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Talking ‘Bout a Revolution - Coming to Grips with Chips
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Business New Haven
9/8/1997
By: Mitchell Young
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Digital cameras. Digital recording. Digital phones. What's this “digital revolution” all about?
In the beginning, before “digital,” there was “analog.” Both words refer to ways of representing or controlling changes in properties such as temperature or pitch. In the old days, we used analog devices to measure or control change continuously. Today, their digital counterparts do the same thing, but at discrete intervals, using numbers (digits). As the intervals get smaller, or the increments finer, the resolution or fidelity improves, and we perceive the result as more natural.
On cheaper digital car radios, for instance, the volume control knobs don't turn smoothly; they “click” into specific settings,
causing the volume to jump in audible increments. On more expensive models, however, the increments are so fine that we perceive the volume change as gradual.
There are advantages to treating physical changes as digital, especially when we want to perform precise calculations. But digital came into its own only when it became easy to build circuits that could quickly and accurately differentiate between two states (open/closed, on/off, high/low, etc.). Today's silicon chips transmit numbers and other information as combinations of “binary digits,” or bits.
What's more, billions of bits can be relayed and retransmitted ad infinitum. The resulting digital copies are, for all practical purposes, exact reproductions of the original, unlike analog copies, whose quality tends to degrade with each successive duplication. Tenth-generation photocopies are hard to read; fourth-generation audiotapes hiss and flutter.
A digital “copy” can even improve on the original, as when recording engineers manipulate digital signals to remove static and distortion from a compact disc.
A Bit of Economics
Still, why call this a revolution, rather than a new evolutionary stage? The answer lies in the economic underpinnings of technology.
Nicholas Negroponte is a scientist and journalist (he co-founded both MIT's Media Laboratory and Wired magazine) who has been on both the front lines and the front pages of the digital revolution. In his book, Being Digital, Negroponte describes the rush by the major players in the communications, information and entertainment industries to switch the basic units of information exchange from “atoms” - physical objects such as books and videocassettes - to bits, “the DNA of information.”
The motive? Profit, of course. “Bits” cost increasingly less than “atoms” to transport and store, because:
n The power and capacity of computer chips and fiber-optic cable (not to mention other transmission routes) keep growing;
n Digitized processes eliminate much of the labor involved in translating information from one medium to another (e.g., photographs from film to newsprint); and
n The same information can be imparted in fewer and fewer bits because of advancements in data-compression technology.
To understand data compression, think of a stand-up comic telling a very funny, but long, joke. Throughout the rest of the show, the comedian can get easy laughs merely by repeating the punch line. The audience hears that line as “shorthand” for the entire joke.
Similarly, once a mass of data has been transmitted and stored, there is no need to retransmit all of it just to get the receiving device to understand a single reference.
TV or Not TV?
Since some bits can control other bits, the question becomes: to what end? Perhaps nowhere does the philosophical infighting over this question come closer to holy war than in the race to establish a framework for digital TV.
By 2006, when all broadcasting is scheduled to go digital, U.S. consumers will have to spend roughly $150 billion to convert or replace their analog television sets. To capture that market, TV manufacturers are designing bigger, better TV sets that can receive high-definition television (HDTV) signals.
The computer industry, on the other hand, is promoting a more radical vision: An interactive computer/TV hybrid that would grant ultimate control of both content and presentation to the consumer. According to cyberenthusiasts like Negroponte and Bill Gates, this “intelligent” TV would allow us to watch - download, really - what we want, when we want it, in whatever form we prefer (e.g., video, audio, print). We could surf from a sitcom to biographies of its stars. Or participate by uploading our own video and other data.
Only time will tell whether consumers will vote for content control or for higher-quality sets that run the same old programming. But the popularity of Bruce Springsteen's viewpoint - “57 channels and nothing on” - and the demise of Sony's technically superior Betamax video format don't bode well for TV-only manufacturers.
(Inter)facing the
Truth About Digital
Though both the technology of data transmission and its infrastructure (copper wire? radio waves? fiber optic cable?) are still up for grabs, the determining factor in our digital future will probably be the human-digital interface. Until most of us become more comfortable interacting with digital devices, we simply won't use them.
That means, in part, making the technology transparent - we don't have to understand electric circuits to flick a light switch. It may also involve the developing technologies of speech and pattern-recognition. “The challenge for the next decade,” Negroponte writes, “is to make computers that know you, learn about your needs, and understand verbal and nonverbal languages.”
I Am a (Digital) Camera
It used to be that you took film to be developed at your local drugstore, or, if you were in a hurry, to the one-hour photo shop. This process required you to buy film, shoot the pictures, remove the film, and commute to a place that could develop your pictures. And then wait.
All that has changed with the advent of digital cameras, film-less and super-fast. With some equipment and the touch of a few keystrokes you can see, edit and send your pictures without leaving your desk.
With Internet use exploding (it jumped 71 percent in 1996 and is expected to triple by the year 2001), terms and technology are changing rapidly. To understand how digital cameras work and if they are applicable to your business needs, a short review:
Digital refers to binary representation of data as bits and bytes, basically the language that computers use to manage, create and store information. Digital pictures are made from pixels (picture elements) that are assigned a color and intensity by the computer.
Many people are able to put pictures on the Internet by scanning traditionally taken photos with a scanning device. These scanners are available in different price ranges and resolutions. The quality of scanned photos can be excellent, depending on the equipment used. But speed, not necessarily quality, is the advantage of digital cameras.
Because they operate without film, the pictures are available for immediate use. Digital cameras can generally be considered little computers that take pictures. They are loaded with memory, microchips and a CCD (charged-coupled device) on which the image is captured. The CCD is similar to traditional film since it is used to capture the picture. The pictures are then stored in microchips and interpreted by the computer. You “load” and “unload” a digital camera by plugging it into your terminal. Most digital cameras come with the software and cable necessary to operate them and can be operated on PC or Macintosh systems.
The consumer low-end models currently have a fixed-focus lens; basically you can shoot a moving object or one very far away. It is expected, though, that zoom-lens capabilities will be available soon on these models. What you can do, though, is quickly and easily shoot, edit and send photos for work or recreational use.
For example: You have a client who needs to see a new product that is not available in your catalogue. You simply take the picture with a digital camera and send it to him via e-mail - all in a few minutes. Digitally photographed images can be used for newsletters or on-line presentations.
On the recreational side, the cameras can be used to send pictures to faraway relatives or update your Web page. The photos can be stored on a hard drive, floppy disks or CD-ROMs for future use. The photos will not degrade with time as negatives can, so long as the storage equipment is properly cared for.
The applications are what caused Sheila McCreven, of Evolution Design, to buy one last year. McCreven and Michael Helfenbein run the full-service graphics studio out of offices in Woodbridge and East Haven. They design Web pages for commercial clients as well as print production and art direction.
The company has nearly tripled its profits since it began operating in 1992; its clients include the United Nations and AT&T. Mc Creven says that digital cameras are essential in her field.
“They are terrific time-savers for anyone in the design business and for anyone who needs visuals quickly,” she explains. “Not nearly enough people use digital cameras, because they think it's going to be more complicated than it actually is.” Since purchasing a low-end Epson PhotoPC for about $500, McCreven says the camera paid for itself immediately. “We work on very tight deadlines, and the digital cameras are brilliant for the Web.”
Since the quality of digital photos is not as high as most scanned photos, McCreven said she is not planning on giving up her two trusty 35-millemeter Nikons. “This technology is great, but it does not replace a 35-millemeter camera,” she explains.
Prices for digital cameras range broadly, from the new $500 Epson to the $25,000 models used by professionals. It is expected that many consumer models will come down in price as the technology is refined and expanded.
Tom DeMorro, president of Branford's ColorComp, a color-separation house, opened a digital photography studio in April and says the results have been promising. He says ColorComp can now produce more work in a shorter time with better quality.
His investment, a $25,000 Kodak DCS460 - plus an additional $25,000 in other equipment - has nearly paid for itself, he says.
“The camera offers great versatility in the studio,” DeMorro explains. “We can take two shots in less than half a second that can yield a product ready for printing so the turnaround time is very quick.”
DeMorro says the applications make his investment attractive to clients. “People don't want to pay for costly scans anymore,” says DeMorro. “And they don't want to wait. Now they don't have to.”
- Laura Patrie
'It Still Does Nothing' No More
Walk into any computer store and you are bombarded with choices. Hardware, software, accessories. Now there is another choice to make before you can surf the Internet - analog or digital?
A new choice promises speed and functions that current phone lines may not. ISDN (Integrated Services Digital Network) is quickly becoming a speedy option for Web surfers and businesses which want to expand the graphic ability and video capabilities available on even the fastest modems. ISDN is basically a way to move more data over existing phone lines.
ISDN (long derided by impatient telecom professionals as 'It Still Does Nothing') lines work on the regular copper wires of a phone line, but use a terminal adaptor or digital modem and some other equipment to create a completely digital telephone/telecommuncations network. It is designed to carry data, voice and video over a single interface.
One line can accommodate a computer, telephone, facsimile machine and video phone. It allows for telecommuting, the access of remote resources, faster line speed and increased information sharing.
ISDN is available locally through Southern New England Telephone, although it is not currently compatible with the SNET Internet service. That is expected, though, by year's end.
ISDN service is more expensive that regular phone lines and the monthly charges can be more than double the all-you-can-use versions and low monthly charges of many service providers. The hookup charges are also more expensive and there are the equipment costs to consider.
If you are considering switching to ISDN lines, here is what you can expect:
n Know your equipment. There is fierce competition for the market on digital modem and routers, so shop around and be sure you have the right equipment for your system and that it can be run on local lines
The equipment you will need is a digital modem, average price of about $350, as well as cables and other equipment. Know the equipment before you buy it and before you call for installation. It can be difficult and costly to change ISDN service if it is not compatible. Some people have reported that they did not do the necessary legwork and ended up cancelling the service and starting over again.
You can avoid this mess with some foresight and a bit of research. SNET offers ISDN service through its SNET Digital Enhancer. For more information you can call 1-800-430-ISDN. Representatives can answer your questions and will send a packet of information. The info packet can be a little confusing for the uninitiated but, again, a bit of research goes a long way. On the Internet you can check out a helpful site that covers the history and technical aspects of ISDN. The address is www.alumni.caltech.edu.
n Installation costs. SNET currently charges $265 to set up the ISDN line from the outside. You then need to have the inside line hooked up. If you are completely comfortable with this type of work, you can elect to do it yourself. If not, you can hire someone to do it for you. If you hire SNET, beware that the charges can be pricy. Many whose businesses need support the costs say that the extra charges are compensated by increased capabilities and productivity.
n Monthly charges. They vary, but are now averaging about $50 per month, plus per-minute charges for usage. SNET is working to decrease its charges to one cent per minute, as opposed to its current charges of between 3.5 and seven cents per minute. Either way, be prepared for higher monthly charges.
n Applications, The idea behind increased use of ISDN is that it is faster and offers more options than current modems. It is quicker with uploading than downloading and not much difference will be noted for certain functions. One benefit of ISDN is advanced vieoconferencing capabilities. You can see and talk online, and it is a boost when geography and speed are factors in completing projects. People from distant locations can work as if side-by-side, and ISDN can allow several functions to be performed at once, such as voice and data transmissions.
Videoconferencing is also available off-site. You can rent time for videoconferencing, but beware: Costs can be steep. It is also marketed as a way for friends and family to stay in touch as well as increase work productivity.
In SNET's information packet, ISDN is marketed as ideal for many industries from health care (where large amounts of information and graphics need to be moved with speed) to law (where an attorney can use the remote LAN access to retrieve legal briefs or documents from a home office or off site location).
While ISDN has been available from SNET for several years now, it has not been widely used. It may be that talk of two-way cable connections is making some businesses take a wait-and-see approach, since ISDN is currently only available in a handful of places. That mirrors trends in other parts of the country which, overall, have been slow to adapt products and services to ISDN technology and slow as well to convince customers of its value. SNET, though, says the ISDN idea is selling well and it anticipates even greater use in the future.
Businesses need to research not only the technology but their own business needs as well to decide whether a switch may be profitable for them.
- Laura Patrie
The Digital
Future Is Clear
The digital revolution of the '80s was the personal computer, which put power on our desktop so we could do more of our own thing. Digital communication is the tool of the '90s - first in office networks, and now via the global Internet.
The trouble is, we can't bring our computers everywhere or tap into the Internet when we're on the run. So what kind of new age is this if we can't have everything we want exactly when we want it, anyway?
Indeed, our pagers and cellular phones, with their annoying beeps, tiny text boxes and scratchy sounds today seem so utterly low-tech. Stay tuned - all of that is about to change, really. After more than a decade of hype about the digital telecommunications future, the wireless world (as one Connecticut provider calls his own company's offering) is “imminent.”
Early last month, Bell Atlantic NYNEX Mobile launched digital wireless service in Fairfield and New Haven counties, joining the greater Hartford and Springfield, Mass. and the company's Boston, New York, New Jersey, Philadelphia, Pittsburgh and Washington markets. And like many of their competitors, Bell Atlantic is scrambling to “build out” the remainder of its markets.
Why the scramble? Two reasons: The traditional cellular systems are beginning to max out of capacity, and digital technology allows a cellular network to increases both sound quality and to carry from three to 15 times as much air traffic.
The second reason is competition from new wireless companies. The new companies have purchased licenses to set up wireless digital networks, commonly referred to as PCS (Personal Communication Services), so named for the belief that “car phones” will be replaced as we all carry around personal-sized phones and other communication devices.
The new digital technology makes this all possible by substituting clear communication for the crackling and often poor reception of cellular calls. Security is greatly enhanced because calls can't be easily monitored by scanners, and digital phones require significantly less energy than their analog forebears to operate. Bell Atlantic claims that with its digital phone a battery charge can be maintained for up to 48 hours of standby time or five hours of talking time. The phones are smaller and make providing new services such as caller ID, three-way calls, call-waiting, call-forwarding, paging or voice mail alert practical.
To help convince this reporter that the sound quality and convenience of its new “Digital Choice” service was superior to traditional analog service, Bell Atlantic provided us with a digital phone to use for a few weeks. Digital service is not currently available everywhere, so Bell Atlantic provides a dual phone that switches from digital to analog service, depending on what is available from the network.
We operated in digital mode in most areas that we traveled throughout Connecticut and Massachusetts. Once you get used to the somewhat tinny sound, you begin to greatly appreciate the far greater call clarity. Moving in and out of digital service can be annoying, but that's because it highlights the shortcomings of traditional cellular service.
Like Cinderella at midnight, the phones lose their special functionality and extended battery life once in analog mode. There are some digital imperfections arising from weak signals, and although cellular crackling is gone, in comes digital “warbling” and fading.
The dual technology is so new that Bell Atlantic currently offers only one phone choice, which costs users $199 (less a $50 rebate for an old cellular phone). Additional phone options are expected by Christmas. The phone is about two-thirds the size of most standard wireless phones, but has many more cool gizmos, such as a multi-line text screen to provide the time, caller ID and a phone book.
The overall subjective conclusion? Bell Atlantic isn't getting its phone back.
Costs for the Bell Atlantic's digital service appear to be slightly less than analog, depending on the plan you choose, and you get the first incoming minute free. Other freebies include caller ID, call-forwarding, call-waiting and voice mail (the service - not the extra air time you'll use accessing it).
In the future according to executives at several telecom companies, the expanded capacity of wireless companies will yield more minutes - but probably not lower bills, as new features and better sound quality increase usage. So, choosing this new service is a no brainer? Well, yes and no.
What is crystal-clear is that digital wireless service will change the way we communicate, but consumers will have to become educated about a host of competing claims, and put up with new and often incompatible technologies.
First, get used to confusing new acronyms like CDMA (Code Division Multiple Access), TDMA (Time Division Multiple Access) and GMS (Global Mobile Service, the European standard for implementing TDMA technology) all defining different incompatible technologies that send multiple messages through the digital “pipeline.”
In Connecticut there will be five providers of digital wireless technology: Bell Atlantic, Sprint PCS, SNET Mobility, Omnipoint Communications and Nextel - and none of the systems will be compatible. The technologies are backed by telecommunication rivals Lucent (TDMA), Erickson (GMS), and industry upstart Qualcomm (CDMA), and the financial stakes are huge.
Today, Bell Atlantic is the only digital option available to traditional wireless customers in Connecticut but a new digital wireless provider, Sprint PCS, is about to enter as well.
According to Ernest V. Lindblad, regional vice president, the Sprint PCS entry into the Connecticut market is (as we said earlier) imminent. Unlike Bell Atlantic, Sprint PCS is building an entirely new network from scratch, and Lindblad says his company has built out 61 markets nationally, and expects to provide wireless service throughout the U.S. within 24 months.
Sprint PCS is a partnership of Sprint, Comcast, TCI and Cox cable companies. Unlike Bell Atlantic, Sprint PCS will offer a wholly digital network - indeed, the phones it will offer customers won't have even an option for analog cellular, nor will they be compatible with the Bell Atlantic network. Coincidentally they use the same CDMA technology, but PCS systems operate at 1.8 to 2.2 gigahertz while cellular systems are at 800 to 900 megahertz, and at least for now the twain do not meet and greet. As the folks at Bell Atlantic and SNET Mobility like to point out, if you're not in the Sprint PCS coverage area you won't have any wireless service.
It also isn't safe for consumers to assume that the PCS networks will have a dual option any time soon.
Wireless companies are not required by statute to cooperate, and the technological and business hurdles of them doing so are significant.
Lindblad downplays the incompatibilities and emphasizes the rapid roll-out of markets by Sprint PCS. “People are surprised by how fast these national companies are turning markets on,” he says. “Wireless is moving from a regional to a national approach.” Indeed, Bell Atlantic itself is developing PCS licenses across much of the country with digital partners.
The current Connecticut, wireless market is roughly divided between Bell Atlantic (with about 53 percent) and SNET Mobility with the remainder. The national wireless market is about 45 million users, with a fraction of those digital users. That's about to change. But the question is, how fast?
Says John Lankes, vice president for SNET's Wireless Product Group, “People look for coverage and clarity. The No. 1 concern consumers have is coverage.” According to Lankes, SNET will offer a dual service in the Hartford area before year's end, and will add digital service in New Haven and Fairfield counties by the first quarter of 1998. SNET also expects to have the all the major traffic routes in the state and greater Springfield covered within 18 months.
SNET has chosen TDMA Acelp, yet another variant technology, to process its signal. Lankes says this technology was elected because it was proven technology, and “With CDMA technology you have to take a lot of [existing analog] channels off the air.”
The move to digital will expand SNET's carrying capacity three-fold, while Bell Atlantic expects its CDMA network to provide even greater capacity. Omnipoint is another company building a digital network in Connecticut. It currently offers wireless digital in New York and has gone from zero to approximately 45,000 subscribers in its first year.
Omnipoint is also adding major markets throughout the country and is backed in part by European telecommunications giant Erickson. The company will employ GMS technology provided by Erickson.
Omnipoint's financial picture gives business people perhaps the best glimpse at the future digital communications market. The company had first half revenues of approximately $15 million (up from zero last year) and a stock market value of $1 billion.
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