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-  THE FRIDAY LETTER  -

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for friends and subscribers)

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 | http://www.gilder.com/ | Issue 323.0/January 11, 2008

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HEADLINES:

-  The Week / The World at Our Fingertips (Telecosm Video)
-  Friday Feature / Paul McWilliams: Core Predictions
-  Friday Blogger Bonus / Bruce Chapman: Black Eye for Polls
-  Readings /

 

The Week / The World at Our Fingertips (Telecosm Video)

Steve Forbes, speaking at the 11th Annual Gilder/Forbes Telecosm Conference:
This is going to sound a little strange, especially after the apocalyptic global warming discussions that when on last night, but when historians look back on this period, I think they are going to say that this was a golden age. When you live through these periods, it’s never “golden” because you have to get up in the morning and pull yourself together. You have kids, teenagers, governments…to deal with. But, let’s just step back and see where we are at today.

 

It is a most remarkable period. Since 9-11, even though we live in a world where there are some very real problems, very real violence, very real terrorist networks and some very bad rogue players out there, the amazing thing is that the global economy has grown, in real terms, over 30%. There has never been a period of time in human history where so many people have advanced so quickly, in so many parts of the world, as have in recent years.

 

We all know about India and China; it is absolutely phenomenal. There are hundreds of millions of people now striving to get into the middle class. Central and Eastern Europe are forcing Western Europe to make changes it never would have made, like cutting corporate tax rates. There’s good things happening in Latin America; Columbia even. Parts of Africa are showing signs of life…

 

When you put it all together this is about as good as it gets in terms of people continuing to advance forward, despite the drawbacks of human nature.


And, the American economy gets no respect! If you look at the last four years, the growth of the American economy alone exceeds the entire output of China….

View the complete video:
http://www.discovery.org/v/28

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Friday Feature / Core Predictions


Gilder Telecosm Forum Member 1 (1/5/07):  Watching YouTube videos for the last 30 minutes opened my eyes to a whole new universe of bandwidth wasting and human community. It seems impossible to even think about the forms of political and social community that will emerge when kids around the world can simply hang out with each other, free, and, for that matter, go anywhere around the world to do it.

How long will it be before anyone in the world can be hi-def present to anyone else in the world?

Gilder Telecosm Forum Member 2 (1/5/07):
 The last mile bandwidth is still missing... and this is crucial to start the party we all await...

Gilder Telecosm Forum Member 3 (1/5/07):
 Why do think I'm pounding the table for you to buy the chips that go into the carrier boxes? The carrier metro, edge, and last mile (access network) must be upgraded NOW! Enter EZchip (LNOP) and NetLogic (NETL).

Ubiquitous broadband connectivity (wired and wireless) is an inevitability. It is happening sooner rather than later.

 

Paul McWilliams (1/5/07): Telepresence is just a couple years beyond a science experiment and has already captured more corporate conference rooms than I originally imagined. I remember hearing of one of the first systems, which was installed in the AMD board room and participants exclaiming how, as Cisco (CSCO) so deftly explains today, users simply forgot they were talking to a screen. Based on this and the rapid adoption we're already seeing of TelePresence and other similar conference systems, I have no doubt the penetration in corporate locations will continue at a rapid clip.

While it is impractical to use a full duplex 1080p conference system in our homes today for many reasons (if you can afford the system, you can afford the bandwidth), if is highly practical in most large U.S. cities and in many foreign countries. In large U.S. cities you can buy (from Towerstream for example) 8mbs on a SLA (you get QoS) for about $1K/month.

You and I won't be using TelePresence or anything requiring that bandwidth from our homes in the real near future, but either of us could (I know I can) go to a video conference center and for a nominal fee use theirs. The point is video use is expanding at a rapid clip and will likely continue to do so and, with it, aggregate capacity at the core and at the edge, must expand too.

There are several generations of chickens and eggs that will need to pass before... and we all need to keep close tabs on this to avoid investing too far ahead of the curve. But, in reality, this is always the case and, as I noted in my 2006 Telecosm Conference presentation, the core prediction made in Microcosm (first published in 1989) didn't come to pass until this decade and now we can't get enough of low, slow and massively parallel.

NOTE: Paul McWilliams is the editor of the monthly Next Inning Technology Research investment newsletter and an active participant on the Gilder Telecosm Forum. 

 
To read more posts by Paul McWilliams, George Gilder and the Gilder Telecosm Forum members, visit http://www.gildertech.com/ and log on today.
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Friday Blogger Bonus / Black Eye for Polls
 

Bruce Chapman, Discovery Blog (1/8/08): George Gilder has been pushing me hard to write about the preposterous over-emphasis on polls in American politics today. I have agreed, but I especially have to concur as a result of today's New Hampshire presidential primary.

 

It would seem that all the polls were wrong, at least about the Democratic race. Even the exit polls were wrong, the actual results deviating from the polls taken from the voters themselves as they had cast their ballots.

 

Money is constantly emphasized as crucial in American politics, but maybe in a presidential race, at least, it can be an exaggerated influence, too. McCain ran out of money months ago and seems to have won anyhow. Huckabee never had any money and still won in Iowa and came in a respectable third in New Hampshire.

 

New Hampshire is a lot of fun in a presidential primary year. This year it also bespeaks the vitality of American retail democracy. All the major campaigns have a right to be proud

 

Check out the Discovery blog:
http://www.discovery.org/blogs/discoveryblog/2008/01/black_eye_for_polls_1.php

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Readings /
 
CES Video Gallery
http://www.wired.com/gadgets/miscellaneous/multimedia/2008/01/gallery_ces_video

Google Wireless World
http://www.forbes.com/technology/2008/01/10/google-wireless-auction-tech-wire-cx_wt_0110google.html

The Untold Story: How the iPhone Blew Up the Wireless Industry
http://www.wired.com/gadgets/wireless/magazine/16-02/ff_iphone

Verizon Says It Has Dodged Slow Economy

http://online.wsj.com/article/SB119998179876981103.html?mod=technology_main_whats_news

Weekly GTI Index
http://www.gtindex.com/  

LG.Philips LCD's Prospects Brighten

http://online.wsj.com/article/SB119999212081481589.html?mod=technology_main_whats_news

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Friday Letter Editor: Mary Collins George / mcollins@gilder.com
 

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