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At the end of World War II, Eisenhower, now a General, found himself impressed by Germany s Autobahn. A single bomb might destroy a train route, but Germany s highways could often be used soon after being bombed because it was difficult to destroy such a wide area of concrete or asphalt and because numerous alternate routes existed that could be used. Within a year of becoming President in 1953, Eisenhower began to push for a system of interstate highways that would crisscross the United States. Although federal highways already covered many areas of the country, they were old and often narrow. The interstate highway plan would create an additional 42,000 miles of modern highways. Eisenhower worked for two years to gain Congress s approval of the largest public works project ever conceived. On June 29, 1956 the Federal Aid Highway Act was signed and the interstates began to appear. The standards for the highways were carefully designed and highly regulated. Lanes were required to be 12 feet wide, shoulders had to be 10 feet wide, bridges required a minimum of 14 feet of clearance, grades had to be less than 3 percent, and the highway had to be designed for travel at 70 miles per hour. The plan for the Interstate Highway system was to complete all 42,000 miles within 16 years. In reality, it took 27 years to complete the system. The last link, Interstate 105 in Los Angeles, was not completed until 1993. Similarly, when President Roosevelt signed into law the Communications Act of 1934, he did so with the following stated goal:
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For the purpose of regulating interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, nation-wide, and worldwide wire and radio communication service with adequate facilities at reasonable charges, for the purpose of the national defense, and for the purpose of securing a more effective execution of this policy by centralizing authority heretofore granted by law to several agencies and by granting additional authority with respect to interstate and foreign commerce in wire and radio communication, there is hereby created a commission to be known as the Federal Communications Commission, which shall be constituted as hereinafter provided, and which shall execute and enforce the provisions of this Act.
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All commerce depends on transportation, whether for the physical movement of goods or the logical movement of information. In Being Digital, author Nicholas Negroponte observes that we are rapidly evolving to a world where more and more, we make money not by shipping
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atoms around, but by shipping bits around. He s right, of course. Online commerce, Internet banking, and other examples of electronic trade are legion, and growing. We still have to ship lettuce and squash out of California s great Central Valley by truck, but more and more of those lettuce and squash crops are being sold online to Asia, Europe, South America, and the Middle East. Why Because they can be. And as the business evolves, so too evolve the players in the business.
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The telecommunications industry was so simple in 1984 when divestiture struck. There were seven Regional Bell Operating Companies (RBOCs), three long-distance companies (Interexchange Carriers [IXCs]), and customers. Today there are at least three IXCs, three-and-a-half Incumbent Local Exchange Carriers (ILECs) (formerly RBOCs; the half is USWest, acquired by Qwest), a host of Competitive Local Exchange Carriers (CLECs), and a plethora of Internet Service Providers (ISPs), cable providers, Data Local Exchange Carriers (DLECs), Building Local Exhange Carriers (BLECs), Application Service Providers (ASPs), and more manufacturers than can be counted. Also, specialized carriers have been around like Rhythms NetConnections and Covad, both of which gambled on technology (DSL) as their principal deliverable and found that the market wasn t there. Hardware manufacturers have also learned a painful lesson: customers as a general rule are not in the market for whiz-bang technology. They are in the market for communications solutions that make them and their companies more competitive. The heady days when customers could be wowed by bit rates and chip speeds are over. Today those customers are looking for performance and reliability. Remember the days when the process of buying a car always included the obligatory look under the hood Not anymore. How many cylinders does your car s engine have Is it carbureted or fuel injected Disk brakes or drums For the most part, those details are no longer important. What matters is that the car is reliable and has the functional features the driver wants. Telecom has evolved to the same place in its evolution. It doesn t really matter anymore how it works; what matters is that it does. Period.
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