|Exam Name||:||IBM Smarter Cities Sales Sales Mastery Test v1|
|Questions and Answers||:||42 Q & A|
|Updated On||:||February 20, 2019|
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IBM introduced a team of its executives has begun work with Chon Buri officers to collaborate and boost options to help flip the city into an international tourist vacation spot and transport hub of the vicinity.
The crew is to analyse and make strategies to aid Chon Buri become a smarter metropolis. The assignment is a component of IBM Smarter Cities problem delivers to assist modern, forward-pondering municipalities.
The crew includes Michael Preis, birth government, IBM world company functions; Krishnan Ramachandran, IBM uncommon engineer and chief expertise officer, cellular options Leaders, Banking and fiscal Market; Anna Tassioula, client director, IBM financial Markets; Denise Freier, organisational change government, IBM revenue Forces Automation; and Mauricio Sucasas Da Costa, director, ISV and developer family members, IBM growth Markets Unit.
The crew will spend the next three weeks analysing the present circumstance and build on current plans to handle Chon Buri’s vision to be a better metropolis.
Chon Buri is one among 33 cities that were selected for the 2012 Smarter Cities challenge provide. A group of 5 right-performing IBM leaders from the united states and China has been selected to work with the city.
The group of IBM experts will work with metropolis officials on two key priorities. First is to help position the city as a world-famous vacationer destination and livable town for native residents and foreigners. And 2d is to help seriously change it into the logistics hub for the area.
The tourism venture, in partnership with Pattaya city, goals to improve the city’s fine of residing by using focusing on public safety and traffic administration.
For the logistics hub venture, the crew will collaborate with Laem Chabang Port to aid advance its operations and service by means of leveraging technology to develop into an important logistics hub and gateway to counties in the Mekong sub-area.
Launched in 2011, the Smarter Cities challenge is a three-12 months, a hundred-city US$50-million (Bt1.5 billion) programme. it is IBM’s single-greatest philanthropic initiative, which money in-person engagements staffed by using teams of accurate IBM consultants, who examine and then make targeted thoughts addressing in the community essential city concerns.
groups of in particular selected IBM specialists will provide city leaders with evaluation and suggestions to support successful growth, improved delivery of municipal capabilities, extra citizen engagement and more advantageous effectivity.
ultimate yr, Chiang Mai turned into one among 24 cities worldwide chosen to receive IBM Smarter Cities problem promises. The promises provide the cities with entry to IBM’s excellent specialists to analyse and advocate ways they could turn into even superior places during which to are living, work and play. Thailand has been selected as one of 20 growth nations that IBM will focal point on intensively for investment.
according to IBM, growth markets generated 22 per cent of the company’s international revenue ultimate 12 months, and the enterprise goals to have 30 per cent of its complete world income come from increase markets by means of 2015. IBM identified a hundred and forty nations from a total of a hundred and seventy where IBM has a business presence.
Ogilvy Paris' "Smarter Cities" effort for IBM last year turned city constructions like bus stops into helpful infrastructure -- and won a Grand Prix at Cannes whereas at it.
Now, IBM's latest phase for the effort turned to the residents of cities to ask them how they would increase their cities. Created in partnership with Zooppa, a social community for inventive ability like filmmakers and bloggers, the push authorized eighty entries, and picked eight winners from around the globe.
ideas included "Granby Park," a video from Dublin that won first prize that showed how an empty space could be repurposed. a further, from Detroit, turned a defunct, abandoned manufacturing unit that turned into turned into an "indoor fish pond," changing the face of the local food revenue financial system.
The movies should be accessible on the branded people For Smarter Cities web page, as well as YouTube and IBM social-media sites starting Wednesday.
examine greater on AdAge.com.
here is what you probably find out about IBM. You be aware of overseas company Machines became one in every of the us’s first tech businesses, and in the Sixties and Seventies grew to become the world’s leading laptop maker on the energy and energy of its massive mainframes. all of it went to hell in the Nineteen Eighties, when personal computer systems and servers supplanted these mainframes, and an arrogant and bloated IBM turned into caught flat-footed. The board introduced in Lou Gerstner, who famously stabilized the company (partially by firing tens of lots of employees) and received it to grow again by guidance IBM into the unsexy — however high-margin — enterprise of techniques integration and capabilities. perhaps you recently watched an IBM desktop, Watson, trounce a few brainiacs on the online game display Jeopardy.
Now, here’s what you might not know: nine years after Gerstner stepped down as CEO, IBM (IBM) is financially and strategically improved and, yes, sexier than ever — all because of Sam Palmisano, Gerstner’s successor. beneath Palmisano, earnings have quadrupled and the stock is up 57%. He’s no longer in simple terms reducing fees (although he’s done a variety of that, together with transferring work from the U.S. to India). He’s remaking the enterprise by using pushing into new international locations and expanding sizzling businesses equivalent to supercomputing and analytics that require heavy-responsibility lab innovations. remaining year’s R&D spending? Some $6 billion, or 6% of IBM’s nearly $a hundred billion in annual income. Its 5,896 patents in 2010 — more than any enterprise on earth — support explain why it lands at No. 12 on Fortune’s annual listing of the area’s Most Admired companies. That Jeopardy-playing computing device isn’t only a gimmick; it's at the heart of IBM’s lengthy-time period growth approach.
“future” is a phrase Sam Palmisano uses commonly all through a infrequent set of interviews. Palmisano, who is barely the eighth CEO of the one hundred-yr-old company, makes clear in conversations with Fortune that he’s as focused on the subsequent 10 years as he's on the next quarter — although, at 59, he’s more likely to retire in a couple of years. At commonplace conferences with IBM’s researchers, Palmisano exhorts his Ph.D.s to song and form the tech developments on the way to define the area a decade or more from now. “analysis offers us the headlights to get ahead of the evident,” he tells me.
however make no mistake, Palmisano also promises quarter after quarter, no small feat should you consider the dimension and complexity of IBM. (Its $four billion in income growth in 2010 by myself is roughly equal to the whole profits of gamemaker electronic Arts, (ERTS) the No. 494 enterprise on the Fortune 500.) And notwithstanding he inherited a much-greater enterprise, Palmisano moved into the CEO’s office in 2002, just after the information superhighway bubble burst. extra these days he’s needed to deal with the worst recession when you consider that the great depression. instead of hunkering down as lots of his peers did, Palmisano greenlighted a number of principal initiatives — including IBM’s “Smarter Planet” initiative, a software to use networking and laptop expertise to tackle social problems such as entry to health care or traffic congestion. In 2010, IBM earned $14.8 billion on $99.9 billion in income, with 46.1% gross earnings margins.
Palmisano, a Baltimore native, acquired his beginning in income (he joined IBM clean out of Johns Hopkins in 1973), and he conducts business with a pitchman’s zeal. At 6-foot-2, his huge shoulders angle forward a little bit as if he’s all the time leaning in to inform you something. When he grew to be head of global functions again in the ’90s, he blocked off 70% of his calendar for consumer conferences, and he nevertheless speaks to as a minimum one consumer daily. He remembers that Macy’s (M) CEO Terry Lundgren has planned a trip to China and calls to present up some introductions. He golfs with ny metropolis Mayor Michael Bloomberg. (Says the mayor: “He should retain his day job.”) however he additionally lingers after a speech to exchange company cards with the mayor of a tiny Chilean nearby. And when he travels, he regularly leaves time for a solo stroll round town to look what people are buying. “which you can examine the entire financial information, but you’re not going to get a sense” of your valued clientele, he says, explaining, “If I’m now not with somebody, I’m on the phone with somebody.”
Making the planet smarter
The tiny Chilean District of Peñalolén is domestic to some of Santiago’s richest — and poorest — residents. From the plate-glass home windows of up to date million-dollar homes nestled into the Andes foothills, you have got a sweeping view of the greatest of Santiago’s sprawling squatter villages. Residents have strung wires across rooftops to pirate electrical energy and thrown cardboard over the sewage channels they’ve dug. here is the front line for Palmisano’s quest to make the planet smarter — and raise its consumer base.
Peñalolén Mayor Claudio Orrego, forty four, doesn’t should be persuaded that expertise can improve dwelling circumstances in his neighborhood. A Harvard-knowledgeable former tech exec, he’s an energetic idealist with a trimmed brown beard and his personal Twitter account. When touring his local closing fall, I visited a health center the place he had partnered with Cisco (CSCO) to digitize medical data. I drove by cyber web kiosks he developed with help from Intel (INTC). but until ultimate 12 months he had on no account labored with IBM. Orrego initially met Palmisano in fall 2009 when he flew to new york for IBM’s first Smarter Cities discussion board (part of the Smarter Planet crusade), which he’d heard about at yet another convention. “It became sponsored and organized through a tech enterprise, nonetheless it wasn’t in fact about know-how,” he says. Of course expertise played a part: With Smarter Planet, IBM is selling a concept that most of the methods that vigor our cities — electrical grids, transportation, structures, factories — will also be made to run extra correctly in case you can more advantageous video display them, analyze the assistance you compile, and use it to tinker. however as a good deal as the rest, Palmisano is selling hope. His customers are govt officials beneath power to make advanced and antiquated programs work improved for much less funds, and Palmisano guarantees in the event that they inject a little techie efficiency, issues may be greater.
nevertheless, a Chilean local may appear an inconceivable place for IBM to dedicate components when market alternatives the measurement of China and Brazil are looming, but it is a component of Palmisano’s formidable plan to capitalize on every remaining corner of the emerging world. It’s all in the numbers. He is aware of that while First World nations spend roughly three% to 4% of their gross domestic product on infotech, rising markets spend simply 1% to 2%. As these international locations attempt to propel themselves into the first World, Palmisano expects these percentages will double over the next five years. With a good government and robust enterprise ethics, Chile is certainly one of 20 emerging nations IBM has identified as holding probably the most immediate promise. That’s why Palmisano chose to grasp and attend a smarter Cities forum — considered one of 200 similar events the business has held thus far — there ultimate fall.
Palmisano arrived at the Santiago Sheraton early, took a seat within the entrance row, and sat through more than an hour of speeches without so much as checking his BlackBerry earlier than his turn got here at the podium. After Palmisano spoke, Orrego, by way of now an IBM customer (IBM’s assessment become achieved on spec), and the Santiago governor joined Palmisano onstage for a dialogue about tech innovations, like how know-how may deliver down expenses for issues like trash assortment. When the moderator, a native news anchor, achieved the interview, he became to the viewers and spoke of, “well, we obtained throughout the total hour devoid of speaking about servers and switches.”
The actual aim of IBM’s discussion board became to shut income, of direction, and Palmisano did his part. He left the event at lunchtime to make a income name on Chilean President Sebastián Piñera. Palmisano doesn’t like to ambush people, so he introduced alongside just one colleague. Piñera’s chief of team of workers, an brisk 27-12 months-old, showed them in to the President’s office, which changed into embellished with a framed picture of the lately rescued miners. The community discussed having IBM appoint a group of software consultants, increasing its Chilean team of workers. They also agreed to create a list of initiatives on which to work with the aid of the end of the primary quarter.
lower back in new york, I requested Palmisano what he thought of Chile. “In all these locations there’s an inherent optimism,” he stated. “There’s a way complications may also be solved. There’s really nothing in our way but ourselves. So let’s just get to work.”
Baloo the undergo
Sam Palmisano grew up in a big Italian household in Fifties Baltimore. there have been two Palmisano families in town at the time. His dad turned into the auto mechanic, not to be confused with the delicatessen owner. both families packed their kids off to Calvert hall, the Catholic boys school the place Sam’s 10th-grade soccer train, Augie Miceli, remembered him as a favored guy who by no means missed apply. “As an offensive core, he snapped the ball to the quarterback, so he had to make first line calls,” says Miceli.
Palmisano also played sax in a band. The drummer’s mother turned into the band’s agent, and she or he once scored them a weeklong gig each opening and enjoying backup for the Temptations. He used his income — $1,000 — to buy a station wagon so he might haul round his device.
At Johns Hopkins, Palmisano turned into a historical past main whose Beta Theta Pi fraternity brothers referred to as him Baloo after the undergo from The Jungle ebook. He co-captained the football group but became down an invitation to are trying out for the Oakland Raiders. In 1973, the 12 months he graduated, the U.S. became at struggle with Vietnam, and many evenings he’d crowd around the eleven p.m. news along with his fraternity brothers for updates on the draft. The quantity he’d obtained his junior yr was 4, low adequate that his probabilities of recruitment were high. “So I talked about, ‘I’ve bought to get a job,’ ” he remembers. a friend mentioned that IBM’s recruiter had come to campus to appear for women with backgrounds in math and science. even though he fit neither class, the following day Palmisano took and passed IBM’s entrance examination, a staple for all new entrants on the time.
IBM’s iconic machines
Palmisano joined IBM at the height of its glory, when the long-lasting determine of the IBM salesman symbolized a guaranteed ascendance to the upper middle type. The dress code changed into strictly observed: darkish fits, white shirts, armed forces striped ties, wingtip shoes. Liquor turned into off-limits. “if you had a client luncheon and also you had a drink with the client, you have been expected to head home,” says Palmisano. earlier than he ever made a income call, he went to Washington, D.C., to attend the requisite 15 months of courses on community design and accounting and earnings shows. (whereas in D.C. he met his future spouse, Gaier Notman, known as Missy, who was the daughter of a renowned Maryland banker.) Then he went to work within the statistics products unit in Baltimore, hawking mainframes to local governments.
In 1989, Palmisano was chosen for a one-yr term as government assistant to CEO John Akers. It changed into the primary signal that his famous person became rising on the enterprise, and he jumped from there to a two-year stint running IBM Japan. whereas Palmisano was learning to manipulate a staff that didn’t talk his language, the supplier struggled to discover its region in a tech business that had lost patience with IBM’s monolithic approach to promoting add-ons like semiconductors, hardware, and utility. by the point Gerstner parachuted in to show things around in 1993, IBM had posted an $eight.1 billion loss, its third straight yr of losses. as the caustic chieftain raced to drag the business out of its near-death spiral through doubling down on the features company, embracing the internet, and shaking up the way of life, Palmisano returned and took a turn at working just about each of IBM’s bigger devices, together with the personal computers division, the server enterprise, and world capabilities. At Gerstner’s retirement in 2002, IBM’s inventory expense had risen to $ninety from $11.
while Gerstner, who declined to remark for this text, gained a attractiveness for his short mood, Palmisano honed a measured however uncompromising leadership trend. Chief financial officer Mark Loughridge, who said to Palmisano again when he took over the world features division, recalls an infamous cellphone name. “We were losing funds every quarter. Sam obtained on the mobile and spoke of, ‘I simply need each person to grasp we are not ever losing cash in this enterprise ever again,’ ” says Loughridge. Given the usual condition of the enterprise, it gave the impression of a ludicrous request, but Palmisano wasn’t asking. He was traumatic. “The government team become like, ‘Man, what’s this man talking about?’ however we never misplaced funds again.”
Palmisano has lengthy been smartly-connected politically. He has vacationed with participants of the Bush clan, with whom he grew acquainted through his wife’s household, because earlier than George Bush Sr. turned into elected President, and he purchased a Kennebunkport summer time residence from the bushes in 1996. but, for a multimillionaire, he has stored his family lifestyles modest. For basically two decades he has lived within the equal century-historic condo in Southport, Conn. except he became appointed IBM’s CEO, he drove himself to work each day.
research: The core of strategy-surroundings
observing Watson (named for founding CEO Thomas Watson Sr.) cream Jeopardy champs Ken Jennings and Brian Rutter become gripping television. (profitable answer: “who is Bram Stoker?”) however Watson’s intelligence is more than trivial. Palmisano expects to see it make its method into hospitals, as an instance, where it may diagnose patients and advocate remedies extra directly and accurately than medical doctors.
research is on the core of ways Palmisano units strategy. The enterprise continues nine analysis labs everywhere and 7 “collaboratories” it has built with purchasers like a Beijing center to increase high-tech railroads. besides company-linked initiatives like constructing new functions for Indian cell-phone operators, IBM funds experiments corresponding to substances analysis that can also grow to be new products. however Palmisano sees even those supertechnical “blue-sky” initiatives as crucial to figuring out the place he must take IBM, and the way he may still prepare its belongings and businesses.
annually, in a knock-down, drag-out marathon of a dialogue, he spends a day with lab administrators predicting the long run and adjusting corporate strategy to handle it. You don’t dare show up unprepared, lab directors say, because he is aware your work and he has his personal position on its value. This session is the place he can examine chip advancements for you to change the manner IBM markets and sells servers, for instance. It is also the place he saw the cornerstones for Smarter Planet approach again in 2002. “It become no longer going to be a pc era. It changed into going to be sensors and smartphones,” he says. That seems obvious now, but lest one forget, the iPhone wasn’t even invented unless 5 years later. In 2005, Palmisano shocked the tech world when he sold IBM’s ecocnomic notebook business to China’s Lenovo. He endured to dump hardware, and he stepped up acquisitions, opting for up application and analytics businesses by way of the dozens.
Shareholders had been confused. Palmisano countered through wooing Wall street. “if you’re going to dump all that income and go make investments in additional ecocnomic issues where that you could innovate, there’s going to be a period of time where you’re not going to get lots of good-line boom,” he explains. “There’s a lot of own pressure on the management of the business to reply.” He announced a five-yr road map and held six-hour classes with buyers to reply questions about his approach. He pledged to hold increasing earnings and investor returns whilst he modified the enterprise’s makeup. He replaced high priced employees in North the usa with within your budget people abroad, which has helped preserve margins and profits growing to be. He and his board also approved large share buybacks each year, a different tactic for increasing salary per share.
The upshot: IBM nowadays is an organization that nevertheless receives most of its revenue from capabilities and consulting — the enterprise that Gerstner astutely pushed IBM into in the Nineties. but application now contributes extra to pretax salary than consulting, and analytics, the variety of subtle data-crunching and determination-making that Watson does, grew 19% last quarter, sooner than some other line of business. Harvard company college professor Rosabeth Moss Kanter calls this a “boldness of imagination,” announcing, “Sam accelerated what Lou Gerstner set in action.”
That boldness has helped IBM turn into once once more the enterprise that units the agenda for commercial enterprise know-how. organizations from HP (HPQ) and Dell (DELL) to Oracle (ORCL) have assembled consulting corporations to clear up issues for valued clientele in preference to promote them servers and switches. And HP’s Cense community aims to pepper the realm with sensors simply as IBM plans to do with the Smarter Planet initiative. IBM has singlehandedly helped carry the valuations of analytics organizations. someplace the ghost of Tom Watson Sr. is smiling.
IBM after Palmisano
IBM will flip 100 this year, and Palmisano will flip 60. That age has long been the expiration date for an IBM CEO, and whereas he won’t ascertain it, americans near him think he’ll step down simply after the centennial. This previous summer he reorganized the executive ranks in a movement that implies he has chosen a few contenders for his substitute. each Virginia Rometty, who introduced marketing and method to her earnings and distributions tasks, and Michael Daniels, who now oversees all of global features, are stated to be within the running. So is Rod Adkins, who oversees the systems and know-how group.
Can things maybe work as smartly at IBM when Palmisano leaves? sales is set relationships, and on the maximum stage, he is their safekeeper. consider Sunil Mittal, the rags-to-riches founder of India telecom giant Bharti Airtel. remaining fall IBM become within the closing degrees of negotiating a ten-year contract to install and control the information know-how assisting Bharti’s flow into sixteen African international locations when the contract essentially fell aside. “IBM is an enormous machine, and often it receives frustrating,” says Mittal. “there were layers of legal professionals and approval methods.” Mittal become able to walk, after which Palmisano popped up on Skype. Palmisano guaranteed Mittal that IBM’s work may be performed immediately and correctly. Six weeks later each guys met in Nairobi to announce the landmark deal that would plant the Indian telecom huge in Africa.
Mittal trusts Palmisano. He has invited the person to dinner in his Delhi home, and frolicked with the Palmisanos and three of their kids at the Beijing Olympics. “My very own connection with him is awfully mighty. As for who will prevail him, and should I even have the same chemistry?” says Mittal. “I don’t know.”
I ask Palmisano about it the remaining time we meet. we're seated in the completely preserved 1937 library of the senior Watson himself, every remaining mahogany panel of which has been lifted from his usual workplace into the government suite of a Midtown big apple skyscraper. Palmisano suggests Mittal’s posturing is a bit of of theatrics. Relationships are developed as a result of individuals act normally over long intervals of time, he tells me. “I’ll do my time period. probably it’s 10 years. think of it as 10% of a hundred years. and then somebody else has got to preserve it going,” he says.
With that, he reaches for his coat. “I’ve got to head sing for my supper, young woman,” he says. site visitors is bad in Midtown, and he has to be on time for the revenue name he’s about to make on J.P. Morgan (JPM) CEO Jamie Dimon. neglect the idling sedan. He takes off running at a quick clip, a earnings rep just about sprinting to capture up.
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A gigantic computer created by IBM specifically to excel at answers-and-questions left two champs of the TV game show in its silicon dust after a three-day tournament, a feat that experts call a technological breakthrough.
Watson earned $77,147, versus $24,000 for Ken Jennings and $21,600 for Brad Rutter. Jennings took it in stride writing "I for one welcome our new computer overlords" alongside his correct Final Jeopardy answer.
The next step for the IBM machine and its programmers: taking its mastery of the arcane and applying it to help doctors plow through blizzards of medical information. Watson could also help make Internet searches far more like a conversation than the hit-or-miss things they are now.
Watson's victory leads to the question: What can we measly humans do that amazing machines cannot do or will never do?
The answer, like all of "Jeopardy!," comes in the form of a question: Who - not what - dreamed up Watson? While computers can calculate and construct, they cannot decide to create. So far, only humans can.
"The way to think about this is: Can Watson decide to create Watson?" said Pradeep Khosla, dean of engineering at Carnegie Mellon University in Pittsburgh. "We are far from there. Our ability to create is what allows us to discover and create new knowledge and technology."
Experts in the field say it is more than the spark of creation that separates man from his mechanical spawn. It is the pride creators can take, the empathy we can all have with the winners and losers, and that magical mix of adrenaline, fear and ability that kicks in when our backs are against the wall and we are in survival mode.
What humans have that Watson, IBM's earlier chess champion Deep Blue, and all their electronic predecessors and software successors do not have and will not get is the sort of thing that makes song, romance, smiles, sadness and all that jazz. It's something the experts in computers, robotics and artificial intelligence know very well because they can't figure out how it works in people, much less duplicate it. It's that indescribable essence of humanity.
Nevertheless, Watson, which took 25 IBM scientists four years to create, is more than just a trivia whiz, some experts say.
Richard Doherty, a computer industry expert and research director at the Envisioneering Group in Seaford, N.Y., said he has been studying artificial intelligence for decades. He thinks IBM's advances with Watson are changing the way people think about artificial intelligence and how a computer can be programmed to give conversational answers - not merely lists of sometimes not-germane entries.
"This is the most significant breakthrough of this century," he said. "I know the phones are ringing off the hook with interest in Watson systems. The Internet may trump Watson, but for this century, it's the most significant advance in computing."
And yet Watson's creators say this breakthrough gives them an extra appreciation for the magnificent machines we call people.
"I see human intelligence consuming machine intelligence, not the other way around," David Ferrucci, IBM's lead researcher on Watson, said in an interview Wednesday. "Humans are a different sort of intelligence. Our intelligence is so interconnected. The brain is so incredibly interconnected with itself, so interconnected with all the cells in our body, and has co-evolved with language and society and everything around it."
"Humans are learning machines that live and experience the world and take in an enormous amount of information - what they see, what they taste, what they feel, and they're taking that in from the day they're born until the day they die," he said. "And they're learning from all the input all the time. We've never even created something that attempts to do that."
The ability of a machine to learn is the essence of the field of artificial intelligence. And there have been great advances in the field, but nothing near human thinking.
"I've been in this field for 25 years and no matter what advances we make, it's not like we feel we're getting to the finish line," said Carnegie Mellon University professor Eric Nyberg, who has worked on Watson with its IBM creators since 2007. "There's always more you can do to bring computers to human intelligence. I'm not sure we'll ever really get there."
Bart Massey, a professor of computer science at Portland State University, quipped: "If you want to build something that thinks like a human, we have a great way to do that. It only takes like nine months and it's really fun."
Working on computer evolution "really makes you appreciate the fact that humans are such unique things and they think such unique ways," Massey said.
Nyberg said it is silly to think that Watson will lead to an end or a lessening of humanity. "Watson does just one task: answer questions," he said. And it gets things wrong, such as saying grasshoppers eat kosher, which Nyberg said is why humans won't turn over launch codes to it or its computer cousins.
Take Tuesday's Final Jeopardy, which Watson flubbed and its human competitors handled with ease. The category was U.S. cities, and the clue was: "Its largest airport is named for a World War II hero; its second largest, for a World War II battle."
The correct response was Chicago, but Watson weirdly wrote, "What is Toronto?????"
A human would have considered Toronto and discarded it because it is a Canadian city, not a U.S. one, but that's not the type of comparative knowledge Watson has, Nyberg said.
"A human working with Watson can get a better answer," said James Hendler, a professor of computer and cognitive science at Rensselaer Polytechnic Institute. "Using what humans are good at and what Watson is good at, together we can build systems that solve problems that neither of us can solve alone."
That's why Paul Saffo, a longtime Silicon Valley forecaster, and others, see better search engines as the ultimate benefit from the "Jeopardy!"-playing machine.
"We are headed toward a world where you are going to have a conversation with a machine," Saffo said. "Within five to10 years, we'll look back and roll our eyes at the idea that search queries were a string of answers and not conversations."
The beneficiaries, IBM's Ferrucci said, could include technical support centers, hospitals, hedge funds or other businesses that need to make lots of decisions that rely on lots of data.
For example, a medical center might use the software to better diagnose disease. Since a patient's symptoms can generate many possibilities, the advantage of a Watson-type program would be its ability to scan the medical literature faster than a human could and suggest the most likely result. A human, of course, would then have to investigate the computer's finding and make the final diagnosis.
IBM isn't saying how much money it spent building Watson. But Doherty said the company told analysts at a recent meeting that the figure was around $30 million. Doherty believes the number is probably higher, in the "high dozens of millions."
In a few years, Carnegie Mellon University robotic whiz Red Whittaker will be launching a robot to the moon as part of Google challenge. When it lands, the robot will make all sorts of key and crucial real-time decisions - like Neil Armstrong and Buzz Aldrin did 42 years ago - but what humans can do that machines can't will already have been done: Create the whole darn thing.
Explore further: 'Jeopardy!' to pit humans against IBM machine
More information: IBM's Watson: tinyurl.com/4r8w6grJeopardy: jeopardy.com
©2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
IBM is cultivating increasingly specialized software resellers as part of a broader effort to grow its software business.
The company in January began rolling out its IBM Software Value Plus program, which requires partners to certify themselves in order to sell products in IBM's "authorized portfolio."
Those authorized products include IBM Tivoli Identity Manager, WebSphere Process Server and DB2. The latest addition to the program, announced last month, encourages resellers to pursue authorizations within industry segments and in the IT security space. For partners that meet the criteria, IBM provides sales leads and education in areas such as cloud computing.
The new certification and authorization track gives partners a degree of differentiation in the market, according to industry executives. But it may also serve to weed out resellers unwilling or unable to make the investment in product and industry expertise.
Certifications as investments in channel partnerships
Top partners tend to welcome IBM's steeper channel requirements, said Darren Bibby, program director, IDC Software Channels Research.
"They feel it raises the bar," he said. "It's the kind of investment they would make anyway and it gives them an additional badge or stamp they can show to their customers."
Indeed, some partners' plans are converging with IBM's channel effort. Avnet Technology Solutions has found that its vertical market plans mesh well with IBM's industry thrust.
Fred Cuen, general manager and senior vice president, Avnet Technology Solutions, Americas, IBM Solutions group, cited his company's SolutionsPath program, which helps partners specialize in certain markets. Programs in government and healthcare have been around for a few years. The distributor in October launched three more verticals: banking, retail and energy.
"We're working with IBM on a very specific initiative focused on these five areas," Cuen said.
That initiative, IBM's Smarter Planet program, aims to tackle tough IT challenges across a range of industries.
Avnet also plans to pursue IBM mastery certification within the five industries it currently targets. Mastery tests are among the requirements for the Software Value Plus program's industry authorization.
Acknowledging vertical partnersSteven Gerhardt, chief executive officer of Ixion LLC, an IBM Premier Business Partner in Houston that focuses on Web content management and portal solutions, noted that his company specializes in such markets as energy and utilities. He said IBM's move to cultivate vertical partners reflects a recognition that IBM software, overall, needs to be more industry oriented. That's particularly the case in the midmarket and below, he added, noting that IBM's direct sales force and distributors tend to be more generalized in those sectors.
"That is where they have been vertically challenged," Gerhardt said.
Roger Finney, director of IBM storage, software and System z at Logicalis Inc., an IT and communications solutions integrator and IBM Premier Business Partner, said IBM's industry specializations make sense, noting that his company also focuses on particular markets.
In general, Finney said he believes Software Value Plus has created a closer calibration between a partner's areas of expertise and the software they provide customers. "Overall, I think it did some of what it was intended to do," he said of IBM's program. "It's created competency alignment between what partners are skilled at and the solutions they are presenting."
Partner identification strategySoftware Value Plus makes for a stronger partner ecosystem, Gerhardt said. But the more stringent requirements have caused some companies to cease carrying IBM's software. A couple of IBM hardware partners have contacted Ixion for partnering opportunities after dropping their IBM software business.
"They have decided not to play in the software space," said Gerhardt. "They don't want to manage that side of the business."
IBM doesn't dispute that it's focusing on its most committed partners these days. The company analyzed its partner base prior to launching Software Value Plus and found that many of the 120,000 companies claiming to be partners used the IBM software brand to open doors but sold customers other vendors' software, noted Sandy Carter, vice president of software business partners and midmarket at IBM. Others sold IBM software but had customer satisfaction issues.
Now, 5,000 software resellers worldwide are approved to sell IBM's authorized portfolio. In addition, 40,000 resellers have been okayed for IBM's open portfolio, which includes the company's Express-branded solutions for midmarket customers. The open portfolio products don't require a lot of training to sell, Carter noted.
Despite the winnowing, Software Value Plus has also brought in new resellers to IBM.
Carter noted that 200 ex-Sun partners have come to IBM's software portfolio. IBM also plans to build a channel for Netezza Corp., a business analytics software company IBM acquired last month. She said Netezza has never had a partner channel before.
And the partners joining IBM, Carter said, now have an opportunity to compete on skill in the authorized ecosystem.
"They ... don't have the bottom feeders and those competing on price," she said.
The bigger IBM partner pictureIBM's partner moves come as the company seeks to expand its software operation. In an investor presentation, IBM said its software business is positioned to deliver 49% of the company's profit in 2015. In 2000, software contributed 25% of IBM's pretax income.
"If you look at ... where they are trying to take their business in 2015, software plays a big part of it," Avnet's Cuen said.
While IBM's partner strategy supports its overall software push, it also lines up with broader economic trends. Steve White, program director, Software Alliances Leadership Council, IDC, said the difficult economy over the past couple of years has compelled vendors like IBM to take stock of the partner base.
"They don't have infinite resources," he said. "All vendors want to focus on the best partners."
John Moore is a Syracuse, N.Y.-based freelance writer, reachable at email@example.com.
Let us know what you think about the story; email Barbara Darrow, Senior News Director at firstname.lastname@example.org, or follow us on twitter.
While traditional telecommunications networks have allowed us to cross barriers associated with time and distance, the new multimedia realm is allowing us to include vital physical cues in the information stream, introducing a physical reality into the world of electronic communications, goods, and services. Not surprisingly, some of the industries that are being most radically revolutionized are those that deal with the human senses, including entertainment, health care, education, advertising, and, sadly, warfare. Simply put, technology changes your way and pace of life.
This sample chapter from Telecommunications Essentials presents the big picture of the telecommunications revolution.This chapter is from the book
In recent years, the word telecommunications has been used so often, and applied in so many situations, that it has become part of our daily lexicon, yet its definition remains elusive. So, let's start with a definition. The word telecommunications has its roots in Greek: tele means "over a distance," and communicara means "the ability to share." Hence, telecommunications literally means "the sharing of information over a distance." Telecommunications is more than a set of technologies, it's more than an enormous global industry (estimated to be US$2.5 trillion), it's more than twenty-first-century business and law that is being re-created to accommodate a virtual world, and it's more than a creator and destroyer of the state of the economy. Telecommunications is a way of life. Telecommunications affects how and where you do everything—live, work, play, socialize, entertain, serve, study, teach, rest, heal, and protect. Telecommunications has served a critical role in shaping society and culture, as well as in shaping business and economics.
It is important to examine telecommunications from the broadest perspective possible to truly appreciate the depth and complexity of this field and thereby understand the opportunities it affords. The best way to learn to "think telecom" is to quickly examine how it is changing both business and lifestyle.
Throughout the 1980s and 1990s, much of the IT&T (information technologies and telecommunications) industry's focus was on how to reengineer the likes of financial institutions, manufacturing, retail, service, and government. These technology deployments were largely pursued and justified on the grounds of reducing costs and enhancing competitiveness by speeding communications.
Today, we are shifting our focus to another set of objectives: Our technology deployments are targeted at supporting not just the needs of a business enterprise, but also those of the consumers. The revolution in integrated media is transforming all aspects of human activity related to communication and information. We are moving to computer-based environments that support the creation, sharing, and distribution of multimodal information. Whereas traditional telecommunications networks have allowed us to cross barriers associated with time and distance, the new multimedia realm is allowing us to include vital physical cues in the information stream, introducing a physical reality into the world of electronic communications, goods, and services. Not surprisingly, some of the industries that are being most radically revolutionized are those that deal with the human senses, including entertainment, health care, education, advertising, and, sadly, warfare. In each of these key sectors, there are telecommunications solutions that address the business need, reduce costs, or enhance operations by speeding business processes and aiding communications. These industries are also examining how to virtualize their products and/or services—that is, how to apply telecommunications to support electronic services targeted at the consumers of that industry's products. Not surprisingly, changing the way you attend a class, see a doctor, watch a movie, get a date, shop for software, take a cruise, and stay in touch creates significant changes in how you use your time and money. Simply put, technology changes your way and pace of life.
This chapter presents the big picture of the telecommunications revolution, and the rest of the book gives greater detail about the specific technologies and applications that will comprise the telecommunications future.
A quick orientation of how emerging technologies are affecting industries and lifestyle highlights the importance of understanding the principles of telecommunications, and, hopefully, to inspire you to "think telecom." The changes discussed here are ultimately very important to how telecommunications networks will evolve and to where the growth areas will be.
An enormous amount of the activity driving telecommunications has to do with the emergence of advanced applications; likewise, advances in telecommunications capabilities spur developments in computing platforms and capabilities. The two are intimately and forever intertwined. The following sections discuss some of the changes that are occurring in both telecommunications and in computing platforms and applications, as well as some of the changes expected in the next several years.Incorporating Human Senses in Telecommunications
Telecommunications has allowed a virtual world to emerge—one in which time and distance no longer represent a barrier to doing business or communicating—but we're still lacking something that is a critical part of the human information-processing realm. The human mind acts on physical sensations in the course of its information processing; the senses of sight, sound, touch, and motion are key to our perception and decision making. Developments in sensory technologies and networks will allow a new genre of sensory reality to emerge, bridging the gap between humans and machines. One of the most significant evolutions occurring in computing and communications is the introduction of the human senses into electronic information streams. The following are a few of the key developments in support of this more intuitive collaborative human–machine environment:
Computers are now capable of hearing and speaking, as demonstrated by Tellme, a popular U.S. voice-activated service that responds to defined voice prompts and provides free stock quotes, weather information, and entertainment guides to 35,000 U.S. cities.
The capability to produce three-dimensional sound through digital mastery—a technology called "virtual miking"—is being developed at the University of Southern California's Integrated Media Systems Center.
Virtual touch, or haptics, enables a user to reach in and physically interact with simulated computer content, such as feeling the weight of the Hope diamond in your hand or feeling the fur of a lion. Two companies producing technology in this area are SensAble Technologies and Immersion Corporation. They are producing state-of-the-art force feedback, whole-hand sensing, and real-time 3D interaction technologies, and these hardware and software products have a wide range of applications for the manufacturing and consumer markets, including virtual-reality job training, computer-aided design, remote handling of hazardous materials, and "touch" museums.
The seduction of smell is also beginning to find its way into computers, allowing marketers to capitalize on the many subtle psychological states that smell can induce. Studies show that aromas can be used to trigger fear, excitement, and many other emotions. Smell can be used to attract visitors to Web sites, to make them linger longer and buy more, to help them assimilate and retain information, or to instill the most satisfying or terrifying of emotional states (now that's an interactive game!). Three companies providing this technology today are Aromajet, DigiScents, and TriSenx. Aromajet, for example, creates products that address video games, entertainment, medical, market research, personal and home products, and marketing and point of sales applications.
The visual information stream provides the most rapid infusion of information, and a large portion of the human brain is devoted to processing visual information. To help humans process visual information, computers today can see; equipped with video cameras, computers can capture and send images, and can display high-quality entertainment programming. The visual stream is incredibly demanding in terms of network performance; thus, networks today are rapidly preparing to enable this most meaningful of information streams to be easily distributed.
How we engage in computing and communications will change dramatically in the next decade. Portable computing devices have changed our notion of what and where a workplace is and emphasized our desire for mobility and wireless communication; they are beginning to redefine the phrase dressed for success. But the portable devices we know today are just a stepping stone on the way to wearables. Context-aware wearable computing will be the ultimate in light, ergonomic, reliable, flexible, and scalable platforms. Products that are available for use in industrial environments today will soon lead to inexpensive, easy-to-use wearables appearing at your neighborhood electronics store:
Xybernaut's Mobile Assistant IV (MA-IV), a wearable computer, provides its wearer with a full-fledged PC that has a 233MHz Pentium chip, 32MB memory, and upward of 3GB storage. A wrist keyboard sports 60 keys. Headgear suspended in front of the eye provides a full-color VGA screen, the size of a postage stamp but so close to the eye that images appear as on a 15-inch monitor. A miniature video camera fits snugly in a shirt pocket. Bell Canada workers use MA-IVs in the field; they replace the need to carry manuals and provide the ability to send images and video back to confer with supervisors. The MA-IV is rather bulky, weighing in at 4.4 pounds (2 kilograms), but the soon-to-be-released MA-V will be the first mass-market version, and it promises to be lightweight.
MIThril is the next-generation wearables research platform currently in development at MIT's Media Lab. It is a functional, operational body-worn computing architecture for context-aware human-computer interaction research and general-purpose wearable computing applications. The MIThril architecture combines a multiprotocol body bus and body network, integrating a range of sensors, interfaces, and computing cores. It is designed to be integrated into everyday clothing, and it is both ergonomic and flexible. It combines small, light-weight RISC processors (including the StrongARM), a single-cable power/data "body bus," and high-bandwidth wireless networking in a package that is nearly as light, comfortable, and unobtrusive as ordinary street clothing.
To be truly useful, wearables will need to be aware of where you are and what you're doing. Armed with this info, they will be able to give you information accordingly. (Location-based services are discussed in Chapter 14, "Wireless Communications.")
A term that you hear often when discussing telecommunications is bandwidth. Bandwidth is a critical commodity. Historically, bandwidth has been very expensive, as it was based on the sharing of limited physical resources, such as twisted-pair copper cables and coax. Bandwidth is largely used today to refer to the capacity of a network or a telecom link, and it is generally measured in bits per second (bps). Bandwidth actually refers to the range of frequencies involved—that is, the difference between the lowest and highest frequencies supported—and the greater the range of frequencies, the greater the bandwidth, and hence the greater the number of bits per second, or information carried.
Figure 1.1 The analogy of a hose is often used to describe bandwidth.Moving Toward Pervasive Computing
As we distribute intelligence across a wider range of devices, we are experiencing pervasive computing, also called ubiquitous computing. We are taking computers out of stand-alone boxes to which we are tied and putting them into ordinary things, in everyday objects around us. These new things, because they are smart, have a sense of self-awareness and are able to take care of themselves. When we embed intelligence into a device, we create an interesting new opportunity for business. That device has to have a reason for being, and it has to have a reason to continue evolving so that you will spend more money and time on it. To address this challenge, device manufacturers are beginning to bundle content and applications with their products. The result is smart refrigerators, smart washing machines, smart ovens, smart cabinets, smart furniture, smart beds, smart televisions, smart toothbrushes, and an endless list of other smart devices. (These smart devices are discussed in detail in Chapter 15, "The Broadband Home and HANs.")
Devices are becoming smaller and more powerful all the time, and they're getting physically closer to our bodies, as well. The growing amount of intelligence distributed throughout the network is causing changes in user profiles.Moving Toward Machine-to-Machine Communications
We are moving away from human-to-human communications to an era of machine-to-machine communications. Today, there are just over 6 billion human beings on the planet, yet the number of microprocessors is reported to be more than 15 billion. Devices have become increasingly intelligent, and one characteristic of an intelligent system is that it can communicate. As the universe of communications-enabled devices grows, so does the traffic volume between them. As these smart things begin to take on many of the tasks and communications that humans traditionally exchanged, they will change the very fabric of our society. For example, your smart washing machine will initiate a call to the service center to report a problem and schedule resolution with the help of an intelligent Web agent long before you even realize that something is wrong! These developments are predicted to result in the majority of traffic—up to 95% of it—being exchanged between machines, with traditional human-to-human communications representing only 5% of the network traffic by 2010.Adapting to New Traffic Patterns
Sharing of information can occur in a number of ways—via smoke signals, by letters sent through the postal service, or as transmissions through electrical or optical media, for example. Before we get into the technical details of the technologies in the industry, it's important to understand the driving forces behind computing and communications. You need to understand the impact these forces have on network traffic and therefore on network infrastructure. In today's environment, telecommunications embodies four main traffic types, each of which has different requirements in terms of network capacity, tolerance for delays—and particularly variations in the delay—in the network, and tolerance for potential congestion and therefore losses in the network:
Voice—Voice traffic has been strong in the developed world for years, and more subscriber lines are being deployed all the time. However, some three billion people in the world haven't even used a basic telephone yet, so there is yet a huge market to be served. Voice communications are typically referred to as being narrowband, meaning that they don't require a large amount of network capacity. For voice services to be intelligible and easy to use, delays must be kept to a minimum, however, so the delay factors in moving information from Point A to Point B have to be tightly controlled in order to support real-time voice streams. (Concepts such as delay, latency, and error control are discussed in Chapter 6, "Data Communications Basics.")
Data—Data communications refers to the exchange of digitized information between two machines. Depending on the application supported, the bandwidth or capacity requirements can range from medium to high. As more objects that are visual in nature (such as images and video) are included with the data, that capacity demand increases. Depending again on the type of application, data may be more or less tolerant of delays. Text-based exchanges are generally quite tolerant of delays. But again, the more real-time nature there is to the information type, as in video, the tighter the control you need over the latencies. Data traffic is growing much faster than voice traffic; it has grown at an average rate of about 30% to 40% per year for the past decade. To accommodate data communication, network services have been developed to address the need for greater capacity, cleaner transmission facilities, and smarter network management tools. Data encompasses many different information types. In the past, we saw these different types as being separate entities (for example, video and voice in a videoconference), but in the future, we must be careful not to separate things this way because, after all, in the digital age, all data is represented as ones and zeros.
Image—Image communications requires medium to high bandwidth—the greater the resolution required, the greater the bandwidth required. For example, many of the images taken in medical diagnostics require very high resolution. Image traffic tolerates some delay because it includes no motion artifacts that would be affected by any distortions in the network.
Video—Video communications, which are becoming increasingly popular and are requiring ever-greater bandwidth, are extremely sensitive to delay. The future is about visual communications. We need to figure out how to make video available over a network infrastructure that can support it and at a price point that consumers are willing to pay. When our infrastructures are capable of supporting the capacities and the delay limitations required by real-time applications, video will grow by leaps and bounds.
All this new voice, data, and video traffic means that there is growth in backbone traffic levels as well. This is discussed further later in the chapter, in the section "Increasing Backbone Bandwidth."
The telecommunications revolution has spawned great growth in the amount and types of traffic, and we'll see even more types of traffic as we begin to incorporate human senses as part of the network. The coming chapters talk in detail about what a network needs in order to handle the various traffic types.Handling New Types of Applications
The new traffic patterns imply that the network will also be host to a new set of applications—not just simple voice or text-based data, but to new genres of applications that combine the various media types.
The ability to handle digital entertainment applications in a network is crucial. In some parts of the world, such as Asia, education may have primary focus, and that should tell us where we can expect greater success going forward. But throughout much of the world, entertainment is where people are willing to spend the limited numbers of dollars that they have to spend on electronic goods and services. The digital entertainment realm will include video editing, digital content creation, digital imaging, 3D gaming, and virtual reality applications, and all these will drive the evolution of the network. It's the chicken and the egg story: What comes first, the network or the applications? Why would you want a fiber-optic broadband connection if there's nothing good to draw over that connection? Why would you want to create a 3D virtual reality application when there's no way to distribute it? The bottom line is that the applications and the infrastructures have to evolve hand-in-hand to manifest the benefits and the dollars we associate with their future.
Another form of application that will be increasingly important is in the realm of streaming media. A great focus is put on the real-time delivery of information, as in entertainment, education, training, customer presentations, IPO trade shows, and telemedicine consultations. (Streaming media is discussed in detail in Chapter 11, "Next-Generation Network Services.")
E-commerce (electronic commerce) and m-commerce (mobile commerce) introduce several new requirements for content management, transaction platforms, and privacy and security tools, so they affect the types of information that have to be encoded into the basic data stream and how the network deals with knowledge of what's contained within those packets. (Security is discussed in detail in Chapter 11.)Increasing Backbone Bandwidth
Many of the changes discussed so far, but primarily the changes in traffic patterns and applications, will require immense amounts of backbone bandwidth. Table 1.1 lists a number of the requirements that emerging applications are likely to make on backbone bandwidth.Table 1.1 Backbone Bandwidth Requirements for Advanced Applications
Online virtual reality
1,000–70,000 terabits per second
Life-size 3D holography; telepresence
50,000–200,000 terabits per second
Smart things; Web agents; robots
50,000–200,000 terabits per second
Weather prediction; warfare modeling
In addition, advances in broadband access technologies will drive a demand for additional capacity in network backbones. Once 100Gbps broadband residential access becomes available—and there are developments on the horizon—the core networks will require capacities measured in exabits per second (that is, 1 billion Gbps). These backbone bandwidth demands make the revolutionary forces of optical networking critical to our future. (Optical networking is discussed in detail in Chapter 12, "Optical Networking.")
Metric Prefixes and Equivalents
The following table defines commonly used metric prefixes:
For example, 10Gbps = 10,000,000,000bps, and 4KHz = 4,000Hz (that is, cycles per second).
The following shows the relationships of commonly used units of measure to one another:1Kbps = 1,000bps 1Gbps = 1,000Mbps 1Tbps = 1,000Gbps 1Pbps = 1,000Tbps 1Ebps = 1,000Pbps Responding to Political and Regulatory Forces
New developments always bring with them politics. Different groups vie for money, power, the ability to bring new products to market first and alone, and the right to squash others' new ideas. A prominent characteristic of the telecommunications sector is the extent to which it is influenced by government policy and regulation. The forces these exert on the sector are inextricably tied to technological and market forces.
Because of the pervasive nature of information and communication technologies and the services that derive from them, coupled with the large prizes to be won, the telecommunications sector is subjected to a lot of attention from policymakers. Particularly over the past 20 years or so, telecommunications policy and regulation have been prominent on the agendas of governments around the world. This reflects the global trend toward liberalization, including, in many countries, privatization of the former monopoly telcos. However, interest from policymakers in telecommunications goes much deeper than this. A great deal of this interest stems from the extended reach and wide impact that information and communication technologies have. Here are some examples:
Telephony, e-mail, and information services permit contact between friends and families and offer convenience to people in running their day-to-day lives. Thus, they have major economic and social implications.
In the business arena, information and communication technologies offer business efficiency and enable the creation of new business activities. Thus, they have major employment and economic implications.
Multimedia and the Internet offer new audio, video, and data services that affect entertainment and education, among other areas. These new services are overlapping with traditional radio and television broadcasting, and major cultural implications are appearing.
News delivery influences peoples' perceptions of governments and their own well-being, thereby influencing voter attitudes. Telecommunications brings attention to cultural trends. Therefore, telecommunications has major political as well as cultural implications.
Government applications of information and communication technologies affect the efficiency of government. Defense, national security, and crime-fighting applications are bringing with them major political implications.
Given this background of the pervasive impact that information and communication technologies have, it is hardly surprising they get heavy policy attention.Regulatory Background
Although many national regulatory authorities today are separate from central government, they are, nevertheless, built on foundations of government policy. Indeed, the very act of creating an independent regulatory body is a key policy decision. Historically, before telecommunications privatization and liberalization came to the fore, regulation was often carried out within central government, which also controlled the state-run telcos. That has changed in recent years in many, but not all, countries.
Given their policy foundation, and the fact that government policies vary from country to country and from time to time, it is not surprising that regulatory environments evolve and differ from country to country. These evolutions and international variations sometimes pose planning problems for the industry, and these problems can lead to frustrations and tensions between companies and regulatory agencies. They can also lead to disagreements between countries (for example, over trade issues). Although moves to encourage international harmonization of regulatory regimes (for example, by the International Telecommunications Union [ITU] and by the European Commission) have been partially successful, differences remain in the ways in which countries interpret laws and recommendations. Moreover, given that regulations need to reflect changing market conditions and changing technological capabilities, it is inevitable that over time regulatory environments will change, too. So regulation is best viewed as another of the variables, such as technological change, that the telecommunications industry needs to take into account.The Policy and Regulatory Players
At the global level, there are a number of international bodies that govern or make recommendations about telecommunications policy and regulation. In addition to the ITU and the European Commission, there are various standards bodies (for example, Institute of Electrical and Electronics Engineers [IEEE], European Telecommunications Standards Institute [ETSI], American National Standards Institute [ANSI], the Telecommunication Technology Committee [TTC]) and industry associations (for example, the European Competitive Telecommunications Association [ECTA], the Telecommunications Industry Association [TIA]). Representatives of national governments and regulatory authorities meet formally (for example, ITU World Radio Conferences, where many countries are represented) and informally (for example, Europe's National Regulatory Authorities [NRAs] exchange views at Independent Regulators Group [IRG] meetings). Other organizations, such as the World Trade Organization (WTO) and regional bodies, also influence telecommunications policy and regulation at the international level.
At the national level, several parts of central government are generally involved, and there can sometimes be more than one regulatory body for a nation. Some of these organizations are major players; others play less prominent, but nevertheless influential, roles. In the United States, for example, the Federal Communications Commission (FCC) is the national regulatory body, and public utility commissions regulate at the state level. The U.S. State Department coordinates policy regarding international bodies such as the ITU. The White House, the Department of Commerce, largely through the National Telecommunications and Information Administration (NTIA), the Justice Department, the Trade Representative, and the Department of Defense are among the various parts of the administration that set or contribute to telecommunications policy. The U.S. Congress and the U.S. government's legislative branch also play important roles. In addition, industry associations, policy "think tanks," regulatory affairs departments within companies, telecommunications lawyers, and lobbyists all contribute to policy debates and influence the shape of the regulatory environment.
Other countries organize their policy and regulatory activities differently from the United States. For example, in the United Kingdom, the Office of Telecommunications (OFTEL) mainly regulates what in the United States would be known as "common carrier" matters, whereas the Radiocommunications Agency (RA) deals with radio and spectrum matters. However, at the time of writing, it has been proposed that OFTEL and RA be combined into a new Office of Communications (OFCOM). In Hong Kong, telecommunications regulation was previously dealt with by the post office, but now the Office of the Telecommunications Authority (OFTA) is the regulatory body. So, not only do regulatory environments change, but so, too, do the regulatory players.The Main Regulatory Issues
Let's look briefly at what regulators do. Again, this varies somewhat from country to country and over time. In the early years of liberalization, much time would typically be spent in licensing new entrants and in putting in place regulations designed to keep a former monopoly telco from abusing its position by, for example, stifling its new competitors or by charging inappropriately high prices to its customers. Here the regulator is acting as a proxy for market forces. As effective competition takes root, the role of the regulator changes somewhat. Much of the work then typically involves ensuring that all licensed operators or service providers meet their license obligations and taking steps to encourage the development of the market such that consumers benefit.
The focus of most regulatory bodies is, or should be, primarily on looking after the interests of the various end users of telecommunications. However, most regulators would recognize that this can be achieved only if there is a healthy and vibrant industry to deliver the products and services. So while there are often natural tensions between a regulator and the companies being regulated, it is at the same time important for cooperation between the regulator and the industry to take place. In Ireland, for example, the role of the regulator is encapsulated by the following mission statement: "The purpose of the Office of the Director of Telecommunications Regulation is to regulate with integrity, impartiality, and expertise to facilitate rapid development of a competitive leading-edge telecommunications sector that provides the best in price, choice, and quality to the end user, attracts business investment, and supports ongoing social and economic growth."
Flowing from regulators' high-level objectives are a range of activities such as licensing, price control, service-level agreements, interconnection, radio spectrum management, and access to infrastructure. Often, regulatory bodies consult formally with the industry, consumers, and other interested parties on major issues before introducing regulatory changes. A more detailed appreciation of what telecommunications regulators do and what their priorities are can be obtained by looking at the various reports, consultation papers, and speeches at regulatory bodies' Web sites.
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