Virtual cartels, oligopolistic structures

Global networks require global technical standards ensuring the compatibility of systems. Being able to define such standards makes a corporation extremely powerful. And it requires the suspension of competitive practices. Competition is relegated to the symbolic realm. Diversity and pluralism become the victims of the globalisation of baroque sameness.

The ICT market is dominated by incomplete competition aimed at short-term market domination. In a very short time, new ideas can turn into best-selling technologies. Innovation cycles are extremely short. But today's state-of-the-art products are embryonic trash.

    According to the Computer and Communications Industry Association, Microsoft is trying to aggressively take over the network market. This would mean that AT&T would control 70 % of all long distance phone calls and 60 % of cable connections.



    AOL and Yahoo are lone leaders in the provider market. AOL has 21 million subscribers in 100 countries. In a single month, AOL registers 94 million visits. Two thirds of all US internet users visited Yahoo in December 1999.



    The world's 13 biggest internet providers are all American.



    AOL and Microsoft have concluded a strategic cross-promotion deal. In the US, the AOL icon is installed on every Windows desktop. AOL has also concluded a strategic alliance with Coca Cola.


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Actual Findings on Internet Advertising

Although Web advertising becomes a significant portion of marketing budgets, advertisers are still unsure on how to unlock the potential of the Internet. Current findings show that:

- Consumer brands spend only a fraction of their advertising budget on on-line advertising.

- Technology companies spend five times more on advertising in the WWW.

- While banner campaigns are still popular, there is no standardized solution for on-line advertising.

- Ad pricing is based on CPM (costs per 1.000 visitors), rather than on results.

- Personalized targeting has not yet taken hold. Instead advertisers mainly target on content.

At the moment three dominant models are used for Internet advertising:

Destination Sites: They use entertainment, high production values and information to pull users in and bring them back again.

Micro Sites: Content sites or networks host small clusters of brand pages.

Banner Campaigns: Those include other forms of Web advertising like sponsorships.

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Virtual cartels; mergers

In parallel to the deregulation of markets, there has been a trend towards large-scale mergers which ridicules dreams of increased competition.

Recent mega-mergers and acquisitions include

SBC Communications - Ameritech, $ 72,3 bn

Bell Atlantic - GTE, $ 71,3

AT&T - Media One, $ 63,1

AOL - Time Warner, $ 165 bn

MCI Worldcom - Spring, $ 129 bn

The total value of all major mergers since the beginnings of the 1990s has been 20 trillion Dollars, 2,5 times the size of the USA's GIP.

The AOL- Time Warner reflects a trend which can be observed everywhere: the convergence of the ICT and the content industries. This represents the ultimate advance in complete market domination, and a alarming threat to independent content.

"Is TIME going to write something negative about AOL? Will AOL be able to offer anything other than CNN sources? Is the Net becoming as silly and unbearable as television?"

(Detlev Borchers, journalist)

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What is the Internet?

Each definition of the Internet is a simplified statement and runs the risk of being outdated within a short time. What is usually referred to as the Internet is a network of thousands of computer networks (so called autonomous systems) run by governmental authorities, companies, and universities, etc. Generally speaking, every time a user connects to a computer networks, a new Internet is created. Technically speaking, the Internet is a wide area network (WAN) that may be connected to local area networks (LANs).

What constitutes the Internet is constantly changing. Certainly the state of the future Net will be different to the present one. Some years ago the Internet could still be described as a network of computer networks using a common communication protocol, the so-called IP protocol. Today, however, networks using other communication protocols are also connected to other networks via gateways.

Also, the Internet is not solely constituted by computers connected to other computers, because there are also point-of-sale terminals, cameras, robots, telescopes, cellular phones, TV sets and and an assortment of other hardware components that are connected to the Internet.

At the core of the Internet are so-called Internet exchanges, national backbone networks, regional networks, and local networks.

Since these networks are often privately owned, any description of the Internet as a public network is not an accurate. It is easier to say what the Internet is not than to say what it is. On 24 October, 1995 the U.S. Federal Networking Council made the following resolution concerning the definition of the term "Internet": "Internet" refers to the global information system that (i) is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons; (ii) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible protocols; and (iii) provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein." (http://www.fnc.gov/Internet_res.html)

What is generally and in a simplyfiying manner called the Internet, may be better referred to as the Matrix, a term introduced by science fiction writer William Gibson, as John S. Quarterman and Smoot Carl-Mitchell have proposed. The Matrix consists of all computer systems worldwide capable of exchanging E-Mail: of the USENET, corporate networks and proprietary networks owned by telecommunication and cable TV companies.

Strictly speaking, the Matrix is not a medium; it is a platform for resources: for media and services. The Matrix is mainly a very powerful means for making information easily accessible worldwide, for sending and receiving messages, videos, texts and audio files, for transferring funds and trading securities, for sharing resources, for collecting weather condition data, for trailing the movements of elephants, for playing games online, for video conferencing, for distance learning, for virtual exhibitions, for jamming with other musicians, for long distance ordering, for auctions, for tracking packaged goods, for doing business, for chatting, and for remote access of computers and devices as telescopes and robots remotely, e. g. The Internet is a wonderful tool for exchanging, retrieving, and storing data and sharing equipment over long distances and eventually real-time, if telecommunication infrastructure is reliable and of high quality.

For a comprehensive view of uses of the Matrix, especially the World Wide Web, see ""24 Hours in Cyberspace"

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Public Relations and Propaganda

Public relations usually is associated with the influencing of public opinion. Therefore it has subsequently been linked with propaganda. Using one of the many definitions of propaganda "... the manipulation of symbols as a means of influencing attitudes on controversial matters" (Harold D. Lasswell), the terms propaganda and PR seem to be easily interchangeable.

Still many authors explicitly distinguish between public relations, advertising and propaganda. Unlike PR, which is often described as objective and extensive information of the public, advertising and propaganda are associated with manipulative activities. Nevertheless to treat public relations and propaganda as equivalents stands in the tradition of PR. Edward L. Bernays, one of the founders of public relations wrote "The only difference between propaganda and education, really, is the point of view. The advocacy of what we believe in is education. The advocacy of what we don't believe is propaganda."

Also institutions like the German Bundeswehr use the terms publics relations and propaganda synonymously. After a 1990 legislation of the former minister of defense Stoltenberg, the "psychological influence of the enemy" was ceased during peace time and the Academy for Psychological Defense renamed to Academy for Information and Communication, among other things responsible for scientific research in the field of public relations.

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Transmission Control Protocol/Internet Protocol (TCP/IP)

TCP and IP are the two most important protocols and communication standards. TCP provides reliable message-transmission service; IP is the key protocol for specifying how packets are routed around the Internet.

More detailed information can be found here

http://www.anu.edu/people/Roger.Clarke/II/Pri...
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The Internet Engineering Task Force

The Internet Engineering Task Force contributes to the evolution of the architecture, the protocols and technologies of the Net by developing new Internet standard specifications. The directors of its functional areas form the Internet Engineering Steering Group.

Internet Society: http://www.ietf.org

http://www.ietf.org/
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DMCA

The DMCA (Digital Millennium Copyright Act) was signed into law by U.S. President Clinton in 1998 and implements the two 1996 WIPO treaties (WIPO Performances and Phonograms Treaty and WIPO Copyright Treaty). Besides other issues the DMCA addresses the influence of new technologies on traditional copyright. Of special interest in the context of the digitalization of intellectual property are the titles no. 2, which refers to the limitation on the liability of online service providers for copyright infringement (when certain conditions are met), no. 3, that creates an exemption for making a copy of a computer program in case of maintenance and repair, and no. 4 which is concerned with the status of libraries and webcasting. The DCMA has been widely criticized for giving copyright-holders even more power and damage the rights and freedom of consumers, technological innovation, and the free market for information.

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America Online

Founded in 1985, America Online is the world's biggest Internet service provider serving almost every second user. Additionally, America Online operates CompuServe, the Netscape Netcenter and several AOL.com portals. As the owner of Netscape, Inc. America Online plays also an important role in the Web browser market. In January 2000 America Online merged with Time Warner, the worlds leading media conglomerate, in a US$ 243,3 billion deal, making America Online the senior partner with 55 percent in the new company.

http://www.aol.com

http://www.aol.com/
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Microsoft Corporation

Founded by Bill Gates and Paul Allen and headquartered in Redmond, USA, Microsoft Corporation is today's world-leading developer of personal-computer software systems and applications. As MS-DOS, the first operating system released by Microsoft, before, Windows, its successor, has become the de-facto standard operating system for personal computer. According to critics and following a recent court ruling this is due to unfair competition.

http://www.microsoft.com

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/4/0,5716,1524+1+1522,00.html

http://www.microsoft.com/
http://www.britannica.com/bcom/eb/article/4/0...
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