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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Implant technology

Kevin Warwick at the University of Reading works on implant technologies which could enhance or modify functions of the limbs and the brain, or bring back functionalities lost, for example, in an accident or as a consequence of a stroke. Implants are also used for identification in "intelligent buildings" where they serve to control "personnel flows". However, the real potential of electronic implants seems to lie in the field of electronic drugs. The basics of the brain computer interface are already explored, and there are now efforts to electronically modify the function of the mind. Large software and IT companies are sponsoring this research which could result in the commercialisation of electronic drugs, functioning as anti-depressants, pain killers and the like. Evidently, the same technologies can also be used as narcotic drugs or to modify people's behaviour. The functioning of body and mind can be adapted to pre-defined principles and ideals, their autonomous existence reduced and subjected to direct outside control.

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Virtual cartels, introduction

Among the most striking development of the 1990s has been the emergence of a global commercial media market utilizing new technologies and the global trend toward deregulation.
This global commercial media market is a result of aggressive maneuvering by the dominant firms, new technologies that make global systems cost-efficient, and neoliberal economic policies encouraged by the World Bank, IMF, WTO, and the US government to break down regulatory barriers to a global commercial media and telecommunication market.

A global oligopolistic market that covers the spectrum of media is now crystallizing the very high barriers to entry."

(Robert McChesney, author of "Rich Media, Poor Democracy")

The network structure of information and communication technologies means that even deregulated markets are not "free". The functional logic of global networks only tolerates a small number of large players. Mergers, strategic alliances, partnerships and cooperations are therefore the daily routine of the ICT business. They bypass competition and create "virtual cartels".

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Vinton Cerf

Addressed as one of the fathers of the Internet, Vinton Cerf together with Robert Kahn developed the TCP/IP protocol suite, up to now the de facto-communication standard for the Internet, and also contributed to the development of other important communication standards. The early work on the protocols broke new ground with the realization of a multi-network open architecture.

In 1992, he co-founded the Internet Society where he served as its first President and later Chairman.

Today, Vinton Cerf is Senior Vice President for Internet Architecture and Technology at WorldCom, one of the world's most important ICT companies

Vinton Cerf's web site: http://www.wcom.com/about_the_company/cerfs_up/

http://www.isoc.org/
http://www.wcom.com/
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Frederick Taylor

b. March 20, 1856, Philadelphia, Pa., U.S.
d. March 21, 1915, Philadelphia

American inventor and engineer who is known as the father of scientific management. His system of industrial management has influenced the development of virtually every country. In 1881, he introduced time study at the Midvale plant. The profession of time study was founded on the success of this project, which also formed the basis of Taylor's subsequent theories of management science. Essentially, Taylor suggested that production efficiency in a shop or factory could be greatly enhanced by close observation of the individual worker and elimination of waste time and motion in his operation. Though the Taylor system provoked resentment and opposition from labor when carried to extremes, its value in rationalizing production was indisputable and its impact on the development of mass production techniques immense.

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Alexander Graham Bell

b., March 3, 1847, Edinburgh

d. Aug. 2, 1922, Beinn Bhreagh, Cape Breton Island, Nova Scotia, Canada

American audiologist and inventor wrongly remembered for having invented the telephone in 1876. Although Bell introduced the first commercial application of the telephone, in fact a German teacher called Reiss invented it.

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/1/0,5716,15411+1+15220,00.html

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IBM

IBM (International Business Machines Corporation) manufactures and develops cumputer hardware equipment, application and sysem software, and related equipment.

IBM produced the first PC (Personal Computer), and its decision to make Microsoft DOS the standard operating system initiated Microsoft's rise to global dominance in PC software.

Business indicators:

1999 Sales: $ 86,548 (+ 7,2 % from 1998)

Market capitalization: $ 181 bn

Employees: approx. 291,000

Corporate website: www.ibm.com

http://www.ibm.com/
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Edward L. Bernays

Born 1891 in Vienna, Bernays was one of the founders of modern public relations. An enigmatic character, he was a master of mise en scène with far-reaching contacts in the world of business and politics. The nephew of Sigmund Freund and related with Heinrich Heine, he was also among the first to pursue PR for governments and to produce pseudo-events. Bernays considered the manipulation of public opinion as an important element of mass democracies and was of the opinion that only through PR a society's order can be kept.

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