Economic TeleDevelopment Forum - Introduction

TABLE OF CONTENTS:

By David H. Deans

Preface: the Genesis of Economic TeleDevelopment

The formation of the Economic TeleDevelopment Forum (ETF) in 1998 was the direct result of my empirical research regarding the fundamental role of transportation infrastructure evolution within the context of enhancing -- and, in some cases, driving -- community economic development. This enlightenment ultimately led me to envision the inherent socioeconomic value of telecommunication media from a totally different perspective. Today, many share this view, and collectively we seek out and aggregate the growing body of associated knowledge on this topic.

Specifically, this forum provides a portal (or, to use the correct lingo, virtual space) to discover useful insights about the paramount function of telecommunications (telecom) infrastructure as an enabling medium of evolving "smart cities and communities." And, to portend and explain the new idioms that represent the proliferation of innovative business practices that shape and ultimately define the global networked economy.

I coined the term Economic TeleDevelopment to provide an identity to this phenomenon.

The following introduction text defines the basic parameters of Economic TeleDevelopment in non-technical descriptions. This material is not intended to be all encompassing, but rather a starting point for those wishing to gain or refresh their comprehension of the propelling forces that are already changing the very inner workings of our increasingly globalized society and economy.

It should be noted that the environment described herein is indicative of the United States marketplace, but could be easily applied to other parts of the world as pending telecom deregulation ultimately recasts the social, political and economic order within other developing nations.

Historical Role of Infrastructure in Economic Development

Throughout history in the developed world, transportation infrastructure has played an important role in supporting the economic development of communities. Waterways, railways, interstate highways and international airports have all contributed to the evolving traditional transportation media for moving atoms (people, materials, finished goods etc.) from place to place.

In fact, a community’s relative proximity or access to traditional transportation infrastructure could mean the extreme difference between economic prosperity and growth, or isolation and eventual economic decay. There are numerous documented examples of this direct relationship between traditional infrastructure investment and economic growth.

In the same way that traditional media moves atoms, telecom networks move bits (information, or other content). Therefore, one could easily draw a parallel between a community's relative proximity or access to telecom infrastructure, and a resulting impact on their economic development and growth.

Somewhat like their courageous predecessors, such as Marco Polo, Ferdinand Magellan and Captain James Cook, the new adventurers of our time will use the mobility derived from the internet to navigate and explore new horizons and frontiers via virtual expeditions and trade missions across the borderless global landscape of the World Wide Web.

Telecom Infrastructure Moves to The Forefront

Once considered a mundane and somewhat transparent "utility" framework for basic voice communication, telecommunications infrastructure has moved to the forefront as the crucial physical transport for the dawning of borderless global electronic commerce.

Certainly, the rapid emergence, progression and populous embrace of the open-ended global internet movement is indicative of the high expectation and thirst for monumental social and economic changes potentially made possible with the creative application of available telecom infrastructure, and associated computing and information technologies.

But, make no mistake, the internet is relatively simple -- by design -- and it's the creative applications on the periphery that actually make it appear smart.

Understanding Telecom Infrastructure Hierarchy

In simplistic terms, the overall network architecture of telecom infrastructure can be characterized as being international, national, regional, and local in nature. Ironically, one could easily argue that "local" telecom infrastructure evolution has typically trailed the rapid advancements that have spurred the revolution of pervasive new infrastructure deployment in the regional and national telecom network domains.

In the recent past, Inter-Exchange Carriers (IXCs) have been responsible for the provision and delivery of what is generically referred to as long-distance communication services. The IXCs thereby interconnect the Local Exchange Carriers (LECs) that are responsible for the provision and delivery of local communication services.

However, given recent merger, acquisition and alliance events in the U.S. marketplace, and the recent trend of carrier service offering cross-over, the distinction between IXCs and LECs is blurring. In fact, the Super-Carriers of tomorrow will increasingly attempt to be all things to all people, by delivering a comprehensive menu of communication-related service offerings (essentially providing the positive benefits of multiple service options, without the negative implications of an absolute monopoly).

Basic Elements of Local Telecom Infrastructure

Again, in somewhat simplistic terms, the basic elements (media) of local telecom infrastructure can be characterized as Wireline (phone lines) and Wireless (cellular, etc.) which are provided by Local Exchange Carriers -- perhaps with a monopoly or duopoly franchise for a given geographic area. Other potential telecom infrastructure providers (Competitive Access Providers, Personal Communication Services, Cable TV, satellite, power utilities and even local governments) can sometimes offer alternative services in a given city or community.

However, alternative telecom provider's offerings are usually delimited by infrastructure (i.e facilities or non-facilities based), geographic (i.e. downtown corridor only), capability (i.e. voice, with limited or no data), customer service (i.e. ratio of experienced employees to customers) or other operational limitations that place significant self-inflicted constraints on their cost, availability, reliability and quality of services.

Physical telecom transmission media is most often referred to as "outside plant," which comprises any combination of copper cables, coaxial cables, fiber optic cables, and/or wireless antenna placements. These facilities are utilized to connect subscriber (customer) residence or business locations to communication hubs most often referred to as "wire centers" or "central offices."

These hubs are interconnected (via above-mentioned media options) with other similar hubs within the city or community, and each hub contains one or more "switches" that are utilized to establish physical or virtual connections between subscribers. Ultimately, these hubs cross-connect with multiple hubs in other locations forming a grid -- consisting of several alternate inter-network connections.

In yet another oversimplification (that's constantly subject to change, due to new technology deployment), subscriber internet access connections ride upon this underlying infrastructure in one form or another.

The Smart City or Community Concept

By its basic definition, a community that has made a conscious effort to employ telecom and information technology to transform its essential modus operandi, would be considered a Smart Community. This transformation is deemed beneficial to the community at large, which attracts and engages participation and cooperation among the local community, education, government and commercial entities (or other interested community constituent clusters).

Smart Communities attempt to improve their citizen's lifestyles through increased interaction and collaboration by fully utilizing their telecom infrastructure; also, at the same time, they attempt to lessen the demand on their physical traditional transportation infrastructure (and thereby reduce environmental pollution).

Smart Communities are also striving to become economically competitive in the global networked economy, and attract their unfair share of commerce as a result of marketing an existing (and/or planned) community telecom infrastructure investment. Make no mistake in your interpretation of the intrinsic motivation here, this is a very assertive community positioning strategy (offensive and/or defensive, depending on your point of view).

A Smart City isn't necessarily the same as a Smart Community. A city is a legal entity, or a finite unit of local government. A community, in contrast, is considered a broader term that defines a superset of a city and encompasses the array of neighborhoods, organizations, groups and individuals that collectively constitute the community and give it a sense of place.

Again, the Smart Community doctrine implies transformation of a traditional community. Therefore, it's beyond mere incremental enhancement of a single community element, such as automation of a function of city government (i.e. issuing permits or licenses online, etc.), or providing public access to city information on an electronic bulletin board or kiosk. The mantra of the Smart Community evangelists tends to be more creative and comprehensive in its essence.

The Virtual Community Concept

The electronic or e-community is a virtual community often representing constituents with common interests linked only by telecom and network technology, yet independent of "place." TeleClans are organically formed by members (TeleConstituents) of a TeleCommunity that typically evolves from a genuine and (sometimes passionate) desire to interact on a mutually shared cause or belief, and (sometimes anonymously) participate and contribute to a dialog within the perceived safety of a virtual community "space."

TeleClans often seem incredibly democratic and egalitarian in nature, since their TeleConstituents are free to interact and contribute their ideas regardless of their gender, race, religion, color, or disability. However, the requirement to adequately read and write is an obvious prerequisite for meaningful participation in this societal structure. Somewhat devoid of the typical constraints of command and control hierachies, community leaders emerge based on the perceived merit of their ideas -- essentially creating a pure meritocracy.

Therefore the social ranking implications of an individual's literary skills, or the lack thereof, are no less pertinent in the realm of the virtual community than they are in the physical communities where we already reside. Furthermore, as you might expect, some TeleClans and their respective TeleCommunities are formed specifically for commercial purposes.

The Virtual Marketspace Concept

Traditional transportation infrastructure will continue to support trade and commerce, and maintain its essential role in the physical movement of people and merchandise. In comparison, the most plausible proliferation of Electronic Commerce over networks will be evolutionary, not revolutionary or supplanting traditional commercial methodologies. Therefore, since deployment of telecom infrastructure fundamentally complements traditional infrastructure, simplistic coexistence strategies seem to be more relevant and practical than grand plans that are focused on preeminent ubiquity.

Moreover, because some service-related trade transactions don’t involve tangible products, they inherently fit the underlying model of Electronic Commerce. As an example, buyers and sellers of knowledge-based services do not necessarily need physical trucks, wholesale warehouses, retail stores or trading areas to complete their commercial transactions.

Nevertheless, buyers and sellers of physical products can also transact business electronically in a way that reduces their need for material movement. The application of telecom technologies and networks can bring buyers and sellers together in a virtual marketplace that is independent of place. These emerging pioneer TeleTraders are establishing working relationships and conducting their Electronic Commerce transactions via a virtual marketspace that could aptly be called the TeleAgora of the global networked economy.

In summary, I trust that you will find the other information and links contained on this web site as valuable tools to assist you in ensuring your community's place (space) and prosperity within the rapidly evolving global networked economy. And, may the free spirit within your own human voice find a receptive audience, as you contribute your sensible socioeconomic perspective to an enlightened and nonpartizan local telecom public policy debate.

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