July 19, 2005
Are Cities Round?
Sometimes I feel so 2004. I finally picked up a copy of The World is Flat by Thomas L. Friedman. With so many people talking about the book, I have to admit I bought it without even reading the book jacket (how shallow right). After reading the first few pages, I thought "oh no, not a book about globalization". That would be something I would pick up during a severe bout of insomnia, but fortunately, I stayed with it and found it to be a great read. It also caused a light bulb to go off for me about municipal involvement in broadband.
For the tens of people who might not have read the book yet, it's based on the author's observation that the playing field for global competitiveness is being leveled through various forces. Ten such forces are outlined in Chapter 2, from the fall of the Berlin Wall in 1989 (for context I suppose), to Netscape's IPO in 1995, to the indexing of the Web (Google and Yahoo), to global logistics (UPS), etc.
One of the most intriguing parts of the book is in its first chapter, where the author describes his eye-opening experience touring the campus and meeting with the CEO of a company called Infosys outside Bangalor, India. He refers to Infosys as "ground zero of the Indian outsourcing industry" and his description blows away any naive impression I might have had about sweat-shop call centers with low-wage workers. Instead, he describes a high-tech world of highly-educated masses, cutting edge computing/communications, and brilliant leadership.. all exploiting technology and trends to compete on a global scale for every job imaginable. Particularly eye-opening are statistics about the percentage of U.S. tax return preparations that are now outsourced to India and other countries by large and small accounting firms.
How does this relate to cities; to broadband, etc? Well, the author refers to one of many factors that Indian cities have exploited to allow them to compete on a global basis; the overinvestment in fiber optics during the late 1990s, and the subsequent meltdown, which resulted in massive increases in bandwidth and steep declines in prices.
Interesting. So, if there is such a clear case study for how broadband has been an enabler for countries like India to pull jobs, commerce, services, etc. away from the U.S., how can communities from Philadelphia to Lafayette be criticized for trying to apply these same tactics to diversify beyond their traditional industries?
Communities who are working to improve their communications infrastructure are not simply trying to get faster web pages for citizens; they're realizing the explosive potential that exists for economic development. Staying with the Lafayette example, at a minimum, I'd predict that community will be stealing jobs right and left from neighboring states in a couple of years.. And who knows, Lafayette might be in a pitched battle with Bangalor before you know it.
Again, I am so 2004.. In addition to experts like Jim Baller who've made this connection in the past, consider the following excerpt from a briefing paper to The Council of the City of New York:
Access to affordable broadband is particularly important when put into the context that New York City residents and businesses are not just competing with each other; they are competing in the global economy.. Technology, enabled by broadband access, has enabled anyone -- whether they live in a first world nation or a "developing nation" -- to compete with the United States, including New York City. The Council of the City of New York, Briefing Paper, Committee on Technology in Government, Hon. Gale A. Brewer. Link.
So, based on Mr. Friedman's framework, I have to say that I think most U.S. cities are in fact round today. The congressional battle currently underway might determine whether they remain so throughout much of the 21st century. The real irony is that much of the focus on protecting incumbent interests fails to consider that those interests lie primarily within the boundaries of the U.S. The fox is guarding the henhouse on this one.
Imagine this scenario; congress passes the Pete Session’s Bill and claims victory in “keeping the playing field level for telecommunications in the U.S.”, while at the same time escalating the rate at which U.S. investment, jobs, goods and services get gobbled up by flatter cities around the world. Difference between a battle and a war; a 100-yard dash and a marathon I suppose. Before I mix yet another metaphor, I’m going to drop off and package up a copy of The World if Flat to ship to my congressman; and maybe I’ll attach a cover letter.
Posted by Greg at 09:17 AM | Comments (0)
July 16, 2005
Low-income = Low-value?
There might not be a clearer example of the need for municipal involvement in broadband than this. Consider the following excerpt from an article in the Houston Chronicle about Texas Senate Bill 21.
Equally disturbing are the bill's provisions that would allow video service providers to pick and choose in which parts of a city they would install the infrastructure for high-quality, high-speed services... An SBC investor presentation on its plan for video service, Project Lightspeed, claims that while 90 percent of "high value" customers will be served, only 5 percent of "low value" customers would have access to the service... A section of the bill states that operators who provide state-of-the-art fiber optics to wealthy neighborhoods have an affirmative defense against charges of discrimination if they offer low-quality, low-speed services to poor areas.
Anyone want to argue after reading this excerpt that 1) a Digital Divide doesn't exist, 2) that redlining doesn't occur or 3) that universal service is on a path to reality?
Contrast this with Steven Titch at Heartland Institute, who has argued that major cities proposing municipal broadband are already well served by existing hotspots; and states that "you can get free wireless access at the library system".
I think I've got the gist of Mr. Tich's position; If broadband isn't available in your house, or you can't afford it, stop whining and pack your bags kiddo. You're not "high-value enough" to deserve this luxury in the comfort of your own home. Mr. Titch, why stop there? Why doesn't Heartland Institute launch a campaign to rip out the water works in poor neighborhoods across the country? I mean don't most people live close to a rest stop or park with a water fountain? Think of the tax dollars such a campaign would save.
Posted by Greg at 12:01 PM | Comments (0)
July 10, 2005
Welcome to Civitium's Blog
I am excited to announce the launch of Civitium's new Blog, which hopes to provide commentary and thoughtful, objective analysis of trends dealing with municipal broadband and Digital Cities.
Over the past year, we've had the pleasure of working with many passionate and brilliant people. From our roots with a small Georgia community – and a giant corporate conglomerate, Matt, Patrick and I have watched (admittedly stunned in most cases) small ripples of community involvement in broadband become huge waves, spreading across the U.S. from East to Central to West, from small towns to major metropolitan areas. We've watched the global impact of the Internet, with all its historical benefit to "virtual" communities start to bring real social and economic benefit to "geographic" communities. We've watched the controversy surrounding this community involvement move from friction between local city officials and incumbent government affairs groups -- to state houses full of organized lobbyists -- to a congressional debate bordering on "Immovable Object Meets Irresistible Force".
Through all of that, we've found ourselves being students more often than teachers. We’ve found ourselves adopting our clients’ communities as our own. We've found ourselves on phone calls and email threads at all hours; day, night and weekend, speculating with everyone who'll talk with us about where all this is headed. The topic has always drifted back and forth between the impact these trends will have on communities and the potential disruption they will have on existing industries (intentional or unintentional).
So, a Civitium Blog seemed like a logical next step for us to move beyond our close circle of friends, colleagues and clients; to hopefully contribute a unique, level-headed and thoughtful perspective more broadly. More importantly, our hope is that we will hear from and learn more from you -- all the passionate and brilliant people we haven't had the opportunity to work with. Sometimes we will attempt to provoke a civil debate – sometimes share lessons learned – sometimes suggest order out of apparent chaos. Regardless, we hope and expect our Blog will always be informative and entertaining.
So, please check back often as we expect this to be a very active Blog. And thank you for visiting!
Posted by Greg at 12:26 PM | Comments (0)