The Advertising Industry

The advertising industry is dominated by three huge advertising networks, which offer their services throughout the world. Gross income of the three leading agencies is twice as much, as the one of places four to ten.

Table: World's Top 10 Advertising Organizations 1999

(figures in millions of U.S. dollars)

Rank 1999

Advertising Organization

Headquarters

World-Wide Gross Income 1999

1

Omnicom

New York, USA

$ 5,743.4

2

Interpublic Group of Cos.

New York, USA

$ 5,079.3

3

WPP Group

London, UK

$ 4,819.3

4

Havas Advertising

Levallois-Perret, France

$ 2,385.1

5

Dentsu

Tokyo, Japan

$ 2,106.8

6

B Com3 Group

Chicago, USA

$ 1,933.8

7

Young & Rubicam Inc.

New York, USA

$ 1,870.1

8

Grey Advertising

New York, USA

$ 1,577.9

9

True North

Chicago, USA

$ 1,489.2

10

Publicis SA

Paris, France

$ 1,434.6



Table: Top 10 Global Marketers 1998

(figures in millions of U.S. dollars)

Rank 1998

Advertiser

Headquarters

World-Wide Media Spending 1998

1

Procter & Gamble Co.

Cincinnati (US)

$ 4,747.6

2

Unilever

Rotterdam (NL)/London (UK)

$ 3,428.5

3

General Motors Corp.

Detroit (US)

$ 3,193.5

4

Ford Motor Co.

Darborn (US)

$ 2,229.5

5

Philip Morris Cos.

New York

$ 1,980.3

6

Daimler Chrysler

Stuttgart (GER)/Auburn Hills (US

$ 1,922.2

7

Nestle

Vevey (SUI)

$ 1,833.0

8

Toyota Motor Corp.

Toyota City (JP)

$ 1,692.4

9

Sony Corp.

Tokyo (JP)

$ 1,337.7

10

Coca-Cola Co.

Atlanta (US)

$ 1,327.3



On the other hand the three biggest advertisers only spend about US$ 2 millions less than places four to ten together. Whereas money spent on advertising in traditional media comes from very diverse categories, companies offering computer hard- and software, peripherals or Internet services mainly pay for on-line advertisements.

Table: Top 10 Internet Advertisers 1998

(figures in millions of U.S. dollars)

Rank 1998

Advertiser

Internet Spending 1998

1998 - 1997 % Change

1

Microsoft Corp.

$ 34.9

9.4

2

IBM Corp.

$ 28.5

58.6

3

Compaq Computer Corp.

$ 16.2

169.8

4

General Motors Corp.

$ 12.7

84.8

5

Excite

$ 12.4

1.5

6

Infoseek Corp.

$ 9.3

22.3

7

AT&T Corp.

$ 9.3

43.5

8

Ford Motor Co.

$ 8.6

46.7

9

Hewlett-Packard Co.

$ 8.1

102.9

10

Barnes & Noble

$ 7.6

280.2



Source: Advertising Age

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Commercial vs. Independent Content

Commercial media aim towards economies of scale and scope, with the goal to maximize profits. As advertising money usually is their primary source of revenue their content very often is attuned to meet the needs of advertisers and marketers. Information necessary for a citizen's participation in the public sphere usually only plays a minor role in their programming, as it does not comply with the demands of an economic system whose principal aim is the generation of profit. They also virtually always are structured in accord with and to help reinforce society's defining hierarchical social relationships, and are generally controlled by and controlling of other major social institutions, particularly corporations.

Independent content provider on the other hand mostly act on a non-profit basis and try to avoid dependence on corporate powers and the state. One of their main concerns is the critical observation of public interest issues. The central aim of independent content provider's activities usually is to bring aspects and standpoints neglected by the (commercial) mainstream media to the public and subvert society's defining hierarchical social relationships. Promoting public debate and an active civil society they engage in the organization of alert actions and information campaigns or create subversive art

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Timeline 1900-1970 AD

1913 the wheel cipher gets re-invented as a strip

1917 William Frederick Friedman starts working as a cryptoanalyst at Riverbank Laboratories, which also works for the U.S. Government. Later he creates a school for military cryptoanalysis

- an AT&T-employee, Gilbert S. Vernam, invents a polyalphabetic cipher machine that works with random-keys

1918 the Germans start using the ADFGVX-system, that later gets later by the French Georges Painvin

- Arthur Scherbius patents a ciphering machine and tries to sell it to the German Military, but is rejected

1919 Hugo Alexander Koch invents a rotor cipher machine

1921 the Hebern Electric Code, a company producing electro-mechanical cipher machines, is founded

1923 Arthur Scherbius founds an enterprise to construct and finally sell his Enigma machine for the German Military

late 1920's/30's more and more it is criminals who use cryptology for their purposes (e.g. for smuggling). Elizabeth Smith Friedman deciphers the codes of rum-smugglers during prohibition regularly

1929 Lester S. Hill publishes his book Cryptography in an Algebraic Alphabet, which contains enciphered parts

1933-1945 the Germans make the Enigma machine its cryptographic main-tool, which is broken by the Poles Marian Rejewski, Gordon Welchman and Alan Turing's team at Bletchley Park in England in 1939

1937 the Japanese invent their so called Purple machine with the help of Herbert O. Yardley. The machine works with telephone stepping relays. It is broken by a team of William Frederick Friedman. As the Japanese were unable to break the US codes, they imagined their own codes to be unbreakable as well - and were not careful enough.

1930's the Sigaba machine is invented in the USA, either by W.F. Friedman or his colleague Frank Rowlett

- at the same time the British develop the Typex machine, similar to the German Enigma machine

1943 Colossus, a code breaking computer is put into action at Bletchley Park

1943-1980 the cryptographic Venona Project, done by the NSA, is taking place for a longer period than any other program of that type

1948 Shannon, one of the first modern cryptographers bringing mathematics into cryptography, publishes his book A Communications Theory of Secrecy Systems

1960's the Communications-Electronics Security Group (= CESG) is founded as a section of Government Communications Headquarters (= GCHQ)

late 1960's the IBM Watson Research Lab develops the Lucifer cipher

1969 James Ellis develops a system of separate public-keys and private-keys

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The Concept of the Public Sphere

According to social critic and philosopher Jürgen Habermas "public sphere" first of all means "... a domain of our social life in which such a thing as public opinion can be formed. Access to the public sphere is open in principle to all citizens. A portion of the public sphere is constituted in every conversation in which private persons come together to form a public. They are then acting neither as business or professional people conducting their private affairs, nor as legal consociates subject to the legal regulations of a state bureaucracy and obligated to obedience. Citizens act as a public when they deal with matters of general interest without being subject to coercion; thus with the guarantee that they may assemble and unite freely, and express and publicize their opinions freely."

The system of the public sphere is extremely complex, consisting of spatial and communicational publics of different sizes, which can overlap, exclude and cover, but also mutually influence each other. Public sphere is not something that just happens, but also produced through social norms and rules, and channeled via the construction of spaces and the media. In the ideal situation the public sphere is transparent and accessible for all citizens, issues and opinions. For democratic societies the public sphere constitutes an extremely important element within the process of public opinion formation.

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An Economic and therefore Governmental Issue

While the digital divide might bring up the idea that enterprises will be able to sell more and more computers during the next years another truth looks as if there was no hope for a certain percentage of the population to get out of their marginalization, their position of being "have nots".

Studies show that the issue of different colors of skin play a role in this, but more than "racial" issues it is income, age and education that decides about the have and have nots.

There exist ~ 103 million households in the USA.
~6 million do not even have telephone access. Why should they care about computers?

The digital divide cuts the world into centers and peripheries, not into nations, as it runs through the boarder between the North and the South as well as through nations.

http://www.digitaldivide.gov/
http://www.digitaldividenetwork.org/
http://www.pbs.org/digitaldivide/
http://news.cnet.com/news/0-1005-200-344552.html
http://racerelations.about.com/newsissues/racerelations/msubdigdivide.htm
http://www.techweek.com/articles/11-1-99/divide.htm
http://www.ntia.doc.gov/ntiahome/net2/falling.html

The most different institutions with various interests in their background work in that field; not rarely paid by governments, which are interested in inhabitants, connected to the net and economy.
see also: http://www.washington.edu/wto/digital/

Searching information about the digital divide one will find informations saying that it is growing all the time whereas other studies suggest the contrary, like this one
http://news.cnet.com/news/0-1005-200-341054.html

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Steganography

Ciphers as well as codes are transmitted openly. Everyone can see that they exist. Not so with steganograms.
Steganography is the art and science of communicating in a way which hides the existence of the secret part in that communication. During the Italian Renaissance and the time of the Elizabethan Age in England cryptography was very popular, for political reasons as well as for amusements (see John Dee).
In literature steganography played an important role. Many steganographs of that period have only been deciphered recently like some of the Shakespearean sonnets, which now seem to proof that the actor William Shakespeare was not the author of the famous poems and dramas, but that the latter' name was, and Francis Bacon, or even Francis Tudor, as some ciphers and other sources talk of him as Queen Elisabeth I.'s secret son.

for further details see:
http://home.att.net/~tleary/
http://www.thur.de/ulf/stegano/
http://www2.prestel.co.uk/littleton/gm2_rw.htm

One kind of steganogram is digital watermarking:
Watermarks protect digital images, videos, but also audio and multimedia products. They are made out of digital signals, put into other digital signals. They try to be invisible on first sight and should be nearly impossible to remove. The process of producing watermarks is to overlay some sort of identifying image over the original image (non-digital watermarks, like on money can be seen by holding the paper against light). Copying the image destroys the watermark, which cannot be copied. Any alteration of the original destroys the watermark, too.

Watermarking is one of the typical inventions of cryptography to assist the biggest content owners, but advertised as something necessary and helpful for everybody. Who in fact gets any advantage out of watermarking? The private user most of the time will not really need it except for small entities of pictures maybe.
But the big enterprises do. There is a tendency to watermark more and more information in the Internet, which until now was considered as free and as a cheap method to receive information. Watermarking could stop this democratic development.

for further information see:
http://www.isse.gmu.edu/~njohnson/Steganography

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Definition

During the last 20 years the old Immanuel Wallerstein-paradigm of center - periphery and semi-periphery found a new costume: ICTs. After Colonialism, Neo-Colonialism and Neoliberalism a new method of marginalization is emerging: the digital divide.

"Digital divide" describes the fact that the world can be divided into people who
do and people who do not have access to (or the education to handle with) modern information technologies, e.g. cellular telephone, television, Internet. This digital divide is concerning people all over the world, but as usually most of all people in the formerly so called third world countries and in rural areas suffer; the poor and less-educated suffer from that divide.
More than 80% of all computers with access to the Internet are situated in larger cities.

"The cost of the information today consists not so much of the creation of content, which should be the real value, but of the storage and efficient delivery of information, that is in essence the cost of paper, printing, transporting, warehousing and other physical distribution means, plus the cost of the personnel manpower needed to run these `extra' services ....Realizing an autonomous distributed networked society, which is the real essence of the Internet, will be the most critical issue for the success of the information and communication revolution of the coming century of millennium."
(Izumi Aizi)

for more information see:
http://www.whatis.com/digital_divide.htm

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Economic structure; introduction



"Globalization is to no small extent based upon the rise of rapid global communication networks. Some even go so far as to argue that "information has replaced manufacturing as the foundation of the economy". Indeed, global media and communication are in some respects the advancing armies of global capitalism."

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

"Information flow is your lifeblood."

(Bill Gates, founder of Microsoft)

The usefulness of information and communication technologies increases with the number of people who use them. The more people form part of communication networks, the greater the amount of information that is produced. Microsoft founder Bill Gates dreams of "friction free capitalism", a new stage of capitalism in which perfect information becomes the basis for the perfection of the markets.

But exploitative practices have not disappeared. Instead, they have colonised the digital arena where effective protective regulation is still largely absent.

Following the dynamics of informatised economies, the consumption habits and lifestyles if customers are of great interest. New technologies make it possible to store and combine collected data of an enormous amount of people.

User profiling helps companies understand what potential customers might want. Often enough, such data collecting takes place without the customer's knowledge and amounts to spying.

"Much of the information collection that occurs on the Internet is invisible to the consumer, which raises serious questions of fairness and informed consent."

(David Sobel, Electronic Privacy Information Center)

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1800 - 1900 A.D.

1801
Invention of the punch card

Invented by Joseph Marie Jacquard, an engineer and architect in Lyon, France, punch cards laid the ground for automatic information processing. For the first time information was stored in binary format on perforated cardboard cards. In 1890 Hermann Hollerith used Joseph-Marie Jacquard's punch card technology to process statistical data collected during the US census in 1890, thus speeding up US census data analysis from eight to three years. Hollerith's application of Jacquard's invention was used for programming computers and data processing until electronic data processing was introduced in the 1960's. - As with writing and calculating, administrative applications account for the beginning of modern automatic data processing.

Paper tapes are a medium similar to Jacquard's punch cards. In 1857 Sir Charles Wheatstone used them for the preparation, storage, and transmission of data for the first time. Through paper tapes telegraph messages could be stored, prepared off-line and sent ten times quicker (up to 400 words per minute). Later similar paper tapes were used for programming computers.

1809
Invention of the electrical telegraph

With Samuel Thomas Soemmering's invention of the electrical telegraph the telegraphic transmission of messages was no longer tied to visibility, as it was the case with smoke and light signals networks. Economical and reliable, the electric telegraph became the state-of-the-art communication system for fast data transmissions, even over long distances.

Click here for an image of Soemmering's electric telegraph.

1861
Invention of the telephone

The telephone was not invented by Alexander Graham Bell, as is widely held, but by Philipp Reiss, a German teacher. When he demonstrated his invention to important German professors in 1861, it was not enthusiastically greeted. Because of this dismissal, he was not given any financial support for further development.

And here Bell comes in: In 1876 he successfully filed a patent for the telephone. Soon afterwards he established the first telephone company.

1866
First functional underwater telegraph cable is laid across the Atlantic

1895
Invention of the wireless telegraph

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1900 - 2000 A.D.

1904
First broadcast talk

1918
Invention of the short-wave radio

1929
Invention of television in Germany and Russia

1941
Invention of microwave transmission

1946
Long-distance coaxial cable systems and mobile telephone services are introduced in the USA.

1957
Sputnik, the first satellite, is launched by the USSR
First data transmissions over regular phone circuits.

At the beginning of the story of today's global data networks is the story of the development of satellite communication.

In 1955 President Eisenhower announced the USA's intention to launch a satellite. But it in the end it was the Soviet Union, which launched the first satellite in 1957: Sputnik I. After Sputnik's launch it became evident that the Cold War was also a race for leadership in the application of state-of-the-art technology to defense. As the US Department of Defense encouraged the formation of high-tech companies, it laid the ground to Silicon Valley, the hot spot of the world's computer industry.

The same year as the USA launched their first satellite - Explorer I - data was transmitted over regular phone circuits for the first time, thus laying the ground for today's global data networks.

Today's satellites may record weather data, scan the planet with powerful cameras, offer global positioning and monitoring services, and relay high-speed data transmissions. Yet up to now, most satellites are designed for military purposes such as reconnaissance.

1969
ARPAnet online

ARPAnet was the small network of individual computers connected by leased lines that marked the beginning of today's global data networks. An experimental network it mainly served the purpose of testing the feasibility of wide area networks and the possibility of remote computing. It was created for resource sharing between research institutions and not for messaging services like E-mail. Although US military sponsored its research, ARPAnet was not designed for directly martial use but to support military-related research.

In 1969 ARPANET went online and linked the first two computers, one located at the University of California, Los Angeles, the other at the Stanford Research Institute.

Yet ARPAnet did not become widely accepted before it was demonstrated in action to a public of computer experts at the First International Conference on Computers and Communication in Washington, D. C. in 1972.

Before it was decommissioned in 1990, NSFnet, a network of scientific and academic computers funded by the National Science Foundation, and a separate new military network went online in 1986. In 1988 the first private Internet service providers started offering access to NSFnet to a general public. After having become the backbone of the Internet in the USA, in 1995 NSFnet was turned into a consortium of commercial backbone providers. This and the launch of the World Wide Web added to the success of the global data network we call the Net.

In the USA it was already in 1994 that commercial users outnumbered military and academic users.

Despite the rapid growth of the Net, most computers linked to it are still located in the United States.

1971
Invention of E-Mail

1979
Introduction of fiber-optic cable systems

1992
Launch of the World Wide Web

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"Project Censored"

Project Censored was launched at Sonoma State University (U.S.) in 1976 as an annual review of the systematic withholding of public access to important news facts by the mainstream media. The team composed of student media researcher and media analysts annually selects and publishes what they believe are the 25 most important under-covered news stories. "The essential issue raised by the project is the failure of the mass media to provide the people with all the information they need to make informed decisions concerning their own lives and in the voting booth". (Project Censored)

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acceleration

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Product Placement

With television still being very popular, commercial entertainment has transferred the concept of soap operas onto the Web. The first of this new species of "Cybersoaps" was "The Spot", a story about the ups and downs of an American commune. The Spot not only within short time attracted a large audience, but also pioneered in the field of online product placement. Besides Sony banners, the companies logo is also placed on nearly every electronic product appearing in the story. Appearing as a site for light entertainment, The Spots main goal is to make the name Sony and its product range well known within the target audience.

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Satyrs, Frankenstein, Machine Men, Cyborgs

The idea of hybrid beings between man and non-human entities can be traced back to mythology: mythologies, European and non-European are populated with beings which are both human and non-human, and which, because of this non-humanness, have served as reference points in the human endeavour of understanding what it means to be human. Perhaps "being human" is not even a meaningful phrase without the possibility to identify ourselves also with the negation of humanness, that is, to be human through the very possibility of identification with the non-human.

While in classical mythology, such being were usually between the man and animal kingdoms, or between the human and the divine, the advent of modern technology in the past two centuries has countered any such irrational representations of humanness. The very same supremacy of rationality which deposited the hybrid beings of mythology (and of religion) on the garbage heap of the modern period and which attempted a "pure" understanding of humanness, has also been responsible for the rapid advance of technology and which in turn prepared a "technical" understanding of the human.

The only non-human world which remains beyond the animal and divine worlds is the world of technology. The very attempt of a purist definition of the human ran encountered difficulty; the theories of Darwin and Freud undermined the believe that there was something essentially human in human beings, something that could be defined without references to the non-human.

Early representations of half man - half machine creatures echo the fear of the violent use of machinery, as in wars. Mary Shelley published Frankenstein in 1818, only a few years after the end of the Napoleonic wars. But machines are not only a source of fear exploited in fiction literature, their power and makes their non-humanness super-humanness. The French philosopher and doctor Julien de La Mettrie argues in his famous Machine Man that human beings are essentially constructed like machines and that they obey to the same principles. Machine Man provides a good example of how the ideas of the Enlightenment of human autonomy are interwoven with a technical discourse of perfection.

What human minds have later dreamed up about - usually hostile - artificial beings has segmented in the literary genre of science fiction. Science fiction seems to have provided the "last" protected zone for the strong emotions and hard values which in standard fiction literature would relegate a story into the realm of kitsch. Violent battles, strong heroes, daring explorations, infinity and solitude, clashes of right and wrong and whatever else makes up the aesthetic repertoire of metaphysics has survived unscathed in science fiction.

However, science fiction also seems to mark the final sequence of pure fiction: the Cyborg heroes populating this genre have transcended the boundary between fact and fiction, ridiculing most established social theories of technology based on technological instrumentalism. Donna Haraway has gone a long way in coming to terms with the cultural and social implications of this development. "By the late twentieth century, our time, a mythic time, we are all chimeras, theorized and fabricated hybrids of machine and organism; in short, we are cyborgs", Haraway states in her Cyborg Manifesto. In cyber culture, the boundaries between organisms and machines, between nature and culture become as ambivalent as the borderline between he physical and the non-physical: "Our best machines are made of sunshine; they are all light and clean because they are nothing but signals".

In the Flesh Machine the Critial Art Ensemble analyses the mapping of the body, as in genetics, as one aspect of keeping state power in place, the other two aspects being the "war machine" and the "sight machine". The mapping of the flesh machine is a logical and necessary consequence of the development of the other two "machines". Cyborgisation is in the words of CEA, the "coming of age of the flesh machine", which, although it has "intersected both the sight and war machine since ancient times ... is the slowest to develop. " Representation is a necessary preliminary to violence, since "Any successful offensive military action begins with visualization and representation. The significant principle here .... is that vision equals control."

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Calculator

Calculators are machines for automatically performing arithmetical operations and certain mathematical functions. Modern calculators are descendants of a digital arithmetic machine devised by Blaise Pascal in 1642. Later in the 17th century, Gottfried Wilhelm von Leibniz created a more advanced machine, and, especially in the late 19th century, inventors produced calculating machines that were smaller and smaller and less and less laborious to use.

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Moral rights

Authors of copyrighted works (besides economic rights) enjoy moral rights on the basis of which they have the right to claim their authorship and require that their names be indicated on the copies of the work and in connection with other uses thereof. Moral rights are generally inalienable and remain with the creator even after he has transferred his economic rights, although the author may waive their exercise.

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Cyborg manifesto

The full title of Dona Haraway's Cyborg Manifesto is "A Cyborg Manifesto: Science, Technology, and Socialist-Feminism in the Late Twentieth Century", published by Routledge, New York, in 1991. Online e excerpts of this classic are located at

http://www.stanford.edu/dept/HPS/Haraway/CyborgManifesto.html

http://www.stanford.edu/dept/HPS/Haraway/Cybo...
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Gerard J. Holzmann and Bjoern Pehrson, The Early History of Data Networks

This book gives a fascinating glimpse of the many documented attempts throughout history to develop effective means for long distance communications. Large-scale communication networks are not a twentieth-century phenomenon. The oldest attempts date back to millennia before Christ and include ingenious uses of homing pigeons, mirrors, flags, torches, and beacons. The first true nationwide data networks, however, were being built almost two hundred years ago. At the turn of the 18th century, well before the electromagnetic telegraph was invented, many countries in Europe already had fully operational data communications systems with altogether close to one thousand network stations. The book shows how the so-called information revolution started in 1794, with the design and construction of the first true telegraph network in France, Chappe's fixed optical network.

http://www.it.kth.se/docs/early_net/

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Roman smoke telegraph network, 150 A.D.

The Roman smoke signals network consisted of towers within visible range of each other and had a total length of about 4500 kilometers. It was used for military signaling.

For a similar telegraph network in ancient Greece see Aeneas Tacitus' optical communication system.

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ciphers

the word "cipher" comes from the Hebrew word "saphar", meaning "to number". Ciphers are mere substitutions. Each letter of the alphabet gets substituted; maybe by one letter or two or more.

an example:
PLAINTEXT a b c d e f g h i j k l m n o p q r s t u v w x y z
CIPHERTEXT D E F G H I J K L M N O P Q R S T U V W X Y Z A B C

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Next Generation Internet Program

A research and development program funded by the US government. Goal is the development of advanced networking technologies and applications requiring advanced networking with capabilities that are 100 to 1,000 times faster end-to-end than today's Internet.

http://www.ngi.gov

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John Dee

b. July 13, 1527, London, England
d. December 1608, Mortlake, Surrey

English alchemist, astrologer, and mathematician who contributed greatly to the revival of interest in mathematics in England. After lecturing and studying on the European continent between 1547 and 1550, Dee returned to England in 1551 and was granted a pension by the government. He became astrologer to the queen, Mary Tudor, and shortly thereafter was imprisoned for being a magician but was released in 1555. Dee later toured Poland and Bohemia (1583-89), giving exhibitions of magic at the courts of various princes. He became warden of Manchester College in 1595.

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Above.net

Headquartered in San Jose, USA, AboveNet Communications is a backbone service provider. Through its extensive peering relationships, the company has built a network with the largest aggregated bandwidth in the world.

http://www.above.net

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Braille

Universally accepted system of writing used by and for blind persons and consisting of a code of 63 characters, each made up of one to six raised dots arranged in a six-position matrix or cell. These Braille characters are embossed in lines on paper and read by passing the fingers lightly over the manuscript. Louis Braille, who was blinded at the age of three, invented the system in 1824 while a student at the Institution Nationale des Jeunes Aveugles (National Institute for Blind Children), Paris.

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