for network >ventures. > > > >Glass Ceiling for Networks? > > > The lesson of Issaquah is that data highways and >superhighways, driven by the convergence of microcosm and >telecosm, are indeed emerging in America, and at an astonishing >pace. They already are revitalizing the economy and society, and >are helping to reform the system of education. The only federal >initiatives that will significantly assist the process are lower >taxes, accommodation of Internet growth and use, and further >deregulation of telecommunications. Communication must begin >locally, with access to the community. From these local roots >can emerge the great branching systems that can interconnect an >information economy. > > By starting from the top, the government risks paving over >the pullulating fabric of networking enterprise with a glass >ceiling of expensive and misplaced fiber. In 1993 an estimated >37 million personal computers will be sold worldwide. The same >forces that impelled the networks of Issaquah will drive the >owners of these new PCs to interconnect them to other networks >and will induce the owners of the networks to link them together. > > As the centrifugal force of the microcosm, multiplying and >distributing intelligence through the world, converges with the >integrating power of the telecosm, the exponential miracles of >specialization and growth will gain new momentum. How far can >this spiral reach? Internet will soon approach some interesting >limits. According to International Data Group, the number of >users has risen from 9,800 in 1986, all in the United States, to >4.7 million around the world today. > > At this pace, Internet will embrace the entire world >population by the year 2001. That's one limit. As the system's >trunking backbone rises to 45 megabits per second on T-3 lines >and above, the sky is the limit for the amount of message >traffic. In the first month after the enlargement to T-3 lines >in October 1992, usage rose from 3.5 trillion bytes to 4 trillion >bytes. All these networks are dominated by text and still >pictures. But the miracles of Internet and Issaquah are about to >be joined with a new miracle of growth in digital video >connections in the local loop. > > > > Bombshell from Time-Warner > > > How soon can this happen? Advocates of NREN speak of this >technology being consummated in 2015. But to most politicians >and businessmen, a projected date more than five years ahead is >essentially a synonym for never-never land; a way of saying, >"Forget about it. I'll be retired." > > The fact is that a widespread system of two-way broadband >networks reaching most American homes, schools and offices is >less than five years away. All U.S. business planners must come >to terms with this transforming reality. Announcements this >spring from leading cable, telephone and computer companies; from >TCI and U.S. West to IBM and Silicon Graphics; bring the shape of >this network into clear focus. > > Exemplary among plans announced by a variety of firms is >Time-Warner's projected system in Orlando. As described by Jim >Chiddix, the company's college-dropout technical guru, the Time- >Warner showcase venture will be a giant client/server computer >network, suggestive of the arrangements now ubiquitous in >corporate computing. The wires will be a combination of fiber to >the curb and coax to the home. Much of the system's hardware and >software will be supplied by computer companies (allegedly >including IBM and Silicon Graphics). The "client" computers will >be digitized TVs or teleputers linked to powerful database >computers that use a parallel-processing architecture to access >hierarchical memory systems, from DRAM caches to optical disk >archives. These memories will contain terabytes (trillions of >bytes) of digital video movies, games, educational software and >other programming. > > Perhaps the most dramatic breakthrough, though, will come in >the switches. While much of the computer and telephone world >continues to dither about the future of ATM (many consigning it >to the pits of 2015), Time-Warner is committed to installing ATM >switches, built by AT&T, beginning next year in Orlando. The ATM >system will allow Time-Warner to offer telephone, teleputer and >multimedia services together, as soon as the regulators allow it. >Chiddix predicts that ATM will soon gravitate to local area >networks and ultimately become ubiquitous. > > But the most portentous announcements of all have come from >the telephone companies, who have the most to lose from this >cable-oriented network design. Both U.S. West and Pacific Bell >have disclosed that they are adopting a combination architecture >of fiber and coaxial cable closely resembling the Time-Warner and >TCI projects. This unexpected action by two leading Baby Bells, >of turning their backs on their millions of miles of twisted-pair >copper wires shows both the boldness of the new telephone company >leadership and the imperious power of this digital technology. > > From all sides the telecommunications and computer >industries are converging on one essential configuration of >advanced parallel-processing hardware, client/server database >software and ATM switching. As microcosm and telecosm converge >in the living room, with interactive digital video and >supercomputer image processing, the leading edge of the digital >revolution moves from millions of offices toward billions of >homes. Just as Michael Milken, then of Drexel Burnham Lambert, >and the late William McGowan of MCI in 1983 rescued long-distance >fiber optics from the never-never lands of the year 2015 to which >AT&T had consigned it, John Malone of TCI, Gerald M. Levin of >Time-Warner and Richard D. McCormick of U.S. West in 1993 have >burst open the floodgates for fiber and ATM in the local loop > > Again, the force behind this revolutionary development was >fierce business and technical rivalry in the marketplace. In the >real world the ruling principle of network development is not >imposed standardization by government but spontaneous order. It >springs from the interplay of human creativity and >entrepreneurship with the inexorable laws of physics and >technology. > > These dynamics of interconnection in the Information Age >will continue well into the next century. The microcosm will >yield chips containing billions of transistors, equivalent to >scores of supercomputers on single slivers of silicon. The >telecosm will yield bandwidth exploding into the terahertz of all- >optical networks and the gigahertz of millimeter waves in the >air. > > Provided that rulers and regulators do not stifle this >spiral of opportunity, the human spirit "emancipated and thus >allowed to reach its rarest talents and aspirations" will >continue to amaze the world with heroic surprises. The Issaquah >miracle of Mike Bookey and Lee Dumas and all the others, and the >continuing miracle of American networks, which was entirely >unexpected by the world, will repeat themselves again and again >in new forms of entrepreneurship and technology. > >