NEW ECONOMY
Taking the Pulse of Technology at Davos
By JOHN MARKOFF
Published: January 31, 2005
AVOS, Switzerland NICHOLAS
NEGROPONTE, the technology guru from the Massachusetts Institute of Technology
Media Laboratory, prowled the halls of the World Economic Forum holding the
holy grail for crossing the digital divide: a mock-up of a $100 laptop computer. The
machine is intriguing because Mr. Negroponte has struck upon a remarkably
simple solution for lowering the price of the most costly part of a laptop
- the display - to $25 or less. | Advertisement
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He
has been a passionate advocate of using digital technology to improve the
quality of life and erase economic barriers in the developing world since
the early 1980's, when he took Apple II computers to Senegal with his colleague Seymour Papert. Now,
in partnership with Joseph Jacobson, a physicist at M.I.T., he wants to persuade
the education ministries of countries like China to use laptops to replace
textbooks. He has not yet found a customer. Indeed, his mission has
been complicated at Davos 2005 because the digital divide and the information
technology industry are no longer the center of attention at this annual
intimate gathering of the world's most powerful and wealthy. The digital power elite remain in vogue. Bill Gates of Microsoft, Eric Schmidt of Google and Carleton S. Fiorina of Hewlett-Packard
played prominent roles, as usual, at the January forum. There was a distinct
shift, however, away from geek chic and toward traditional star power: Richard
Gere, Sharon Stone, Angelina Jolie and Bono took center stage. The
rush to close the digital divide began in earnest at Davos in 1998 during
the height of the dot-com era, driven by American executives like John Chambers
of Cisco and John Gage of Sun Microsystems.
Committees were formed, money was committed and during the next three years
the idea of digital equity became a rallying cry for the world's dot-com
elite. "It was really cool, but in the end we got nothing done," one executive candidly acknowledged. At
the time, Mr. Gates was a notable skeptic, arguing that it was more important
to address basic life necessities - health and food, for example - before
connecting the world's poorest citizens to the Internet. Although he
was widely criticized for his remarks then, he now appears to have been vindicated.
Mr. Gates was in the thick of the plenary discussions at the 2005 Davos forum
- considering ways of eliminating poverty and disease that do not encompass
information technology. In a late-evening discussion Jan. 28, however,
he acknowledged the shift in emphasis: "I think it's fascinating that there
was no plenary session at Davos this year on how information technology is
changing the world." Despite technology's absence from center stage,
there was a general consensus that many of the technology companies have
dug in for the long haul with significant education initiatives in countries
like Jordan and Egypt, with support from companies like Microsoft and Cisco. Mr. Negroponte said that he had found initial backing for his laptop plan from Advanced Micro Devices and said that he was in discussions with Google, Motorola, the News Corporation and Samsung for support. The
device includes a tentlike pop-up display that will use the technology now
used in today's rear-projection televisions, in conjunction with an L.E.D.
light source. Mr. Negroponte said his experience in giving children
laptop computers in rural Cambodia had convinced him that low-cost machines
would make a fundamental difference when broadly deployed. "You can
just give laptops to kids," he said, noting that they quickly take advantage
of the machines. "In Cambodia, the first English word out of their mouths
is 'Google.' " Advanced Micro, Mr. Negroponte's first backer, brought
its own low-cost computer initiative to Davos 2005. Hector de J. Ruiz, the
chief executive, said that the company believed that its new Personal Internet
Communicator, or PIC, might have a broader market than just developing countries. At
the 2004 Davos forum, the company started an effort to give half the world's
population access to the Internet by 2015. Currently, about 12 percent of
the world is connected. Now, Mr. Ruiz said, Advanced Micro has been
working with a variety of mainstream applications for low-cost computing,
ranging from inexpensive Web surfing terminals to digital cash registers. The
PIC, which sells for $185 without a monitor and comes with a stripped-down
version of Microsoft Windows, is housed in a rugged sealed case without a
fan. "With very minor alternations we can create a variety of new platforms," he said. The
box, which Advanced Micro hopes to shrink to the size of a deck of cards
soon, has generated a good deal of interest. But the availability of an inexpensive
device that can do the work of its higher-priced cousins will undoubtedly
create challenges for high-technology companies as they try to sell low-cost
versions of hardware and software products that are far more expensive in
the developed world. Several people at the conference, for example, suggested that Intel
had shied away from inexpensive laptops for fear of cannibalizing its fastest-growing
market. An Intel executive, speaking at the conference, responded that the
company believed in offering computer users a wide variety of options. Mr.
Negroponte said he was confident that his computers, which run the free Linux
operating system, would find a ready market as early as 2006. "China is important because there are 220 million students," he said.
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