Friday, January 18, 2019

Living in a Second-Class Digital World



 
Every time I visit China, Japan or South Korea, I am always stunned when I return to the United States. There, aside from the preserved older buildings, their central cities are modern. The bridges were built with the latest technology. Potholes are rare. Mass transit is ubiquitous and running well. Infrastructure gleams. Buildings are new and architecturally are cutting-edge. And their internet speeds, from downloads to latency, are staggeringly fast. Government spending on tech research and improving the quality of public education at all levels is exploding.

Here, not so much. OK, China’s hinterlands cannot make the same boasts, but South Korea and Japan put us to shame everywhere. We give billionaires massive tax cuts as major school districts around the United States face rolling teacher strikes, with class sizes in many public schools hitting averages of over 40, even 50, kids in a classroom… with antiquated or unavailable modern computers and laboratories. Our infrastructure is a joke, and the push for “austerity” in order to make the rich richer has dropped our public schools from first to nineteenth globally and falling fast. We’re rapidly becoming uncompetitive with the rest of the world.

Hard to understand from the country that invented the Internet and mobile telecommunications, designed the software that enabled most of it, invented social media and smart phone technology and has until recently led the world in digital entertainment, from gaming/VR/AR to audio-visual content of all shapes sized and formats. We speak in terms of megabits, 100 is a marketing hook; they speak of gigabits as their new normal – 1000 times a megabit. We brag of our upcoming 5G telecommunications, scheduled to be spreading online next year – 20 to 100 times faster than 4G with almost no latency (the time from ask to receive). South Koreans laugh.

“Although she’s an expert in telecommunications policy, [Harvard Law Professor Susan] Crawford was stunned at what she witnessed in South Korea [at the last Winter Olympics], which she describes as ‘the most wired nation on the planet’ — flawless cellphone coverage even in rural areas, real-time data transmission, driverless buses using the latest communications technology to smoothly avoid pedestrians and evade obstructions.

“‘I’ve never been embarrassed to be American before,’ Crawford [said] recently. ‘But when Korean people tell you that going to America is like taking a rural vacation, it really makes you stop and worry about what we’re up to.’… [America’s] global leadership in internet technology was being frittered away by placing tech policy in the hands of profit-seeking companies with no incentive to keep the U.S. on the leading edge…

“[Her latest book,] ‘Fiber’ describes how that trend has intensified. The risk is even greater today, Crawford writes, because the data-carrying capacity of the next generation of fiber optics, known as ‘5G’ (the fifth generation of wireless telecommunications technology), will give countries that invest in those advanced networks a huge advantage over those that don’t. It’s 100 times faster than the existing 4G technology and far more capacious, allowing simultaneous connections of billions of devices.

“Which countries are investing in the technology? For one, China, which is planning to cover 80% of its residences and businesses with 5G connectivity by 2025. ‘While the leaders of the USA and China rant and rave at one another, Western companies continue to work closely with those in China, aware that 5G will be a global platform,’ observed tech analysts at ReThink Research last month . ‘In the run-up to 5G, it has been China’s operators, especially China Mobile, which have been a driving force.’

“As Crawford reports, America’s experience with trying to bring fiber to its homes and businesses isn’t auspicious. Only about 10% of the nation’s 119 million households subscribe to high-speed fiber services, and 75% of census blocks have no access to residential fiber at all. Households with fiber connections tend to be located in the most densely developed and richest parts of the country — America’s ‘digital divide’ has turned into a chasm.

“This has happened, Crawford writes, because the U.S. hasn’t turned the building of its optical fiber infrastructure into a national imperative — that is, government-supervised — as it did its highways, airports, dams and bridges. She draws comparisons to the government initiative to bring electrification to rural communities in the 1920s and 1930s.

“Electrification, she writes, ‘followed a set pattern: municipal buildings and businesses first, wealthy urban dwellers next, then poorer urban dwellers, and last of all, rural homes and farms.’ That commercial model resulted in 90% of farmers in the 1930s lacking electric power and even poorer sections of thriving cities lacking appliances we take for granted — refrigerators, electric cooking and heating. One result was the rise of public power systems, just as one result of the spotty rollout of fiber connectivity today is the emergence of municipal broadband.

“By ceding telecommunications infrastructure to big, monopolistic carriers such as Comcast, Verizon and AT&T, the U.S. government has effectively given up its role in information technology policy, Crawford says. The Federal Communications Commission — under President Obama as well as President Trump — allowed the companies to develop vertically integrated systems in which they own the distribution systems as well as the content moving over those systems; Comcast owns NBC Universal, AT&T owns CNN and Warner Bros., and Verizon owns Huffington Post, Yahoo and other former AOL properties.

“‘These guys’ plans will be to have islands of exclusive content,’ Crawford told me. ‘You will join the Comcast world when you’re born, or the AT&T world.’… That control removes the incentive for the internet carriers to spend much to upgrade their distribution networks to fiber, she argues. ‘They’re looking for ways to make more money out of the same physical infrastructure, not for ways to expand that infrastructure. They feel they’ve reached the number of people they want to serve, and now they’re just looking for how to make more money from them.’

“That’s a critical problem, because although 5G networks serve wireless devices, they still need extensive land-based fiber systems — in fact, much more extensive systems than the existing 4G technology. ‘It may sound paradoxical,’ Crawford writes, ‘but the future of advanced wireless services depends completely on how much fiber is in place.’

“At the moment, there’s not enough of it in the U.S. to meet the needs of 5G, and the big private companies will not and cannot raise the private capital needed to build more, at least not from investors looking for a quick return on their money. Basic infrastructure ‘requires patient capital,’ Crawford observes.

“The answer is to bring in the only entities willing to make long-term, patient investments: cities, states and the federal government, the same entities that built dams, roads and bridges — indeed, the internet itself — before it was clear how any of that infrastructure could be exploited by private companies for profit.” Michael Hiltzik for the Los Angeles Times, 1-17-19.

As we are learning in a complex society, private industry can only so far. As insurance carriers go broke from massive natural disasters, as the gig economy seems to undercut the notion of employer benefits – from healthcare to retirement – as specialized research and pure research are not being actively pursued in a profit-driven industrial world, we are learning that government has to step in sometimes to solve problems that cannot solved in any other way.

              I’m Peter Dekom, and sometimes too many cooks, especially the undercapitalized and unmotivated kind, do spoil the broth.


 

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