the human network

I:  Baby Books

Forty-eight years ago, when my mother was pregnant with me, her friends and family threw her a baby shower.  Among the gifts, she received a satin-covered ‘Baby Book’, with spaces to record all of the minutiae of the early days of my existence.  I know for a fact that Dr. No and Lawrence of Arabia were playing in the movie theatres in Massachusetts at the time I was born, because it is neatly recorded on a page of my baby book.  I know how much I weighed when I was born (7 lbs, 7 oz – or 3.3 kg), when I got my first tooth, when I started to walk, and so on.  All of it is there, because my mother took the time to write it down as it happened.

What my mother didn’t write down – because it isn’t at all remarkable – was that I was busy reaching out, making connections with everyone I came into contact with.  Those connections began with my mother and my father, then my aunts and uncles and grandparents, and, just a year later, my sister.  I made those connections because that’s what humans do.  It sounds perfectly ordinary because it comes so naturally: in fact, it’s quite profound.  From the moment we’re born, we work to embed ourselves within a deep, strong and complex web of social relationships.

This isn’t a recent innovation, something that we ‘thought up’ the way we dreamed up art or writing or the steam engine; you need to go way, way back – at least ten million years, and probably a great deal more – before you get to any of our ancestors who wasn’t thoroughly social.  A social animal will, on the whole, outperform a loner.  A social animal can harness resources outside of themselves to ensure their survival and the survival of their children.  Ten million years ago, a social animal could share the hunting and gathering of food, childcare, or lookout duties.  Those with the best social skills – the best ability to communicate, coordinate, and function effectively as a unit – did better than their less-well-socialized relatives.  They survived to pass their genes and behaviors along, down the generations.  All along, a constant pressure accompanied them, driving them to become ever more social, better coordinated, and more effective.  At some point – no one knows how long ago, or even how it happened – this pressure overflowed, creating the infinitely flexible form of communication we call language.

The more we study other animals – particularly chimpanzees – the less unique we seem to ourselves.  Animals think, they even reason.  They can carry around within themselves a model of how others think and think about them.  They can deceive.  They even appear to have empathy and a sense of fairness.  But no other animal has the perfect tool of language.  Animals can think and feel, but they can not express themselves, at least, not as comprehensively as we can.  The expressiveness of language has one overriding aim: it allows us to connect very effectively.

The more we study ourselves, the more we understand how our need to connect has worked its way into our bodies, colonizing our nervous system.  Our big brains are the hardware for our connection into the human network: there’s a direct correlation between the amount of grey matter in our prefrontal cortex and the number of individuals we can maintain connections with.  Anthropologist Robin Dunbar came up with a figure of 148, plus or minus a few.  That’s the number of individuals you carry around in your head with you, all the time.  For a long, long time – tens of thousands of years – that was the largest a tribe of humans could grow, before they hived off into two tribes.  When a tribe grows so big you can’t know all of its members, it’s time to divide.

We’ve grown used to being surrounded by people we have no connection with.  That’s what cities are all about.  We’ve been building them for close to ten thousand years, and in that time we’ve learned how to live with those we don’t know.  It’s not easy – it requires police and courts and prisons – but the advantages of coming together in such great numbers outweigh the disadvantages.  In 2008, for the first time in history, half of humanity lived in cities.  We’re in the final stages of the urban revolution – a revolution in the making for the past hundred centuries.  Urban life is now the default human condition.

Just as that revolution reaches is climax, we find ourselves presented with a new technology, which takes all of our human connections and digitizes them, creating an electronic representation of what we each carry around in our heads.  We call this ‘social networking’, though, as I’ve explained, social networks are actually older than our species.  Stuffing them into a computer doesn’t change them: We are our connections.  They are what make us human.  But the computer speeds up and amplifies those connections, taking something natural and ordinary and turning it into something freakish and – hopefully – wonderful.

Before we discuss how these newly amplified connections can be used, it may be useful to step back, and reframe this latest revolution – just three years old – in the context of a child born, not in the early 1960s, but in 2010.  I have good friends in Melbourne who are expecting their first child in early September.  For the sake of today’s talk, let’s use this child (we’ll call her a daughter, though no one yet knows) as an example of what is now happening, and what is to come.

Will this child have a baby book?  Certainly, some beloved relative may provide one to the lucky parents, and mom and dad may even take the time to fill it in – between the 3 AM feedings and the nappy changes.  But the true baby book for this child will be the endless stream of digital media created in her wake.  From a few minutes after birth, she will be photographed, recorded, videoed, measured and captured in ways that would seem inconceivable (and obsessive) just a generation ago.  Yet today think nothing of a parent who follows a child everywhere with a video camera.

As parents collect that all of that media, they’re going to want somewhere to show it off.  An eponymous website. YouTube is already cluttered with videos of babies doing the most mundane sorts of things, precisely so they can be shown off to proud grandparents. Photo galleries on Picasa and Snapfish and Flickr exist for precisely the same reason – they provide a venue for sharing.  Parents post to blogs documenting every move, every fitful crawl, every illness.  What’s the difference between this and what we think of as a baby book?  Nothing at all.

It seems natural and wonderful to gather all of this documentation about her.  This is who she is in her youngest years.  But there’s other information that her parents do not document, at least not yet: who does she connect with?  This list is small in her very first years, but as she grows into a toddler and heads off to day care and pre-kindy and grade school, that list grows rather longer.  Will her parents keep track of these relationships?  Even if they do not, at some point, she will.  She’ll go online to a site patrolled by Disney or Apple or Google or Microsoft and be invited to ‘friend’ others on the site, and enroll her own real-world friends.  Her social network will begin to twin into its physical and virtual selves.  Much of each will be a reflection of the other, but some connections will exist purely in one realm.  Some friends or family members will have no presence online; a few friends might remain life-long ‘pen pals’, never meeting in the flesh, but maintaining constant, connected contact.

The most significant difference between these real-world and virtual networks centers on persistence.  We only have room for 150 people in our heads.  When we fill up, people start to get pushed out, crossing that invisible yet absolutely real line between friend and acquaintance.  We may have a lot of acquaintances, but these relationships, in the real world, don’t consist of very much beyond a greeting and a few polite words.  Contrast this to the virtual world, the world of Facebook and Twitter and LinkedIn, where connections persist forever unless explicitly deleted by one of the parties to that connection.  There is no upper limit to the number of connections a computer can remember.  (Facebook has an upper limit of 5000 friends, but that’s entirely artificial and will eventually be abandoned.)

As she passes through life, this child will continue to accrue connections, and these connections will be digitized for safekeeping – just like the photos and videos her parents shot in her youngest years.  That list will naturally grow and grow and grow, as she passes through years 1 through 12, moves on to university, and out into the world of adults.  By the time she’s 25, she’ll likely have thousands of connections that accreted just by living her life.  Each of these people will be able to peer in, and see how she’s doing; she’ll be able to do the same with each of them.

Managing the difference between our real-world connections, which top out, and our virtual connections, which do not, is a task that we’ll be mastering over the next decade.  Right now, we’re not very good at it.  By the time she’s grown up enough to understand the different qualities of real and virtual connections, we will be able to teach her behaviors appropriate to each sphere of connection.  At present there’s a lot of confusion, a fair bit of chaos, and a healthy helping of ignorance around all of this.  We can give ourselves a pass: it’s brand new.  But already we’re beginning to see that this is a real revolution.  In the social sphere, nothing will look like the past.

II:  Pillar of Cloud, Pillar of Fire

On Friday evening, my washing machine – which I bought, used, just after I moved to Australia – finally gave up the ghost.  The motor on my front loader seemed less and less likely to make it through an entire spin cycle, so I knew this day was coming, and had some thoughts about what I’d do for a replacement.  One of my very good friends recommended that I buy a Simpson brand washer, just as she owned, just as her mother owned.  ‘Years of trouble-free service,’ she said.  ‘It’ll last forever.’  I took that suggestion under advisement.  But I knew that I had a larger pool of individuals to interrogate.  About thirty minutes after the unfortunate passing of the washer, I posted a message to Twitter, asking for recommendations.  Within minutes I was pointed to Choice Magazine, wher I read their reliability survey.  Many people chimed in with their own love or horror stories about particular brands of washers.  I was quickly dissuaded from Simpson: ‘There’s a reason they’re cheap,’ one person replied.  A furious argument raged about whether LG should be purchased by anyone, for any reason whatsoever, given that they were caught cheating on a refrigerator efficiency test.  Miele owners seemed fanatically in love with their washers – but acknowledged that they paid a big premium for that love.  And so on.  After reviewing the input from Twitter (and Choice), I made a decision to purchase a Bosch, which seemed both highly reliable and not too expensive, good value for money.  I put my decision out to Twitter, and the Bosch owners all chimed in: very happy, except for one, who seemed to have gotten one of those units that inevitably break down a few days after the warrantee expires.  That settled it.  On Saturday morning I played Bing Lee off Harvey Norman, talked one down to a very good price, and made the purchase.  Crisis resolved.

Let’s step back from the immediate and get a good look at this whole process.  In considering what to replace my dead washing machine with, I first consulted my real-world network – my friend who recommended Simpson.  Then I went out to my virtual network, a network which is much, much larger.  I follow about 5700 people on Twitter.  This means I have access, potentially, to 5700 opinions, 5700 sets of experiences, 5700 people who may be willing to help.  Even if only a small proportion of those do decide to offer assistance, that’s a lot of help, and it comes to me more or less immediately.  The entire process took about half an hour – and this on a Friday night.  If it’d been on a Tuesday afternoon, when people idly monitor Twitter while they work, I would have received double the response.

Wherever I go, I carry this ‘cloud’ of connections with me.  These connections have value in themselves – they are a record of my passage through the human universe – but they have far greater value when put to work to accomplish some task.  This is it; this is the knife-edge of the present: We have been busily building up our social networks, and though I freely admit that I am better connected than most, this will not long remain the case, as a generation grows into adulthood keeping a perfect record of all of their connections.  Within a few years, nearly everyone who wills it will enter every situation with the same cloud of connections, the same reliable web of helpers who can respond to requests as the need arises.  That fundamental transition – at the heart of this latest revolution – makes each of us much more effective.  We’re carrying around a whole stadium of individuals, who can be called upon as needed to help us make the best decision in every situation.  As we grow more comfortable with this new power, every decision of significance we make will be done in consultation with this network of effectiveness.  This is already transforming the way we operate.

Some more examples, drawn from my own experience, will help illuminate this transformation.  In December I found myself in Canberra for a few days.  Where to eat dinner in a town that shuts down at 5 pm?  I asked Twitter, and forty-five minutes later I was enjoying some of the best seafood laksa I’ve had in Australia.  A few days later, in the Barossa Valley, I asked Twitter which wineries I should visit – and the top five recommendations were very good indeed.  In the moment these can seem like trivial affairs, but both together begin to mark the difference between an ordinary holiday and an awesome one.  Imagine this stretching out, minute after minute, throughout our lives.  We’re not used to thinking in such terms.  But just twenty years ago we weren’t used to the idea that we could reach anyone else instantly from wherever we were, or be reached by anyone else, anywhere.  Then the mobile came along, and now that’s an accepted part of our reality.  We’d find it difficult to go back to a time before the mobile became such an essential tool in our lives.  This is the same transition we’re in the midst of right now with social networks.  We look at Twitter and Facebook and find them charming ways to stay in touch and while away some empty time.  A social network isn’t charming, and it certainly isn’t a waste of time.  We are like children, playing with very powerful weapons.  And sometimes they go off.

Before we explore that more explosive side to social networks, the ‘pillar of fire’ to this ‘pillar of cloud’, I want to introduce you to one more social networking technology, one which is brand-new, and which you may not have heard of yet.   Just over the past month, I’ve become a big fan of Foursquare, a location-based ‘social network’.  Using the GPS on my mobile, Foursquare allows me to ‘check in’ when I go to a restaurant, a store, or almost anywhere else.  That is, Foursquare records the fact that I am at a particular place at a particular time.  Once I’ve checked in, I can then make a recommendation – a ‘tip’ in Foursquare lingo – and share something I’ve observed about that place.  It could be anything – something absurdly trivial, or something very relevant.  As others have likely been to this place before me, there is already a list of tips.  If I peek through those tips, I can learn something that could prove very useful.

As every day passes, and more people use Foursquare (over a million at present, all around the world) this list of tips is rapidly growing longer, more substantial, and more useful.  What does this mean?  Well, I could walk into a bar that I’ve never been to before and know exactly which cocktail I want to order.  I would know which table at a restaurant offers the quietest corner for a romantic date.  Or which salesperson to talk to for a good deal on that washing machine.  And so on.  With Foursquare have immediate and continuous information in depth, information provided by the hundreds or thousands in my own social network, plus everyone else who chooses to contribute.  Foursquare turns the real world into a kind of Wikipedia, where everyone contributes what they know to improve the lot of all.  I have a growing range of information about the world around me in my hands.  If I put it to work, it will improve my effectiveness.

Last weekend I went to the cinema, to see Iron Man 2.  As soon as I left the theatre, I sent out a message to Twitter: “Thought Iron Man 2 better than original.  Snappier.  Funnier.  More comic-book-y.”  That recommendation – high praise from me – went out to the 6550 people who follow me.  Many of those folks are Australians, who might have been looking for a film to see last weekend.  My positive review would have influenced them.  I know for a fact that it did influence some, because they sent me messages telling me this.

On the other hand, if I’d sent out a message saying, ‘Worst. Movie. Ever.’ that also would have reached 6550 people, who would, once again, consider it.  It might have even dissuaded some from paying the $17.50 to see Iron Man 2 on the big screen.  If enough people said the same thing, that could kill the box office.  This is precisely what we’ve seen.  There’s a direct correlation between the speed at which a motion picture bombs and the rise in the number of users of Twitter.  It used to take a few days for word-of-mouth to kill a movie’s box office (think Godzilla).  Now it takes a few minutes. As the first showing ends, friends text friends, people post to Twitter and Facebook, and the story spreads.  After the second or third showing, the crowds have dropped off: word has gotten out that the film stinks.  Where a film could coast an entire weekend, now it has just a Friday matinee to succeed or fail.  Positive word-of-mouth kept Avatar at the #1 spot for nine weeks, and the film remained a trending topic on Twitter for half of that time; conversely, The Back-Up Plan disappeared almost without a trace.  An opinion, multiplied by hundreds or thousands of connections, carries a lot of weight.

These connections always come with us, part of who we are now.  If we have an experience we find objectionable, our connections have a taste of that.  A few months ago a friend found herself in Far North Queensland with an American Express card whose credit limit had summarily been cut in half with no warning, leaving her far away from home and potentially caught in a jam.  When she called American Express to make an inquiry – and found that their consumer credit division closed at 5 pm on a Friday evening – she lost her temper.  The 7500 people who follow her on Twitter heard a solid rant about the evils of American Express, a rant that they will now remember every time they find an American Express invitation letter in the post, or even when they decide which credit card to select while making a purchase.

Every experience, positive or negative, is now amplified beyond all comprehension.  We sit here with the social equivalent of tactical nuclear weapons in our hands, toying with the triggers, and act surprised when occasionally they go off.  Catherine Deveny, a weekly columnist for The AGE, was summarily dismissed last week because of some messages she posted over Twitter during the Logies broadcast.  It seems she hadn’t thought through the danger of sending an obscene – but comedic – message to thousands of people, a message that would be picked up and sent again, and sent again, and sent again, until the tabloid newspapers and television shows, smelling blood in the water, got in on the action.  When you’re well-connected, everything is essentially public.  There’s no firm boundary between your private sphere and your public life once you allow thousands of others a look in.  That can be a good thing if one is hungry for celebrity and fame – Kim Kardashian is an excellent example of this – but it can also accelerate a drive to self-destruction (witness Miranda Devine’s comments from Sunday).  We live within a social amplifier, and it’s always turned up to 11.  When we scream, we can be heard around the world, but now our whispers sound like shouts.

This means that no one can be silenced, anywhere.  Last June, the entire world watched as an abortive Iranian revolution broke out on the streets of Tehran, viewing clips shot on mobile handsets, uploaded to YouTube, tagged, then picked up and shared throughout social networks like Twitter, which brought them to the attention of CNN, the New York Times, and the US State Department. Mobiles brought into North Korea puncture the tightly held reins of state control as information and news seeps across the border with China, the human connection amplified by a social technology. It’s no longer the CIA or ASIO station chief who gathers intelligence from far-flung places.  It courses through our human networks.

You can begin to see the shape of this revolution-in-progess.  Everything is so new, so rough, so raw, so innocent of intention that we really don’t know where we are going.  We’re all stumbling through this doorway together.  Each of us hold our connections to one another; like balloons that, in sufficient numbers, might cause us to take flight.  We’re lifting off and gaining speed.  Whether we’re a glider or a guided missile is up to us.  We must pause, take stock, and ask ourselves what we want from these powerful new tools.  And, in return, ask what we must be prepared to accept.

III:  Threat Assistment

Individuals are becoming radically hyper-empowered.  Our connections give us capabilities undreamt of a generation ago.  As individuals who assess the various risks for your organizations, you’ve just learned about a brand new one, a threat that will – relatively quickly – dwarf nearly all others.  The risk of hyperconnectivity is coming at you from three distinct but interrelated axes: hyper-empowered individuals who want to interact with your organizations; hyper-empowered individuals who compose your organizations; and your organizations, when they grasp the nettle of hyperconnectivity.

What do you do when a hyperconnected individual wants to become a customer, or just interact in some way with your organization?  What happens when an existing customer becomes hyperconnected?  Both of these situations are becoming commonplace affairs.  My friend who had her troubles with American Express typifies this sort of threat.  She had a long-term relationship with the company, but in the last years of that relationship she became hyperempowered.  American Express didn’t know this – probably wouldn’t have understood it – and failed to manage the relationship when she ran into trouble.

The key attitudes for managing external relationships with hyperconnected individuals are humility and openness.  American Express had no idea what was going on because they weren’t plugged into what my friend was saying to thousands of her followers.   They didn’t consider her worth listening to.  There’s no reason for this sort of thing to happen.  Excellent tools exist that allow you to monitor what is being said about your organization, right now, who is saying it, and where.  You can keep your finger on the pulse; when a customer has an issue, you can respond in a timely manner, humbly and transparently.  Social media places an enormous value on transparency: unless someone’s motives – and connections – are apparent to you, you have no real reason to trust them, and no basis upon which to build that trust.

This isn’t a difficult policy to implement, but the responsibility for listening doesn’t lie with a single individual or department within your organization.  Responsibility is spread throughout the organization; that’s the only way your organization will be able to handle all of the hyperconnected customers you do business with.  Spread the load.  The Chinese have a proverb: ‘Many hands make light work.’  That same rule applies here.  Make listening to customers a priority throughout your organizations.  If you don’t, those customers will use their amplified capabilities to make your life a living hell.

Employees within your organizations don’t leave their own networks at the door when they walk into the office.  Although employers often block access to services like Facebook and Twitter from employee workstations, mobiles and pervasive high speed wireless connectivity make that restriction increasingly meaningless.  Employees will connect and stay connected throughout the day, regardless of your stated policy.  Soon enough, you will be encouraging them to stay connected, in order to share the burden of all that listening.  Right now, your employees are well connected, but poorly disciplined.  They don’t know the right way to do things.  Don’t blame them for this.  It’s all very new, and there hasn’t been a lot of guidance.

If you walk out of today’s talk with any one thing buzzing in your head, let it be this: develop a social media policy for your employees.  Employees want to know how they can be connected in the office without damaging your reputation or their position.  In the absence of a social media policy, organizations will get into all sorts of prangs that could have been avoided.  Case in point: last week’s sacking of AGE columnist Catherine Deveny happened, in large part, because Fairfax has no social media policy.  There were no guidelines for what constituted acceptable behavior, or even which behavior was ‘on the clock’ versus ‘off the clock’.  Without these sorts of guidelines, hyperconnected employees will make their own decisions – putting your organizations, your stakeholders and your brands at risk.

Two well-known Australian organizations have established their own social media policies.  The ABC boiled theirs down to four simple rules:

1)    Do not mix the personal and the professional in ways likely to bring the ABC into disrepute;

2)    Do not undermine your effectiveness at work;

3)    Do not imply ABC endorsement of your personal views;

4)    Do not disclose confidential information obtained through work.

This could be summed up with ‘use common sense’, but spelled out as it is here, the ABC has given its employees a framework that allows them to both regulate and embrace social media.

Telstra’s policy is wordier – it runs to five pages – but it is, in essence, very similar.  It is good that Telstra has a social media policy, but that policy was only developed after a very public and very embarrassing incident.  Last year, Telstra employee Leslie Nassar, who posted to Twitter pseduonymously  under the account ‘Fake Stephen Conroy’, revealed his identity.  When Telstra realized that one of their employees daily satirized the senator charged with ministerial oversight of their organization, the company was appalled, and quickly moved to fire Nassar – only to find that it couldn’t, because Nassar had violated no stated policy or conditions of employment.  Shortly after that, Telstra developed and promulgated its social media guidelines.  Learn from Telstra’s mistake.  This same sort of PR and political catastrophe needn’t happen in your organizations, but I guarantee that it will, if you do not develop a social media policy.  So please, get started immediately.

Finally, what happens when organizations hyperconnect?  For hundreds of years, organizations have been based on rigid hierarchies and restricted flows of information.  Hyperconnectivity puts paid to the org chart, replacing it with a dense set of hyperconnections between individuals within the organization, and between organizations: from each according to his ability, to each according to his need.  We don’t really understand much about this new form of organization, other than to say that it looks very little like what we are familiar with today.  But the pressure from hyperconnected individuals – both within and outside of the organization – will only increase, and to accommodate this pressure, the organization will increasingly find itself embedded in hyperconnections.  This is the final leg of the revolution, still some years away, but one which requires careful planning today.  Can your organization handle itself as it connects broadly to a planet where everyone is connected broadly?  Will it maintain its own integrity, will it dissolve, merge, or disintegrate?  This is a question that businesses need to ask, that schools need to ask, that governments need to ask.  Everything from mass production to service delivery is being re-thought and re-shaped by our hyperconnectivity.

Organizations that master hyperconnectivity, putting social media to work, experience a leap forward in productivity.  That leap forward comes at a price.  Every tool that enhances productivity also changes everyone who uses it.  None of us, as individuals or organizations, will be left behind, even if we choose to unplug, because we remain completely connected to a human world which is increasing hyperconnected.  There is no going back, nor any particular safety in the present.  Instead, we need to connect, and together use the best of what we’ve got – which is substantial, because there are plenty of smart people in all your organizations, throughout the nation, and the world – to mange this transition.  This could be a nearly bloodless revolution, if we can remember that, at our essence, we are the connected species.  Thought it may seem chaotic, this is not a collapse.  It is a culmination.

The slides for this talk can be found here.

I.

Sydney looks very little different from the city of Gough Whitlam’s day. Although almost forty years have passed, we see most of the same concrete monstrosities at the Big End of town, the same terrace houses in Surry Hills and Paddington, the same mile-after-mile of brick dwellings in the outer suburbs. Sydney has grown a bit around the edges, bumping up against the natural frontiers of our national parks, but, for a time-traveler, most things would appear nearly exactly the same.

That said, the life of the city is completely different. This is not because a different generation of Australians, from all corners of the world, inhabit the city. Rather, the city has acquired a rich inner life, an interiority which, though invisible to the eye, has become entirely pervasive, and completely dominates our perceptions. We walk the streets of the city, but we swim through an invisible ether of information. Just a decade ago we might have been said to have jumped through puddles of data, hopping from one to another as a five year-old might in a summer rainstorm. But the levels have constantly risen, in a curious echo of global warming, until, today, we must swim hard to stay afloat.

The individuals in our present-day Sydney stride the streets with divided attention, one eye scanning the scene before them, and another almost invariably fiddling with a mobile phone: sending a text, returning a call, using the GPS satellites to locate an address. Where, four decades ago, we might have kept a wary eye on passers-by, today we focus our attentions into the palms of our hands, playing with our toys. The least significant of these toys are the stand-alone entertainment devices; the iPods and their ilk, which provide a continuous soundtrack for our lives, and which insulate us from the undesired interruptions of the city. These are pleasant, but unimportant.

The devices which allow us to peer into and sail the etheric sea of data which surrounds us, these are the important toys. It’s already become an accepted fact that a man leaves the house with three things in his possession: his wallet, his keys, and his mobile. I have a particular pat-down I practice as the door to my flat closes behind me, a ritual of reassurance that tells me that yes, I am truly ready for the world. This behavioral transformation was already well underway when I first visited Sydney in 1997, and learned, from my friends’ actions, that mobile phones acted as a social lubricant. Dates could be made, rescheduled, or broken on the fly, effortlessly, without the painful social costs associated with standing someone up.

This was not a unique moment; it was simply the first in an ever-increasing series of transformations of human behavior, as the social accelerator of continuous communication became a broadly-accepted feature of civilization. The transition to frictionless social intercourse was quickly followed by a series of innovations which removed much of the friction from business and government. As individuals we must work with institutions and bureaucracies, but we have more ways to reach into them – and they, into us – than ever before. Businesses, in particular, realized that they could achieve both productivity gains and cost savings by leveraging the new facilities of communication. This relationship between commerce and the consumer produced an accelerating set of feedbacks which translated the very physical world of commerce into an enormous virtual edifice, one which sought every possible advantage of virtualization, striving to reach its customers through every conceivable mechanism.

Now, as we head into the winter of 2008, we live in a world where a seemingly stable physical environment is entirely overlaid and overweighed by a virtual world of connection and communication. The physical world has, in large part, lost its significance. It’s not that we’ve turned away from the physical world, but rather, that the meaning of the physical world is now derived from our interactions within the virtual world. The conversation we have, between ourselves, and with the institutions which serve us, frame the world around us. A bank is no longer an imposing edifice with marble columns, but an EFTPOS swipe or a statement displayed in a web browser. The city is no longer streets and buildings, but flows of people and information, each invisibly connected through pervasive wireless networks.

It is already a wireless world. That battle was fought and won years ago; truly, before anyone knew the battle had been joined, it was effectively over. We are as wedded to this world as to the physical world – perhaps even more so. The frontlines of development no longer concern themselves with the deployment of wireless communications, but rather with their increasing utility.

II.

Utility has a value. How much is it worth to me to be able to tell a mate that I’m delayed in traffic and can’t make dinner on time? Is it worth a fifty-cent voice call, or a twenty-five cent text (which may go through several iterations, and, in the end, cost me more)? Clearly it is; we are willing to pay a steep price to keep our social relationships on an even keel. What about our business relationships? How much is it worth to be able to take a look at the sales brochure for a store before we enter it? How much is it worth to find it on a map, or get directions from where we are? How much is it worth to send an absolutely vital email to a business client?

These are the economics that have ruled the tariff structures of wireless communications, both here in Australia and in the rest of the world. Bandwidth, commonly thought of as a limited resource, must be paid for. Infrastructure must be paid for. Shareholders must receive a fair return on their investments. All of these points, while valid, do not tell the whole story. The tariff structure acts as a barrier to communication, a barrier which can only be crossed if the perceived value is greater than the costs incurred. In the situations outlined above, this is often the case, and is thus the basis for the wireless telelcomms industry. But there are other economics at work, and these economics dictate a revision to this monolithic ordering of business affairs.

Chris Anderson, the editor of WIRED magazine, has been writing a series of essays in preparation for the publication of his next book, Free: Why $0.00 is the Future of Business. In his first essay – published in WIRED magazine, of course – Anderson takes a look at Moore’s Law, which promises a two-fold decrease in transistor cost every eighteen months, a rule that’s proven continuously true since Intel co-founder Gordon Moore proposed it, back in 1965. Somewhere around 1973, Anderson notes, Carver Mead, the father of VLSI, realized that individual transistors were becoming so small and so cheap as to be essentially free. Yes, in aggregates of hundreds of millions, transistors cost a few tens of dollars. But at the level of single circuits, these transistors are free, and can be “wasted” to provide some additional functionality at essentially zero additional cost. When, toward the end of the 1970s, the semiconductor industry embraced Mead’s design methodology, the silicon revolution began in earnest, powered by ever-cheaper transistors that could, as far as the designer was concerned, be considered entirely expendable.

Google has followed a similar approach to profitability. Pouring hundreds of millions of dollars into a distributed, networked architecture which crawls and indexes the Web, Google provides its search engine for free, in the now-substantiated belief that something made freely available can still generate a very decent profit. Google designed its own, cheap computers, its own, cheap operating system, and fit these into its own, expensive data centers, linked together with relatively inexpensive bandwidth. Yahoo! and Microsoft – and Baidu and Facebook and MySpace – have followed similar paths to profitability. Make it free, and make money.

This seems counterintuitive, but herein is the difference between the physical and virtual worlds; the virtual world, insubstantial and pervasive, has its own economies of scale, which function very differently from the physical world. In the virtual world, the more a resource is shared, the more valuable it becomes, so ubiquity is the pathway to profitability.

We do not think of bandwidth as a virtual resource, one that can simply be burned. In Australia, we think of bandwidth as being an expensive and scarce resource. This is not true, and has never been particularly true. Over the time I’ve lived in this country (four and a half years) I’ve paid the same fixed amount for my internet bandwidth, yet today I have roughly six times the bandwidth, and seven times the download cap. Bandwidth is following the same curve as the transistor, because the cost of bandwidth is directly correlated to the cost of transistors.

Last year I upgraded to a 3G mobile handset, the Nokia N95, and immediately moved from GPRS speeds to HSDPA speeds – roughly 100x faster – but I am still spending the same amount for my mobile, on a monthly basis. I know that some Australian telcos see Vodafone’s tariff policy as sheer lunacy. But I reckon that Vodafone understands the economics of bandwidth. Vodafone understands that bandwidth is becoming free; the only way they can continue to benefit from my custom is if they continuously upgrade my service – just like my ISP.

Telco tariffs are predicated on the basic idea that spectrum is a limited resource. But spectrum is not a limited resource. Allocations are limited, yes, and licensed from the regulatory authorities for many millions of dollars a year. But spectrum itself is not in any wise limited. The 2.4 Ghz band is proof positive of this. Just that tiny slice of spectrum is responsible for more revenue than any other slice of spectrum, outside of the GSM and 3G bands. Why is this? Because the 2.4 Ghz band is unregulated, engineers and designers have had to teach their varied devices to play well with one another, even in hostile environments. I can use a Bluetooth headset right next to my WiFi-enabled MacBook, and never experience any problems, because these devices use spread-spectrum and spectrum-hopping to behave politely. My N95 can use WiFi and Bluetooth networking simultaneously – yet there’s never interference.

Unlicensed spectrum is not anarchy. It is an invitation to innovate. It is an open door to the creative engines of the economy. It is the most vital part of the entire wireless world, because it is the corner of the wireless world where bandwidth already is free.

III.

And so back to the city outside the convention center walls, crowded with four million people, each eagerly engaged in their own acts of communication. Yet these moments are bounded by an awareness of the costs of this communication. These tariffs act as a fundamental brake on the productivity of the Australian economy. They fetter the means of production. And so they must go.

I do not mean that we should nationalize the telcos – we’ve already been there – but rather, that we must engage in creating a new generation of untarriffed networks. The technology is already in place. We have cheap and durable mesh routers, such as the Open-Mesh and the Meraki, which can be dropped almost anywhere, powered by sun or by mains, and can create a network that spans nearly a quarter kilometer square. We can connect these access points to our wired networks, and share some small portion of our every-increasing bandwidth wealth with the public at large, so that no matter where they are in this city – or in this nation – they can access the wireless world. And we can secure these networks to prevent fraud and abuse.

Such systems already exist. In the past eight months, Meraki has given their $50 WiFi mesh routers to any San Franciscan willing to donate some of their ever-cheaper bandwidth to a freely available municipal network. When I started tracking the network, it had barely five thousand users. Today, it has over seventy thousand – that’s about one-tenth of the city. San Francisco is a city of hills and low buildings – it’s hard to get real reach from a wireless signal. In Sydney, Melbourne, Adelaide, Brisbane and Perth – which are all built on flats – a little signal goes a long, long way. From my flat in Surry Hills I can cover my entire neighborhood. If another of my neighbors decides to contribute, we can create a mesh which reaches further into my neighborhood, where it can link up with another volunteer, further in the neighborhood, and so on, and so on, until the entirety of my suburb is bathed in freely available wireless connectivity.

While this may sound like a noble idea, that is not the reason it is a good idea. Free wireless is a good idea because it enables an entirely new level of services, which would not, because of tariffs, make economic sense. This type of information has value – perhaps great value, to some – but no direct economic value. This is where the true strength of free wireless shows itself: it enables a broad participation in the electronic life of the city by all participants – individuals, businesses, and institutions – without the restraint of economic trade-offs.

This unlicensed participation has no form as yet, because we haven’t deployed the free wireless network beyond a few select spots in Australia’s cities. But, once the network has been deployed, some enterprising person will develop the “killer app” for this network, something so unexpected, yet so useful, that it immediately becomes apparent that the network is an incredibly valuable resource, one which will improve human connectivity, business productivity, and the delivery of services. Something that, once established, will be seen as an absolutely necessary feature in the life of the city.

Businessmen hate to deal in intangibles, or wild-eyed “science projects.” So instead, let me present you with a fait accompli: This is happening. We’re reaching a critical mass of Wifi devices in our dense urban cores. Translating these devices into nodes within city-spanning mesh networks requires only a simple software upgrade. It doesn’t require a hardware build-out. The transformation, when it comes, will happen suddenly and completely, and it will change the way we view the city.

The question then, is simple: are you going to wait for this day, or are you going to help it along? It could be slowed down, fettered by lawsuits and regulation. Or it could be accelerated into inevitability. We’re at a transition point now, between the tariffed networks we have lived with for the last decade, and the new, free networks, which are organically popping up in Australia and throughout the world. Both networks will co-exist; a free network actually increases the utility of a tariffed mobile network.

So, do you want to fight it? Or do you want to switch it on?

I.

The idea that the world is a database has a more distinguished provenance than just Google Earth. Back in the 1960s, R. Buckminster “Bucky” Fully proposed the Geosphere, a scale model of the world, 500m in diameter, and thus big enough that anyone could look onto it and make out their home.

The idea, Fuller thought, was to contextualize man in his environment. In doing that, he believed we would have a greater sense of the web of relationships into which we are embedded.

Even the natural world is a database of sorts, just ask a botanist or zoologist; each area has its own climate, soils, flora and fauna. All of this information is there, in some sense, but, for now, is revealed only to those with the education to keep the facts close at hand. That education could reside in the mind of an indigenous person, or in the mind of a dedicated scientist. (And lets not forget the amateurs, who often excel in one area or another.)

Here’s a basic problem: knowledge resident inside grey matter – or locked away within books, and lacking geo-context – is just too hard for us to grasp, search or absorb.

What is needed is an interface to this information; like the “cathedrals of memory” which served the ancient poets, we need an interface which can remind us of the thing itself, keeping all this information neatly at hand.

If we could walk through a landscape, and have this information presented to us, because it had been stored by geo-context (GPS and GPRS would do this, and the new generation of 3G mobile handsets provide both) we would have an immediate experience of knowledge; in other words, a moment of understanding within the environment.

That’s what Fuller wanted, and that’s what’s now possible.

II

The world of man is wholly artificial, in that everything within it is an artifact, a product of human activity. Civilization is entirely artificial. And, more often than not, when we travel, we journey from the comfortable artifice of home into an artifice created by other hands, other minds, and other cultures. Travel broadens the mind because it exposes us to other possibilities, other ways that the cultural norms could be, given different initial conditions.

What we need, as human beings, when we journey into foreign norms, are “handholds’, the points which can serve as translation between the world-as-we-know-it and the world-as-it-is-around us. That’s what a good travel guide, or good travel book does. That traveling companion is like the parent who holds your hand as you step into the deep end of the pool. The benefit of experience is that it bolsters the traveler’s self-confidence.

We can’t always afford a travel guide; we can always have a travel book, but the trouble with a travel book is that it’s often obsolete by the time it reaches publication. The world is dynamic; a book is anything but. Thus travel books progressively diverge from reality, sometimes with hilarious (or tragic) consequences. Books are also of fixed size; you can’t carry around with you a book that would tell you everything you might need to know about the United States, or California, or even San Francisco. There’s just too much there there. This means that the travel book is the equivalent of a photograph, with the same lack of dimensionality. You can possess one view of a moment in time, but there is no depth, nothing behind it.

So the Web comes along, which promises us something more, something dynamic (if not quite portable), and infinitely extensible. A website can be as deep an dense as required – just look at Wikipedia. It can reflect instantaneous changes in the outside world. It can be created collaboratively. And it can be accessed, instantaneously, from almost anywhere on Earth.

This set of characteristics sounds nearly perfect, and it is, with one big, important exception – the Web is not portable. Most people will not travel with an entire database in their laptop, updated minute by minute. Most people will not rush into an Internet café at every single opportunity to keep apprised of the latest developments in travel space or to post their own critiques. It’s too much work and too much bother, for too little gain. This means that the best efforts – such as Thorne Tree – are still essentially static entities; someone gets in front of a computer, uses the service, and keeps a snapshot of what they’ve read in their own head as they travel. It’s better than nothing, but it’s hardly good enough. Travel is about mobility; why should travel services be any different?

III.

All of this work is converging, as it inevitably must, on the mobile telephone. Already there are more mobile telephones in the world than Internet-attached computers; there are more mobile phones in use in China than there are people in the United States. And the Chinese are probably buying a quarter billion mobile telephones a year. (Many of these are used models, as people sell old handsets to buy new ones.)

The modern mobile handset has about as much computing power as a computer of the mid-1990s; that may seem insubstantial by the standards of today, but mobile handsets are evolving far more rapidly than personal computers; within a decade there won’t be much difference between them. Already the mobile handset is Internet connected, via GPRS or 3G packet-switched networks. I have a “Mega Cap” plan from Vodafone AU, which gives me about 3 1/2 hours of GPRS access per day, at a fixed price. I never even come close to using it, but I’m working on services which I hope will start to eat into that enormous data budget. In a few years it won’t seem enormous at all; it might even seem a bit stingy. But for the moment I can have a taste of the future.

Devices like the ever-connected, ultra-powerful, mobile telephone are what the traveler of the next decade will be carrying with them. Already I can run Google Earth on my mobile. Given the amount of processing it takes to run Google Earth – it chugs along on my G4 iBook – it does a fine job. If my mobile had an integral GPS or Galileo receiver, my mobile Google Earth could track my movements in real time. (This can’t be very far away; I’d be altogether surprised if someone hasn’t done that already.)

Google Earth is not just a visualization of the earth; it is, in fact, integrated into Google’s planetary database. The integration is relatively loose right now, but that will only grow with time. It is the place to place everything about place. And travel is all about place.

The 21st century traveler travels with a mobile phone; the growth of GSM/GPRS networks – even the US has them, finally – means that one handset will work everywhere (though not necessarily inexpensively). The mobile is not the preferred interface to the Internet, though this is more of an interface issue than anything else; this is why Google Earth Mobile is so very interesting. Google Earth presents an interface which is intuitive, and which provides a front-end to the nearly-infinite Google database. When people learn how to put these two together, blend the database and make it mobile, we’ll have the first “killer app” for the mobile. And it’s a traveler’s essential, as much as a phrase book, or traveler’s checks.