Acessing the Internet
The Net connections can be based on wire-line and wireless access technolgies.
Usually several kinds of network connections are employed at once. Generally speaking, when an E-mail message is sent it travels from the user's computer via copper wires or coaxial cables ISDN lines, etc., to an Internet Service Provider, from there, via fibre-optic cables, to the nearest Internet exchange, and on into a backbone network, tunneling across the continent und diving through submarine fibre-optic cables across the Atlantic to another Internet exchange, from there, via another backbone network and across another regional network to the Internet Service Provider of the supposed message recipient, from there via cables and wires of different bandwidth arriving at its destination, a workstation permanently connected to the Internet. Finally a sound or flashing icon informs your virtual neighbor that a new message has arrived.
Satellite communication
Although facing competition from fiber-optic cables as cost-effective solutions for broadband data transmission services, the space industry is gaining increasing importance in global communications. As computing, telephony, and audiovisual technologies converge, new wireless technologies are rapidly deployed occupying an increasing market share and accelerating the construction of high-speed networks.
Privatization of satellite communication
Until recently transnational satellite communication was provided exclusively by intergovernmental organizations as Intelsat, Intersputnik and Inmarsat.
Scheduled privatization of intergovernmental satellite consortia:
Satellite consortia
| Year of foundation
| Members
| Scheduled date for privatization
| Intelsat
| 1964
| 200 nations under the leadership of the USA
| 2001
| Intersputnik
| 1971
| 23 nations under the leadership of Russia
| ?
| Inmarsat
| 1979
| 158 nations (all members of the International Maritime Organization)
| privatized since 1999
| Eutelsat
| 1985
| Nearly 50 European nations
| 2001
| |
When Intelsat began to accumulate losses because of management failures and the increasing market share of fiber-optic cables, this organizational scheme came under attack. Lead by the USA, the Western industrialized countries successfully pressed for the privatization of all satellite consortia they are members of and for competition by private carriers.
As of February 2000, there are 2680 satellites in service. Within the next four years a few hundred will be added by the new private satellite systems. Most of these systems will be so-called Low Earth Orbit satellite systems, which are capable of providing global mobile data services on a high-speed level at low cost.
Because of such technological improvements and increasing competition, experts expect satellite-based broadband communication to be as common, cheap, and ubiquitous as satellite TV today within the next five or ten years.
Major satellite communication projects
Project name
| Main investors
| Expected cost
| Number of satellites
| Date of service start-up
| Astrolink
| Lockheed Martin, TRW, Telespazio, Liberty Media Group
| US$ 3.6 billion
| 9
| 2003
| Globalstar
| 13 investors including Loral Space & Communications, Qualcomm, Hyundai, Alcatel, France Telecom, China Telecom, Daimler Benz and Vodafone/Airtouch
| US$ 3.26 billion
| 48
| 1998
| ICO
| 57 investors including British Telecom, Deutsche Telecom, Inmarsat, TRW and Telefonica
| US$ 4.5 billion
| 10
| 2001
| Skybridge
| 9 investors including Alcatel Space, Loral Space & Communications, Toshiba, Mitsubishi and Sharp
| US$ 6.7 billion
| 80
| 2002
| Teledesic
| Bill Gates, Craig McCaw, Prince Alwaleed Bin Talal Bin Abdul Aziz Alsaud, Abu Dhabi Investment Company
| US$ 9 billion
| 288
| 2004
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Source: Analysys Satellite Communications Database
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Transparent customers. Direct marketing online
This process works even better on the Internet because of the latter's interactive nature. "The Internet is a dream to direct marketers", said Wil Lansing, CEO of the American retailer Fingerhut Companies. Many services require you to register online, requiring users to provide as much information about them as possible. And in addition, the Internet is fast, cheap and used by people who tend to be young and on the search for something interesting.
Many web sites also are equipped with user tracking technology that registers a users behaviour and preferences during a visit. For example, user tracking technology is capable of identifying the equipment and software employed by a user, as well as movements on the website, visit of links etc. Normally such information is anonymous, but can be personalised when it is coupled with online registration, or when personal identifcation has been obtained from other sources. Registration is often a prerequisite not just for obtaining a free web mail account, but also for other services, such as personalised start pages. Based on the information provided by user, the start page will then include advertisements and commercial offers that correspond to the users profile, or to the user's activity on the website.
One frequent way of obtaining such personal information of a user is by offering free web mail accounts offered by a great many companies, internet providers and web portals (e.g. Microsoft, Yahoo, Netscape and many others). In most cases, users get "free" accounts in return for submitting personal information and agreeing to receive marketing mails. Free web mail accounts are a simple and effective direct marketing and data capturing strategy which is, however, rarely understood as such. However, the alliances formed between direct advertising and marketing agencies on the one hand, and web mail providers on the other hand, such as the one between DoubleClick and Yahoo, show the common logic of data capturing and direct marketing. The alliance between DoubleClick and Yahoo eventually attracted the US largest direct marketing agency, Abacus Direct, who ended up buying DoubleClick.
However, the intention of collecting users personal data and create consumer profiles based on online behaviour can also take on more creative and playful forms. One such example is sixdegrees.com. This is a networking site based on the assumption that everybody on the planet is connected to everybody else by a chain of six people at most. The site offers users to get to know a lot of new people, the friends of their friends of their friends, for example, and if they try hard enough, eventually Warren Beatty or Claudia Schiffer. But of course, in order to make the whole game more useful for marketing purposes, users are encouraged to join groups which share common interests, which are identical with marketing categories ranging from arts and entertainment to travel and holiday. Evidently, the game becomes more interesting the more new people a user brings into the network. What seems to be fun for the 18 to 24 year old college student customer segment targeted by sixdegrees is, of course, real business. While users entertain themselves they are being carefully profiled. After all, data of young people who can be expected to be relatively affluent one day are worth more than money.
The particular way in which sites such as sixdegrees.com and others are structured mean that not only to users provide initial information about them, but also that this information is constantly updated and therefore becomes even more valuable. Consequently, many free online services or web mail providers cancel a user's account if it has not been uses for some time.
There are also other online services which offer free services in return for personal information which is then used for marketing purposes, e.g. Yahoo's Geocities, where users may maintain their own free websites, Bigfoot, where people are offered a free e-mail address for life, that acts as a relais whenever a customer's residence or e-mail address changes. In this way, of course, the marketers can identify friendship and other social networks, and turn this knowledge into a marketing advantage. People finders such as WhoWhere? operate along similar lines.
A further way of collecting consumer data that has recently become popular is by offering free PCs. Users are provided with a PC for free or for very little money, and in return commit themselves to using certain services rather than others (e.g. a particular internet provider), providing information about themselves, and agree to have their online behaviour monitored by the company providing the PC, so that accurate user profiles can be compiled. For example, the Free PC Network offers advertisers user profiles containing "over 60 individual demographics". There are literally thousands of variations of how a user's data are extracted and commercialised when online. Usually this happens quietly in the background.
A good inside view of the world of direct marketing can be gained at the website of the American Direct Marketing Association and the Federation of European Direct Marketing.
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Problems of Copyright Management and Control Technologies
Profiling and Data Mining
At their most basic copyright management and control technologies might simply be used to provide pricing information, negotiate the purchase transaction, and release a copy of a work for downloading to the customer's computer. Still, from a technological point of view, such systems also have the capacity to be employed for digital monitoring. Copyright owners could for example use the transaction records generated by their copyright management systems to learn more about their customers. Profiles, in their crudest form consisting of basic demographic information, about the purchasers of copyrighted material might be created. Moreover copyright owners could use search agents or complex data mining techniques to gather more information about their customers that could either be used to market other works or being sold to third parties.
Fair Use
Through the widespread use of copyright management and control systems the balance of control could excessively be shifted in favor of the owners of intellectual property. The currently by copyright law supported practice of fair use might potentially be restricted or even eliminated. While information in analogue form can easily be reproduced, the protection of digital works through copyright management systems might complicate or make impossible the copying of material for purposes, which are explicitly exempt under the doctrine of fair use.
Provisions concerning technological protection measures and fair use are stated in the DMCA, which provides that "Since copying of a work may be a fair use under appropriate circumstances, section 1201 does not prohibit the act of circumventing a technological measure that prevents copying. By contrast, since the fair use doctrine is not a defense e to the act of gaining unauthorized access to a work, the act of circumventing a technological measure in order to gain access is prohibited." Also the proposed EU Directive on copyright and related rights in the information society contains similar clauses. It distinguishes between the circumvention of technical protection systems for lawful purposes (fair use) and the circumvention to infringe copyright. Yet besides a still existing lack of legal clarity also very practical problems arise. Even if the circumvention of technological protection measures under fair use is allowed, how will an average user without specialized technological know-how be able to gain access or make a copy of a work? Will the producers of copyright management and control systems provide fair use versions that permit the reproduction of copyrighted material? Or will users only be able to access and copy works if they hold a digital "fair use license" ("fair use licenses" have been proposed by Mark Stefik, whereby holders of such licenses could exercise some limited "permissions" to use a digital work without a fee)?
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Amazon.com
Amazon.com is an online shop that serves approx. 17 mn customers in 150 countries. Starting out as a bookshop, Amazon today offers a wide range of other products as well.
Among privacy campaigners, the company's name has become almost synonymous with aggressive online direct marketing practices as well as user profiling and tracking. Amazon and has been involved in privacy disputes at numerous occasions.
http://www.amazon.com/
http://www.computeruser.com/newstoday/00/01/0...
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RSA
The best known of the two-key cryptosystems developed in the mid-1980s is the Rivest-Shamir-Adleman (RSA) cryptoalgorithm, which was first published in April, 1977. Since that time, the algorithm has been employed in the most widely-used Internet electronic communications encryption program, Pretty Good Privacy (PGP). It is also employed in both the Netscape Navigator and Microsoft Explorer web browsing programs in their implementations of the Secure Sockets Layer (SSL), and by Mastercard and VISA in the Secure Electronic Transactions (SET) protocol for credit card transactions.
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Electronic Data Interchange (EDI)
EDI is an international standard relating to the exchange of trade goods and services. It enables trading partners to conduct routine business transactions, such as purchase orders, invoices and shipping notices independent of the computer platform used by the trading partners. Standardization by EDI translation software assures the correct interpretation of data.
EDI might become increasingly important to electronic commerce.
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