The Internet Revolution: Transforming the Cable Industry

1. An Internet World, the Cable Industry, and the Future Washington Metropolitan Cable Club The Information Revolution in Mid-StreamDouglas E. Van Houweling, President and CEO University Corporation for Advanced Internet Development

2. Overview • History & Background • Today’s Internet • Applications • Information -> Collaboration • Technology • Distributed Organizations • Intangible Value • Implications for an Internet World • Implications for the Cable Industry

3. Internet History • ARPAnet origins • 1987-NSFnet • 1995 -- Privatization • 1996 -- Internet2 • 34 > 127 research university members/33 corporate members • 1996 -- Next Generation Internet • Clinton/Gore Administration

5. The Challenge of Today’s Internet • Growing at over 15% per month • Challenges to higher education • The “world wide wait” • Human interaction awkward • Virtual meetings and seminars • Shared authoring • Browsing publications • Distributed large scale computing and data base efforts not feasible

6. Internet2 Goals • Enable new generation of applications • Re-create leading edge R&E network capability • Transfer capability to the global production Internet

7. American Sign Language and English Captions Gallaudet University Georgetown University

9. Distributed Image SpreadSheet University of Missouri-Columbia

11. Teleimmersion University of Illinois-Chicago University of Illinois-NCSA Old Dominion University

12. The CAVE Source: University of Illinois-Chicago

13. Immersadesk Source: University of Illinois-Chicago

14. Virtual Temporal Bone Source: University of Illinois-Chicago

15. Applications and Engineering Applications Motivate Enables Engineering

16. Single-Lane Road ->Multi-lane Superhighway Special-purpose lanes Access control Tolls where appropriate End-to-end performance guarantees Quality of Service across multiple providers Support for Internet-based broadcast Authentication & security Faster circuits Technology

17. Leading edge connectivity for Internet2 Speeds ranging from 60 million to 1 billion characters/second very high performance Backbone Network Service (vBNS) -- sponsored by NSF and MCI Abilene sponsored by the University Corporation for Advanced Internet Development, with support from Qwest, Nortel, and Cisco vBNS & Abilene

18. Abilene Announced 14 April

19. Internet2 Member Universities127 Members as of May 1998

20. 3Com* Advanced Network & Services* Alcatel Apple Ameritech AT&T* Bay Networks* Bell Atlantic Bellcore Cabletron* Cisco Systems* Deutsche Telekom Digital Equipment Corporation FORE Systems* GTE Internetworking IBM* Lucent Technologies* MCI Communications* Newbridge Networks* Nokia Nortel* Novell Packet Engines Perot Systems Qwest Communications* SBC Technology Resources Siemens Sprint StarBurst Communications* Sun Microsystems Torrent Technologies William Communications Corporate Members/Partners*

21. Today’s Internet focuses on access to and delivery of information and entertainment Tomorrow’s Internet will support human collaboration in an information and media rich environment Dramatic implications for the cable industry Trend --Information -> Collaboration

22. Intangible Value • The world is moving from an economy based on tangibles to one based on intangibles • slower growth in physical flows of material goods & products • faster growth of ethereal streams of data, images, and symbols • Supporting human interaction less constrained by geography & time

23. Distributed Organizations • VISA International • The Internet • Higher education • All created to convey intangible value • All dependent on information and flexible interorganizational and interpersonal relationships

24. Implications for an Internet World • The future will undoubtedly be different than we can predict, but we can observe a powerful confluence: • intangible value represented in and transportable through information technology • increasing success of distributed global organizations and communities • an Internet which supports a world built on human collaboration

25. Trends and implications Enabling Online Business Applied Encryption Technology Services Multimedia and Video Service Embraced by Industry: eg: Automotive Network Exchange Internet Transactions projected at over $300 Billion by 2002 Electronic Commerce Explosion

26. A new world of advanced communications Internet multicast “video”, telephony and radio Transport of Internet traffic on cable, direct broadcast satellite; radio and broadcast TV Real-time quality of service support Mutual Reinforcement among media (print, TV, radio, web, email) Internet and Multimedia

27. Opportunity for the Cable Industry • Significant applications and engineering breakthroughs • Cable modems, digital TV, Web TV, Internet phone • New application opportunities • Multimedia impact • Impact on delivery of content • Broad impact of technology transfer and market making

28. Are We Ready? • We still think about mass media, not personal communication • We still measure the economy in terms of tangibles • We still assume organizations are hierarchical • Is government, education, industry collaboration the answer?

29. Your Comments and Questions?