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From: randy@psg.com (Randy Bush)
Subject: The Coming of the Fibersphere
To: toaster@psg.com (ToasterNet List)
Date: Mon, 10 May 1993 06:17:58 -0700 (PDT)
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 The following was received directly from George Gilder on Saturday March 6.

 Date:     Sat Mar 06, 1993 2:58 pm GMT
 From:     George Gilder / MCI ID: 409-1174
 TO:       Gordon Jacobson
 Subject:  PLEASE UPLOAD TO INTERNET

      The following article, INTO THE FIBERSPHERE, was first published in
 slightly different and shorter form in Forbes ASAP, December 7, 1993.  It
 is a portion of my book, Telecosm, which will be published next year by
 Simon & Schuster, as a sequel to Microcosm, published in 1989 and Life
 After Television published by Norton in 1992.  Subsequent chapters of
 Telecosm will be serialized in Forbes ASAP beginning with the March issue
 containing a theory of wireless communications.


                   PLEASE POST  FIBERSPHERE  TO ANY USENET
                   NEWSGROUPS THAT MAY BE DEEMED SUITABLE.


                         Dark Fiber, Dumb Network                   Page 2

 _                                                                       _
 _________________________________________________________________________


                        THE COMING OF THE FIBERSPHERE


                  In a world of dumb terminals and telephones,
                  networks had to be smart.  But in a world of
                   smart terminals, networks have to be dumb.

                                     BY

                                GEORGE GILDER


      Philip Hope, divisional vice president for engineering systems of EDS,
 has an IQ problem.  His chief client and owner, General Motors, wants to
 interconnect thousands of 3-D graphics and computer aided engineering (CAE)
 workstations with mainframes and supercomputers at Headquarters, with
 automated assembly equipment at factories in Lordstown, Indiana, and
 Detroit, with other powerful processors at their technical center in
 Warren, Michigan, with their Opel plant in Ruesselheim, Germany, and with
 their design center outside San Diego.  On behalf of another client, Hope
 wants to link multimedia stations for remote diagnostics, X-ray analysis,
 and pharmaceutical modeling in hospitals and universities across the
 country.

      Any function involving 3-D graphics, CAE, supercomputer visualization,
 lossless diagnostic imaging, and advanced medical simulations demands large
 bandwidth or communications power.  Graphics workstations often operate
 screens with a million picture elements (pixels), and use progressive
 scanning at 60 frames or images a second.  Each pixel may entail 24 bits of
 color.  That adds up fast to billions of bits (gigabits) a second.  And
 that's for last year's technology in a computer industry that is doubling
 its powers and cost effectiveness every year.

      What Hope needs is bandwidth and connections.  The leading bandwidth
 and connections people have always been the telephone companies.  But when
 Hope goes to the telephone companies, they want to tell him about
 intelligence:  their Advanced Intelligent Network which will be coming on
 line over the next decade or so and will solve all his problems.  For now,
 they have what they call DS-3 services available in many areas, operating
 T-3 lines at 45 megabits (million bits) a second.  These facilities are
 ample for most computer uses and working together with several different
 Regional Bell Operating Companies (RBOCs), Hope should be able to acquire
 these services in time for a General Motors takeover by Toyota.


                         Dark Fiber, Dumb Network                   Page 3

 _                                                                       _
 _________________________________________________________________________

      Hope has been through this before.  In the early 1980s, he actually
 wanted D-3 services.  Then he was interconnecting facilities in Southeast,
 Michigan, with plants in Indiana and Ohio.  But Michigan Bell could not
 supply the lines in time.  EDS had to build a network of microwave towers
 to bear the 45 megabit traffic.  Later in the decade, the phone companies
 have even offered him higher capacity fiber optic lines, with the
 requirement that the optical bits be slowed down and run periodically
 through an electronic interface so the telco could count the number of
  equivalent channels  being used.

      What Hope and others in the systems integration business need is not
 intelligent networks tomorrow but dumb bandwidth that they can deliver to
 their customers flexibly, cheaply, and now.  To prepare for future demand,
 they want the network to use fiber optics.  It so happens that America's
 telephone companies have some two million miles of mostly unused fiber
 lines in the ground today, kept as redundant capacity for future needs.
 Hope would like to be able to tap into this  dark fiber  for his own
 customers.

      As a leader in the rapidly expanding field of computer services, EDS
 epitomizes the needs of an information economy.  With a backlog of 22
 billion dollars in already contracted business, EDS is currently a seven
 billion dollar company growing revenues at an annual rate of 15 percent,
 some three times as fast as the phone companies.  EDS will add a billion
 dollars or so in new sales in 1992 alone.  If the company is to continue to
 supply leading edge services to its customers, it must command leading edge
 communications.  To EDS, that means dumb and dark networks.


                            THE  DARK FIBER  CASE

      That need has driven EDS into an active role as an ex parte pleader in
 Federal Case 911416, currently bogging down in the District of Columbia
 Federal Court of Appeals as the so-called  dark fiber  case.  On the
 surface, the case, known as Southwestern Bell et al versus the Federal
 Communications Commission and the U.S. Justice Department, pits four
 Regional Bell telephone companies against the FCC.  But the legal maneuvers
 actually reflect a rising conflict between the Bells and several large
 corporate clients over the future of communications.

      Beyond all the legal posturing, the question at issue is whether fiber
 networks should be dumb and dark, and cheap, the way EDS and other
 customers like them.  Or whether they should be bright and smart, and
  strategically  priced, the way the telephone companies want them.

      On the side of intelligence and light are the phone companies;
 Southwestern Bell, U.S. West, Bell South, and Bell Atlantic.  The forces of
 darkness include key officials at the FCC and such companies as Shell Oil,


                         Dark Fiber, Dumb Network                   Page 4

 _                                                                       _
 _________________________________________________________________________

 the information services arm of McDonald Douglas, long distance network
 provider Wiltel, as well as EDS.

      For most of the four year course of the struggle, it has passed
 unnoticed by the media.  In summary, the issue may not seem portentous.
 The large corporate customers want dark fiber; the FCC mandates that it be
 supplied; the Bells want out of the business.  But for all their obscurity,
 the proceedings raise what for the next twenty years will be the central
 issue in communications law and technology.  The issue, if not the possible
 trial itself, will shape the future of both the computer and telephone
 industries during a period when they are merging to form the spearhead of a
 new information economy.

       Dark fiber  is simply a glass fiber optic thread with nothing
 attached to it, (ie. no light being sent through it).  In this  unlit
 condition, it is available for use without the intermediation of phone
 company electronics or intelligent services.

      In the mid-1980s, the Bells leased some of their dark fiber lines to
 several large corporations on an individual case basis.  These companies
 learned to love dark fiber.  But when they tried to renew their leases with
 the Bells, the Bells clanged no!  Why don't you leave the interconnections
 and protocols to us?  Why don't you use our marvellous smart network with
 all the acronyms and intelligent services?  Why don't you let us meter your
 use of the fiber and send you a convenient monthly bill for each packet of
 bits you send?

      EDS and the other firms rejected the offer; they preferred that dumb
 fiber to the intelligent network.  When the Bells persisted in an effort to
 deny new leases, the companies went to the FCC to require the Bells, as
 regulated  common carrier  telephone companies, to continue supplying dark
 fiber.

      In the fall of 1990, the FCC ruled that the phone companies would have
 to offer dark fiber to all comers under the rules of common carriage.
 Rather than accept this new burden, the phone companies petitioned to
 withdraw from the business entirely under what is called a rule 214
 application.  Since the FCC has not acted on this petition, the Bells are
 preparing to go to court to force the issue.  Their corporate customers are
 ready to litigate as well.

      It is safe to say that none of the participants fully comprehend the
 significance of their courthouse confrontation.  To the Bells, after all is
 said and done, the key problem is probably the price.  Under the existing
 tariff, they are required to offer this service to anyone who wants it for
 an average price of approximately $150 per strand of fiber per month.  As
 an offering that competes with their T-3 45 megabit (millions of bits) a
 second lines and other forthcoming marvels, dark fiber threatens to gobble
 up their future as vendors of broadband communications to offices, even as
 cable TV preempts them as broadband providers to homes.  Since the Bells'
 profits on data are growing some 10 times as fast as their profits on voice
 telephony, they see dark fiber as a menace to their most promising markets.

      The technological portents, however, are far more significant even
 than the legal and business issues.  The coming triumph of dark fiber will


                         Dark Fiber, Dumb Network                   Page 5

 _                                                                       _
 _________________________________________________________________________

 mean not only the end of the telephone industry as we know it but also the
 end of the telephone industry as they plan it:  a vast intelligent fabric
 of sophisticated information services.  It also could mean a thoroughgoing
 restructuring of a computer industry increasingly dedicated to supplying
  smart networks.  Indeed, for most of the world's communications companies,
 professors of communications theory, and designers of new computer
 networks, the triumph of dark and dumb means  back to the drawing board,
 if not back to the dark ages.

      But the new dark ages cannot be held back.

      Springing out the depths of IBM's huge Watson Laboratories is a
 powerful new invention:  the all optical network, that will soon relegate
 all bright and smart executives to the Troglodyte file and make dumb and
 dark the winning rule in communications.


                             THE WRINGER EFFECT

      From time to time, the structure of nations and economies goes through
 a technological wringer.  A new invention radically reduces the price of a
 key factor of production and precipitates an industrial revolution.  Before
 long, every competitive business in the economy must wring out the residue
 of the old costs and customs from all its products and practices.

      The steam engine, for example, drastically reduced the price of
 physical force.  Power once wreaked at great expense from human and animal
 muscle pulsed cheaply and tirelessly from machines burning coal and oil.
 Throughout the world, dominance inexorably shifted to businesses and
 nations that reorganized themselves to exploit the suddenly cheap resource.
 Eventually every human industry and activity, from agriculture and sea
 transport to printing and war, had to centralize and capitalize itself to
 take advantage of the new technology.

      Putting the world through the technological wringer over the last
 three decades has been the integrated circuit, the IC.  Invented by Robert
 Noyce of Intel and Jack Kilby of Texas Instruments in 1959, the IC put
 entire systems of tiny transistor switches, capacitors, resistors, diodes,
 and other once costly electronic devices on one tiny microchip.  Made
 chiefly of silicon, aluminum, and oxygen, three of the most common
 substances on earth, the microchip eventually reduced the price of
 electronic circuitry by a factor of a million.

      As industry guru Andrew Rappaport has pointed out, electronic
 designers now treat transistors as virtually free.  Indeed, on memory
 chips, they cost some 400 millionths of a cent.  To waste time or battery
 power or radio frequencies may be culpable acts, but to waste transistors
 is the essence of thrift.  Today you use millions of them slightly to
 enhance your TV picture or to play a game of solitaire or to fax Doonsbury
 to Grandma.  If you do not use transistors in your cars, your offices, your


                         Dark Fiber, Dumb Network                   Page 6

 _                                                                       _
 _________________________________________________________________________

 telephone systems, your design centers, your factories, your farm gear, or
 your missiles, you go out of business.  If you don't waste transistors,
 your cost structure will cripple you.  Your product will be either too
 expensive, too slow, too late, or too low in quality.

      Endowing every information age engineer or PC hacker with the creative
 potential of a factory owner of the industrial age, the microchip reversed
 the centralizing thrust of the previous era.  All nations and businesses
 had to adapt to the centrifugal law of the microcosm, flattening
 hierarchies, outsourcing services, liberating engineers, shedding middle
 management.  If you did not adapt your business systems to the new regime,
 you would no longer be a factor in the world balance of economic and
 military power.

      During the next decade or so, industry will go through a new
 technology wringer and submit to a new law:  the law of the telecosm.  The
 new wringer, the new integrated circuit, is called the all optical network.
 It is a communications system that runs entirely in glass.  Unlike existing
 fiber optic networks, which convert light signals to electronic form in
 order to amplify or switch them, the all optical network is entirely
 photonic.  From the first conversion of the signal from your phone or
 computer to the final conversion to voice or data at the destination, your
 message flies through glass on wings of light.

      Just as the old integrated circuit put entire electronic systems on
 single slivers of silicon, the new IC will put entire communications
 systems on seamless webs of silica.  Wrought in threads as thin as a human
 hair, this silica is so pure that you could see through a window of it
 seventy miles thick.  But what makes the new wringer roll with all the
 force of the microchip revolution before it is not the purity but the
 price.  Just as the old IC made transistor power virtually free, the new
 IC, the all optical network, will make communications power virtually free.

      Another word for communications power is bandwidth.  Just as the
 entire world had to learn to waste transistors, the entire world will now
 have to learn how to waste bandwidth.  In the 1990s and beyond, every
 industry and economy will go through the wringer again.

      The impact on the organization of companies and economies, however,
 has yet to become clear.  What is the law of the telecosm?  Will the new
 technology reverse the centrifugal force of the microchip revolution...or
 consummate it?  To understand the message of the new regime, we must follow
 the rule of microcosmic prophet Carver Mead of Caltech:   Listen to the
 technology...and find out what it is telling us.


                         THE SHANNON-SHOCKLEY REGIME

      The father of the all-optical-network, the man who coined the phrase,
 built the first fully functional system, and wrote the definitive book on


                         Dark Fiber, Dumb Network                   Page 7

 _                                                                       _
 _________________________________________________________________________

 the subject, is Paul E. Green, Jr. of Watson Laboratory at IBM.  Now
 standing directly in the path of Green's wringer is Robert Lucky, who some
 seven years ago at a conference at Cornell first gave Green the idea that
 an all optical network might be possible.

      The leading intellectual in telephony, Lucky recently shocked the
 industry by shifting from ATC Bell Labs, where he was executive director
 of research, to Bellcore, the laboratory of the Regional Bell Operating
 Companies (RBOCs).  There he will soon have to confront the implications of
 Green's innovation.

      Contemplating the new technology, Lucky recalls a course on data
 networks that he used to teach many years ago with Green.  As a computer
 man, Green relished the contrast between the onrushing efficiencies in his
 technology and the relative dormancy in communications.  Indeed, for some
 twenty five years, while computer powers rose a millionfold, network
 capacities increased about a thousandfold.  It was not until the late 1980s
 that most long distance data networks much surpassed the Pentagon's
  ARPANET  running at 50 kilobits (thousands of bits) per second since the
 mid sixties.

      This was the era dominated by the powerful mathematic visions and
 theories of Claude Shannon of MIT and Bell Labs.  Shannon was the reclusive
 genius who invented Information Theory to ascertain the absolute carrying
 capacity of any communications channel.

      Whether wire or air, channels were assumed to be narrow and noisy, the
 way God made them (sometimes with help from AT&T).  Typical were the copper
 phone lines that still link every household to the telephone network and
 the air waves that still bear radio and television signals and static.

      The all-purpose remedy for these narrow, noisy channels was powerful
 electronics.  Invented at Bell Laboratories by a team headed by William
 Shockley and then developed by Robert Noyce and other Shockley proteges in
 Silicon Valley, silicon transistors and integrated circuits engendered a
 constant exponential upsurge of computing power.

      Throwing ever more millions of ever faster and cheaper transistors at
 every problem, engineers created fast computers, multiplexors, and switches
 that seemed to surmount and outsmart every limit of bandwidth or
 restriction of wire.  This process continues today with heroic new
 compression tools that allow the creation of full video conferences over 64
 kilobit telephone connections.  Scientists at Bellcore are now even
 proposing new ways of using the Motion Picture Engineering Group (MPEG)
 compression standard to send full motion movies at 1.5 megabits a second
 over the 4 kilohertz twisted pair copper wires to the home.  Using ever
 faster computers, the telephone company is saying it can give you pay-per-
 view movies without installing fiber, or even coaxial cable, to the home.

      In the Shannon-Shockley era, the communications might be noisy and
 error prone, but smart electronics could encode and decode messages in
 complex ways that allowed efficient identification and correction of all
 errors.  The Shannon channel might be narrow, but fast multiplexors allowed
 it to be divided into time slots accommodating a large number of
 simultaneous users in a system called time division multiplexing.  The


                         Dark Fiber, Dumb Network                   Page 8

 _                                                                       _
 _________________________________________________________________________

 channel might clog up when large numbers of users attempted to communicate
 with each other at once, but collision detectors or token passers could
 sort it all out in nanoseconds.  Graphics and video might impose immense
 floods of bits on the system, but compression technology could reduce the
 floods to a manageable trickle with little or no loss of picture quality.

      If all else failed, powerful electronic switches could compensate for
 almost any bandwidth limitations.  Switching could make up for the
 inadequate bandwidth at the terminals by relieving the network of the need
 to broadcast all signals to every destination.  Instead, the central switch
 could receive all signals and then route them to their appropriate
 addresses.

      To this day, this is the essential strategy of the telephone
 companies:  compensate for narrow noisy bandwidth with ever more powerful
 and intelligent digital electronics.  Their  core competence,  the Bells
 hasten to tell you, is switching.  They make up for the shortcomings of
 copper wires by providing smart, powerful digital switches.

      Their vision for the future is to join the computer business all the
 way, making these switches the entering wedge for ever more elaborate
 information services.  Switches will grow smarter and more sophisticated
 until they provide an ever growing cornucopia of intelligent voice and fax
 features, from caller ID and voice mail to personal communications systems
 that follow you and your number around the world from your car commute to
 your vacation beach hideaway.  In the end, these intelligent networks could
 supply virtually all the world's information needs, from movies, games and
 traffic updates to data libraries, financial services, news programs, and
 weather reports, all climaxing with yellow pages that exfoliate into a
 gigantic global mall of full motion video where your fingers walk (or your
 voice commands echo) from Harrods, to Jardines, to Akihabara, to Century 21
 without you leaving the couch.

      At the time when Green and Lucky taught their course, this strategy
 for the future was only a glimmer in the minds of telephone visionaries.

 But the essence of it was already in place.  As Green pointed out,
 telephone companies' response to sluggishness in communications was to
 enter the computer industry, where progress was faster.  The creativity of
 digital electronics would save the telephone industry from technical
 stagnation.

      Lucky, however, protested to Green that it was unjust to compare the
 two fields.  Computers and telecom, as Lucky explained it, operate on
 entirely different scales.  Computers work in the microscale world of the
 IC, putting ever more thousands of wires and switches on single slivers of
 silicon.

      By contrast, telecommunications functions in the macroworld, laying
 out wires and switches across mostly silicon landscapes and seabeds.  It
 necessarily entails a continental, or even intercontinental stretch of
 cables, microwave towers, switches, and poles.   How was it possible,
 Lucky asked,  to make such a large scale system inexpensive?  Inherent in
 the structure and even the physics of computers and telecommunications, so
 it seemed to Lucky two decades ago, was a communications bottleneck.


                         Dark Fiber, Dumb Network                   Page 9

 _                                                                       _
 _________________________________________________________________________

      As Lucky remembers it, Green was never satisfied with Lucky's point.
 Green believed that someday communications could achieve miracles
 comparable to the integrated circuit in computing....


                            THE BANDWIDTH SCANDAL

      Today, as Lucky was the first to announce, fiber optics has utterly
 overthrown the previous relationship between fast computers and slow wires.
 Now it is computer technology that imposes the bottleneck on the vast
 vistas of dark fiber.

      A silicon transistor can change its state some 2.5 billion times a
 second in response to light pulses (bundles of photons) hitting a photo-
 detector.  Since it would take a human being a thousand years or so of 10
 hour workdays even to count to two billion, two billion cycles in a single
 second (two gigahertz) might seem a sprightly pace.  But in the world of
 fiber optics running at the speed and frequencies of light, even a rate of
 two billion cycles a second is a humbling bow to the slothful pace of
 electronics.  Since optical signals still have to be routed to their
 destinations through computer switches, communications now suffers from
 what is known as the  electronic bottleneck.

      It is this electronic bottleneck, the entire Bell edifice of Shannon
 and Shockley, that Paul Green plans to blow away with his all optical
 networks.  Green is targeting what is a secret scandal of modern
 telecommunications:  the huge gap between the real capacity of fiber optics
 and the actual speed of telephone communications.

      In communications systems, the number of waves per second (or hertz)
 represents a rough measure of its potential bandwidth or ultimate carrying
 capacity.  The bandwidth of a radio system, for example, is determined by
 the frequency of each station or channel and by the number of stations that
 can fit within the band.  Your AM dial, for example, runs from around 535
 thousand hertz (kilohertz) to 1705 kilohertz and each station uses some 10
 kilohertz.  With an ideal receiver, the AM passband might carry 117
 stations.

      By contrast, the intrinsic bandwidth of one strand of dark fiber is
 some 25 thousand gigahertz in each of three groups of frequencies (three
 passbands) through which fiber can transmit light over long distances.  At
 a gigahertz per terminal, this bandwidth might accommodate some 25,000
 supercomputer  stations  (or 2.5 billion AM stations).  Using what is
 called dispersion shifted fiber, it may be possible to use two of these
 passbands at once:  a total of some 40 or 50 thousand gigahertz.  For
 comparison, consider all the radio frequencies currently used in the air
 for radio, television, microwave, and satellite communications and multiply
 by two thousand.  The bandwidth of one fiber thread could carry more than
 two thousand times as much information as all these radio and microwave


                         Dark Fiber, Dumb Network                  Page 10

 _                                                                       _
 _________________________________________________________________________

 frequencies that currently comprise the  air.  One fiber thread could bear
 twice the traffic on the phone network during the peak hour of Mothers' Day
 in the U.S. (the heaviest load currently managed by the phone system).

      Yet even for point-to-point long distance links, let alone connections
 to homes, telephone and computer network engineers now turn their backs on
 this immense capacity and use perhaps one or two fifty thousandths it.
 Deferring to the electronic bottleneck, the telephone industry uses fiber
 merely as a superior replacement for the copper wires, coaxial cables,
 satellite links, and microwave towers that connected the local central
 office switches to one another for long distance calls.

      Over the last 15 years, the Bell Laboratory record for fiber optics
 communication has run from 10 megabits per second over a one kilometer span
 to some 10 gigabits per second over nearly one thousand kilometers.  But
 all the heroic advances in point-to-point links between central offices
 continued to use essentially one frequency on a fiber thread, while
 ignoring its intrinsic power to accommodate thousands of useful
 frequencies.

      In a world of all optical networks, this strategy is bankrupt.  No
 longer will it be possible to throw more transistors, however cheap and
 fast, at the switching problem.  Electronic speeds have become an
 insuperable bottleneck obstructing the vast vistas of dark fiber beyond.

      So called gigabit networks planned by the telephone and computer
 companies will not do.  What is needed is not a gigabit spread among many
 terminals, but a large network functioning at a gigabit per second per
 terminal.

      The demands of EDS offer a hint of the most urgent business needs.
 Added to them will be consumer demands.  True high definition television,
 comparable to movies in resolution, requires close to gigabit-a-second
 bandwidth, particularly if the program is dispatched to the viewer in burst
 mode all at once in a few seconds down the fiber, or if the user is given a
 chance to shape the picture, choose a vantage point, window several images
 at once, or experience three dimensions.  When true broadband channels
 become available, there will be a flood of new applications comparable to
 the thousands of new uses of the IC.

      No foreseeable progress in electronics can overcome the electronic
 bottleneck.  To do that, we need an entirely new communications regime.  In
 the form of the all optical network, this regime is now at hand.


               LAW OF THE TELECOSM:  NETWORKS DUMB AS A STONE

      The new regime will use fiber not as a replacement for copper wires
 but as a new form of far more capacious and error-free air.  Through a
 system called wavelength division multiplexing and access, computers and
 telephones will tune into desired messages in the fibersphere the same way


                         Dark Fiber, Dumb Network                  Page 11

 _                                                                       _
 _________________________________________________________________________

 radios now tune into desired signals in the atmosphere.  The fibersphere
 will be intrinsically as dumb and dark as the atmosphere.

      The new regime overcomes the electronic bottleneck by altogether
 banishing electronics from the network.  But, ask the telcos in unison,
 what about the switches?  As long as the network is switched, it must be
 partly electronic.  Unless the network is switched, it is not a true any-
 to-any network.  It is a broadcast system.  It may offer a cornucopia of
 services.  But it cannot serve as a common carrier like the phone network
 allowing any party to reach any other.  Without intelligent switching it
 cannot provide personal communications nets that can follow you wherever
 you go.  Without intelligent switching, the all optical network, so they
 say, is just a glorified cable system.

      These critics fail to grasp a central rule of the telecosm:  bandwidth
 is a nearly perfect substitute for switching.  With sufficient physical
 bandwidth, it is possible to simulate any kind of logical switch
 whatsoever.  Bandwidth allows creation of virtual switches that to the user
 seem to function exactly the way physical switches do.  You can send all
 messages everywhere in the network, include all needed codes and
 instructions for correcting, decrypting, and reading them, and allow each
 terminal to tune into its own messages on its own wavelength, just like a
 two-way radio.  When the terminals are smart enough and the bandwidth great
 enough, your all optical network can be as dumb as a stone.

      Over the last several years, all optical network experiments have been
 conducted around the world, from Bellcore in New Jersey to NTT at Yokosuka,
 Japan.  British Telecom has used wavelength division multiplexing to link
 four telephone central offices in London.  Columbia's Telecom Center has
 launched a  Teranet  that lacks tunable lasers or receivers but can
 logically simulate them.  Bell Laboratories has generated most of the
 technology but as a long distance specialist has focussed on the project of
 sending gigabits of information thousands of miles without amplifiers.  But
 only fully functional system is the Rainbow created by Paul Green at IBM.

      As happens so often in this a world of technical disciplines sliced
 into arbitrary fortes and fields, the large advances come from the
 integrators.  Paul Green is neither a laser physicist, nor an optical
 engineer, nor a telecommunications theorist.  At IBM, his work has ranged
 from overseeing speech recognition projects at Watson Labs to shaping
 company strategy at corporate headquarters in Armonk.  His most recent
 success was supervising development of the new APPN (Advanced Peer to Peer
 Network) protocol.  According to an IBM announcement in March, APPN will
 replace the venerable SNA (systems network architecture) that has been
 synonymous with IBM networking for more than a decade.

      Green took some pride in this announcement, but by that time, the
 project was long in his past.  He was finishing the copy editing on his
 magisterial tome on Fiber Optic Networks (published this summer by Prentice
 Hall).  And he was moving on to more advanced versions of the Rainbow which
 he and his team had introduced in December 1991 at the Telecom 91
 Conference in Geneva and which has been installed between the various
 branches of Watson Laboratories in Westchester County, N.Y.


                         Dark Fiber, Dumb Network                  Page 12

 _                                                                       _
 _________________________________________________________________________

      As Peter Drucker points out, a new technology cannot displace an old
 one unless it is proven at least 10 times better.  Otherwise the billions
 of dollars worth of installed base and thousands of engineers committed to
 improving the old technology will suffice to block the new one.  The job of
 Paul Green's 15 man team at IBM is to meet that tenfold test.

      Green's all optical network creates a fibersphere as neutral and
 passive as the atmosphere.  It can be addressed by computers the same way
 radios and television sets connect to the air.  Consisting entirely of
 unpowered glass and passive spitters and couplers, the fibersphere is dark
 and dumb.  Any variety of terminals can interconnect across it at the same
 time using any protocols they choose.

      Just as radios in the atmosphere, computer receivers connected to the
 fibersphere do not find a series of bits in a message; they tune into a
 wavelength or frequency.  Because available Fabry Perot tunable filters
 today have larger bandwidth than tunable lasers, Green chose to locate
 Rainbow's tuning at the receiver and have transmitters each operate at a
 fixed wavelength.  But future networks can use any combination of tunable
 equipment at either end.

      When Green began the project in 1987, the industry stood in the same
 general position as the pioneers of radio in the early years of that
 industry.  They had seemingly unlimited bandwidth before them, but lacked
 transmitters and receivers powerful enough to use it effectively.  Radio
 transmitters suffered  splitting losses  as they broadcast their signals
 across the countryside.  Green's optical messages lose power everytime they
 are split off to be sent to another terminal or are tapped by a receiver.

      The radio industry solved this problem by the development of the
 audion triode amplifier.  Green needed an all optical amplifier to replace
 the optoelectronic repeaters that now constitute the most widespread
 electronic bottleneck in fiber.  Amplifiers in current fiber networks first
 convert the optical signal to an electronic signal, enhance it, and then
 convert it back to photons.

      Like the pioneers of radio, Green soon had his amplifier in hand.
 Following concepts pioneered by David Payne at the University of
 Southhampton in England, a Bell Laboratories group led by Emmanuel
 Desurvire and Randy Giles developed a workable all optical device.  They
 showed that a short stretch of fiber doped with erbium, a rare earth
 mineral, and excited by a cheap laser diode, can function as a powerful
 amplifier over the entire wavelength range of a 25,000 gigahertz system.
 Today such photonic amplifiers enhance signals in a working system of links
 between Naples and Pomezia on the west coast of Italy.  Manufactured in
 packages between two and three cubic inches in size, these amplifiers fit
 anywhere in an optical network for enhancing signals without electronics.

      This invention overcame the most fundamental disadvantage of optical
 networks compared to electronic networks.  You can tap into an electronic
 network as often as desired without weakening the voltage signal.  Although
 resistance and capacitance will weaken the current, there are no splitting
 losses in a voltage divider.  Photonic signals, by contrast, suffer
 splitting losses every time they are tapped; they lose photons until


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 eventually there are none left.  The cheap and compact all optical
 amplifier solves this problem.

      Not only did Green and his IBM colleagues create working all optical
 networks, they also reduced the interface optoelectronics to a single
 microchannel plug-in card that can fit in any IBM PS/2 level personal
 computer or R6000 workstation.  Using off-the-shelf components costing a
 total of $16,000 per station, Rainbow achieved a capacity more than 90
 times greater than FDDI at an initial cost merely four times as much.

      Just as Jack Kilby's first ICs were not better than previous adders
 and oscillators, the Rainbow I is not better in some respects than rival
 networks based on electronics.  At present it connects only 32 computers at
 a speed of some 300 megabits per second, for a total bandwidth of 9.5
 gigabits.  This rate is huge compared to most other networks, but it is
 still well below the target of a system that provides gigabit rates for
 every terminal.

      A more serious limitation is the lack of packet switching.  Rather
 than communicating down a dedicated connection between two parties, like
 phones do, computer networks send data in small batches, called packets,
 each bearing its own address.  This requires switching back and forth
 between packets millions of times a second.  Neither the current Rainbow's
 lasers nor its filters can tune from one message to another more than
 thousands of times a second.  This limitation is a serious problem for
 links to mainframes and supercomputers that may do many tasks at once in
 different windows on the screen and with connections to several other
 machines.

      As Green shows, however, all these problems are well on the way to
 solution.  A tide of new interest in all optical systems is sweeping
 through the world's optical laboratories.  The Pentagon's Defense Advanced
 Projects Agency (DARPA) has launched a program for all optical networking.
 With Green installed as the new President of the IEEE Communications
 Society, the technical journals are full of articles on new wavelength
 division technology.  Every few months brings new reports of a faster laser
 with a broader bandwidth, or filter with faster tuning, or an ingenious new
 way to use bandwidth to simulate packet switching.  Today lasers and
 receivers can switch fast enough but they still lack the ability to cover
 the entire bandwidth needed.

      The key point, however, is that as demonstrated both in Geneva and
 Armonk, the Green system showed the potential efficiency of all optical
 systems.  Even in their initial forms they are more cost effective in
 bandwidth per dollar than any other network technology.  Scheduled for
 introduction within the next two years, Rainbow III will comprise a
 thousand stations operating at a gigabit a second, with the increasingly
 likely hope of fast packet switching capability.  At that point, the system
 will be a compelling commercial product at least hundreds of times more
 cost effective than the competition.

      Without access to dark fiber, however, these networks will be
 worthless.  If the telephone companies fail to supply it, they risk losing
 most of the fastest growing parts of their business:  the data traffic
 which already contributes some 50 percent of their profits.  But there is


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 also a possibility that they will lose much of their potential consumer
 business as well:  the planned profits in pay-per-view films and electronic
 yellow pages.  This is the message of a second great prophet of dark fiber,
 Will Hicks of Southbridge, Massachusetts.

      A venerable inventor of scores of optical products, Hicks believes
 that Green's view of the future of fiber is too limited.  Using wavelength
 division, Hicks can see the way to deliver some 500 megahertz two-way
 connections to all the homes in America for some $400 per home.  That is
 fifty times the 10 megahertz total capacity of an Ethernet (with no one
 else using it) for some 20 percent of the cost.  That is capacity in each
 home for twenty digital two-way HDTV channels at once at perhaps half the
 cost of new telephone connections.  Then, after a large consumer market
 emerges for fiber optics, Hicks believes, Green's sophisticated computer
 services will follow as a matter of course.

      The consumer market, Hicks maintains, is the key to lowering the cost
 of the components to a level where they can be widely used in office
 networks as well.  He cites the example of the compact disk laser diode.
 Once lasers were large and complex devices, chilled with liquid nitrogen,
 and costing thousands of dollars; now they are as small as a grain of salt,
 cheap as a box of cereal, and more numerous than phonograph needles.  An
 executive at Hitachi told Hicks that Hitachi could work a similar
 transformation on laser diodes and amplifiers for all optical networks.
  Just tell me what price you want to pay and I'll tell you how many you
 have to buy.

      The divergence of views between the IBM executive and the wildcat
 inventor, however, is far less significant than their common vision of dark
 fiber as the future of communications.  By the power of ever cheaper
 bandwidth, it will transform all industries of the coming information age
 just as radically as the power of cheaper transistors transformed the
 industries of the computer age.

      For the telephone companies, the age of ever smarter terminals
 mandates the emergence of ever dumber networks.  This is a major strategic
 challenge; it takes a smart man to build a dumb network.  But the telcos
 have the best laboratories and have already developed nearly all the
 components of the fibersphere.

      Telephone companies may complain of the large costs of the
 transformation of their system, but they command capital budgets as large
 as the total revenues of the cable industry.  Telcos may recoil in horror
 at the idea of dark fiber, but they command webs of the stuff ten times
 larger than any other industry.  Dumb and dark networks may not fit the
 phone company self-image or advertising posture.  But they promise larger
 markets than the current phone company plan to choke off their future in
 the labyrinthine nets of an  intelligent switching fabric  always behind
 schedule and full of software bugs.

      The telephone companies cannot expect to impose a uniform network
 governed by universal protocols.  The proliferation of digital protocols
 and interfaces is an inevitable effect of the promethean creativity of the
 computer industry.  Green explains,  You cannot fix the protocol zoo.  You
 must use bandwidth to accommodate the zoo.


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      As Robert Pokress, a former switch designer at Bell Labs now head of
 Unifi Corporation, points out, telephone switches (now 80 percent software)
 are already too complex to keep pace with the efflorescence of relatively
 simple computer technology on their periphery.  While computers become ever
 more lean and mean, turning to reduced instruction set processors, networks
 need to adopt reduced instruction set architectures.  The ultimate in dumb
 and dark is the fibersphere now incubating in their magnificent
 laboratories.

      The entrepreneurial folk in the computer industry may view this
 wrenching phone company adjustment with some satisfaction.  But the fact is
 that computer companies face a strategic reorientation as radical as the
 telcos do.  In a world where ever smarter terminals require ever dumber
 communications, computer networks are as gorged and glutted with smarts as
 phone company networks and even less capacious.  The nation's most
 brilliant nerds, commanding the 200 MIPS Silicon Graphics superstations or
 Mac Quadra multimedia power plants, humbly kneel before the 50 kilobit
 lines of the Internet and beseech the telcos to upgrade to 64 kilobit basic
 ISDN.

      Now addicted to the use of transistors to solve the problems of
 limited bandwidth, the computer industry must use transistors to exploit
 the opportunities of nearly unlimited bandwidth.  When home-based machines
 are optimized for manipulating high resolution digital video at high
 speeds, they will necessarily command what are now called supercomputer
 powers.  This will mean that the dominant computer technology will emerge
 first not in the office market but in the consumer market.  The major
 challenge for the computer industry is to change its focus from a few
 hundred million offices already full of computer technology to a billion
 living rooms now nearly devoid of it.

      Cable companies possess the advantage of already owning dumb networks
 based on the essentials of the all optical model of broadcast and select--
 of customers seeking wavelengths or frequencies rather than switching
 circuits.  Cable companies already provide all the programs to all the
 terminals and allow them to tune in to the desired messages.  Uniquely in
 the world, U.S.  cable firms already offer a broadband pipe to ninety
 percent of American homes.  These coaxial cables, operating at one
 gigahertz for several hundred feet, provide the basis for two way broadband
 services today.  But the cable industry cannot become a full service
 supplier of telecommunications until it changes its self-image from a cheap
 provider of one way entertainment services into a common carrier of two way
 information.  Above all, the cable industry cannot succeed in the digital
 age if it continues to regard the personal computer as an alien and
 irrelevant machine.

      Analogous to the integrated circuit in its economic power, the all
 optical network is analogous to the massively parallel computer in its
 technical paradigm.  In the late 1980s in computers, the effort to make one
 processor function ever faster on a serial stream of data reached a point
 of diminishing returns.  Superpipelining and superscalar gains hit their
 limits.  Despite experiments with Josephson Junctions, high electron
 mobility, and cryogenics, usable transistors simply could not made to
 switch much faster than a few gigahertz.


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      Computer architects responded by creating machines with multiple
 processors operating in parallel on multiple streams of data.  While each
 processor worked more slowly than the fastest serial processors, thousands
 of slow processors in parallel could far outperform the fastest serial
 machines.  Measured by cost effectiveness, the massively parallel machines
 dwarfed the performance of conventional supercomputers.

      The same pattern arose in communications and for many of the same
 reasons.  In the early 1990s the effort to increase the number of bits that
 could be time division multiplexed down a fiber on a single frequency band
 had reached a point of diminishing returns.  Again the switching speed of
 transistors was the show stopper.  The architects of all optical networks
 responded by creating systems which can use not one wavelength or frequency
 but potentially thousands in parallel.

      Again, the new systems could not outperform time division multiplexing
 on one frequency.  But all optical networks opened up a vast vista of some
 75 thousand gigahertz of frequencies potentially usable for communications.
 That immense potential of massively parallel frequencies left all methods
 of putting more bits on a single set of frequencies look as promising as
 launching computers into the chill of outer space in order to accelerate
 their switching speeds.

      Just as the law of the microcosm made all terminals smart,
 distributing intelligence from the center to the edges of the network, so
 the law of the telecosm creates a network dumb enough to accommodate the
 incredible onrush of intelligence on its periphery.  Indeed, with the one
 chip supercomputer on the way, manufacturable for under a hundred dollars
 toward the end of the decade, the law of the microcosm is still gaining
 momentum.  The fibersphere complements the promise of ubiquitous computer
 power with equally ubiquitous communications.

      What happens, however, when not only transistors but also wires are
 nearly free?  As Robert Lucky observes in his forward to Paul Green's book,
  Many of us have been conditioned to think that transmission is inherently
 expensive; that we should use switching and processing wherever possible to
 minimize transmission.  This is the law of the microcosm.  But as Lucky
 speculates,  The limitless bandwidth of fiber optics changes these
 assumptions.  Perhaps we should transmit signals thousands of miles to
 avoid even the simplest processing function.  This is the law of the
 telecosm:  use bandwidth to simplify everything else.

      Daniel Hillis of Thinking Machines Corporation offers a similar
 vision, adding to Lucky's insight the further assertion that massively
 parallel computer architectures are so efficient that they can overthrow
 the personal computer revolution.  Hillis envisages a powerplant computer
 model, with huge Thinking Machines at the center tapped by millions of
 relatively dumb terminals.

      All these speculations assume that the Law of the Telecosm usurps the
 Law of the Microcosm.  But in fact the two concepts function in different
 ways in different domains.


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      Electronic transistors use electrons to control, amplify, or switch
 electrons.  But photonics differ radically from electronics.  Because
 moving photons do not affect one another on contact, they cannot readily be
 used to control, amplify, or switch each other.  Compared to electrons,
 moreover, photons are huge:  infrared photons at 1550 or 1300 nanometers
 are larger than a micron across.  They resist the miniaturization of the
 microcosm.  For computing, photons are far inferior to electrons.  With
 single electron electronics now in view, electrons will keep their
 advantage.  For the foreseeable future, computers will be made with
 electrons.

      What are crippling flaws for photonic computing, however, are huge
 assets for communicating.  Because moving photons do not collide with each
 other or respond to electronic charges, they are inherently a two way
 medium.  They are immune to lightning strikes, electromagnetic pulses, or
 electrical power surges that destroy electronic equipment.  Virtually
 noiseless and massless pulses of radiation, they move as fast and silently
 as light.

      Listening to the technology, as Caltech prophet Carver Mead
 recommends, one sees a natural division of labor between photonics and
 electronics.  Photonics will dominate communications and electronics will
 dominate computing.  The two technologies do not compete; they are
 beautiful complements of each other.

      The law of the microcosm makes distributed computers (smart terminals)
 more efficient regardless of the cost of linking them together.  The law of
 the telecosm makes dumb and dark networks more efficient regardless of how
 numerous and smart are the terminals.  Working together, however, these two
 laws of wires and switches impel ever more widely distributed information
 systems.

      It is the narrow bandwidth of current phone company connections that
 explains the persistence of centralized computing in a world of distributed
 machines.  Narrowband connections require smart interfaces and complex
 protocols and expensive data.  Thus you get your online information from
 only a few databases set up to accommodate queries over the phone lines.
 You limit television broadcasting to a few local stations.  Using the
 relatively narrowband phone network or television system, it pays to
 concentrate memory and processing at one point and tap into the hub from
 thousands of remote locations.

      Using a broadband fiber system, by contrast, it will pay to distribute
 memory and services to all points on the network.  Broadband links will
 foster specialization.  If the costs of communications are low, databases,
 libraries, and information services can specialize and be readily reached
 by customers from anywhere.  On line services lose the economies of scale
 that lead a firm such as Dialog to attempt to concentrate most of the
 world's information in one set of giant archives.

      By making bandwidth nearly free, the new integrated circuit of the
 fibersphere will radically change the environment of all information
 industries and technologies.  In all eras, companies tend to prevail by
 maximizing the use of the cheapest resources.  In the age of the
 fibersphere, they will use the huge intrinsic bandwidth of fiber, all 25


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 thousand gigahertz or more, to replace nearly all the hundreds of billions
 of dollars worth of switches, bridges, routers, converters, codecs,
 compressors, error correctors, and other devices, together with the
 trillions of lines of software code, that pervade the intelligent switching
 fabric of both telephone and computer networks.

      The makers of all this equipment will resist mightily.  But there is
 no chance that the old regime can prevail by fighting cheap and simple
 optics with costly and complex electronics and software.

      The all optical network will triumph for the same reason that the
 integrated circuit triumphed:  it is incomparably cheaper than the
 competition.  Today, measured by the admittedly rough metric of MIPS per
 dollar, a personal computer is more than one thousand times more cost
 effective than a mainframe.  Within 10 years, the all optical network will
 be millions of times more cost effective than electronic networks.  Just as
 the electron rules in computers, the photon will rule the waves of
 communication.

      The all optical ideal will not immediately usurp other technologies.
 Vacuum tubes reached their highest sales in the late 1970s.  But just as
 the IC inexorably exerted its influence on all industries, the all optical
 technology will impart constant pressure on all other communications
 systems.  Every competing system will have to adapt to its cost structure.
 In the end, almost all electronic communications will go through the
 wringer and emerge in glass.

      This is the real portent of the dark fiber case wending its way
 through the courts.  The future of the information age depends on the rise
 of dumb and dark networks to accommodate the onrush of ever smarter
 electronics.  Ultimately at stake is nothing less than the future of the
 computer and communications infrastructure of the U.S. economy, its
 competitiveness in world markets, and the consummation of the age of
 information.  Although the phone companies do not want to believe it, their
 future will be dark.

                                   #####

