U.S. Web Lag

The French Connections
By Paul Krugman
The New York Times

There was a time when everyone thought that the Europeans and the Japanese were better at business than we were. In the early 1990s airport bookstores were full of volumes with samurai warriors on their covers, promising to teach you the secrets of Japanese business success. Lester Thurow’s 1992 book, “Head to Head: The Coming Economic Battle Among Japan, Europe and America,” which spent more than six months on the Times best-seller list, predicted that Europe would win.

Then it all changed, and American despondency turned into triumphalism. Partly this was because the Clinton boom contrasted so sharply with Europe’s slow growth and Japan’s decade-long slump. Above all, however, our new confidence reflected the rise of the Internet. Jacques Chirac complained that the Internet was an “Anglo-Saxon network,” and he had a point — France, like most of Europe except Scandinavia, lagged far behind the U.S. when it came to getting online.

What most Americans probably don’t know is that over the last few years the situation has totally reversed. As the Internet has evolved — in particular, as dial-up has given way to broadband connections using DSL, cable and other high-speed links — it’s the United States that has fallen behind.

The numbers are startling. As recently as 2001, the percentage of the population with high-speed access in Japan and Germany was only half that in the United States. In France it was less than a quarter. By the end of 2006, however, all three countries had more broadband subscribers per 100 people than we did.

Even more striking is the fact that our “high speed” connections are painfully slow by other countries’ standards. According to the Information Technology and Innovation Foundation, French broadband connections are, on average, more than three times as fast as ours. Japanese connections are a dozen times faster. Oh, and access is much cheaper in both countries than it is here.

As a result, we’re lagging in new applications of the Internet that depend on high speed. France leads the world in the number of subscribers to Internet TV; the United States isn’t even in the top 10.

What happened to America’s Internet lead? Bad policy. Specifically, the United States made the same mistake in Internet policy that California made in energy policy: it forgot — or was persuaded by special interests to ignore — the reality that sometimes you can’t have effective market competition without effective regulation.

You see, the world may look flat once you’re in cyberspace — but to get there you need to go through a narrow passageway, down your phone line or down your TV cable. And if the companies controlling these passageways can behave like the robber barons of yore, levying whatever tolls they like on those who pass by, commerce suffers.

America’s Internet flourished in the dial-up era because federal regulators didn’t let that happen — they forced local phone companies to act as common carriers, allowing competing service providers to use their lines. Clinton administration officials, including Al Gore and Reed Hundt, the chairman of the Federal Communications Commission, tried to ensure that this open competition would continue — but the telecommunications giants sabotaged their efforts, while The Wall Street Journal’s editorial page ridiculed them as people with the minds of French bureaucrats.

And when the Bush administration put Michael Powell in charge of the F.C.C., the digital robber barons were basically set free to do whatever they liked. As a result, there’s little competition in U.S. broadband — if you’re lucky, you have a choice between the services offered by the local cable monopoly and the local phone monopoly. The price is high and the service is poor, but there’s nowhere else to go.

Meanwhile, as a recent article in Business Week explains, the real French bureaucrats used judicious regulation to promote competition. As a result, French consumers get to choose from a variety of service providers who offer reasonably priced Internet access that’s much faster than anything I can get, and comes with free voice calls, TV and Wi-Fi.

It’s too early to say how much harm the broadband lag will do to the U.S. economy as a whole. But it’s interesting to learn that health care isn’t the only area in which the French, who can take a pragmatic approach because they aren’t prisoners of free-market ideology, simply do things better.

Photo Credit: Paul Krugman. (The New York Times)

Technorati tags: Paul Krugman, New York Times, Computers, Internet, Politics, US Government, FCC, news, op ed

The Whole World Is Watching

By Thomas L. Friedman
The New York Times

Three years ago, I was catching a plane at Boston’s Logan airport and went to buy some magazines for the flight. As I approached the cash register, a woman coming from another direction got there just behind me — I thought. But when I put my money down to pay, the woman said in a very loud voice: “Excuse me! I was here first!” And then she fixed me with a piercing stare that said: “I know who you are.” I said I was very sorry, even though I was clearly there first.

If that happened today, I would have had a very different. I would have said: “Miss, I’m so sorry. I am entirely in the wrong. Please, go ahead. And can I buy your magazines for you? May I buy your lunch? Can I shine your shoes?”

Why? Because I’d be thinking there is some chance this woman has a blog or a camera in her cellphone and could, if she so chose, tell the whole world about our encounter — entirely from her perspective — and my utterly rude, boorish, arrogant, thinks-he-can-butt-in-line behavior. Yikes!

When everyone has a blog, a MySpace page or Facebook entry, everyone is a publisher. When everyone has a cellphone with a camera in it, everyone is a paparazzo. When everyone can upload video on YouTube, everyone is filmmaker. When everyone is a publisher, paparazzo or filmmaker, everyone else is a public figure. We’re all public figures now. The blogosphere has made the global discussion so much richer — and each of us so much more transparent.

The implications of all this are the subject of a new book by Dov Seidman, founder and C.E.O. of LRN, a business ethics company. His book is simply called “How.” Because Seidman’s simple thesis is that in this transparent world “how” you live your life and “how” you conduct your business matters more than ever, because so many people can now see into what you do and tell so many other people about it on their own without any editor. To win now, he argues, you have to turn these new conditions to your advantage.

For young people, writes Seidman, this means understanding that your reputation in life is going to get set in stone so much earlier. More and more of what you say or do or write will end up as a digital fingerprint that never gets erased. Our generation got to screw up and none of those screw-ups appeared on our first job résumés, which we got to write. For this generation, much of what they say, do or write will be preserved online forever. Before employers even read their résumés, they’ll Google them.

“The persistence of memory in electronic form makes second chances harder to come by,” writes Seidman. “In the information age, life has no chapters or closets; you can leave nothing behind, and you have nowhere to hide your skeletons. Your past is your present.” So the only way to get ahead in life will be by getting your “hows” right.

Ditto in business. Companies that get their hows wrong won’t be able to just hire a P.R. firm to clean up the mess by a taking a couple of reporters to lunch — not when everyone is a reporter and can talk back and be heard globally.

But this also creates opportunities. Today “what” you make is quickly copied and sold by everyone. But “how” you engage your customers, “how” you keep your promises and “how” you collaborate with partners — that’s not so easy to copy, and that is where companies can now really differentiate themselves.

“When it comes to human conduct there is tremendous variation, and where a broad spectrum of variation exists, opportunity exists,” writes Seidman. “The tapestry of human behavior is so varied, so rich and so global that it presents a rare opportunity, the opportunity to outbehave the competition.”

How can you outbehave your competition? In Michigan, Seidman writes, one hospital taught its doctors to apologize when they make mistakes, and dramatically cut their malpractice claims. In Texas, a large auto dealership allowed every mechanic to spend freely whatever company money was necessary to do the job right, and saw their costs actually decline while customer satisfaction improved. A New York street doughnut-seller trusted his customers to make their own change and found he could serve more people faster and build the loyalty that keeps them coming back.

“We do not live in glass houses (houses have walls); we live on glass microscope slides ... visible and exposed to all,” he writes. So whether you’re selling cars or newspapers (or just buying one at the newsstand), get your hows right — how you build trust, how you collaborate, how you lead and how you say you’re sorry. More people than ever will know about it when you do — or don’t.

Photo Credit: Thomas Friedman. (Fred R. Conrad/The New York Times)

Technorati tags: Thomas Friedman, New York Times, Computers, Internet, Blogs, Blogging, Google, Children and Youth, news, commentary, op ed

Laughing and Crying

By Thomas L. Friedman
The New York Times

First I had to laugh. Then I had to cry.

I took part in commencement this year at Rensselaer Polytechnic Institute, one of America’s great science and engineering schools, so I had a front-row seat as the first grads to receive their diplomas came on stage, all of them Ph.D. students. One by one the announcer read their names and each was handed their doctorate — in biotechnology, computing, physics and engineering — by the school’s president, Shirley Ann Jackson.

The reason I had to laugh was because it seemed like every one of the newly minted Ph.D.’s at Rensselaer was foreign born. For a moment, as the foreign names kept coming — “Hong Lu, Xu Xie, Tao Yuan, Fu Tang” — I thought that the entire class of doctoral students in physics were going to be Chinese, until “Paul Shane Morrow” saved the day. It was such a caricature of what President Jackson herself calls “the quiet crisis” in high-end science education in this country that you could only laugh.

Don’t get me wrong. I’m proud that our country continues to build universities and a culture of learning that attract the world’s best minds. My complaint — why I also wanted to cry — was that there wasn’t someone from the Immigration and Naturalization Service standing next to President Jackson stapling green cards to the diplomas of each of these foreign-born Ph.D.’s. I want them all to stay, become Americans and do their research and innovation here. If we can’t educate enough of our own kids to compete at this level, we’d better make sure we can import someone else’s, otherwise we will not maintain our standard of living.

It is pure idiocy that Congress will not open our borders — as wide as possible — to attract and keep the world’s first-round intellectual draft choices in an age when everyone increasingly has the same innovation tools and the key differentiator is human talent. I’m serious. I think any foreign student who gets a Ph.D. in our country — in any subject — should be offered citizenship. I want them. The idea that we actually make it difficult for them to stay is crazy.

Compete America, a coalition of technology companies, is pleading with Congress to boost both the number of H-1B visas available to companies that want to bring in skilled foreign workers and the number of employment-based green cards given to high-tech foreign workers who want to stay here. Give them all they want! Not only do our companies need them now, because we’re not training enough engineers, but they will, over time, start many more companies and create many more good jobs than they would possibly displace. Silicon Valley is living proof of that — and where innovation happens matters. It’s still where the best jobs will be located.

Folks, we can’t keep being stupid about these things. You can’t have a world where foreign-born students dominate your science graduate schools, research labs, journal publications and can now more easily than ever go back to their home countries to start companies — without it eventually impacting our standard of living — especially when we’re also slipping behind in high-speed Internet penetration per capita. America has fallen from fourth in the world in 2001 to 15th today.

My hat is off to Andrew Rasiej and Micah Sifry, co-founders of the Personal Democracy Forum. They are trying to make this an issue in the presidential campaign by creating a movement to demand that candidates focus on our digital deficits and divides. (See: http://www.techpresident.com.) Mr. Rasiej, who unsuccessfully ran for public advocate of New York City in 2005 on a platform calling for low-cost wireless access everywhere, notes that “only half of America has broadband access to the Internet.” We need to go from “No Child Left Behind,” he says, to “Every Child Connected.”

Here’s the sad truth: 9/11, and the failing Iraq war, have sucked up almost all the oxygen in this country — oxygen needed to discuss seriously education, health care, climate change and competitiveness, notes Garrett Graff, an editor at Washingtonian Magazine and author of the upcoming book “The First Campaign,” which deals with this theme. So right now, it’s mostly governors talking about these issues, noted Mr. Graff, but there is only so much they can do without Washington being focused and leading.

Which is why we’ve got to bring our occupation of Iraq to an end in the quickest, least bad way possible — otherwise we are going to lose Iraq and America. It’s coming down to that choice.

Photo Credit: Thomas Friedman. (Fred R. Conrad/The New York Times)

Technorati tags: Thomas Friedman, New York Times, Immigration, Education, Colleges and Universities, Computers and the Internet, Engineering and Engineers, news, commentary, op ed

Oh, Great ....

Researchers Explore Scrapping Internet | The Huffington Post:

"Although it has already taken nearly four decades to get this far in building the Internet, some university researchers with the federal government's blessing want to scrap all that and start over.

The idea may seem unthinkable, even absurd, but many believe a 'clean slate' approach is the only way to truly address security, mobility and other challenges that have cropped up since UCLA professor Leonard Kleinrock helped supervise the first exchange of meaningless test data between two machines on Sept. 2, 1969."

Photo Credit: Leonard Kleinrock comments on the dark side of the Internet - spam, pornography, among others - at his office in the UCLA Computer Science Department in Los Angeles, Tuesday, March 27, 2007. Kleinrock created the basic principles of packet switching, the technology underpinning the Internet, while a graduate student at MIT. He was the first to develop the underlying principles of packet switching, the communications technology of the Internet, a decade before the Internet was founded. (AP Photo/Damian Dovarganes via Huffington Post)

Technorati tags: Huffington Post, Anick Jesdanun, Internet, Technology, Leonard Kleinrock, news