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IKANO Acquires Assets of Two Texas-Based ISPs CookeNET and CompuWise Customers Access Expanded Range of Features.
By: Debra Labelle
: Salt Lake City (June 1, 2005) - IKANO Communications, the world’s largest provider of private-label Internet services,... by purchasing PowerDSL, IKANO’s competitively priced nationwide DSL service. PowerDSL will give subscribers to benefit ...

Make Cheap Long-Distance Phone Calls Using your Computer
By: Nathan Smith
: Did you know that you can use your computer to make long-distance telephone calls to virtually any fixed line or cellu... for switching your call back to the traditional telephone network from the Internet) physically located in that country...

International Telephone Calling Tips
By: Raymond Klesc
: International Telephone Calling TipsBy Raymond KlescGlobal Value Connecthttp://www.globalvalueconnect.comIf your busin... compared to a call placed to a land-line in the same country. This surcharge is referred to as an “International / Spec...

What Is VOIP and Why Does It Matter?
By: Pete Binder
: One of the latest services available online is called Voice Over IP, or VoIP. Its also sometimes called internet tele... VoIP and regular telephone calls is the price. With many services, VoIP, you can call anywhere in the country for free,...

IKANO Acquires Assets of Washington-Based Internet Service Provider Amerion
By: Debra Labelle
: Salt Lake City (March 23, 2005) - IKANO Communications, the world’s largest provider of private-label Internet service... and consumer Internet services throughout Canada; and HOTSPOTZZ, one of the largest private providers of Wi-Fi hot spot...


Featured Article

Internet : A Medium or a Message

Sam Vaknin, Ph.D.

The State of the Net

An Interim Report about the Future of the Internet

Who are the participants who constitute the Internet?

  • Users - connected to the net and interacting with it

  • The communications lines and the communications equipment

  • The intermediaries (e.g. the suppliers of on-line information or access providers).

  • Hardware manufacturers

  • Software authors and manufacturers (browsers, site development tools, specific applications, smart agents, search engines and others).

  • The "Hitchhikers" (search engines, smart agents, Artificial Intelligence - AI - tools and more)

  • Content producers and providers

  • Suppliers of financial wherewithal (currently - corporate and institutional cash gradually being replaced by advertising money)



    The fate of each of these components - separately and in solidarity - will determine the fate of the Internet.

    The first phase of the Internet's history was dominated by computer wizards. Thus, any attempt at predicting its future dealt mainly with its hardware and software components.

    Media experts, sociologists, psychologists, advertising and marketing executives were left out of the collective effort to determine the future face of the Internet.

    As far as content is concerned, the Internet cannot be currently defined as a medium. It does not function as one - rather it is a very disordered library, mostly incorporating the writings of non-distinguished megalomaniacs. It is the ultimate Narcissistic experience. The forceful entry of publishing houses and content aggregators is changing this dismal landscape, though.

    Ever since the invention of television there hasn't been anything as begging to become a medium as the Internet.

    Three analogies spring to mind when contemplating the Internet in its current state:

  • A chaotic library

  • A neural network or the latter day equivalent of previous networks (telegraph, telephony, railways)

  • A new continent



    These metaphors prove to be very useful (even business-wise). They permit us to define the commercial opportunities embedded in the Internet.

    Yet, they fail to assist us in predicting its future in its transformation into a medium.

    How does an invention become a medium? What happens to it when it does become one? What is the thin line separating the initial functioning of the invention from its transformation into a new medium? In other words: when can we tell that some technological advance gave birth to a new medium?

    This work also deals with the image of the Internet once transformed into a medium.

    The Internet has the most unusual attributes in the history of media.

    It has no central structure or organization. It is hardware and software independent. It (almost) cannot be subjected to legislation or to regulation. Consider the example of downloading music from the internet - is it tantamount to an act of recording music (a violation of copyright laws)? This has been the crux of the legal battle between Diamond Multimedia (the manufacturers of the Rio MP3 device), MP3.com and Napster and the recording industry in America.

    The Internet's data transfer channels are not linear - they are random. Most of its "broadcast" cannot be "received" at all. It allows for the narrowest of narrowcasting through the use of e-mail mailing lists, discussion groups, message boards, private radio stations, and chats. And this is but a small portion of an impressive list of oddities. These idiosyncrasies will also shape the nature of the Internet as a medium. Growing out of bizarre roots - it is bound to yield strange fruit as a medium.

    So what business opportunities does the Internet represent?

    I believe that they are to be found in two broad categories:

  • Software and hardware related to the Internet's future as a medium

  • Content creation, management and licencing



    The Map of Terra Internetica

    The Users

    How many Internet users are there? How many of them have access to the Web (World Wide Web - WWW) and use it? There are no unequivocal statistics. Those who presume to give the answers (including the ISOC - the Internet SOCiety) - rely on very partial and biased resources. Others just bluff.

    Yet, everyone seems to agree that there are, at least, 100 million active participants in North America (the Nielsen and Commerce-Net reports).

    The future is, inevitably, even more vague than the present. Authoritative consultancy firms predict 66 million active users in 10 years time. IBM envisages 700 million users. MCI is more modest with 300 million. At the end of 1999 there were 130 million registered (though not necessarily active) users.

    The Internet - an Elitist and Chauvinistic Medium

    The average user of the Internet is young (30), with an academic background and high income. The percentage of the educated and the well-to-do among the users of the Web is three times as high as their proportion in the population. This is fast changing only because their children are joining them (6 million already had access to the Internet at the end of 1996 - and were joined by another 24 million by the end of the decade). This may change only due to presidential initiatives to bridge the "digital divide" (from Al Gore's in the USA to Mahatir Mohammed's in Malaysia), corporate largesse and institutional involvement (e.g., Open Society in Eastern Europe, Microsoft in the USA). These efforts will spread the benefits of this all-powerful tool among the less privileged. A bit less than 50% of all users are men but they are responsible for 60% of the activity in the net (as measured by traffic).

    Women seem to limit themselves to electronic mail (e-mail) and to electronic shopping of goods and services, though this is changing fast. Men prefer information, either due to career requirements or because knowledge is power.

    Most of the users are of the "experiencer" variety. They are leaders of social change and innovative. This breed inhabits universities, fashionable neighbourhoods and trendy vocations. This is why some wonder if the Internet is not just another fad, albeit an incredibly resilient and promising one.

    Most users have home access to the Internet - yet, they still prefer to access it from work, at their employer's expense, though this preference is slight and being eroded. Most users are, therefore, exploitative in nature. Still, we must not forget that there are 37 million households of the self-employed and this possibly distorts the statistical picture somewhat.

    The Internet - A Western Phenomenon

    Not African, not Asian (with the exception of Israel and Japan), not Russian , nor a Third World phenomenon. It belongs squarely to the wealthy, sated world. It is the indulgence of those who have everything and whose greatest concern is their choice of nightly entertainment. Between 50-60% of all Internet users live in the USA, 5-10% in Canada. The Internet is catching on in Europe (mainly in Germany and in Scandinavia) and, in its mobile form (i-mode) in Japan. The Internet lost to the French Minitel because the latter provides more locally relevant content and because of high costs of communications and hardware.

    Communications

    Most computer owners still possess a 28,800 bps modem. This is much like driving a bicycle on a German Autobahn. The 56,600 bps is gradually replacing its slower predecessor (48% of computers with modems) - but even this is hardly sufficient. To begin to enjoy video and audio (especially the former) - data transfer rates need to be 50 times faster.

    Half the households in the USA have at least 2 telephones and one of them is usually dedicated to data processing (faxes or fax-modems).

    The ISDN could constitute the mid-term solution. This data transfer network is fairly speedy and covers 70% of the territory of the USA. It is growing by 100% annually and its sales topped 10 billion USD in 1995/6.

    Unfortunately, it is quite clear that ISDN is not THE answer. It is too slow, too user-unfriendly, has a bad interface with other network types, it requires special hardware. There is no point in investing in temporary solutions when the right solution is staring the Internet in the face, though it is not implemented due to political circumstances.

    A cable modem is 80 times speedier than the ISDN and 700 times faster than a 14,400 bps modem. However, it does have problems in accommodating a two-way data transfer. There is also need to connect the fibre optic infrastructure which characterizes cable companies to the old copper coaxial infrastructure which characterizes telephony. Cable users engage specially customized LANs (Ethernet) and the hardware is expensive (though equipment prices are forecast to collapse as demand increases). Cable companies simply did not invest in developing the technology. The law (prior to the 1996 Communications Act) forbade them to do anything that was not one way transfer of video via cables. Now, with the more liberal regulative environment, it is a mere question of time until the technology is found.

    Actually, most consumers single out bad customer relations as their biggest problem with the cable companies - rather than technology.

    Experiments conducted with cable modems led to a doubling of usage time (from an average of 24 to 47 hours per month per user) which was wholly attributable to the increased speed. This comes close to a cultural revolution in the allocation of leisure time. Numerically speaking: 7 million households in the USA are fitted with a two-way data transfer cable modems. This is a small number and it is anyone's guess if it constitutes a critical mass. Sales of such modems amount to 1.3 billion USD annually.

    50% of all cable subscribers also have a PC at home. To me it seems that the merging of the two technologies is inevitable.

    Other technological solutions - such as DSL, ADSL, and the more promising satellite broadband - are being developed and implemented, albeit slowly and inefficiently. Coverage is sporadic and frustrating waiting periods are measured in months.

    Hardware and Software

    Most Internet users (82%) work with the Windows operating system. About 11% own a Macintosh (much stronger graphically and more user-friendly). Only 7% continue to work on UNIX based systems (which, historically, fathered the Internet) - and this number is fast declining. A strong entrant is the free source LINUX operating system.

    Virtually all users surf through a browsing software. A fast dwindling minority (26%) use Netscape's products (mainly Navigator and Communicator) and the majority use Microsoft's Explorer (more than 60% of the market). Browsers are now free products and can be downloaded from the Internet. As late as 1997, it was predicted by major Internet consultancy firms that browser sales will top $4 billion by the year 2000. Such misguided predictions ignored the basic ethos of the Internet: free products, free content, free access.

    Browsers are in for a great transformation. Most of them are likely to have 3-D, advanced audio, telephony / voice / video mail (v-mail), instant messaging, e-mail, and video conferencing capabilities integrated into the same browsing session. They will become self-customizing, intelligent, Internet interfaces. They will memorize the history of usage and user preferences and adapt themselves accordingly. They will allow content-specificity: unidentifiable smart agents will scour the Internet, make recommendations, compare prices, order goods and services and customize contents in line with self-adjusting user profiles.

    Two important technological developments must be considered:

    PDAs (Personal Digital Assistants) - the ultimate personal (and office) communicators, easy to carry, they provide Internet (access) Everywhere, independent of suppliers and providers and of physical infrastructure (in an aeroplane, in the field, in a cinema).

    The second trend: wireless data transfer and wireless e-mail, whether through pagers, cellular phones, or through more sophisticated apparatus and hybrids such as smart phones. Geotech's products are an excellent example: e-mail, faxes, telephone calls and a connection to the Internet and to other, public and corporate, or proprietary, databases - all provided by the same gadget. This is the embodiment of the electronic, physically detached, office. Wearable computing should be considered a part of this "ubiquitous or pervasive computing" wave.

    We have no way of gauging - or intelligently guessing - the part of the mobile Internet in the total future Internet market but it is likely to outweigh the "fixed" part. Wireless internet meshes well with the trend of pervasive computing and the intelligent home and office. Household gadgets such as microwave ovens, refrigerators and so on will connect to the internet via a wireless interface to cull data, download information, order goods and services, report their condition and perform basic maintenance functions. Location specific services (navigation, shopping recommendations, special discounts, deals and sales, emergency services) depend on the technological confluence between GPS (stallite-based geolocation technology) and wireless Internet.

    Suppliers and Intermediaries

    "Parasitic" intermediaries occupy each stage in the Internet's food chain.

    Access to the Internet is still provided by "dumb pipes" - the Internet Service Providers (ISP)

    Content is still the preserve of content suppliers and so on.

    Some of these intermediaries are doomed to gradually fade or