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TELECOMMUNICATIONS, ISOLATION, AND THE EROSION OF PRIVACY

Michael J. Paul and John E. Gochenouer

Barry University
Miami Shores, Florida

INTRODUCTION

High-performance computing and high-speed networks have
made it possible to link the components of information technology
regardless of physical location. This web of communication is
referred to as "cyberspace". Cyberspace, however, is far more
than the interconnection of physical facilities for transmitting
voice, data and images. It personifies telecommunication and
implies that the synergy created by massive information exchange
will result in an entity that will be greater than the sum of its
parts. In fact, cyberspace may be the catalyst for "the greatest
transformation of society and commerce since the invention of the
automobile" (Stewart, 1993).

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It is estimated that "two-thirds of U.S. workers are in
information-related jobs, and the rest are in industries that
rely heavily on information" (U.S. Department of Transportation,
1993). Enhanced access to information will clearly provide
advantages. For example, workers can avoid wasting the time
normally spent traveling to and from the workplace by
"telecommuting" (i.e. "the partial or total substitution of
telecommunications and/or computer technology for the daily
commute to work" (Florida, 1993)).
New communications technology also has the potential to
dramatically impact the way we play and socialize with each
other. "Imagine that you had a device that combined a telephone,
a TV, a camcorder, and a personal computer. No matter where you
went or what time it was, your child could see you and talk to
you, you could watch a replay of your team's last game, you could
browse the latest additions to the library, or you could find the
best prices in town on groceries..." (The White House, 1993).
Cyberspace could be a couch potato's dream come true. Even now
the average adult sits for an average of 3-4 hours a day in front
of a TV (Spring, 1993). As recreational and social applications
of the cyberspace increase, there will be a greater temptation to
extend this time of relative isolation. The cable and telephone
companies certainly recognize the economic benefits from
exploiting this. Shortly there will be 500 cable channels
available to customers that have compatible devices and
appropriate signal access. In order to effectively distribute
these channels, two of the largest cable companies,
TeleCommunications Inc. (TCI) and Time-Warner, have announced
that they plan to install fiber cable in all neighborhoods
reached by their franchises. Existing coaxial cable would then
carry the requisite high-resolution, high bandwidth signals right
into homes (Smith, 1993).

The development of "virtual reality" and its subsequent
incorporation into the cyberspace conjures up fantastic images of

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a vicarious society. The ability to see, hear, touch, feel and
smell programmed "experiences" and interactions with other
persons without real physical contact will further reinforce
isolation. There will be little need to venture out of the home.
Ultimately, even intimate contact could be accomplished via a
virtual reality hookup to the cyberspace. Maybe someday we will
turn on our "cybercenter" and see an advertisement starring Karl
Malden expounding "American Express Virtual Reality - Don't leave
home...Ever".

PROMISES FROM THE WHITE HOUSE

In 1991 (then senator) Al Gore pushed the High Performance
Computing Act of 1991 through Congress. It authorized $2.9
billion for the development of a National Research and Education
Network (NREN) to be incorporated into an already existing
communications network called Internet. As part of the scheme,
the capacity of Internet is scheduled to be raised from 45
million bits per second to more than 3 billion bits per second.
This is equivalent to being able to send 300 copies of "Moby
Dick" across the network per second. In addition, public access
to Internet is to be increased (The White House, 1993; Boucher,
1993). As Vice President, Gore has a greater ability to promote
his agenda.

On September 15, 1993, (upon urging from the White House)
the National Telecommunications and Information Administration
(NTIA) of the Department of Commerce released a document called
"The National Information Infrastructure: Agenda for Action."
This broad document proposes the development of a national
information superhighway which will connect a "wide and ever-
expanding range of equipment including cameras, scanners, key-
boards, telephones, fax machines, computers, switches, compact

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disks, video and audio tape, cable, wire, satellites, optical
fiber transmission lines, microwave nets, switches, televisions,
monitors, printers and much more." The language of this agenda
is idealistic. It promises "immense" benefits, e.g.:

"An advanced information infrastructure will enable
U.S. firms to compete and win in the global economy,
generating good jobs for the American people and eco-
nomic growth for the nation. As importantly, the NII
can transform the lives of the American people --
ameliorating the constraints of geography, disability,
and economic status -- giving all Americans a fair
opportunity to go as far as their talents and ambitions
will take them." (The White House, 1993)

The agenda projects that the information superhighway will
make a significant contribution to "our most pressing economic
and social challenges". These contributions affect almost all of
the programs supported by the Clinton Administration, e.g.:

- Streamlining the Government
- Health Care
- Stimulating the Economy
- Creating New Jobs
- Education
- Globalization of the Economy
- National Defense
- Fighting Crime

President Clinton has expressed his personal commitment to
the principles of the NII. In a speech at the American
University Centennial Celebration, Clinton contended:

"...information has become global and has become king
of the global economy. In earlier history, wealth was
measured in land, gold, in oil, in machines. Today,
the principal measure of our wealth is information --
its quality, its quantity, and the speed with which we
acquire it and adapt to it" (Clinton, 1993).

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Even without the Government's help, there is already a
proliferation of distribution systems which could give Americans
direct access to cyberspace in their homes or wherever they might
be. The NII initiative proposes that the Government authorize
billions of dollars in Federal appropriations to finance research
and development of more effective global high speed communica-
tions (The White House, 1993; Boucher, 1993). The price of this
proposed government support is Government regulation. Since "the
technologies to create, manipulate, manage and use information
are of strategic importance for the United States" (The White
House, 1993), ultimate control of the means of information
distribution are critical to the vital goals of Government.

With or without Government support, the development of
these facilities is inevitable. Ever since the Rothschilds sent
carrier pigeons from Paris to London in order to get a jump on
the stock market, the inherent importance of information has been
apparent. In the future, companies will have to be increasingly
more responsive to their customers, suppliers, and changing
market conditions. Companies must maintain a high degree of
manufacturing flexibility and information technology skills in
order to be competitive in the future.

The superhighway is projected to reach far beyond
traditional business applications. It is intended to reach
directly into our homes. The Government proposes universal
access to information and is opposed to allowing polarization
between information "haves" and "have nots". The Clinton
Administration is committed to this. For example, as part of a
recent cable franchise negotiation, fiber optic cable was
deployed in Harlem, where 40 percent of the residents live below
the poverty line (The White House, 1993).

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Realization of the technological advances suggested in the
NII agenda will make cyberspace an integral part of personal
daily life. For example, the agenda suggests:

"...the production of powerful computers that will be
held in the palm of our hand, as mobile as a watch and
as personal as a wallet,...[they] will recognize
speech, navigate streets, take notes, keep schedules,
collect mail, manage money, open the door and start the
car, among other computer functions we cannot imagine
today" (The White House, 1993).

The development of cyberspace will undoubtedly include an
astonishing melange of irresistible technological conveniences
and entertainment. All of these will be available without having
to leave home. Will the explosion of cyberspace technology lead
to physical isolation?

DRIVING FORCES FOR ISOLATION

Digital communications are rapidly increasing in capacity
and accessibility. Currently, the widest used public backbone
network is Internet. Internet is really a network of networks
communicating via "Transmission Control Protocol/Internet
Protocol (TCP/IP)". About 1,000 universities and colleges are
attached to Internet. About the same number of high schools are
also attached. In addition there is extensive governmental and
commercial access to Internet. No one really knows how many
people use Internet. In 1988, an estimated 33,000 persons were
Internet users. Today there are more than two million computers
on the Internet and almost 10,000 networks (Stewart, 1993).

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With the superhighway in place, it will be possible for
individuals to perform a large percentage of their activities
without leaving home. Advanced technology could enhance these
activities by incorporating high quality video, voice, digital
access and virtual reality into the superhighway. This would
provide major benefits for those who, for whatever reason, stay
home. For instance, without leaving your living room:

- The best schools, teachers and courses
could be made available to all students
via teleconferencing and other interac-
tive media;

- Art, literature, and science could be
available from interactive digital li-
braries that include voice and video;

- By telecommuting, you could live any
place without foregoing employment op-
portunities;

- You could see the latest movies, play
the hottest video games, or bank and
shop;

- You could interact with the government
directly to receive government benefits
and information;

- You could attend town meetings and vote;

- You could monitor the locations and ac-
tivities of a child or spouse;

- Many health care and mental care services
could be immediately available on line;

- Enhanced communication could even allow
lifelike human interaction with physical
contact that included sight and sound.
The addition of virtual reality might
even include other senses (i.e. touch,
smell, taste); and

- The ability to fulfill your wildest sex-
ual fantasy in the privacy of your home
without real physical contact.

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The implementation of cyberspace would allow all
information to be digitized, cataloged, stored and conveniently
accessed. If a paper copy of any information were desired, it
could be printed in high resolution color (better than the
original). Such a "paperless" society would not only be better
for the environment, but also make exchanges of information more
efficient and less time consuming.

This new technology could easily lead to a society where
venturing outside of the home would be far less frequent than it
is now. It would certainly be tempting to sit in front of your
"cybercenter" to work, be entertained and to communicate. It
would be "easier" to choose isolation over the efforts necessary
to physically interact with other humans. In addition to techno-
logical developments, there are a number of other issues that
could fuel a trend toward isolation, such as the growing threat
of crime, the increasing traffic congestion in our cities
(Schwartz, 1989), and the cost of transportation.

The world population is expected to increase from 6 billion
today to 12 billion within the next 40 years. This exponential
increase in world population will undoubtedly exacerbate the
problem. Increased demands for resources, environmental stress,
and pollution will further encourage people to travel less.

In the past 50 years, American society has already become
the victim of more self imposed isolation than in any period of
history. Social gatherings and "talking" have been replaced by
TV and video games as the primary vehicles for entertainment.
Physical interaction in the work place has been replaced by
telephones and computers. Working in groups has yielded to
solitary labor. When we have the technology to produce the
virtual reality of all we need and desire, the temptation to stay
home will be great.

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ARE WE READY FOR ISOLATION?

Approximately 38 million people, 30% of the U.S. labor
force, already work at home at least part of the time (U.S.
Department of Transportation, 1993). This includes telecommuters
as well as those who are self-employed and working out of their
home or those working at home after hours.

Telecommuters are just a small portion of those who work at
home. Their numbers, however, are showing a continual increase.
According to a LINK resources survey, in 1992 there were 4.2
million telecommuters in the U.S. workforce. That is 3.3% of the
workforce and represents a 27% increase from 1991 (LINK, 1992).
By 1995 LINK predicts that 11 million people (9% of the U.S.
workforce) will be telecommuting. By the year 2000, LINK
estimates this to rise to 25 million people.

According to the results of a State of Florida pilot program
there is significant justification for telecommuting (Bishop,
1994). A survey of participants in the program showed that 72%
said that their transportation expense decreased, 18% said that
their clothing expense decreased, and 36% said that their food
expense decreased. A survey of supervisors of telecommuters
revealed that 75% said that quality of employee work increased
and 100% said that the amount of work increased. In addition 87%
of telecommuters stated that morale increased. Workers like
telecommuting.

In addition to working at home, more people are shopping at
home. "Television shopping has grown from practically zero in
1985 to a $2.5 billion business last year (Altaner, 1994)." A
Bear Stearns report predicts that home shopping could be a $100
billion to $150 billion business within 10 years. This is
comparable to today's $70 billion in catalog sales.

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There is some question as to whether new technology that
enables us to work, shop and be entertained without leaving home
will necessarily result in widespread physical isolation. Some
believe that humans are too social to accept physical separation
from each other for long periods of time. However, as world
population soars, space becomes scarce, and environmental issues
force a restriction of travel, the average person may not be able
to afford the luxury of unnecessary mobility. Technology may
increasingly provide the cure for loneliness. Virtual reality
and increased electronic communications may supply the "next best
thing to actually being there."

Even for those who venture forth from their homes, the work
environment for the two-thirds of our population whose work is
primarily information, will be largely dominated by electronic
communications. Personal computers, cellular phones, fax
machines, and email have already replaced much of the personal
contact we enjoyed in the past. We have become dependent on
cyberspace.

LOSS OF PRIVACY

Increased reliance on cyberspace will create new
vulnerabilities. Electronic databases may be broken into and
copied. It may be possible to monitor personal and sensitive
proprietary data transmissions across the superhighway.
Information vital to government, industry and personal welfare
may be corrupted or destroyed through accident, sabotage or
catastrophic natural disaster. The privacy which the employee
hoped to gain by isolating himself/herself will probably be an
illusion. For example, supervisors at American Express have
retained the ability to monitor employees who have signed up for
the Hearth program (working at home) to ensure "tight control"
(Sherman, 1993).

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There will certainly be a debate over what information
should be public and what should be private. With high perfor-
mance computing capabilities, information that was once consid-
ered public or benign may become an important part of your
profile in some marketing research company's database. The
potential for abuse is great. Packaging and selling information
about a company's customers would be of increased value. This
could easily invade what we now consider to be private. For
example, employment decisions may be based on an individual's
preference in video rentals, on book borrowings from the library
or on non-prescription drug purchases.

In order to ensure communications privacy, the Clinton
Administration has proposed an encryption standard to be used to
scramble (encrypt) audio, video and data communications. On
April 16, 1993 the Clinton Administration announced the "Clipper
Chip Directive". This chip is intended to "protect the privacy
of citizens, while enabling law enforcement agencies to continue
to use court-authorized wiretaps to fight terrorism, drug rings,
organized crime, and corruption" (The White House, 1993; Anthes,
1993).

The "Clipper" is an on-line encryption device that will
automatically encrypt and decrypt communications. It uses a
"public key" encryption scheme. This means that the encryption
keys and decryption keys are asymmetric (not the same). The
encryption keys are publicly broadcast. This allows anyone to
send encrypted messages to the computer to which that key be-
longs. The receiving computer could then use its private decryp-
tion keys to transform the message into plain text (decoded
form). Such a scheme protects against the possibility of the
decryption keys being stolen because they only exist in one
place. The Clipper uses an encryption algorithm called "Skip-
jack" which relies on two 80 bit keys to decrypt messages. It is
considered to provide fairly good security (Anthes, 1993).

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The Government, however, has proposed the institution of a
"key escrow" system whereby the Government would record every-
body's private keys. The Government would then be able to
decrypt all conversations. This includes conversations that are
considered confidential such as attorney-client, doctor-patient
and so on. Of course, a court authorized wiretap would first
have to be obtained.

How much security does the key escrow system offer? There
have been reports of the FBI getting groups of signed blank
search warrants from the Department of Justice. Stanford Univer-
sity Professor Martin E. Hellman reported that former Attorney
General John Mitchell was in the habit of handing down blank but
signed wiretap authorizations, 40 to 50 at a time, rather than
personally reviewing each request as required by law (Anthes,
1993). The key escrow system is tantamount to giving government
agencies (such as the IRS) the keys to your house filing cabinet
as long as they promised not to use them without proper
authorization. In addition, because of the obvious marketability
of stolen keys, it would probably not be long before organized
crime and foreign intelligence agencies would obtain copies of
the key escrow databases.

In 1992, the FBI proposed legislation designed to ensure
wiretapping capabilities. If passed, the bill would virtually
outlaw any encryption scheme not sanctioned and breakable by the
Government. Section 2201 of the bill entitled "Cooperation of
Telecommunications Providers With Law Enforcement," reads in
part:

"It is the sense of Congress that providers of elec-
tronic communications services and manufacturers of
electronic communications service equipment shall
ensure that communications systems permit the govern-
ment to obtain the plain text contents of voice, data,
and other communications when appropriately authorized
by law."

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The bill was not enacted. In response to its defeat, the
FBI made the following press release:

"...affording a criminal subject the means, through
encryption, of securely communicating in furtherance of
an illicit activity is tantamount to providing a sanc-
tuary immune from judicially authorized collection of
evidence."

Based on this statement, anyone who develops encryption
technology that the Government cannot break (or has difficulty
breaking) may be guilty of a Federal offense. If the FBI has its
way, privacy will be the first "road kill" of the information
superhighway.

CONCLUSION

As we stand at the brink of a new technology that promises
to significantly alter our society, what questions should we ask
ourselves? Will enhanced communications technology afford the
opportunities of better interaction with our fellow man? Or will
it cause us to cower in isolation -- afraid to venture from our
homes -- content with our electronic addictions? Will it
safeguard privacy or will it cause our lives to become open books
to those who would manipulate us? Will we care?

On one hand, the development of cyberspace could lead to
unprecedented opportunities for communication. This new
technology may become the foundation for an enlightened society
where vast amounts of information are available to everyone.
Education, health care, crime prevention, and the economy could
all be enhanced. It could be fundamental in increasing the
quality of life in the future.

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On the other hand, the ominous image of life in cyberspace
is a society where individuals are addicted to an illusion of
fulfillment. It depicts a superhighway where information is
controlled by governments and mega-corporations provide new
generations of glitzy electronic narcotics. It suggests
neighborhoods where people sit alone, facing an inevitable loss
of privacy as they frantically click the remote control,
desperately seeking something to numb them to the consequences of
isolation.

REFERENCES

Altaner, David (1994). Changing Picture. Sun-Sentinal Weekly
Business, Sun-Sentinal, Miami, June 20, 1994, p. 6

Arizona Energy Office, AT&T (1991). AT&T, State of Arizona
Telecommuting Pilot Six Month Evaluation. Phoenix, AZ: Arizona
Department of Commerce.

Anthes, Gary H. (1993). All Eyes on Clipper. Computerworld,
27(24), pp. 73-75.

Bishop, Martin (1994). Report on the State Employee
Telecommuting Pilot Project. Tallahassee, FL: Florida Department
of Management Services.

Boucher, et. al. (1993). High Performance Computing and High
Speed Networking Applications Act of 1993. 103rd Congress: 1st
Session in the House of Representatives, H.R. 1757.
Clinton, William (1993). Remarks by the President at American
University Centennial Celebration. The White House, Office of
the Press Secretary.

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Florida Department of Management Services (1993). Telecommuting
Guide. Tallahassee, FL.

Gochenouer, John (1993). Isolation Without Privacy. Faculty
Working Paper, Miami Shores, FL: Andreas School of Business,
Barry University.

LINK Resources (1992). National Work-at-Home Survey, press
release. New York, NY: LINK Resources.

Schwartz, Joe (1989). Future Lock. American Demographics,
11(11), pp. 116-117.

Sherman, Stratford (1993). How to Bolster the Bottom Line.
Fortune: 128(7), pp. 14-28.

Smith, Norris P. (1993). Data Highway Involves More than Just
Fiber and Bandwidth. HPCwire: subject 337.

Spring, Jim (1993). Seven Days of Play. American Demograph-
ics, 15(3), pp. 50-54

Stewart, Thomas A. (1993). Boom Time on the New Frontier.
Fortune, 128(7), pp. 153-162.

U.S. Department of Commerce (1992). Statistical Abstract of the
U.S. 1992, Washington D.C.

U.S. Department of Transportation (1993). Transportation
Implications of Telecommuting, Washington D.C.

The White House (1993). The National Information Infrastructure
Agenda For Action. NTIA NII Office, Washington, D.C.

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BIOGRAPHICAL NOTE:

Dr. Michael Paul currently is an Assistant Professor of MIS at
Barry University in Miami Shores, Florida. He graduated from
Ohio State University with a B.A. in Theatre. He was awarded a
B.S., M.S., and a Ph.D. in Computer Science from Florida
International University. His present position was preceded by a
15 year career in industry.

Dr. John Gochenouer currently is an Associate Professor of MIS
and Management at Barry University in Miami Shores, Florida. He
graduated from the University of Maryland with a B.S. in Finance.
He was awarded the M.B.A. with a Management Science
concentration, also from the University of Maryland. He received
a Ph.D. in Management Theory from the Florida Institute of
Technology. His present position was preceded by a 15 year
career in industry in which he served in MIS management
positions.

Michael J. Paul
Andreas School of Business
Barry University
Miami Shores, Florida
(305) 899-3518
PAUL@buvax.barry.edu

John E. Gochenouer
Andreas School of Business
Barry University
Miami Shores, Florida
(305) 899-3516
GOCHEN@buvax.barry.edu

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Interpersonal Computing and Technology: An Electronic Journal for
the 21st Century

Copyright 1994 Georgetown University. Copyright of individual
articles in this publication is retained by the individual
authors. Copyright of the compilation as a whole is held by
Georgetown University. It is asked that any republication of
this article state that the article was first published in
IPCT-J.

Contributions to IPCT-J can be submitted by electronic mail in
APA style to: Gerald Phillips, Editor IPCT-J GMP3@PSUVM.PSU.EDU