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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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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