OVERVIEW

Information technology is changing the world economy, society, and daily life. The change proceeds in waves, originating with the new technologies, growth, and restructuring of the affected industries. Next come changes in other businesses as they absorb those technologies. New businesses are started, and traditional practices are overthrown. Societies and governments try to adapt to shifts in the demand for goods and services, investment, and skilled workers. Millions of us change our daily routines in work and recreation and the way we interact with others, as we adapt, willingly or under pressure, to the new opportunities of the World Wide Web.

Telecommunications Industry According to the International Telecommunication Union (ITU), the total trade in telecommunications equipment and services worldwide reached $1 trillion in 1998. The trade is growing at 7% annually, twice the rate of the world economy. International traffic doubled between 1990 and 1996 to 70 billion telephone minutes.

Technological advances in fiber optic communications and increased competition are dramatically reducing costs of raw bandwidth. According to British Telecom, equipment and installation cost per voice path on the transpacific route fell from $73,000 in 1975 to $2,000 in 1996, $200 in 1999, and is likely to reach a mere $5 in 2010. The average charge for a three-minute peak-rate U.S.-Europe phone call fell in five years from $4 to $1.50 in 1998 and will reach 50% by 2000. Demand for access is insatiable. In 1996, forty-eight million new fixed lines were installed bringing the global installed base...