SMART Letter #83
Come to TEDMed!
January 27, 2003
!@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*() ------------------------------------------------------------ SMART Letter #83 -- January 27, 2003 Copyright 2003 by David S. Isenberg isen.com - "real news, fair and balanced" isen@isen.com -- http://isen.com/ -- 1-888-isen-com ------------------------------------------------------------ !@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*()!@#$%^&*() CONTENTS > Quote of Note: Larry Lessig on the Price of Connectivity > Come to TedMed, by David S. Isenberg > Smart Remarks by SMART People + Juha Saarinen on New Zealand's Broadband Situation + ??? on U.S. Telcos Investing in New Zealand + Steve Maloney on E911 services + Chris Meyer on national-security-hardened networks + Rohit Khare on physical plant assurance > Beware Telco FUD, by David S. Isenberg > Quote of Note: Disney's Rodent, on Life as a Kept Mouse > If it's Funny it Must be True, by Scatt Oddams > Conferences on my Calendar > Copyright Notice, Administrivia ------- Quote of Note: Larry Lessig on the Price of Connectivity "To repeat again, here in Japan, they are selling 100 megabits per second for US$50/month, 12 mbs for $25." Larry Lessig in his blog, January 4, 2002, http://tinyurl.com/4x4a. ------- Come to TEDMed by David S. Isenberg If you want to be part of a superlative meeting, come to Richard Saul Wurman's TEDMed, June 11-14 in Philadelphia, http://tedmed.com. Richard Saul Wurman is my conference guru. He does the best conferences I've ever been to. TED stands for Technology, Entertainment, Design. Actually, Design should come between Technology and Entertainment, because design is the presentation of technology to people -- so it appeals to people, and can be used by people. Unfortunately, TDE doesn't trip off the tongue as readily as TED. Wurman's conferences are more than ways to "get information." They're much, much more than people on stage talking. He designs his shows like a great chef prepares food -- presentation matters. There's "there" there. You don't just experience Wurman's events; you experience the experience. There's a meeting by the name of TED in Monterey, California next month, but it won't have Richard Saul Wurman. Wurman sold TED, keeping only the rights to TEDMed. If you've never been to TED (or maybe even if you have) it's likely to be a very good meeting. A lot of superb presenters will be there. "But it just wouldn't be appropriate for me to show up," Wurman says. I've done the experiment. I've been to two consecutive TED-type events, one with Richard Saul Wurman and one without. The first one was named TEDCity. It was held in Toronto; a Canada-flavored TED. It was co-hosted by Wurman and TV innovator/entrepreneur Moses Znaimer. From the surreally lit Chihuly stage to the bisonburger hors d'oeuvres, it was transcendent. I effused about it to savor the experience for a few more days in "SMART Letter #40 -- You Can't See *THAT* on TV," see http://tinyurl.com/4yl0. The second one was renamed ideaCity due to a minor business disagreement between Wurman and Znaimer. It was Znaimer's show. It was good. But it was more a mirror reflecting Canada's values than a Canada-colored lens through which to examine our world. I felt uncomfortable at times; from the U.S., eh? I learned a lot, but I did not feel my horizon expand. I didn't write it up in The SMART Letter. Why Med? The medical establishment is the least well- understood, poorest designed, major sector of the economy. Perforce, we're all investors. And we're all customers -- or will be soon, boomers. Hey, if food can be designed, if meetings and houses and roads and music can be designed, why not medical care? To Wurman, design is about access. TEDMed is about making the ideas, the technology, the performance of medical care accessible to us. Sure there will be doctors at TEDMed, most notably Oliver Sacks. Of course pharmacologists, technologists, innovators, natural healers and entrepreneurs will be there. But there will also be musicians, artists, extraordinary patients and tenacious survivors. The details are still coming together at http://tedmed.com. I visited Richard Saul Wurman at his home in Newport, Rhode Island a few weeks ago with my friend Ted Stout. I asked him what he thought about the fact that more people die from information accidents in hospitals than die in car wrecks. He said, "Medical care is delivered by people. People screw up. If you have to go to the hospital, the best thing you can take is an advocate -- a friend who can ask questions, use common sense, look over the nurse's shoulder and call somebody if your condition changes." He went on. "When I go for a physical, I get them to draw double blood. They send the samples to two different labs. A 'miss' can hurt you more than a false positive." He continued, "It's insurance against mistaking your sample for someone else's -- a mistake that's more common than we'd like to believe." I wonder how many SMART People's lives will be saved by this little trick. I arrived at Wurman's house fully prepared to plunk down my US$3000 admission to TEDMed. I wanted him to know first hand how much I valued his work. But he surprised me. He offered to comp me if I'd write up TEDMed in The SMART Letter. I felt honored. Wurman explained that he wants SMART People in the audience. To Wurman, the design of the audience is as critical to the architecture of the event as the design of the stage or the sessions or the breaks. In TEDs past, I've been able to turn to my left or right with reasonable certainty of meeting a delightfully surprising individual. So if you're SMART, you'll realize that you need a more accessible understanding of the processes that could extend your life. You'll want to experience TEDMed. Come and be part of Richard Saul Wurman's grand design. ------- Smart Remarks by SMART People Juha Saarinen [juha@saarinen.org] writes: "I enjoyed your report from Wellington [In Trans-Pacific Tour, part two -- SMART Letter #81]. However, Wellington isn't typical -- it is the political centre of New Zealand, but not the business centre. Auckland is NZ's sprawling business centre, with a million-plus- inhabitants. "You might expect Auckland to have at least as good network connectivity as Wellington, right? Unfortunately, that's not the case. "If you are outside Auckland's central business district (CBD), your only option, apart from modems, is Telecom NZ's DSL. Telecom has priced DSL at ridiculous levels. Residential customers pay NZ$89 a month (plus phone line rental, plus other small telco charges) -- and there's a quota of 1 Gigabyte of data per month. After 1 Gigabyte, you pay NZ$0.20 per MB, very expensive for most NZ customers. Business users can get a 10 Gigabyte per month plan for NZ$999 (12 cents/Megabyte excess). "In Auckland's CBD, there are more options. I'm a regular contributor to IDG publications, and recently we upgraded IDG's offices to a 10 Mbit/s Ethernet over fibre connection, which costs $1,200 a month, plus 12.5% GST, but there are no traffic charges. It's a very good deal. "Last April I visited Telecom NZ's new lab in Wellington. I spoke with the people behind the design of Telecom's DSL network. They told me that a 'sales decision' was made to dummy down the DSL offer so it wouldn't cannibalise Telecom's dedicated data circuit revenues. "Telecom NZ is surprised that very few customers are taking them up on such 'generous' DSL offers. Most people prefer their NZ$30/month 56K modem connections. The latest figures I saw showed that Telecom NZ has 23,000 DSL customers in a potential market of 350,000 customers. "One-way satellite (like www.getultra.co.nz) is also available. According to the Web site, it offers burst speeds of 1 Mbit/s, but no performance guarantee. It seems to cost between NZ$25-30 a month for 500MB (a bit tricky to figure from their information), or twice that for 1GB. And you need about $40/month for the extra phone line for the upstream connection. "Wireless providers like Walker Wireless also service the CBD, but they have hefty charges for low-speed service. [Walker Wireless is providing fixed local loop and wireless data competition to Telecom NZ in places on the South Island, but I did not get the story first hand when I was there. -- David I] "Who's going to pay top dollar for a substandard service with unpredictable billing? Most customers would accept that geographical isolation makes international data cost more. However, very few can see the benefit of going from $30 month connection to one that could cost up to ten times more, especially if you get hit with a DoS (Denial of Service) attack. "When you attribute per-megabyte charges to Telecom's scarcity-based pricing of Southern Cross capacity, you couldn't be more right. But it's not just Southern Cross traffic that's being milked for the last penny. National traffic, which should essentially be free, is also being overcharged by Telecom. "Ironically, Southern Cross Cable's CEO, Ross Pfeffer, complained to the press in 2001 that the low broadband uptake in NZ was harming revenues, see http://tinyurl.com/3zlq. I'm not sure if Telecom's corporate Gestapo has gagged him now like they have with the other managers. "The situation won't get any better until Telecom NZ faces real competition. The previous and current governments have shown very little interest in this crucial part of the national infrastructure. The best way for Kiwi Internet businesses to get fast access is to go offshore. It makes financial sense for us to house as much of our Internet business as possible in the United States." --- ??? writes: [Note: I have lost the name that used to be attached to this correspondence. If you wrote this, my apologies. -- David I] "[In Trans-Pacific Tour, part two -- SMART Letter #81] you wrote: 'Southern Cross is the undersea cable [from New Zealand] to the U.S., Australia and Asia . . . Most of its 40 Gbit capacity lies idle, unconnected, unused, thanks to Telecom New Zealand's scarcity tactics." "The problem, of course, is to recover the high fixed cost, so whether you are a public utility or a profit- maximizing private corporation, you are likely to be tempted to go for the revenue-maximizing toll schedule. [There might be more than one revenue maximum along the toll-schedule axis, which is what the theory of positive elasticity is all about, but the Midas-touch strategy of the big telcos will never discover more than one. -- David I] "3. You also wrote: 'Two U.S. incumbents, Ameritech (now SBC) and Bell Atlantic (now Verizon) . . . as the Kiwis see it, they drained hundreds of millions of dollars from from the Kiwi economy.' "From the data you give, it's impossible to decide whether there was any drain. If SBC and Verizon collected hundreds of millions of dollars from Telecom NZ without reinvesting anything, then perhaps. On the other hand, when SBC and Verizon bought their share of Telecom NZ, they pumped substantial sums of money into the NZ economy by making their funds available. If they have now sold their stake to other non-NZ investors, then the NZ economy is not affected at all, and no money has been drained from it." [Fair enough. I was just reporting how the Kiwis I talked with see it. I don't know who bought the shares that the U.S. telcos sold, or what they did with it. -- David I] --- Steve Maloney [smaloney@syringanetworks.net] writes: "One thing I don't recall seeing addressed in these discussions [Dregs and Grabs -- SMART Letter #79, http://tinyurl.com/4uc2] is how services like E911 might be addressed . . . it seems unreasonable and unlikely that those services would be addressed in [a Stupid Network]." --- Chris Meyer [chris.meyer@cgey.com] writes: "One flank your op-ed [Dregs and Grabs -- SMART Letter #79, http://tinyurl.com/4uc2] left uncovered is the national-security-hardened-communications-system part, which would somehow have to be taken over by the military or replaced somehow." --- Rohit Khare [rohit@ics.uci.edu] writes "I figure you've already heard from a gazillion sources about how VoIP isn't ready for the lifeline/physical plant assurance of the current network . . . there is an element of I'd-rather-trust-the-Bellheads on survivability." --- Beware Telco FUD (for Steve, Chris and Rohit) by David S. Isenberg Let's review. One kind of network has centralized points of failure. The other has distributed control. One has services that are tightly integrated with its physical layer, the other is designed to work over any physical layer, even unreliable ones. One network completely ground to a halt on September 11, 2001 (I know. I was waiting in agony for the call that would tell me whether my wife was alive or not) and the other network kept on ticking. As I wrote in my widely ignored, "Buy as many nines as you need -- SMART Letter #73" [http://tinyurl.com/4uco], which was overlooked with such acclaim that Business Communications Review forgot to put it in its Table of Contents [but turn to Page 53 of the June, 2002 issue]: "Often people take too narrow a view of reliability differences between Internets and conventional telephone networks. It is like trying to compare the flying abilities of bumble bees and 747s. Not only are there vast differences (and a single similarity), but it is much easier to 'prove' that a telephone network is reliable and that a 747 can fly." I'm amazed that people who *should* be in the vanguard of the networked cognoscenti still smoke this kind of telco FUD. Do you still think there's some magic process by which creaky old complex single-purpose single-owner networks are more reliable or more secure than modern simple redundant multiple-owner ones? I'm reminded of my friends who stayed at AT&T because they wanted a secure job. ------- Quote of Note: Disney's Rodent on Life as a Kept Mouse [In honor of this month's U.S. Supreme Court decision in the case of Eldred vs. Ashcroft keeping the Sonny Bono Copyright Extension Act intact and opening the door for more extensions, we quote from an unauthorized interview with a mouse so enslaved (but only for a limited time, 75 plus 20 years) that we can't use his real name, even though it has become a synonym for "trivially simple." -- David I] "For almost 70 years, I've only been allowed to do what the Disney people say I can do. Sometimes someone comes up with a new idea, and I think to myself, 'Great! Here's a chance to stretch myself!' . . . "In 1971, for instance, Dan O'Neill got me a part in something called Air Pirates Funnies. It was great: I got to have sex, I got to use drugs, I got to explore the whole underground comix scene. It was liberating. " . . . After two issues of the comic book, [Disney] issued a summons and took us all to court for trademark violation and copyright infringement." [Allegedly spoken by Disney's Rodent in "Mickey Mouse Clubbed" by Jesse Walker, in Reason On Line, January 17, 2003, http://tinyurl.com/4ubo] ------- If it's Funny it Must be True, by Scatt Oddams Hey! Check out Dan O'Neill's original Air Pirate Funnies covers (the ones Disney sued him for) and a bunch of other great Dan O'Neill works at http://www.mogozuzu.com/comix_2b.htm. So sue me -- and Isenberg too! Mickey Mouse, Mickey Mouse, nyah, nyah, nyah!" Scatt ------- CONFERENCES ON MY CALENDAR February 4, 2003, Santa Barbara CA. Center for Entrepreneurship and Engineering Management (CEEM) at UC Santa Barbara. I'll deliver the Stupid Network stump speech and explain why it is time for the telephone companies to take a walk in the snow. http://ceem.engr.ucsb.edu/events.html March 31 through April 3, 2003, San Jose CA. VON. I am organizing a panel on April 1 (5:00 to 6:15 PM) with Tim Horan of CIBC, Roxane "smarter-than-your-average-bear" Googin, and Anders Comstedt, the fellow who built the profitable, profitable, profitable, profitable, profitable, dark fiber network in Stockholm. April 1 is one of my favorite holidays. You will believe EVERYTHING my panel presents -- http://www.von.com/ April 22-25, 2003, Santa Clara CA. O'Reilly Emerging Technology Conference. My presentation will be called Operating Models for Stupid Networks, Friday, April 25 at 2:00 PM -- http://tinyurl.com/4yhe. June 11-14, 2002, Philadelphia PA. TedMed3. Come if you possibly can. http://tedmed.com. ------- COPYRIGHT NOTICE: Redistribution of this document, or any part of it, is permitted for non-commercial purposes, provided that the two lines below are reproduced with it: Copyright 2003 by David S. Isenberg isen@isen.com -- http://isen.com/ -- 1-888-isen-com ------- [There are two ways to join the SMART List, which gets you the SMART Letter by email, weeks before it goes up on the isen.com web site. The PREFERRED METHOD is to click on http://isen.com/SMARTreqScript.html and supply the info as indicated. The alternative method is to send a brief, PERSONAL statement to isen@isen.com (put "SMART" in the Subject field) saying who you are, what you do, maybe who you work for, maybe how you see your work connecting to mine, and why you are interested in joining the SMART List.] [to quit the SMART List, send a brief "unsubscribe" message to isen@isen.com] [for past SMART Letters, see http://www.isen.com/archives/index.html] [Policy on reader contributions: Write to me. I won't quote you without your explicitly stated permission. If you're writing to me for inclusion in the SMART Letter, *please* say so. I'll probably edit your writing for brevity and clarity. If you ask for anonymity, you'll get it. ] *--------------------isen.com----------------------* David S. Isenberg isen@isen.com isen.com, inc. 888-isen-com http://isen.com/ 203-661-4798 *--------------------isen.com----------------------* -- The brains behind the Stupid Network -- *--------------------isen.com----------------------*