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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Public Relations and the Advertising Industry

The public relations industry, the same as advertising, is concentrated in the hands of few dominant firms. Still, the striking element about corporate public relations is that PR firms are tightly related to advertising companies. Nine out of the ten biggest international PR agencies have close ties with the advertising industry. Also, looking at the largest acquisitions involving U.S. PR firms from 1997 to 1999 it is apparent that money coming from advertising agencies has played an important role.


Table: Top 10 PR Firms 1998


Rank 1998

PR Firm

Advertising Agency Related

1998 Net Fees (in U.S. $)

1997 - 1998 % Change

1

Burson-Marsteller

yes

258,417,000

4.2

2

Hill and Knowlton

yes

206,000,000

8.9

3

Porter Novelli Int.

yes

183,050,000

23.6

4

Shandwick

yes

170,300,000

7.3

5

Fleishman-Hillard

yes

160,692,000

19.1.

6

Edelman PR Worldwide

no

157,840,530

18.1

7

Ketchum

yes

125,248,000

29.6

8

BSMG Worldwide

yes

118,963,000

93.0

9

Weber PR Worldwide

yes

83,166,000

36.2

10

GCI/APCO

yes

79,667,957

28.4




With many PR agencies sold to advertising companies, the advertising industry's influence further increases; enabling them to offer their clients not only advertising services, but also know-how in marketing, public opinion, crisis and issues management and political lobbying.

Table: Acquisition of PR Agencies (1997 - 1999)

Acquired Company

Buyer

Buyers Industry

Estimated Purchase Price (in millions of U.S. $)

International PR

Interpublic Group of Cos.

Advertising

230

Fleishman-Hillard

Omicom Group

Advertising

85

Ketchum

Omnicom Group

Advertising

60

Dewe Rogerson

Incepta

Advertising

40

Financial Rel. Bd.

BSMG/TN

Public Relations

33

Weber PR

Interpublic Group of Cos.

Advertising

15

Alexander

WPP Group

Advertising

15

Charles Barker

BSMG/TN

Public Relations

15



Source: Odwyerpr.com.

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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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1913: Henry Ford and the Assembly Line

Realizing that he'd need to lower costs Henry Ford (Ford Motor Company) was inspired to create a more efficient way to produce his cars. Looking at other industries he and his team found four principles, which furthered their goal: interchangeable parts, continuous flow, division of labor, and reducing wasted effort.

The use of interchangeable parts meant making the individual pieces of the car the same every time. Therefore the machines had to be improved, but once they were adjusted, they could be operated by a low-skilled laborer. To reduce the time workers spent moving around Ford refined the flow of work in the manner that as one task was finished another began, with minimum time spent in set-up. Furthermore he divided the labor by breaking the assembly of the legendary Model T in 84 distinct steps. Frederick Taylor, the creator of "scientific management" was consulted to do time and motion studies to determine the exact speed at which the work should proceed and the exact motions workers should use to accomplish their tasks.

Putting all those findings together in 1913 Ford installed the first moving assembly line that was ever used for large-scale manufacturing. His cars could then be produced at a record-breaking rate, which meant that he could lower the price, but still make a good profit by selling more cars. For the first time work processes were largely automated by machinery.

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Hill & Knowlton

Although it is generally hard to distinguish between public relations and propaganda, Hill & Knowlton, the worlds leading PR agency, represents an extraordinary example for the manipulation of public opinion with public relations activities. Hill & Knowlton did not only lobby for countries, accused of the abuse of human rights, like China, Peru, Israel, Egypt and Indonesia, but also represented the repressive Duvalier regime in Haiti.

It furthermore played a central role in the Gulf War. On behalf of the Kuwaiti government it presented a 15-year-old girl to testify before Congress about human rights violations in a Kuwaiti hospital. The girl, later found out to be the daughter of Kuwait's ambassador to the U.S., and its testimony then became the centerpiece of a finely tuned PR campaign orchestrated by Hill & Knowlton and co-ordinated with the White House on behalf of the government of Kuwait an the Citizens for a Free Kuwait group. Inflaming public opinion against Iraq and bringing the U.S. Congress in favor of war in the Gulf, this probably was one of the largest and most effective public relations campaigns in history.

Running campaigns against abortion for the Catholic Church and representing the Church of Scientology, large PR firms like Hill & Knowlton, scarcely hesitate to manipulate public and congressional opinion and government policy through media campaigns, congressional hearings, and lobbying, when necessary. Also co-operation with intelligence agencies seems to be not unknown to Hill & Knowlton.

Accused of pursuing potentially illegal proxy spying operation for intelligence agencies, Richard Cheney, head of Hill & Knowltons New York office, denied this allegations, but said that "... in such a large organization you never know if there's not some sneak operation going on." On the other hand former CIA official Robert T. Crowley acknowledged, that "Hill & Knowlton's overseas offices were perfect 'cover` for the ever-expanding CIA. Unlike other cover jobs, being a public relations specialist did not require technical training for CIA officers." Furthermore the CIA, Crowley admitted, used its Hill & Knowlton connections to "... put out press releases and make media contacts to further its positions. ... Hill & Knowlton employees at the small Washington office and elsewhere distributed this material through CIA assets working in the United States news media."

(Source: Carlisle, Johan: Public Relationships: Hill & Knowlton, Robert Gray, and the CIA. http://mediafilter.org/caq/)

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Data body mealplan

Here is an example of how the data body is fed by routine day-to-day activities, a data body meal plan:

Breakfast: phone calls, drive GPS (global positioning system) equipped car, emerge from surveillance camera equipped subway, go online, send E-mails, complete online registration forms, receive faxes

Lunch: pay lunch with credit card, use your customer card when shopping, use mobile phone, pass through biometric access controls, use smart card

Afternoon snack: visit doctor, file insurance claim

Dinner: respond to TV commercials, complete income tax form, visit chat rooms, use free web mail. Programme phone wake-up call.

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Content Choice and Selective Reporting

Media as today's main information sources unarguably have the power to influence political agenda-setting and public opinion. They decide which topics and issues are covered and how they are reported. Still, in many cases those decisions are not primarily determined by journalistic criteria, but affected by external factors. The importance of shareholders forces media to generate more profit every quarter, which can chiefly be raised by enlarging audiences and hence attracting more advertising money. Therefore the focus of media's programming in many cases shifts towards audience alluring content like entertainment, talk-shows, music and sports.

Further pressure regarding the selection of content occurs from advertisers and marketers, who often implicitly or explicitly suggest to refrain from programming which could show them or their products and services (e.g. tobacco) in an unfavorable light. Interlocking directorships and outright ownerships can moreover be responsible for a selective coverage. Financial connections with defense, banking, insurance, gas, oil, and nuclear power, repeatedly lead (commercial) media to the withholding of information, which could offend their corporate partners. In totalitarian regimes also pressure from political elites may be a reason for the suppression or alteration of certain facts.

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Neighboring rights

Copyright laws generally provide for three kinds of neighboring rights: 1) the rights of performing artists in their performances, 2) the rights of producers of phonograms in their phonograms, and 3) the rights of broadcasting organizations in their radio and television programs. Neighboring rights attempt to protect those who assist intellectual creators to communicate their message and to disseminate their works to the public at large.

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ARPAnet

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

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

But ARPAnet has 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 offered a general public access to NSFnet. Beginning in 1995, after having become the backbone of the Internet in the USA, NSFnet was turned over to 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 commercial users already outnumbered military and academic users in 1994.

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

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National Science Foundation (NSF)

Established in 1950, the National Science Foundation is an independent agency of the U.S. government dedicated to the funding in basic research and education in a wide range of sciences and in mathematics and engineering. Today, the NSF supplies about one quarter of total federal support of basic scientific research at academic institutions.

http://www.nsf.gov

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/0/0,5716,2450+1+2440,00.html

http://www.nsf.gov/
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Expert system

Expert systems are advanced computer programs that mimic the knowledge and reasoning capabilities of an expert in a particular discipline. Their creators strive to clone the expertise of one or several human specialists to develop a tool that can be used by the layman to solve difficult or ambiguous problems. Expert systems differ from conventional computer programs as they combine facts with rules that state relations between the facts to achieve a crude form of reasoning analogous to artificial intelligence. The three main elements of expert systems are: (1) an interface which allows interaction between the system and the user, (2) a database (also called the knowledge base) which consists of axioms and rules, and (3) the inference engine, a computer program that executes the inference-making process. The disadvantage of rule-based expert systems is that they cannot handle unanticipated events, as every condition that may be encountered must be described by a rule. They also remain limited to narrow problem domains such as troubleshooting malfunctioning equipment or medical image interpretation, but still have the advantage of being much lower in costs compared with paying an expert or a team of specialists.

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World Wide Web (WWW)

Probably the most significant Internet service, the World Wide Web is not the essence of the Internet, but a subset of it. It is constituted by documents that are linked together in a way you can switch from one document to another by simply clicking on the link connecting these documents. This is made possible by the Hypertext Mark-up Language (HTML), the authoring language used in creating World Wide Web-based documents. These so-called hypertexts can combine text documents, graphics, videos, sounds, and Java applets, so making multimedia content possible.

Especially on the World Wide Web, documents are often retrieved by entering keywords into so-called search engines, sets of programs that fetch documents from as many servers as possible and index the stored information. (For regularly updated lists of the 100 most popular words that people are entering into search engines, click here). No search engine can retrieve all information on the whole World Wide Web; every search engine covers just a small part of it.

Among other things that is the reason why the World Wide Web is not simply a very huge database, as is sometimes said, because it lacks consistency. There is virtually almost infinite storage capacity on the Internet, that is true, a capacity, which might become an almost everlasting too, a prospect, which is sometimes consoling, but threatening too.

According to the Internet domain survey of the Internet Software Consortium the number of Internet host computers is growing rapidly. In October 1969 the first two computers were connected; this number grows to 376.000 in January 1991 and 72,398.092 in January 2000.

World Wide Web History Project, http://www.webhistory.org/home.html

http://www.searchwords.com/
http://www.islandnet.com/deathnet/
http://www.salonmagazine.com/21st/feature/199...
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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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Enigma Machine

The Enigma Encryption Machine was famous for its insecurities as for the security that it gave to German ciphers. It was broken, first by the Poles in the 1930s, then by the British in World War II.

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Slobodan Milosevic

Slobodan Milosevic (* 1941) is a Serbian political leader.
As a young man S. Milosevic joined the Communist Party, in 1984 the banker became head of the local Communist Party of Belgrade, in 1987 head of the Serb CP. Since 1989 he has been president of Serbia (since 1997 president of the new Federal Republic of Yugoslavia). During his reign the Yugoslav Republic broke up, bringing about the independence of Slovenia and Croatia and the war in Bosnia. In 1998 the Kosovo Crisis started.

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Sun Microsystems

Founded in 1982 and headquartered in Palo Alto, USA, Sun Microsystems manufactures computer workstations, servers, and software.

http://www.sun.com

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/9/0,5716,108249+1+105909,00.html .

http://www.sun.com/
http://www.britannica.com/bcom/eb/article/9/0...
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