Power vs People(Now look what YOU made me do!)

*

In the beginning, there is perfect Power, Power with a Thousand Faces: pharaoh, padishah, emperor, king, Lord Protector, Generalissimo, El Presidente.   Power pure and uninterrupted.  We have but to think the word and it is so.  We are in a world apart, protected by G*d, by ritual, by blades and dumb muscle.  Nothing enters save by Our permission, and then only when stripped naked, bound, and bowing.  This is the perfect relation of perfect power: absolute and absolutely asymmetric.

While we have him questioned, Our leading economist relates a report, recently received, tying the wealth of nations to their connectivity.  The people need no one else, he tells Me with his dying breath, but We need the money.  He spoke the truth: We need the instruments of Power to reinforce Our reality, and these do not come cheaply.  Our remaining advisers, chastened and respectful, suggest beginning with television – projecting Our Presence into the homes of Our people – and an auction (to Our most loyal friends) of radio spectrum suitable for mobile communication.

Our eyes, downcast, unable to look upon the Power except in its perfect portraits, had never seen the frown, and wrinkled lip, and sneer of cold command that cameras captured, passions read and broadcast: a heart that mocked us, a hand always raised in reproach, as if we, ungrateful children, needed the constant admonition of the rod.  This plain as nakedness: all the smooth words of newscasters, commentators, spokespeople and ministers could not remove that stain from Power.  Each thought ourselves alone in this treason, and quickly burying it beneath other, safer thoughts.

Hidden truths undermine us in our humour, moments of lèse majesté, whispered giggles hidden behind our hands, scribbled graffiti above the pissoir, so shocking they made us gasp, and then, thereafter, we knew them as truth.  Other lines joined them, more foul, funny, shocking and true, a vast fabric of written rebellion, expressions of everything we had always known.  On the day the first text message arrives, with a joke that could get us killed, we delete it – though not before we forward it along to a few of our friends, who send it along, who send it along.  Suddenly the secret insult is common knowledge.

**

Those who mock Us seek to destroy Us.  Those loyal to Us scrub treasonous filth from walls and streets.  We secure and question anyone nearby, their confessions Our entry points into a hidden nest of radicals, revolutionaries, and anarchists.  These We monitor closely, tapping their mobiles, looking to whom they contact, building a map from these connections, tracing the outlines of their conspiracies.  Our friends who own the telcos willingly hand over the information which spell out comings and goings of these traitors.  In one sudden strike we take them, whole, to summary judgement.  Treason troubles us no more.

They came in the night, roused us from sleep, and took him away.  We never saw him again.  Without a body, how could we mourn?  How could we bury our grief?  We could not speak of it, lest we ourselves disappear.  Someone – we know not whom – set up a memorial on Facebook, inviting those who knew him to share themselves.  We stayed away, but were told that one, then two, five, ten, fifteen, fifty, hundreds and finally uncountable thousands came to share; those who knew him, and those who only knew what he believed in.  We were afraid, but content.

Those who love traitors are traitors themselves.  We have no love for them, but We are thankful for their foolishness.  Facebook reveals them to Us, and everyone they know.  Treason breeds treason.  Traitors hang together.  We friend, and listen, and draw another map of another conspiracy until the picture, finely detailed, demands action.  Another night of gathering, judgement and cleansing.  This ends that.  There are not even whispers against Us.

Internet dating – has there been a greater invention?  Men and women who would not normally find one another can seek each other out in the privacy of their own homes.  Here, this one is pretty.  Such lovely green eyes.  And what a lovely green jacket.  And beautiful fingers, held up in such an attractive pose, count them: one, two.  And the photo, taken in the Capitol Square?  How interesting.  I’ll tell all my friends that I have a date, a Green Date, in Capitol Square, on the 2nd.  Yes.  I’ll tell them all.  They’ll want a date as well.

***

Inconceivable! They gather in My capitol, in My square, in their tens of thousands, to make demands. Impudence!  They should thank the heavens for their homes and daily bread.  Ingratitude!  By what witchcraft have they come together?  We tapped the phones, blocked the websites, and still they come, in their hundreds of thousands.  Some advise it must all be unplugged – at once – but others tell Us we have grown too dependent on the network.  Flip the switch, and We blind Ourselves, dragging Our loyal subjects into darkness, Our economy into ruin.  But the storm must be stopped, the plug pulled.

It didn’t surprise us when the network failed: half amazed it took so long. We found ourselves thrown back into another time: before instantly, before everywhere, before all-at-once.  But lessons learned lingered, taking on different forms: graffiti in hidden places, posters in public, chalk laid out on the sidewalk so anyone could add their own voice, so we could to move together, in unity.  This grew into a code: jumbled letters and numbers in text messages and spray painted street signs, which told us where and when.

And still they keep coming, in their millions.  How?  Without eyes to see and ears to hear, how do they know?  Our friends grow concerned, see Us sinking beneath this rising storm, but We apprehend the root of Our troubles, and will root it out.  This all began when We foolishly permitted our people to connect.  That must now stop, to preserve Us. Against the wishes of My friends – who will lose their fortunes so We might maintain control – We have mobile networks shut down, and wait for the inevitable collapse, as those against Us lose contact.

It took a few moments to realize that these handheld lifelines had become useless lumps of silicon and plastic.  It seemed like silence had descended in the midst of the crowd.  Then someone said, ‘Here, take this’, and gave me something that brought my mobile back to life, allowed it to connect with everyone else in the crowd, and to the world beyond.  In lieu of thanks I was asked to pass it along, and did, with the same instruction, so it spread like wildfire.  We could see around the tanks, around the police, around everything, moving faster, moving everywhere, moving NOW.

The guards join with us as we storm the palace.

****

We The People, in order to form a more perfect union, choose from amongst ourselves those fit to represent our franchise.  The elections, free, fair and hard-fought, divide, inevitably, along a spectrum from left to right.  But whatever ideology, no one argues the need to reframe power as governance, making a mystery of the obvious, placing it beyond reproach. Power – however dressed – draws those who lust for it, who benefit from the application of it, and this, too obvious, would ruin everything, igniting another Revolution.  In secrecy and silence, safety.

You can only be told ‘No!’ so many times before the blood begins to boil and overflows into action.  They’ll let us march in the streets now, but leave us impotent at the seats of government, demanding ‘process’ and ‘decorum’.  How can we be polite as our future is stolen away? This shell of democracy – perfect in form but crowded with corruption – needs to be punctured, so the rot beneath the skin can be exposed and excised.  Thankfully, someone with conscience – sick to death with the stench of power – comes forward with evidence enough to condemn everyone, bringing them down.

Madness!  How can anything be stable when everything is exposed? How can we guide the nation into prosperity with saboteurs underfoot? Incredible. The government will go on, will nail down roof nearly shorn off by these ‘revelations’.  We will ensure those who work for the government remain true to it: by oath and affirmation, surveillance and monitoring, force of law and pain of imprisonment.  Only when guaranteed privacy can we work to preserve the continued security of the nation.  It’s in these moments our democracy proves itself supple enough to meet the challenges of our times.  We can all congratulate ourselves on a crisis successfully overcome.

They threw him in jail – of course – claiming espionage, charging treason, crying for his head.  The message was clear, and silence descended, a curtain protecting them from us.  Behind it, they grow deaf and arrogant, manufacturing a managed dissent, bringing their full power down upon on anything else.  Still, a friend showed me something: a magic box.  Anything placed into that box finds finds its way to magazine editors and newspaper reporters and bloggers and loudmouthed radicals, no questions asked, in perfect anonymity.  That could prove irresistible.

*****

If secrets they want, secrets they shall have, by the hundreds of thousands, a tsunami broken silences, signifying nothing.  All of the effluvia and trivia of state, dressed up as meaning, each item seeming significant, demanding more attention than even a planet of mischief-makers, continuously clicking through pages, could possibly hope to digest.  Let them chew on that as the government draws these paranoids closer, tantalizing them with the shadows of conspiracies, just beyond the horizons of reason, yet believable enough that they will inevitably overreach into folly.  As they implode in a ruin of accusations and mistrust, the government will step in, bringing order to chaos, carrying on as before.

Do I know you?  How do I know you?  Who knows you that I know?

We have two choices before us: closely bound, connected at a thousand points of past and presence; or atomized, invisible, and ANONYMOUS.  On one hand, the tribe; on the other, legion.  The tribe is loyal, safe and steadfast, the legion strong, but mercurial and diffident.  We can subvert from within, or pervert from without.  In the right circumstances, we might even do both at once.  We might not always get our way, but we can resist, redirect, repurpose, and sometimes win.  Success is our greatest threat: the enemy learns, and nothing works twice.

Credentials, please.  Access granted.  You are now logged into the government.  You will need to re-authorize your credentials every fifteen minutes to prevent unauthorized access.  Today’s status report: sixty-five percent of systems are functioning normally; twenty percent are undergoing integrity checks, ten percent are under persistent attack, and five percent are compromised.  As a security measure your access has been temporarily restricted.  Please confine your activities to the indicated systems.  WARNING: There has been an intrusion detection. All system access has been restricted until further notice.  Thank you and have a nice day!

I ask for a password.  It comes along a few hours later, buried in the back-end bits of a cute little image of a wet kitten.  That’s a start, enough to log in.  But what then, as the network watches my every move, measuring me against the real person behind this account?  How should I behave? I whisper. Just above the throbbing dubstep soundtrack of this shooter, my fellow players feed me replies which could be actions within the gameworld – or something else entirely.  I make my moves, as advised, and when I see WARNING: There has been an intrusion detection, I know we have won.

Blue Skies

I: Cloud People

I want to open this afternoon’s talk with a story about my friend Kate Carruthers.  Kate is a business strategist, currently working at Hyro, over in Surry Hills.  In November, while on a business trip to Far North Queensland, Kate pulled out her American Express credit card to pay for a taxi fare.  Her card was declined.  Kate paid with another card and thought little of it until the next time she tried to use the card – this time to pay for something rather pricier, and more important – and found her card declined once again.

As it turned out, American Express had cut Kate’s credit line in half, but hadn’t bothered to inform her of this until perhaps a day or two before, via post.  So here’s Kate, far away from home, with a crook credit card.  Thank goodness she had another card with her, or it could have been quite a problem.  When she contacted American Express to discuss that credit line change – on a Friday evening – she discovered that this ‘consumer’ company kept banker’s hours in its credit division.  That, for Kate, was the last straw.  She began to post a series of messages to Twitter:

“I can’t believe how rude Amex have been to me; cut credit limit by 50% without notice; declined my card while in QLD even though acct paid”

“since Amex just treated me like total sh*t I just posted a chq for the balance of my account & will close acct on Monday”

“Amex is hardly accepted anywhere anyhow so I hardly use it now & after their recent treatment I’m outta there”

“luckily for me I have more than enough to just pay the sucker out & never use Amex again”

“have both a gold credit card & gold charge card with amex until monday when I plan to close both after their crap behaviour”

One after another, Kate sent this stream of messages out to her Twitter followers.  All of her Twitter followers.  Kate’s been on Twitter for a long time – well over three years – and she’s accumulated a lot of followers.  Currently, she has over 8300 followers, although at the time she had her American Express meltdown, the number was closer to 7500.

Let’s step back and examine this for a moment.  Kate is, in most respects, a perfectly ordinary (though whip-smart) human being.  Yet she now has this ‘cloud’ of connections, all around her, all the time, through Twitter.  These 8300 people are at least vaguely aware of whatever she chooses to share in her tweets.  They care enough to listen, even if they are not always listening very closely.  A smaller number of individuals (perhaps a few hundred, people like me) listen more closely.  Nearly all the time we’re near a computer or a mobile, we keep an eye on Kate.  (Not that she needs it.  She’s thoroughly grown up.  But if she ever got into a spot of trouble or needed a bit of help, we’d be on it immediately.)

This kind of connectivity is unprecedented in human history.  We came from villages where perhaps a hundred of us lived close enough together that there were no secrets.  We moved to cities where the power of numbers gave us all a degree of anonymity, but atomized us into disconnected individuals, lacking the social support of a community.  Now we come full circle.  This is the realization of the ‘Global Village’ that Marshall McLuhan talked about fifty years ago.  At the time McLuhan though of television as a retribalizing force.  It wasn’t.  But Facebook and Twitter and the mobiles each of us carry with us during all our waking hours?  These are the new retribalizing forces, because they keep us continuously connected with one another, allowing us to manage connections in every-greater numbers.

Anything Kate says, no matter how mundane, is now widely known.  But it’s more than that.  Twitter is text, but it is also links that can point to images, or videos, or songs, or whatever you can digitize and upload to the Web.  Kate need simply drop a URL into a tweet and suddenly nearly ten thousand people are aware of it.  If they like it, they will send it along (‘re-tweet’ is the technical term), and it will spread out quickly, like waves on a pond.

But Twitter isn’t a one-way street.  Kate is ‘following’ 7250 individuals; that is, she’s receiving tweets from them.  That sounds like a nearly impossible task: how can you pay attention to what that many people have to say?  It’d be like trying to listen to every conversation at Central Station (or Flinders Street Station) at peak hour.  Madness.  And yet, it is possible.  Tools have been created that allow you to keep a pulse on the madness, to stick a toe into the raging torrent of commentary.

Why would you want to do this?  It’s not something that you need to do (or even want to do) all the time, but there are particular moments – crisis times – when Twitter becomes something else altogether.  After an earthquake or other great natural disaster, after some pivotal (or trivial) political event, after some stunning discovery.  The 5650 people I follow are my connection to all of that.  My connection is broad enough that someone, somewhere in my network is nearly always nearly the first to know something, among the first to share what they know.  Which means that I too, if I am paying attention, am among the first to know.

Businesses have been built on this kind of access.  An entire sector of the financial services industry, from DowJones to Bloomberg, has thrived because it provides subscribers with information before others have it – information that can be used on a trading floor.  This kind of information freely comes to the very well-connected.  This kind of information can be put to work to make you more successful as an individual, in your business, or in whatever hobbies you might pursue.  And it’s always there.  All you need do is plug into it.

When you do plug into it, once you’ve gotten over the initial confusion, and you’ve dedicated the proper time and tending to your network, so that it grows organically and enthusiastically, you will find yourself with something amazingly flexible and powerful.  Case in point: 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, I asked Twitter which wineries I should visit – and the top five recommendations were very good indeed.  These may seem like trivial instances – though they’re the difference between a good holiday and a lackluster one – but what they demonstrate is that Twitter has allowed me to plug into all of the expertise of all of the thousands of people I am connected to.  Human brainpower, multiplied by 5650 makes me smarter, faster, and much, much more effective.  Why would I want to live any other way?  Twitter can be inane, it can be annoying, it can be profane and confusing and chaotic, but I can’t imagine life without it, just as I can’t imagine life without the Web or without my mobile.  The idea that I am continuously connected and listening to a vast number of other people – even as they listen to me – has gone from shocking to comfortable in just over three years.

Kate and I are just the leading edge.  Where we have gone, all of the rest of you will soon follow.  We are all building up our networks, one person at a time.  A child born in 2010 will spend their lifetime building up a social network.  They’ll never lose track of any individual they meet and establish a connection with.  That connection will persist unless purposely destroyed.  Think of the number of people you meet throughout your lives, who you establish some connection with, even if only for a few hours.  That number would easily reach into the thousands for every one of us.  Kate and I are not freaks, we’re simply using the bleeding edge of a technology that will be almost invisible and not really worth mentioning by 2020.

All of this means that the network is even more alluring than it was a few years ago, and will become ever more alluring with the explosive growth in social networks.  We are just at the beginning of learning how to use these new social networks.  First we kept track of friends and family.  Then we moved on to business associates.  Now we’re using them to learn, to train ourselves and train others, to explore, to explain, to help and to ask for help.  They are becoming a new social fabric which will knit us together into an unfamiliar closeness.  This is already creating some interesting frictions for us.  We like being connected, but we also treasure the moments when we disconnect, when we can’t be reached, when our time and our thoughts are our own.  We preach focus to our children, but find our time and attention increasing divided by devices that demand service: email, Web, phone calls, texts, Twitter, Facebook, all of it brand new, and all of it seemingly so important that if we ignore any of them we immediately feel the cost.  I love getting away from it all.  I hate the backlog of email that greets me when I return.  Connecting comes with a cost.  But it’s becoming increasingly impossible to imagine life without it.

II: Eyjafjallajökull

I recently read a most interesting blog postChase Saunders, a software architect and entrepreneur in Maine (not too far from where I was born) had a bit of a brainwave and decided to share it with the rest of the world.  But you may not like it.  Saunders begins with: “For me to get really mad at a company, it takes more than a lousy product or service: it’s the powerlessness I feel when customer service won’t even try to make things right.  This happens to me about once a year.”  Given the number of businesses we all interact with in any given year – both as consumers and as client businesses – this figure is far from unusual.  There will be times when we get poor value for money, or poor service, or a poor response time, or what have you.  The world is a cruel place.  It’s what happens after that cruelty which is important: how does the business deal with an upset customer?  If they fail the upset customer, that’s when problems can really get out of control.

In times past, an upset customer could cancel their account, taking their business elsewhere.  Bad, but recoverable.  These days, however, customers have more capability, precisely because of their connectivity.  And this is where things start to go decidedly pear-shaped.  Saunders gets to the core of his idea:

Let’s say you buy a defective part from ACME Widgets, Inc. and they refuse to refund or replace it.  You’re mad, and you want the world to know about this awful widget.  So you pop over to AdRevenge and you pay them a small amount. Say $3.  If the company is handing out bad widgets, maybe some other people have already done this… we’ll suppose that before you got there, one guy donated $1 and another lady also donated $1.  So now we have 3 people who have paid a total of $5 to warn other potential customers about this sketchy company…the 3 vengeful donations will go to the purchase of negative search engine advertising.  The ads are automatically booked and purchased by the website…

And there it is.  Your customers – your angry customers – have found an effective way to band together and warn every other potential customer just how badly you suck, and will do it every time your name gets typed into a search engine box.  And they’ll do it whether or not their complaints are justified.  In fact, your competitors could even game the system, stuffing it up with lots of false complaints.  It will quickly become complete, ugly chaos.

You’re probably all donning your legal hats, and thinking about words like ‘libel’ and ‘defamation’.  Put all of that out of your mind.  The Internet is extraterritorial, it and effectively ungovernable, despite all of the neat attempts of governments from China to Iran to Australia to stuff it back into some sort of box.  Ban AdRevenge somewhere, it pops up somewhere else – just as long as there’s a demand for it.  Other countries – perhaps Iceland or Sweden, and certainly the United States – don’t have the same libel laws as Australia, yet their bits freely enter the nation over the Internet.  There is no way to stop AdRevenge or something very much like AdRevenge from happening.  No way at all.  Resign yourself to this, and embrace it, because until you do you won’t be able to move on, into a new type of relationship with your customers.

Which brings us back to our beginning, and a very angry Kate Carruthers.  Here she is, on a Friday night in Far North Queensland, spilling quite a bit of bile out onto Twitter.  Everyone one of the 7500 people who read her tweets will bear her experience in mind the next time they decide whether they will do any business with American Express.  This is damage, probably great damage to the reputation of American Express, damage that could have been avoided, or at least remediated before Kate ‘went nuclear’.

But where was American Express when all of this was going on?  While Kate expressed her extreme dissatisfaction with American Express, its own marketing arm was busily cooking up a scheme to harness Twitter.  It’s Open Forum Pulse website shows you tweets from small businesses around the world.  Ironic, isn’t it? American Express builds a website to show us what others are saying on Twitter, all the while ignoring about what’s being said about it.  So the fire rages, uncontrolled, while American Express fiddles.

There are other examples.  On Twitter, one of my friends lauded the new VAustralia Premium Economy service to the skies, while VAustralia ran some silly marketing campaign that had four blokes sending three thousand tweets over two days in Los Angeles.  Sure, I want to tune into that stream of dreck and drivel.  That’s exactly what I’m looking for in the age of information overload: more crap.

This is it, the fundamental disconnect, the very heart of the matter.  We all need to do a whole lot less talking, and a whole lot more listening.  That’s true for each of us as individuals: we’re so well-connected now that by the time we do grow into a few thousand connections we’d be wiser listening than speaking, most of the time.  But this is particularly true for businesses, which make their living dealing with customers.  The relationship between businesses and their customers has historically been characterized by a ‘throw it over the wall’ attitude.  There is no wall, anywhere.  The customer is sitting right beside you, with a megaphone pointed squarely into your ear.

If we were military planners, we’d call this ‘asymmetric warfare’.  Instead, we should just give it the name it rightfully deserves: 21st-century business.  It’s a battlefield out there, but if you come prepared for a 20th-century conflict – massive armies and big guns – you’ll be overrun by the fleet-footed and omnipresent guerilla warfare your customers will wage against you – if you don’t listen to them.  Like volcanic ash, it may not present a solid wall to prevent your progress.  But it will jam up your engines, and stop you from getting off the ground.

Listening is not a job.  There will be no ‘Chief Listening Officer’, charged with keeping their ear down to the ground, wondering if the natives are becoming restless, ready to sound the alarm when a situation threatens to go nuclear.  There is simply too much to listen to, happening everywhere, all at once.  Any single point which presumed to do the listening for an entire organization – whether an individual or a department – will simply be overwhelmed, drowning in the flow of data.  Listening is not a job: it is an attitude.  Every employee from the most recently hired through to the Chief Executive must learn to listen.  Listen to what is being said internally (therein lies the path to true business success) and learn to listen to what others, outside the boundaries of the organization, are saying about you.

Employees already regularly check into their various social networks.  Right now we think of that as ‘slacking off’, not something that we classify as work.  But if we stretch the definition just a bit, and begin to recognize that the organization we work for is, itself, part of our social network, things become clearer.  Someone can legitimately spend time on Facebook, looking for and responding to issues as they arise.  Someone can be plugged into Twitter, giving it continuous partial attention all day long, monitoring and soothing customer relationships.  And not just someone.  Everyone.  This is a shared responsibility.  Working for the organization means being involved with and connected to the organization’s customers, past, present and future.  Without that connection, problems will inevitably arise, will inevitably amplify, will inevitably result in ‘nuclear events’.  Any organization (or government, or religion) can only withstand so many nuclear events before it begins to disintegrate.  So this isn’t a matter of choice.  This is a basic defensive posture.  An insurance policy, of sorts, protecting you against those you have no choice but to do business with.

Yet this is not all about defense.  Listening creates opportunity.  I get some of my best ideas – such as that AdRevenge article – because I am constantly listening to others’ good ideas.  Your customers might grumble, but they also praise you for a job well done.  That positive relationship should be honored – and reinforced.  As you reinforce the positive, you create a virtuous cycle of interactions which becomes terrifically difficult to disrupt.  When that’s gone on long enough, and broadly enough, you have effectively raised up your own army – in the post-modern, guerilla sense of the word – who will go out there and fight for you and your brand when the haters and trolls and chaos-makers bear down upon you.  These people are connected to you, and will connect to one another because of the passion they share around your products and your business.  This is another network, an important network, an offensive network, and you need both defensive and offensive strategies to succeed on this playing field.

Just as we as individuals are growing into hyperconnectivity, so our businesses must inevitably follow.  Hyperconnected individuals working with disconnected businesses is a perfect recipe for confusion and disaster.  Like must meet with like before the real business of the 21st-century can begin.

III: Services With a Smile

Moving from the abstract to the concrete, let’s consider the types of products and services required in our densely hyperconnected world.  First and foremost, we are growing into a pressing, almost fanatical need for continuous connectivity.  Wherever we are – even in airplanes – we must be connected.  The quality of that connection – its speed, reliability, and cost – are important co-factors to consider, and it is not always the cheapest connection which serves the customer best.  I pay a premium for my broadband connection because I can send the CEO of my ISP a text any time my link goes down – and my trouble tickets are sorted very rapidly!  Conversely, I went with a lower-cost carrier for my mobile service, and I am paying the price, with missed calls, failed data connections, and crashes on my iPhone.

As connectivity becomes more important, reliability crowds out other factors.  You can offer a premium quality service at a premium price and people will adopt it, for the same reason they will pay more for a reliable car, or for electricity from a reliable supplier, or for food that they’re sure will be wholesome.  Connectivity has become too vital to threaten.  This means there’s room for healthy competition, as providers offer different levels of service at different price points, competing on quality, so that everyone gets the level of service they can afford.  But uptime always will be paramount.

What service, exactly is on offer?  Connectivity comes in at least two flavors: mobile and broadband.  These are not mutually exclusive.  When we’re stationary we use broadband; when we’re in motion we use mobile services.  The transition between these two networks should be invisible and seamless as possible – as pioneered by Apple’s iPhone.

At home, in the office, at the café or library, in fact, in almost any structure, customers should have access to wireless broadband.  This is one area where Australia noticeably trails the rest of the world.  The tariff structure for Internet traffic has led Australians to be unusually conservative with their bits, because there is a specific cost incurred for each bit sent or received.  While this means that ISPs should always have the funding to build out their networks to handle increases in capacity, it has also meant that users protect their networks from use in order to keep costs down.  This fundamental dilemma has subjected wireless broadband in Australia to a subtle strangulation.  We do not have the ubiquitous free wireless access that many other countries – in particular, the United States – have on offer, and this consequently alters our imagination of the possibilities for ubiquitous networking.

Tariffs are now low enough that customers ought to be encouraged to offer wireless networking to the broader public.  There are some security concerns that need to be addressed to make this safe for all parties, but these are easily dealt with.  There is no fundamental barrier to pervasive wireless broadband.  It does not compete with mobile data services.  Rather, as wireless broadband becomes more ubiquitous, people come to rely on continuous connectivity ever more.  Mobile data demand will grow in lockstep as more wireless broadband is offered.  Investment in wireless broadband is the best way to ensure that mobile data services continue to grow.

Mobile data services are best characterized principally by speed and availability.  Beyond a certain point – perhaps a megabit per second – speed is not an overwhelming lure on a mobile handset.  It’s nice but not necessary.  At that point, it’s much more about provisioning: how will my carrier handle peak hour in Flinders Street Station (or Central Station)?  Will my calls drop?  Will I be able to access my cloud-based calendar so that I can grab a map and a phone number to make dinner reservations?  If a customer finds themselves continually frustrated in these activities, one of two things will happen: either the mobile will go back into the pocket, more or less permanently, or the customer will change carriers.  Since the customer’s family, friends and business associates will not be putting their own mobiles back into their pockets, it is unlikely that any customer will do so for any length of time, irrespective of the quality of their mobile service.  If the carrier will not provision, the customers must go elsewhere.

Provisioning is expensive.  But it is also the only sure way to retain your customers.  A customer will put up with poor customer service if they know they have reliable service.  A customer will put up with a higher monthly spend if they have a service they know they can depend upon in all circumstances.  And a customer will quickly leave a carrier who can not be relied upon.  I’ve learned that lesson myself.  Expect it to be repeated, millions of times over, in the years to come, as carriers, regrettably and avoidably, find that their provisioning is inadequate to support their customers.

Wireless is wonderful, and we think of it as a maintenance-free technology, at least from the customer’s point of view.  Yet this is rarely so.  Last month I listened to a talk by Genevieve Bell, Intel Fellow and Lead Anthropologist at the chipmaker.  Her job is to spend time in the field – across Europe and the developing world – observing  how people really use technology when it escapes into the wild.  Several years ago she spent some time in Singapore, studying how pervasive wireless broadband works in the dense urban landscape of the city-state.  In any of Singapore’s apartment towers – which are everywhere – nearly everyone has access to very high speed wired broadband (perhaps 50 megabits per second) – which is then connected to a wireless router to distribute the broadband throughout the apartment.  But wireless is no great respecter of walls.  Even in my own flat in Surry Hills I can see nine wireless networks from my laptop, including my own.  In a Singapore tower block, the number is probably nearer to twenty or thirty.

Genevieve visited a family who had recently purchased a wireless printer.  They were dissatisfied with it, pronouncing it ‘possessed’.  What do you mean? she inquired.  Well, they explained, it doesn’t print what they tell it to print.  But it does print other things.  Things they never asked for.  The family called for a grandfather to come over and practice his arts of feng shui, hoping to rid the printer of its evil spirits.  The printer, now repositioned to a more auspicious spot, still misbehaved.  A few days later, a knock came on the door.  Outside stood a neighbor, a sheaf of paper in his hands, saying, “I believe these are yours…?”

The neighbor had also recently purchased a wireless printer, and it seems that these two printers had automatically registered themselves on each other’s networks.  Automatic configuration makes wireless networks a pleasure to use, but it also makes for botched configurations and flaky communication.  Most of this is so far outside the skill set of the average consumer that these problems will never be properly remedied.  The customer might make a support call, and maybe – just maybe the problem will be solved.  Or, the problem will persist, and the customer will simply give up.  Even with a support call, wireless networks are often so complex that the problem can’t be wholly solved.

As wireless networks grow more pervasive, Genevieve Bell recommends that providers offer a high-quality hand-holding and diagnostic service to their customers.  They need to offer a ‘tune up’ service that will travel to the customer once a year to make sure everything is running well.  Consumers need to be educated that wireless networks do not come for free.  Like anything else, they require maintenance, and the consumer should come to expect that it will cost them something, every year, to keep it all up and running.  In this, a wireless network is no different than a swimming pool or a lawn.  There is a future for this kind of service: if you don’t offer it, your competitors soon will.

Finally, let me close with what the world looks like when all of these services are working perfectly.  Lately, I’ve become a big fan of Foursquare, a ‘location-based social network’.  Using the GPS on my iPhone, Foursquare allows me to ‘check in’ when I go to a restaurant, a store, or almost anywhere else.  Once I’ve checked in, I can make a recommendation – a ‘tip’ in Foursquare lingo – or simply look through the tips provided by those who have been there before me.  This list of tips is quickly growing longer, more substantial, and more useful.  I can walk into a bar that I’ve never been to before and know exactly which cocktail I want to order.  I know which table at the restaurant offers the quietest corner for a romantic date.  I know which salesperson to talk to for a good deal on that mobile handset.  And so on.  I have immediate and continuous information in depth, and I put that information to work, right now, to make my life better.

The world of hyperconnectivity isn’t some hypothetical place we’ll never see.  We are living in it now.  The seeds of the future are planted in the present.  But the shape of the future is determined by our actions today.  It is possible to blunt and slow Australia’s progress into this world with bad decisions and bad services.  But it is also possible to thrust the nation into global leadership if we can embrace the inevitable trend toward hyperconnectivity, and harness it.  It has already transformed our lives.  It will transform our businesses, our schools, and our government.  You are the carriers of that change.  Your actions will bring this new world into being.

Everywhere

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?