Digital Capitalism

rofessionals has fattened and prospered on stock options and a plethora of other new speculative instruments. Their newfound luxury is, however, in major part a reflex of the redistribution of the social surplus from wage earners to property owners. This redistribution was accomplished via a relentless downward pressure on what some analysts called the social wage: the basket of available pay and benefits, both direct and indirect. Under the sign of "deregulation," severe cutbacks in government social programs were instrumental in ratcheting down these benefits, as were direct political attacks on trade unions. But two other linked initiatives were arguably paramount in reconfiguring the distribution of wealth. Aggressive corporate job cutting, well-publicized through the 1980s and 1990s as downsizing or reengineering, engendered a climate of pervasive anxiety and instability among the corporate workforce. Whereas, ten years before, the total employment of the top-ranked companies that make up the Standard & Poors 500 equaled 16 percent of the U.S. labor force, by 1997 it had declined to 14 percent. [ 8 ] The growing threat of capital flight, on the other hand—as companies gained the ability to invest with no loss of administrative control in offshore plants, offices, and factories—further enhanced corporate America's ability to demand concessions from employees. Over the period from the 1970s to the 1990s, in turn, while middleclass earnings stagnated, the income gap between the wealthiest fifth and the poorest fifth of U.S. families increased. The percentage of children living in poverty in 1998 was up dramatically from what it was in 1969—to 20.5 percent (or 14.5 million) from 14 percent. In what one writer called "the new, ruthless economy," an estimated 25 percent of the population didn't even have checking accounts. [ 9 ] It was symptomatic that Microsoft, a corporate spearhead of digital capitalism, was "in the vanguard of a growing movement in corporate America, especially among high-tech companies: using full-time temp(orary) workers who save the company millions of dollars in benefits but who can be fired in the time it takes to boot up a computer." A business research group estimated that as many as one-fifth of U.S. companies use temps for more than 10 percent of their workforce; but 3,500 of Microsoft's 19,000 employees—or 18 percent—were temp workers in 1997. Among the Interactive Media Division, which creates Microsoft's Internet products, about half were temps. [ 10 ] It can hardly be emphasized enough that accelerating corporate innovation around networks has been absolutely pivotal to this entire process of redistribution. Network-based automation itself comprises a major factor in the technologically induced layoffs that bulk so large in the "reengineering" process. National, regional, and transnational networks, furthermore, are indispensable requirements of contemporary capital flight. As permissive technologies that are built to facilitate centralized control over far-flung corporate operations, networks permit transnational companies to elevate footloose profit hunger into what they seek to dignify with the term globalization . The result is to pit individual localities, states, and entire nations against one another in a competition to attract capital investment, and this rivalry predictably produces a "race to the bottom." Attaching conditions to continued or contemplated investments, companies demand lower corporate taxes, loosened environmental protections, diminished health and safety measures, and attenuated collective bargaining rights. [ 11 ] The decline in the social wage, in other words, and the redistribution of wealth that it has spurred are essentially functions of the neoliberal project that makes networks its centerpiece. While commentators crow that Western Europe is enjoying economic recovery, double-digit unemployment rates persist there. Japan is in recession, and the vaunted Asian "Tigers" have mostly crashed into something worse still. In the United States, whose apparently buoyant economy more nearly approximates full employment than at any time over the past generation, mainstream commentators acknowledge that wage earners face "stagnant incomes, job instability, and economic anxiety." [ 12 ] For those on the fringes, life is indisputably harder. Welfare reform, notes a headline in the Financial Times "may push United States poor into squalor." [ 13 ] Throughout the less developed countries, where a significant band of middle-class strata has indeed emerged, general and chronic immiseration remains the general norm. The global economic crisis is unquestionably aggravating these deep stagnationist tendencies. [ 14 ] When they are not trumpeting the wonders of digital networks, however, the stewards of digital capitalism remain basically complacent about their project's human face. Certainly, they have shown neither the ability nor the inclination to rekindle any widely shared prosperity. When asked to comment on the future, Intel's erstwhile CEO, the much-vaunted Andrew Grove, declares: "My view of the future is continuing the present." [ 15 ] At least he is straightforward. Just how far into difficulty the world's people are thrust, however, will clearly depend mainly on the quality of their own political response. There is at least some ground for optimism. Uneasiness concerning unchecked capital flows is rising. In the United States, for the first time in decades, organized labor stirs with an unaccustomed rebelliousness, and serious debate about the economy is finding at least desultory expression—even if most audibly from the right: "Is the market penetrating too deeply into American life?" asks a front-page Wall Street Journal article? [ 16 ] Throughout much of the world, moreover, opposition to the institutional agents of neoliberal policy is apparent. In spring 1998, a World Trade Organization meeting in Geneva attracted thousands of demonstrators protesting globalization. [ 17 ] A global group of grassroots organizations opposed to the OECD's Multilateral Agreement on Investment—a secretive initiative that seeks to outlaw restrictions and controls that national governments might try to impose on supranational capital flows—publicized the campaign via the Internet itself and thereby momentarily checked its momentum. [ 18 ] In Puerto Rico, to cite another recent instance of resistance to digital capitalism, the prospective privatization and sale to foreign investors of the Puerto Rico Telephone Company provoked the largest demonstration in the island's history; a general strike opposing privatization shut down the economy there for a brief period in early July 1998. [ 19 ] Officials from nineteen countries, finally, met in Ottawa in hopes of forming a protective international cultural alliance through which to further national self-determination in the area of movies, television, music, and other entertainment. [ 20 ] It is too soon to tell whether—and, if so, how—these disparate expressions of opposition to an untethered digital capitalism may come to cohere. No concerted or widespread social mobilization for a democratic reconstruction is, in truth, yet apparent. We may be confident, however, that digital capitalism has strengthened, rather than banished, the age-old scourges of the market system: inequality and domination. The road to redress begins from this recognition. [ 1 ] Simon Nora and Alain Minc, The Computerization of Society (Cambridge: MIT Press, 1980), 10– 11. [ 2 ] David Wessel and John Harwood, "Capitalism Is Giddy with Triumph: Is It Possible to Overdo It?" Wall Street Journal , 14 May 1998, A1, A10. [ 3 ] Art Pine, "Economists See Rosy Long-Term U.S. Future," Los Angeles Times , 10 June 1997, A1, A22; Peter Schwartz and Peter Leyden, "The Long Boom," Wired , July 1997, 115–129+. [ 4 ] Nancy Dunne, "U.S. Wholesale Prices Fall Sparks Deflation Debate," Financial Times , 19 February 1998, 5; Robert L. Simison, "Fears of Overcapacity Continue to Grow," Wall Street Journal , 2 March 1998, A2, A8; Bernard Wysocki Jr., "Even High Tech Faces Problems with Pricing," Wall Street Journal , 13 April 1998, A1; Greg Ip, "Some Analysts Seek Signs of Speculative Excess," Wall Street Journal , 18 May 1998, C1, C2; William Greider, "When Optimism Meets Over-capacity," New York Times , 1 October 1997, A19; idem, One World, Ready or Not: The Manic Logic of Global Capitalism (New York: Simon & Schuster, 1997). [ 5 ] G. Pascal Zachary, "Global Growth Attains a New, Higher Level That Could Be Lasting," Wall Street Journal , 13 March 1997, A1, A8; Fred R. Bleakley, "Companies' Earnings Rocket 61 Percent, Capping Five-Year Winning Streak," Wall Street Journal , 18 February 1997, C13; Greg Ip, "Stocks of Big Multinationals Just Keep Rolling Along," Wall Street Journal , 28 April 1997, C1; Jacob M. Schlesinger, "Corporate Profits Stay Aloft Despite Tight Labor," Wall Street Journal , 28 November 1997, A2. [ 6 ] John Simons, "Profits Fell 2.3 Percent in the Fourth Quarter of 1997," Wall Street Journal , 27 March 1998, A2. [ 7 ] Jacob M. Schlesinger, "Rise in Inequality of Wealth in 1980s Slowed in Early 1990s, IRS Study Shows," Wall Street Journal , 27 March 1998, A2. [ 8 ] Greg Ip, "The Outlook: Why the Stock Market Isn't the Economy," Wall Street Journal , 22 September 1997: A1. [ 9 ] Richard Perez-Pena, "New York's Income Gap Largest in Nation," New York Times , 17 December 1997, A14; "Child Poverty Statistics Hold Firm in South Despite Boom," Los Angeles Times , 5 May 1998, A17; Simon Head, "The New, Ruthless Economy," New York Review of Books , 29 February 1996, 47–52; Deborah Vrana, "Whose Interest?" Los Angeles Times , 18 January 1998, D1, D6. [ 10 ] Leslie Helm, "Microsoft Testing Limits on Temp Worker Use," Los Angeles Times , 7 December 1997, D1, D14. [ 11 ] Barry Bluestone and Bennett Harrison, The Deindustrialization of America (New York: Basic Books, 1982); Bennett Harrison and Barry Bluestone, The Great U-Turn: Corporate Restructuring and the Polarizing of America (New York: Basic Books, 1988). [ 12 ] William Wolman and Anne Colamosca, The Judas Economy: The Triumph of Capital and the Betrayal of Work . (Reading: Addision-Wesley, 1997) 23. [ 13 ] Nicholas Timmins, "Reform May Push U.S. Poor into Squalor," Financial Times , 23 November 1997, 1. [ 14 ] International Labour Organization, World Employment Report 1998 . Geneva: ILO, 1998. [ 15 ] In David E. Kalish, "Intel CEO Seems to Relish a Fight," San Diego Union-Tribune , 19 October 1997, I2. [ 16 ] Wessel and Harwood, "Capitalism Is Giddy with Triumph." [ 17 ] Bhushan Bahree, "As WTO Marks Fiftieth Birthday, Event Attracts Opponents to Globalization," Wall Street Journal , 18 May 1998, B11A. [ 18 ] George Monbiot, "A Charter to Let Loose the Multinationals," Guardian , 15 April 1997, 9; William Lucy, "Web Traps Mighty Foe," American Federation of State County and Municipal Employees Public Employee 63, no. 3 (May-June 1998) at . [ 19 ] Mireya Navarro, "More Unions Set to Join Strike over Puerto Rico Phones," New York Times , 30 June 1998, A14. [ 20 ] Craig Turner, "Nations Wary of U.S. Culture Plan Alliance," Los Angeles Times , 1 July 1998, A1, A15. Index A AAP (Association of American Publishers), 78 ABC television network ABCNews.com, 99 public apology (ABC News), 126 Academic Systems Corporation, 193 Accounting rate system, 50 Accreditation, 154 ACE (America Council on Education), 154 Acquisitions and alliances (corporate) corporate education conglomerates, 176–184 network developers, 28–36 transnational network systems, 61–66 transnational production, 39 Advanced Micro Devices, 93 Advanced television services, 110 Advertising and corporate sponsorship AOL media blitz, 96 audience, finding and developing, 134–142 classifieds market, 98 consequences, 123–129 corporate sponsorship of Web sites, 116–123 Deep Blue chess system (IBM), 129 gender differences in marketing, 140–141 microprocessors, 91 relationship marketing, 132–135 science and education, effects on, 144 system building and, 54 Age differences in marketing, 140–141 AirTouch, 65 , 66 Alcatel Alsthom, 28 , 68 Alfa, 63 Allen, Paul, 109 , 193 Alliances, corporate corporate education conglomerates, 176–184 network developers, 28–36 transnational network systems, 61–66 transnational production, 39 Alta Vista, 136 Amazon.com, 97 AMCEE (Association for Media-Based Continuing Education for Engineers), 174 America Council on Education (ACE), 154 America Online. See AOL American Express, 22 American Federation of Teachers, 201 American Management Association, 148 American Petroleum Institute, 3 , 14 American School Food Service Association, 183 American Society of Magazine Editors, 125 American Society of Training Directors (American Society for Training and Development), 149 , 153 Ameritech, 125 Anastasia, 183 Anheuser-Busch, 126 ANS, 33 AOL (America Online), 11 , 79 , 95 , 96 , 97 , 114–115 , 120 , 121–122 online games, 130 Apache, 76 APEX, 193 Apollo Group, 194 , 198 Apple Computer, 102 , 182 Applets (Java), 109 Architecture of electronic information, 23 cable industry, 111 growth of new media systems, 66–69 Internet and, 24–36 investment in technology, 16–17 National Learning Infrastructure Initiative, 199 Arpanet, 8 , 18 Arthur Andersen, 29 , 151 Arthur D. Little, 68 Artzt, Edwin, 116–118 , 123 Association for Graduate Education and Research (TAGER), 173 Association for Media-Based Continuing Education for Engineers (AMCEE), 174 Association of American Publishers (AAP), 78 AST Research, 92 Athena University, 194 @Home, 113 ATMs (automatic teller machines), 13 AT&T, 26 , 33 , 63 , 65 , 107 , 108 , 111 , 113 , 126 AT&T Solutions, 29 corporate education, 150 divestiture of, 7 , 56 domestic telephony, 41 Internet revenues, 27 network failure (April 1998), 25 radio networks' access, 97 Telecom alliance, 64 WorldNet Internet service (AT&T), 30 , 184 Audience, finding and developing, 134–142 AudioNet, 130 Auletta, Ken, 102 Automatic Services Education Program (GM), 168 Automatic teller machines (ATMs), 13 Automation, growth of, 55 B Backbone network, 10 Bahr, Morton, 42 Banamex, 63 Bandwidth (network), 105 Bangemann, Martin, 44 BankBoston, 95 Bankers Trust, 19 Banking industry. See Financial services industry Barbie, 138 Barksdale, James, 113 Barro, Robert, 165 Barshefsky, Charlene, 79 Bay Networks, 28 , 113 Baylor College of Medicine, 176 BBDO Worldwide, 125 BBN (Bolt, Baranek, and Newman), 11 , 33 Beausejour, Denis F., 139 Bell, Terrel H., 189 Bell Atlantic, 32 , 55 , 64 , 112 BellSouth, 66 Beltz, Cynthia, 59 , 72 Benjamin Franklin Institute of Global Education, 191 Berlitz Schools of Languages, 178 Berman, Jerry, 70 Bertelsmann, 95 , 136 Bestel, 64 Beutsche Bahn, 65 Bhagwati, Jagdish, 87 Bloomberg News, 100 BMI (Broadcast Music Inc.), 78 Boeing, 67 Bolt, Baranek, and Newman (BBN), 11 , 33 Bouygues-STET, 64 Brand extensions, 100 Brand modules, 122 British Aerospace, 151 British Telecom, 20 , 26 , 63 , 65 ownership in MCI, 61–62 privatization, 43 Syntegra, 29 Broadband network systems, xiii , 27 , 105–108 , 111–113 Broadcast Music Inc. (BMI), 78 Broadreach television, 136 Broderbund, 180 Brokerages. See Financial industry Browsers, web, 11 , 94–96 , 102 Brylane, 136 BT. See British Telecom Burger King Fast Food Laboratory, 168 Business schools, 175–176 Business users demands of, 4–7 education and, 146 investment in networking technology, 14–17 IP telephony, 26 , 50 transnationalization of telecommunications, 41 , 48 Business-Higher Education Forum, 161 C-Span, 100 Cable & Wireless, 33 , 66 , 110 privatization of Mercury, 43 Cable television industry, 107–111 Cabletron, 28 California Digital Library (CDL), 196 California Education Technology Initiative (CETI), 197 California State University system, 197 Call centers, 15 Callback services, 49 CareerPath.com, 98 CarPoint, 104 Carrefour, 22 Carvey, Dana, 124 Caterpillar, 21 CBS radio network, 97 CBS television network, 100 , 130 push web services, 119–120 SportsLine, 106 CDA (Communications Decency Act), 70 , 72–75 CDL (California Digital Library), 196 Celestri, 69 Cellular subscriptions. See Mobile communications systems Cendant Corporation, 180 Central Committee on Radio Facilities, 3 CETI (California Education Technology Initiative), 197 Cgetel, 65 Channel One, 183 Charles Schwab, 23 Chase Manhattan Bank, 175 Children's Television Workshop, 180 China, telecommunications system building, 51 Chrysler, 15 , 125 Circuit switching, 8 , 27 Cisco Systems, 22 , 28 , 156 labor force, 42 Citicorp, 23 , 25 Global Telecommunications Network, 13 City Family, 141 Classifieds market, 98 Clinton, Bill, 75 CMI (computer-managed instruction), 178–180 CNN television network, 100 , 120 Colamosca, Anne, 42 Colgate-Palmolive, 125 Collaboration software, 19 , 21 College of Letters and Science (UCLA), 192 Colleges. See Education Comcast, 109 , 111 Commerce. See Electronic commerce Commercial service providers. See ISPs Commercialization. See Advertising and corporate sponsorship Committee on Institutional Cooperation, 196 Common carriers, telecommunications as, 4 Communications Decency Act (CDA), 69–70 , 72–75 Communities online. See Online communities Community colleges, 146 , 167 Compaq, 92 , 93 , 102 , 111 , 113 , 184 CompuServe, 11 , 95 Computer games, 130 Computer industry, 90–93 convergence to Internet, 94–96 educational publishing for, 178–180 market position struggles, 101–113 network computers, 100 supplying education centers, 190 vocational training and, 158 Computer-managed instruction (CMI), 178–180 Computing, telecommunications infrastructure vs., 5–7 Comsat (Intelsat), 68 CondeNet, 139 Congressional Office of Technology Assessment, 170 Contract Education Services unit (Sylvan), 187 Content cobranding, 122 Contestability theory, 163 Control Data Corporation, 189 Cooper, Justin, 139 Copyright (intellectual property), 76–80 , 163 , 192 digital watermarks, 118 Intellectual Property Alliance, 77 Cornell University, 196 Corning, 69 Corporate America, 11 Corporate education, 147–155 , 175 conglomerates, 176–184 established institutions vs., 158–160 universities for, 150 Corporate networking, 3 , 13–14 groupware and legacy systems, 18–20 mobilization of Internet technology, 17–24 Corporate relocation resulting from transnationalization, 42 Corporate sponsorship and advertising AOL media blitz, 96 audience, finding and developing, 134–142 classifieds market, 98 consequences, 123–129 corporate sponsorship of Web sites, 116–123 Deep Blue chess system (IBM), 129 gender differences in marketing, 140–141 microprocessors, 91 relationship marketing, 132–135 reorienting social purpose, 124–128 science and education, effects on, 144 system building and, 54 Cost efficiency of education, 164 Courseware, 177 Craig, Robert L., 149 Cramming, 57 Crossovers in education, 182 Crotonville New York Management Training Center, 150 CUC International, 180 Cyberbuilding, 54 Cyberschooling, 191–200 Cyberspace. See Internet ; World Wide Web D Daimler-Benz, 15 , 64 The Dana Carvey Show, 124 Data packets, xiii Davidson & Associates, 180 Educast, 184 Dayton Hudson, 140 , 150 Dean Witter, 23 DEC (Digital Equipment Corporation), 12 , 175 Decentralized networks, xiv Dedicated lines, 4 Deep Blue chess system, 129 Default start pages, 121 Dell Computer, 92 , 93 Demographics, 140 Desktop screen, 120 Destination sites, 122 Deutsche Telekom, 26 , 27 , 32 , 45 , 63 , 65 , 95 DeVry Institute of Technology, 185 Diba Inc., 109 Digital capitalism, xii , 203–209 in education. See Education Digital commerce. See Electronic commerce "Digital divide," 141 Digital Equipment Corporation. See DEC Digital Libraries Initiative, 196 Digital subscriber line (DSL), 111 Digital watermarks, 118 Digitization, xiii Direct marketing online, 132 DirecTV, 108 Discover Investment Services, 23 Disney Corporation, 99 , 103 , 130 educational software, 180 ESPN cable channel, 115 , 130 ESPN SportsZone, 115 Internet Group, 115 push web services, 119 Walt Disney University, 151 Distribution control, 97–98 , 101–113 Donoghue, John, 54 DoubleClick, 134 Dow Jones, 103 , 120 Drucker, Peter, 170 , 200 DSC Communications, 28 DSL (digital subscriber line), 111 DuBoff, Richard B., xii Duke University, 195 Dun & Bradstreet, 120 DuPont, 126 Dylan, Bob, 127 E Earthlink-Sprint, 30 ECOM (Electronic Computer-Originated Mail), 12 EDI (Electronic Data Exchange), 22 Edison Project, 177 Edmark, 180 EDS, 29 Educast, 184 Educatief, 186 Education, 143–202 digital capitalism in, 170–200 corporate education conglomerates, 176–184 future of, 200–202 higher-education institutions, 185–200 elementary and secondary school web sites, 181 engineering training, 172–176 federally funded research, 162 history and growth, 145–155 corporate power over, 146 in-house corporate, 147–155 established institutions vs., 158–160 Internet-based, 191–200 Internet connectivity, 10 perpetual-innovation economy, 123 , 155–170 reorganizing the university, 160–170 science-based industry, 156–160 university reorganization, 160–170 Education brokers, 167 Educational Testing Service (ETS), 188 Educom, 199 Elective system (education), 145 Electronic commerce, 22–23 convergence to Internet, 97 safeguarding via commercial sponsorship, 118 telecommunications system development and, 69–88 Electronic Data Interchange (EDI), 22 Electronic industry, 100 Electronic information infrastructure, 23 cable industry, 111 computing vs. growth of new media systems, 66–69 Internet and, 24–36 investment in technology, 16–17 National Learning Infrastructure Initiative, 199 Electronics manufacturers, 14 Ellison, Larry, 179 Email (electronic mail), 10 , 191 ECOM (Electronic Computer-Originated Mail), 12 Hotmail mail provider, 104 spam (junk email), 128 Emergency Fleet Corporation (U.S. Shopping Board), 148 Employment and labor force college professor salaries, 165 computer use, 15–16 domestic telecommunications systems, 49 intranet use, 19 online listings, 98 transnational networking and relocation, 42 working conditions from system building, 55–58 Encryption systems, 21 , 70–71 Engineering training, 172–176 Enhanced data services, 11 Entertainment industry, 99 Entry controls, 4 ESPN cable channel (Disney), 130 SportsZone, 115 Ethernet, 11 Ethics of research, 163 Ethnicity differences in marketing, 140–141 E*Trade, 23 ETS (Educational Testing Service), 188 Eurich, Nell, 151 , 175 , 195 Excite, 119 Executive Education Network (Wescott Communications Inc.), 175–176 Exit controls, 4 Expedia, 104 Expert systems, 150 Export of U.S. neoliberalism, 40–46 Extranets, 18 , 20–21 Extraterritorial corporate charters, 46–50 F "Fair use" copyright laws, 78 FamilyEducation Co., 122 Farrell, Joseph, 74 Fax services, 26 FCC (Federal Communications Commission) callback services authorization, 49 ISP service fee proposal, 32 response to business users' demands, 4–7 Second Computer Inquiry, 6 Federal Express, 119 Fiber-Optic Link Around the Globe (FLAG) system, 68 File transfers, 10 Financial services industry, 13–14 liberalizing domestic market for, 83–84 online accounts, 22–23 venture capitalists, 95 Firefly Network Inc., 104 Firewalls, 17 Fixed-line networks, 50–54 T1 circuits, 17 , 54 FLAG system, 68 Forbes, 120 Ford Motor Company, 21 , 22 editorial pressure from, 125 Foreign industry/government. See also Transnationalization telecommunications system ownership, 3 Fortune, 120 Fox News, 99 "Framework for Global Electronic Commerce" (policy document), 70 , 87–88 France Cables et Radio, 66 France Telecom, 45 , 63 , 64 , 80 Freephone telephony, 41 Fuji Xerox, 151 Functionalities, computer, 2 Functionalities, telecommunications, xiii G Gale, Douglas S., 199 Gambling industry, 130 , 136 Games on the Web, 130 Gandy, Oscar, 140 Gates, Bill, 67 Gateway 2000, 92 , 182 Gender differences in marketing, 140–141 General Electric (GE), 15 , 147 , 150 NBC television network, 94 , 115 , 127 MSNBC, 103 General Instrument, 110 General Motors Corporation, 15 , 25 , 108 Automatic Services Education Program, 168 Generale des Eaux, 65 GeoCities, 121 Gerdelman, John, 86 Gillette, 123 Gingrich, Newt, 159 , 200 GIP (Global Internet Project), 86 Global industry, 37–39 . See also Transnationalization export of U.S. neoliberalism, 40–46 investment in networking systems, 16 Global Internet Project (GIP), 86 Global One, 63 Global Telecommunications Network (Citicorp), 13 Globalstar, 68 GM. See General Motors Corporation Government regulation/policy (U.S.), 3–6 encryption systems, 21 , 70–71 extraterritorial corporate charters, 46–50 ISP classification and regulation, 31 local vs. long-distance telephony, 106–108 Microsoft antitrust proceedings, 103 research funding, 162 sponsored education, 148 Granite Broadcasting, 98 Graphical user interfaces (GUIs), 11 Great Rewards marketing program, 140 Green-field providers, 35 Groupware, 18–20 Grove, Andrew, 93 , 101 , 132 , 209 Grupo Varo's Odetel, 64 GST Global Telecommunications, 64 GTE Internetworking, 33 Internet revenues, 27 Guatel, 65 GUIs (graphical user interfaces), 11 Gulf Oil, 11–12 H H&R Block's CompuServe, 11 , 95 Hambrecht & Quist, 95 Harcourt General, 179 HDTV (High-definition television), 110 The Health Channel, 176 Hearst New Media's HomeArts, 120 , 139 Herbold, Robert, 94 , 116 , 135 Herman, Edward S., xii , 88 Hewlett-Packard, 93 , 173 High-capacity networks. See Broadband network systems High-definition television (HDTV), 110 Higher education. See Education History Channel, 126 Hobsbawm, Eric, 37 Hoe and Company, 147 Hoehn-Saric, R. Christopher, 187 Holiday Inn, 20 Home Depot, 22 HomeArts, 139 Hotmail mail provider, 104 Hubs, Internet, 121 Hughes Electronics, 15 Hundt, Reed, 27 , 59 , 191 Hyperlinks, 11 I IBM, 12 , 29 , 93 , 102 , 156 computer industry market share, 90 , 93 corporate education, 175 Deep Blue chess system, 129 editorial pressure from, 125 Edmark, 180 education center, 149 IBM Global Campus, 193 labor force, 42 Prodigy, 11 , 95 ICG, 26 ICS Learning Systems, 186 IDT, 26 IE browser (Microsoft), 102 , 120 Illinois Institute of Technology, 173 IMLearn (Interactive Multimedia Learning Technologies Inc.), 194 Impulse interactivity, 130 Information infrastructure, 23 cable industry, 111 computing vs. growth of new media systems, 66–69 Internet and, 24–36 investment in technology, 16–17 National Learning Infrastructure Initiative, 199 Infoseek, 115 Inhouse corporate education, 147–155 established institutions vs., 158–160 Innovation network technologies, 8–13 perpetual-innovation economy, 123 , 155–170 reorganizing the university, 160–170 Instructional television, 173 , 176 Intel, 16 , 90–94 , 111 Pentium processors, 91 , 102 Intellectual property, 76–81 , 163 , 192 digital watermarks, 118 Intellectual Property Alliance, 77 Intelsat, 67 , 68 Interactive Media Division (Microsoft), 104 , 207 Interactive Multimedia Learning Technologies Inc. (IMLearn), 194 Interactive television, 105 Interactivity of Web, 130–135 International Harvester, 147 International industry, 37–39 . See also Transnationalization export of U.S. neoliberalism, 40–46 investment in networking systems, 16 International Monetary Fund, 45 International Telecommunication Union (ITU), 44 , 46 , 50 International University, 194 Internet. See also World Wide Web advertising on. See Advertising commerce. See Electronic commerce commercial sponsorship. See Advertising corporate mobilization of technology, 17–24 education over, 191–200 effect on educational software market, 181 emergence, resulting from liberalization, 8–13 favoritism over telephony, 31 GIP (Global Internet Project), 86 history and structure, xiii–xv industry convergence on computers, 94–96 new media systems for, 66–69 telecommunications, 97–101 information infrastructure and, 24–36 NGI (Next-Generation Internet) proposal, 199 revenue from, 27 security issues. See Security transnationalization of, 135–156 as United States system, 35 U.S. government initiatives (1997), 69–82 U.S. supremacy, 82–88 voice communications over, 26 , 50 women as users, 138–146 Internet 2 effort, 199 Internet Advertising Bureau, 119 Internet communities, 121 , 134 Internet Explorer (IE) browser (Microsoft), 102 , 120 Internet Gambling Zone (Microsoft), 130 Internet Group (Disney), 115 Internet service providers. See ISPs internetMCI, 33 InterSputink, 68 Intranets, 17 , 19 Inventory management systems, 15 Investment in networking, breadth of, 14–17 Investor trading. See Financial industry IP (Internet Protocol), 9 voice communications over, 26 , 50 Iridium, 68 Iridium System (Motorola), 54 ISDN service, 111 Isenberg, Jerry, 195 ISPs (Internet service providers), 11 , 30–32 , 95 FCC service fee proposal, 32 federal regulation, 31 IT&T, 28 ITT, 21 ITU (International Telecommunications Union), 44 , 46 , 50 ITV (instruction television), 173 , 176 IXC Communications, 34 J Java language, 109 , 110 Jobs, Steve, 182 John Wiley, 178 , 181 Jones, David C., 186 Jones Intercable, 194 Jospin, Lionel, 80 Juniper Networks, 28 Junk email, 128 K Kagan, Robert, 81 Kaplan, 193 Kasparov, Garry, 129 Katherine Gibbs schools, 178 Kimberly-Clark, 126 KinderCare Learning Centers, 187 Kleiner Perkins Caulfield & Byers, 113 Knight-Ridder, 119 Knowledge factories, 162 Knowledge Universe, 179 Kobara, John, 195 Kodak, 97 Korea Telecom, 63 Kraft Foods, 137 L Labor. See Employment and labor force LANs (local-area networks), 18 Laybourne, Geraldine B., 138 LCI International, 26 The Learning Company, 180 Learning industry, 147 . See also Education Legacy systems, 18–20 Lehman, Bruce, 77 Lehman Brothers, 177 Level 3 , 26 , 34 Levi Strauss, 139 Lexis-Nexis, 193 Liberalization. See Neoliberalism Lifelong learning, 159 , 167 Local-area networks (LANs), 18 Local telecommunications service, 11 , 106–108 Internet services, 30 Lockheed Martin, 68 Locomotive Works, 147 Long-distance telephone service, 106–108 Loral Space & Communications, 68 Lucent Technologies, 28 , 29 . See Western Electric Lycos, 30 , 136 M Macmillan, 178 Madsen, Hunter, 122 Magazine Publishers of America, 125 Magaziner, Ira, 74 Mail, electronic. See Email Malone, John, 110 , 113 , 116 , 130 Mandl, Alex J., 68 Mannesmann, 64 , 65 Manufacturing, investment in networking technologies, 14 Marcus Cable, 109 Market-driven policy. See Neoliberalism Martin Marietta, 187 McCaw, Craig, 67 McDonald's, 175 McGraw-Hill, 185 MCI (MCI-WorldCom), 12 , 25 , 29 , 33 , 34 , 35 , 107 Internet revenues, 27 ownership in, 61–62 Measured-outcomes initiative, 154–155 Media. See Network technologies ; Television industry MediaOne Group, 113 Mega-universities, 198 Merck, 156 Mercury, privatization of Mergers/acquisitions corporate education conglomerates, 176–184 network developers, 28–36 transnational network systems, 61–66 transnational production, 39 Merrill Lynch, 13 , 95 Metro, 65 Meyer, Ed, 138 MFS Communications (MCI-WorldCom), 34 Micron, 92 Microprocessors, 90 , 110 Microsoft Corporation, 79 , 83 , 90–94 , 102–105 , 108 , 110–114 , 122 , 156 , 182 , 207 antitrust proceedings, 103 Interactive Media Division, 104 , 207 Internet Explorer browser, 102 , 120 Internet Gambling Zone, 130 labor force, 42 , 207 MSN, 96 , 104 MSNBC television network, 103 Online Institute, 158 Sidewalk, 98 , 104 UnderWire, 139 Windows operating systems, 109–110 Microwave Users Council, 3 Military networking, 8–10 , 18 Milken, Michael, 179 Minc, Alain, 203 Ministerial Declaration on Information Technology Products, 47 Minitel system, 80 Mir cosmonauts, 127 Mobile communications systems, 51 , 66 Montgomery Securities, 95 Morgan Stanley, 23 Morris-Suzuki, Tessa, 157 Moschella, David C., 20 , 63 , 83 , 99 , 101 Motorola, 20 , 68 , 110 , 113 , 187 corporate education, 150 Iridium System, 54 Mpath Interactive, online games, 130 MSN (Microsoft Network), 96 , 104 MSNBC television network, 103 Multicasting, 105 Multilateral Agreement on Investment (OECD), 209 Mungo Park magazine, 103 Murdoch, Rupert, 115 N NAPs (Network Access Points), 12 , 32 National Association of Corporation Schools, 147–148 National Education Association (NEA), 201 National Education Corporation. See NEC National Football League web site, 130 National Learning Infrastructure Initiative, 199 National Radio Institute, 185 National Science Foundation. See NSF National Semiconductor, 93 National Society of Sales Training Executives, 149 National Technological University (NTU), 174 , 178 Navigator browser (Netscape), 102 NBC radio network, 97 NBC television network, 94 , 115 , 127 MSNBC, 103 NCI, 110 NEA (National Education Association), 201 NEC (National Education Corporation), 83 , 186 corporate education, 151 NEC-Packard Bell, 93 Neoliberalism, xii , 1–36 broadband access problems, 106 encryption systems, 21 , 70–71 Internet as leading edge, 72 network development (U.S.), 2–13 service standards in telecommunications, 55–57 telecommunications reform, 44 U.S., export of, 40–46 U.S. government initiatives, 69–82 working conditions in telecommunications, 55 WTO telecommunications agreements, 46–49 , 59 , 75 Netcenter (Netscape), 122 NetChannel, 121 Netscape Corporation (AOL), 23 , 94 , 96 , 120 , 122 Navigator browser, 102 push web services, 119 Network Access Points (NAPs), 12–13 Network bandwidth, 105 Network computers, 100 Network development company mergers and acquisitions, 28–36 corporate networking, 3 , 13–14 investment in, 14–17 liberalization of (U.S.), 2–13 technology innovation, 8–13 peering arrangements, 33 telecommunications infrastructure, 24–36 Network failures, 24–25 Network protocols, xiii , 8–9 tunneling protocols, 21 Network security. See Security Network technologies corporate investment in, 14–17 corporate mobilization, 17–24 growth of new media systems, 66–69 harvesting for engineering training, 172–176 innovation in response to liberalization, 8–13 New Partnership (education and industry), 161–170 New School, 191 New York Public Service Commission, 55 New York State Board of Regents, 154 New York Times, 135 , 138 Newman, Nathan, 31 News Corporation, 99 , 108 , 130 Anastasia, 183 push web services, 119 Newspapers, shift toward Internet, 97–99 Next-Generation Internet (NGI) proposal, 199 Nickelodeon television network, 180 Nielsen Media Research, 119 The No Electronic Theft Act, 78 Nora, Simon, 203 Norberg, Arthur L., 18 Norris, William, 189 Northrup University, 151 NSF (National Science Foundation), 10 , 12 , 190 NSFNET, 10 , 144 NSPs (network service providers), 32 NTU (National Technological University), 174 , 178 NYNEX (Bell Atlantic), 32 , 55 , 64 , 112 O OCLC, 196 Odetel (Grupo Varo), 64 Odyssey, 69 OECD (Organization for Economic Cooperation and Development), 40 , 209 Oil industry, 3 Olivetti, 64 O'Neill, Judy E., 18 Online communities, 121 , 134 Online Institute (Microsoft), 158 Open buying, 22 Open standards, 110 Operating controls, 4 Operating system software, 90 , 102 Oracle Corporation, 109–110 Original web content, 100 , 114 P PACE group, 187 Pacific Bell, 57 , 112 , 184 Packard Bell-NEC, 93 Packet switching, 8 , 27 Packets of data, xiii Pager network crash (1998), 25 Panasonic, 109 Paranet, 29 ParentTime, 123 , 139 PC market. See Computer industry Pearson, 179 Peat Marwick, 151 Peering arrangements, 33 Pentium processors (Intel), 91 , 102 Perpetual-innovation economy, 123 , 155–170 reorganizing the university, 160–170 Peterson's, 191 Petroleum industry, 3 Pharmaceutical industry, 14 , 156 Philip Morris, 126 , 127 PHYS (Procter & Gamble), 139 Pilipino Telephone Corporation, 65 Piracy. See Security Pittman, Robert, 107 , 114 Point-to-point lines, 20 PointCast, 119 Politics/policy. See also Government regulation/policy broadband access problems, 106 future of, 82–88 Internet growth, 199 market-driven. See Neoliberalism Microsoft antitrust proceedings, 103 neoliberal telecommunications reform, 44 transnationalization of, 40 U.S. government initiatives, 69–82 WTO telecommunications agreements, 46–49 , 59 , 75 Portals, Internet, 121 Postal Service (U.S.), 12 Postsecondary education, 169 Power users, 54 Privacy, 70–71 , 128 . See also Security audience determination, 138 Private-line telecommunications, 4 Privatization British Telecom, 43 satellite communications systems, 67 schools, 177 Privatization of telecommunications industry, 43 , 45–46 Procter & Gamble, 116 , 127 , 132 , 139 , 157 ParentTime, 122 Prodigy, 11 , 95 Production, transnationalization and, 37–40 Proprietary online services. See ISPs Protocols (network), xiii , 8–9 tunneling protocols, 21 Public Broadcasting Service, 180 Public utilities, telecommunications as, 4 Publishing industry and education, 178–180 Puerto Rico Telephone Company, 209 Push web services, 119 Q QED, 110 QVC television shopping network, 109 , 127 Qwest Communications International, 26 , 34 , 64 R R&D industries, 156–160 R. J. Reynolds, 126 Race differences in marketing, 140–141 Rates, telecommunications local, U.S., 55 transnationalization, consequences to, 49–50 Real Education, 194 , 197 RealNetworks, 105 Rebalancing of telecommunications rates, 49–50 Recording Industry Association of America (RIAA), 78 Recurrent education, 159 , 167 Reed-Elsevier, 15 , 120 , 193 Reed Hundt, 25 Regulation. See Government regulation/policy ; Politics/policy ; Neoliberalism Reid, Robert H., 10 Relationship marketing, 132–135 Relocation resulting from transnationalization, 42 Research and scientific collaboration, 143 . See also Education Revenue from Internet, 27 RIAA (Recording Industry Association of America), 78 Richardson, Charley, 55 RoadRunner, 113 Robertson Stephens, 95 Rogers Cablesystems, 113 Rolling Stones, 127 Ross, Louis, 172 Rothkopf, David, 81–82 Routers, xiii , 28 RSL Communication, 65 Rutkowski, Anthony M., 44 S Samsung, 109 Satellite communications systems, 66–68 DirecTV, 108 Saudi Arabian Airlines, 151 SBC, 65 Schiff, Arthur, 141 Schiller, Herbert I., 71 School Marketing Partners, 183 Schott, Frank, 79 Science-based industry, 156–160 , 166 collaboration and research, 143 . See also Education engineering training, 172–176 Search engines, 121 , 136 Second Computer Inquiry (FCC), 6 Secure Electronic Transaction consortium, 118 Security audience determination, 138 digital watermarks, 118 encryption systems, 70–71 commercial access to, 21 firewalls, 17 intellectual property rights, 76–81 privacy, 70–71 , 128 SegaSoft Heat, 130 Seinfeld, 115 Service standards in telecommunications, 55–57 Set-top boxes, 115 7-Eleven, 15 "Shadow" system of education, 147–155 established institutions vs., 158–160 Shaw Communications, 113 Shniad, Sid, 55 Sidewalk (Microsoft), 98 , 104 Siemens, 83 Simon & Schuster, 179 SITA, 35 Skybridge, 67 Slamming, 57 Slate webzine, 103 Smith Barney, 177 Social welfare advertisers and social purpose, 124–128 extraterritorial corporate telecommunications charters, 48 system building inequality of telecommunications provisions, 51–55 working conditions, 55–58 uneven distribution of wealth, 135–141 SoftKey, 180 Software collaboration software, 19 , 21 educational, 180–184 growth of industry, 16 online course production, 193 open standards, 110 operating system software, 90 , 102 tutorial software, 183 web browsers, 11 , 94–96 , 102 Sony, 110 Southern Methodist University, 173 Southwest Airlines, 25 Spain's Telefonica, 45 Spam (junk email), 128 SPC, 64 Specificity of World Wide Web, 129–141 Splash screens, 121 Sports on the Web, 130 SportsLine, 100 Springer, 95 Sprint, 25 , 34 , 63 , 107 Earthlink, 30 Sprint IP Services, 33 Standard Oil of New Jersey, 149 Stanford University, 163 Start pages, 121 StarTAC cellular handset, 54 State University of New York, 166 Steck-Vaughn Publishing, 186 Stevens, John Paul, 73–74 Stock market. See Financial services industry Submarine cable systems, 68 Subscriber signup scams, 57 Subsidies. See Government regulation/policy Sun Microsystems, 109 , 110 , 113 Super Bowl XXXI (1997), 130 Supply side of transnational networks, 60–69 Supreme Court (U.S.), overturning of CDA, 70 , 72–75 Switches, xiii , 28 Sylvan Learning Systems, 187–189 Syntegra (British Telecom), 29 System building (telecommunications), 50–60 supply-side issues, 60–69 working conditions, 55–57 Systems integration, 29–30 Systems Research Institute (IBM), 149 T T1 circuits, 17 , 54 TAGER (Association for Graduate Education and Research), 173 Tanner, Mary C., 177 Target (Dayton Hudson), 150 TCI (Tele-Communications Inc.), 107 , 108 , 110 , 111 , 115 , 137 TCP/IP protocols, xii–xiv , 9 TCP (Transmission Control Protocol), 9 Technological innovation. See Innovation Technologies, network corporate investment in, 14–17 corporate mobilization, 17–24 growth of new media systems, 66–69 harvesting for engineering training, 172–176 innovation in response to liberalization, 8–13 Tele-Communications Inc. (TCI), 107 , 108 , 110 , 111 , 115 , 137 Telebras (Brazil), 46 Telecom Italia, 45 , 64 AT&T alliance, 64 Telecommunications Act of 1996 (U.S.), 32 Telecommunications industry AT&T divestiture, 7 , 56 company mergers and acquisitions, 28–36 convergence toward Internet, 97–101 government regulation, 3–6 infrastructure of. See Information infrastructure ISPs. See ISPs privatization trends, 43 , 45–46 system building, 50–60 service standards, 55–57 working conditions, 55 transnationalization electronic commerce as force in, 69–88 extraterritorial corporate charters, 46–50 labor force relocation, 42 supply-side issues, 60–69 U.S. neoliberalism and, 40–46 transnationalization of, 37–87 U.S. supremacy in, 82–88 Telecommunications rates local, U.S., 55 transnationalization consequences to, 49–50 Teledesic, 67 Telefonica (Spain), 45 Telefonos de Mexico, 46 Telekom Malaysia, 65 TeleLearning Systems, 189 Telenet, 11 Telephony, 25–26 call centers, 15 callback services, 49 competition over, in European Union, 44 fixed-line networks, 50–54 T1 circuits, 17 , 54 Internet favoritism over, 31 local vs. long-distance markets, 106–108 over Internet, 26 , 50 transnationalization of, 41 Television industry, 113–123 broadreach television, 136 cable television, 107–111 DirecTV, 108 The Health Channel, 176 high-definition television (HDTV), 110 instructional frequencies, 173 , 176 interactive television, 105 MSNBC television network, 103 set-top boxes, 115 Web access via (WebTV), 104 Telmex, 63 Texas Instruments, 187 3Com, 28 THRIVE (Time Inc.), 139 Thurow, Lester C., 76–77 Ticketmaster, 79 , 97 Time Inc.'s THRIVE, 139 Time-Warner, 99 , 103 , 108 , 113 , 130 ParentTime, 122 TNCs (transnational corporations), 37–39 Tobacco industry, 125–126 Toll-free telephony, 41 Toshiba, 124 Total Entertainment Network, 130 Toyota, 15 corporate education, 151 Toyota Vision, 120 web site traffic, 132 Traffic, telecommunications, 25 , 27 advertising power and, 132–135 transnational, 41 Training. See Education Training Within Industry section (War Production Board), 148 Transaction processing, 3 , 22–23 , 118 Transmission Control Protocol (TCP), 9 Transnational corporations (TNCs), 37–39 Transnationalization, 37–87 corporate education, 175 corporate production and, 37–40 Internet-based education, 191–200 Internet media, 135–156 network traffic and, 41 telecommunications industry electronic commerce as force in, 69–88 extraterritorial corporate charters, 46–50 labor force relocation, 42 supply-side issues, 60–69 system building, 50–60 U.S. neoliberalism and, 40–46 Transoceanic cable systems, 68 Traub, James, 194 Trinity Broadcasting, 100 Tuition, college, 160 , 169 Tunneling protocols, 21 Turow, Joseph, 132 , 137 , 140 Tutorial services/software, 183 , 188 TV Guide, 115 U UnderWire (Microsoft), 139 Unisource, 65 United Electronic Institute in Tampa, 178 United States corporate networking, 3 , 13–14 disproportionality of networking systems investment, 16 government involvement. See Government regulation/policy ISP industry, 30 local telecommunications rates, 55 military networking, 8–10 , 18 neoliberalism, export of, 40–46 network development. See Network development satellite communications systems, 67 Telecommunications Act of 1996, 32 telecommunications supremacy, 82–88 unilateral government initiatives, 69–82 United Video Satellite Group, 115 Universities. See Education University of California, 163 , 165 , 196 Berkeley Extension, 168 UCLA's College of Letters and Science (UCLA), 192 University of Cincinnati, 196 University of Colorado at Denver, 192 University of Maryland at College Park, 174 University of Phoenix, 194 University of Southern California, 173 University of Virginia, 196 University of Washington, 202 University of Wisconsin at Stout, 168 U.S. Distance Learning Association, 199 U.S. Postal Service, 12 U.S. Shopping Board, 148 U.S. Steel, 149 U.S. West, 66 Utilities, telecommunications as, 4 UUNet Technologies (MCI-WorldCom), 26 , 33 , 34 , 112 V Value-added data services, 11 Vanity Fair magazine, 126 VDONet, 105 Venture capitalists, 95 Vest, Charles, 161 Viacom, 179 Virginia Slims, 127 Virtual Online University Services, 194 Virtual private networks (VPNs), 21 Visa-Bancomer, 63 Vocational training. See Education Voice communications. See Telephony Voight, Joan, 122 VPNs (virtual private networks), 21 VXtreme, 105 W Wal-Mart, 15 , 25 Walt Disney Corporation. See Disney Corporation War Production Board, education and, 148 Warner Brothers, 120 Washington Post Co., 193 Web. See World Wide Web Web browsers, 11 , 94–96 , 102 Web site design, 132 WebTV networks, 104 Wells, Fargo, 25 Wertheimer, David, 123 Wescott Communications Inc.'s Executive Education Network, 175–176 Western Electric, 149 . See also Lucent Technologies Western Governors University (WGU), 197 Western Union, 97 Westinghouse, 147 WGU (Western Governors University), 197 Whirlpool, 15 Willes, Mark H., 126 Williams Companies, 34 Williams Learning Network Inc., 176 Wilson Learning Corporation, 178 Windows operating systems (Microsoft), 90 , 109–110 Winfrey, Oprah, 115 Wintel, 83 , 91 WIPO (World Intellectual Property Organization), 77 Wolman, William, 42 Woman Thing Music, 127 Women as Internet audience, 138–146 Women's Forum, 139 Women's Link, 123 Working conditions in telecommunications, 55 World Bank, 44 World Intellectual Property Organization (WIPO), 77 World Trade Organization. See WTO World War II, education and, 148 World Wide Web, xiv , 89 , 94–142 , 204 . See also Internet advertising and corporate sponsorship, 116–123 consequences, 123–129 audience, finding and developing, 134–142 commerce over. See Electronic commerce consequences for educational software, 181 educational web pages, 192 forces behind creation of communication industry, 97–101 computer industry, 90–96 market position struggles, 101–113 interactivity of, 130–135 original content, 100 , 114 push web services, 119 school web sites, 181 specificity of, 129–141 start pages and search engines, 121 television model, 113–123 WorldCom (MCI-WorldCom), 62–63 , 112 Internet revenues, 27 MCI takeover, 62 MFS Communications takeover, 34 UUNet Technologies, 26 , 33 , 34 , 112 WorldNet Internet service (AT&T), 30 , 184 WTO (World Trade Organization) Canadian periodical competition, 79 telecommunications agreements, 46–49 , 59 , 75 X Xerox, 12 , 150 , 156 corporate education (Fuji Xerox), 151 Y Yahoo!, 121 , 136 York University in Toronto, 202 Yurie Systems, 28