Telecommunications: Shaping the Future
Introduction
More than fifteen years ago, The Public Interest published
a pair of articles under the heading, "Is the Inner City Doomed?"
by Norton Long and by George Sternlieb, that were equivalent to a
funeral oration for central cities. While Long analyzed the political
forces contributing to urban decline, Sternlieb declared that "The
major problem of the core areas of our cities is simply their lack
of economic value . . . the city has lost its raison d'être."(1)
The race riots of the 1960s gave way to the fiscal crises of the 1970s,
and by the end of the decade, higher oil prices, racial conflict,
demographic shifts, and the decline of manufacturing were listed as
contributors to the decline and fall of American cities. In the final
days of the Carter administration, a presidential commission issued
a celebrated report that sealed the city's casket, stating:
. . . the nation can no longer assume that cities will perform
the full range of their traditional functions for the larger society.
They are no longer the most desirable settings for living, working,
or producing. They should be allowed to transform into more specialized
service and consumption centers within [the] larger urban economic
system.(2)
The principal source of hope for the revitalization of American cities
was gentrificationthe return of the middle class to the cities, either
as residents or shoppers. The industrial city was to give way to the
city of consumption, warehouses were recycled into condominiums, piers
were converted into "galleria," and factories were rebuilt
as restaurants. James Rouse succeeded Frederick Olmstead as the leading
force in shaping urban activity patterns, providing a new locus for
commercial recreation alongside waterfronts where the sailing ship
had evolved from a mode of transport to a tourist attraction.
In this essay, I argue that a handful of large central cities are
still vital elements in America's economic landscape and that advances
in telecommunications technology are strengthening the information-based
activities of the largest urban centers. The essay consists of four
parts. The first part briefly reviews the principal schools of thought
on communications technology and urban growth. The next section discusses
recent changes in telecommunications policy and the effects of deregulation
on the nation's telecommunications infrastructure. In the third part,
urban information flows and the penetration of new telecommunications
systems in cities are analyzed. The final section proposes a new urban
hierarchy based upon the role of cities as information-producing centers.
Cities and Information Technology
With the movement of manufacturing firms out of central cities, many
scholars began to focus on the growth of the "service sector"
in the urban economic system. Noyelle and Stanback emphasized the
importance of "producer services" and described an "emerging
pattern of metropolitan specialization:"
While there has been a considerable decentralization of manufacturing
production and residential population both away from the older regions
and away from the largest centers, activities of the corporate complex
have decentralized little, and have grown disproportionately in
a selected number of centers, mostly in the diversified and specialized
service centers described above.(3)
While the "producer services" framework is a useful point
of departure for studying urban functions, it is more accurate to
treat cities as "information" rather than service centers.
It is information, not services, that is the principal currency of
cities. As Jean Gottmann noted in his classic, Megalopolis,
"since the office industry is communications-oriented, its essential
raw material is information."(4) Yet few scholars have sought
to examine how information moves within and among cities. A notable
exception is Pred, who has pointed out: "Perhaps the most telling
inadequacy of classical theory is its neglect of information as a
location factor."(5)
Information is transmitted in a variety of ways, in face-to-face
encounters, on paper, over the telephone, and through computer networks.
One of the central city's historic functions has been its ability
to facilitate face-to-face contact among a large number of people
with similar interests in close proximity to each other. Tobier's
analysis of the New York City central business district recognizes
the value placed on such direct contact for specialized business services.
"The key individuals in such enterprises are concerned with the
production of answers to unstandardized problems: problems that change
frequently and unpredictably. . . . Because speed in decision-making
is vital, even the swiftest means of travel may be too slow while
the complex (and intangible) source of the problem often precludes
the use of the telephone. Considerations such as these dictate that
these offices, for efficiency's sake, cluster very close to each other
and to those who service or supply them. . . . The reason for the
existence of the CBD is the interaction it makes possible, and the
most valued interaction, to put it crudely, is that which takes place
between its highest paid workers."(6)
Despite the hyperbole of futurists about teleconferencing and the
paperless office substituting for meetings and memos, new technology
has done as much to reinforce traditional modes of communication as
to undermine them. For example, the success of Federal Express demonstrates
the high value that individuals and firms place on getting documents
delivered overnight, and the capacity to use computer-dispatched trucks
to pick up and deliver packages that are shipped by airplane and coordinated
through a satellite network. With all the technological advances of
the past decade, there is still no substitute for face-to-face contact
to transmit timely information from trusted sources reliably and confidentially.
Certainly, the growth of professional trade associations and lobbying
firms in Washington, D.C., affirms the benefits of physical proximity
in generating and obtaining information on public policy. Similarly,
the "insider trading" scandals in the securities industry
show that certain activities are best done in person, rather than
over the telephone, where records of outgoing calls are a matter of
public record. Meier has even suggested that the demand for urban
transportation systems is closely associated with the use 'of the
telephone in business activity.
The telephone system, therefore, is an important factor in the
reduction of transport congestion on the streets in the built-up
areas of cities. Its main contribution is in the period between
rush hours during the day. Indirectly, however, the telephone system
may actually exacerbate the traffic peaks. The heavy dependence
upon a single, simultaneous daytime shift in the downtown areas
may be attributed in part to the need for everyone to man his business
extensions simultaneously in order to expedite the implementation
of decisions and also not to miss the best oonortiinities.(7)
There are two approaches to the effects of communications technology
on office location. The conventional wisdom is that new communications
technologies will eliminate the need for central cities since technology
makes it possible to transact business without requiring face-to-face
contact. Representative of this thinking is Anthony Pascal, who states,
"The newly emerging technologies will soon begin to provide excellent
substitutes for face-to-face contact, the chief remaining raison d'être
of the traditional city."
. . . Development of the electronic briefcase and the refinements
of the cellular telephone promise even more disengagement between
workers and fixed, centralized facilities. In the future then, many
will be able to work virtually anywhere. Given a preference for
low-density residence in amenity-rich areas, which a large fraction
of the population expresses, further depopulation of cities seems
inevitable.(8)
The appeal of telecommunications as a force for geographic dispersal
fits into several ideological strands. First, certain corporations
regard telecommunications as an opportunity to gain access to a low-wage,
non-unionized labor force; second, residual hippies consider telecommunications
as facilitating a return to nature; and three, futurists, always in
search of a new technological fix, regard communications technology
as a cure for the crime and congestion of the city. Richardson reflects
the view of most regional development theorists who believe that telecommunications
technology is reducing the importance of agglomeration economies and
hence of central cities.
. . . rapid changes in telecommunications and computer technology
are reducing the need for face-to-face contacts and eroding the
benefits gained from minimizing communication costs. If spatial
proximity is no longer a major efficiency factor for firms in interdependent
industries and for departments within the same company, agglomeration
economies are weakened and locational constraints are substantially
relaxed.(9)
An alternative approach, taken by Jean Gottmann, argues that the
telephone has had a "dual impact" on office location: ".
. . first, it has freed the office from the previous necessity of
locating next to the operations it directed; second, it has helped
to gather offices in large concentrations in special areas."(10)
Despite the fact that telecommunications has both centralizing and
decentralizing tendencies, most writers have focused on the extent
to which telecommunications has weakened, rather than strengthened,
central city locations. The paucity of empirical research on the role
of communications technologies in urban development is especially
surprising, in light of Vernon's forecast, more than a quarter-century
ago, that advances in air travel and communications would lead to
an increased concentration of decision-making personnel in a handful
of cities.
The most probable outcome of the increased freedom offered by swifter
air travel will be the further concentration of the office elite
at a few headquarters cities. This tendency will be fortified by
the use of high-speed electronic data-processing machines. For these
machines will contribute to the centralization of data-processing
and decision-making at fewer points in the structure of the giant
company. Though it is not a foregone conclusion that the data-processing
activities will be located under the same roof as the decision-makers,
there is typically a preference for locating them in some degree
of proximity.(11)
Vernon's predictions about locational trends have turned out to be
remarkably prescient. Advanced information systems allow a firm to
control virtually all corporate activities around the world from a
single point, whether in a central city or suburb. Peter Keen has
described this process as "centralization within decentralization"
and has noted that telecommunications may increase control through
ownership of data and the ability to monitor decentralized units."(12)
Further, with the rash of corporate takeovers and acquisitions, many
small- and medium-size cities are losing their traditional role as
headquarters sites to a handful of metropolitan centers. For those
firms headquartered in large central cities, back office functions
are increasingly located in separate facilities, typically at a lower-cost
site on the periphery of the central business district or in a nearby
suburban community with good access to the central city.(13)
It is noteworthy that a relatively small number of central cities
continue to serve as magnets for office activities in an era when
communications technology ostensibly makes all locations equal. The
increased use of information and telecommunications technologies has
not diminished the importance of the human and transportation infrastructure
available in major metropolitan regions nor has it stimulated office
activity in rural areas. Certainly, the availability of new telecommunications
systems has not led to the mass migration of information-intensive
activities to America's hinterland. Rather, the dispersion of computer-processing
facilities and back offices has been to metropolitan sites that possess
one or more of the following attributes: skilled, white-collar labor,
access to major airports (for delivery of checks, payments, etc.),
proximity to a Federal Reserve Bank or branch office, or to jurisdictions
that offer firms a strategic advantage, such as deregulated banking
services.
While routine clerical activities are moving out of cities, the non-routine,
highly specialized information functions of certain cities are flourishing.
Those cities whose economic life is based on the exchange of information,
both face-to-face and electronically, are being enhanced by the capacity
to participate in the increased global marketplace for business services
through communications technologies. Indeed, Chinitz suggests that
communications technologies will improve the efficiency with which
information is transmitted in central cities: ". . . technological
developments and capital investments which facilitate interaction
within the CBD and reduce congestion favor the CBD by expanding its
holding capacity. . . . the new CDP (computer and data processing]
technologies, by facilitating communication within the CBD will expand
its capacity."(14) The challenge for researchers is to determine
how new communications technologies will influence the face-to-face
activities that occur in cities, which cities will benefit from the
increased use of information technologies, and why.
The New Urban Telecommunications Infrastructure
Until recently, the movement of voice and data messages was provided
by the "Bell System," a fully-integrated communications
company that consisted of AT&T Long Lines, twenty-two local telephone
companies, Bell Laboratories, and Western Electric. AT&T - in
cooperation with independent companies serving half of the nation's
area but only 20 percent of its populationprovided what was known
as "end-to-end" service that began with the highly reliable,
if uninspired, telephone instruments manufactured by Western Electric.
AT&T subsidiaries provided local service to homes or businesses,
and AT&T Long Lines provided long-distance service to any point
in the United States.
In contrast with the local power utility that simply provided electrical
current, AT&T provided the telephone line plus the attachable
equipment - the equivalent of Con Edison providing electricity, blenders,
refrigerators, and all of the other appliances that can be plugged
into an outlet. Unlike electrical appliances - which have been subject
to considerable innovation - the choice of telephone equipment was
highly restricted, and one paid a premium for anything beyond the
basic black rotary telephone. AT&Ts control was so extensive that
telephone answering machines (once they were allowed) initially had
to be registered with the FCC and notification had to be given to
the local telephone company. Can anyone imagine urban social life
without the telephone answering machine? AT&T's control began
to erode, and telephone equipment became the first part of AT&Ts
business to be opened to other suppliers in 1968. This was followed
by long-distance services in 1969, when MCI was authorized by the
FCC to provide long-distance, private-line service along a microwave
route between St. Louis and Chicago.
Subsequent deregulatory rulings by the Federal Communications Commission
and the courts led to further competition in the telecommunications
industry. These rulings culminated in the AT&T divestiture in
1984, which separated local and long-distance telephone service. Under
the terms of the decree that approved the breakup, AT&T provides
long-distance service and can manufacture and sell telecommunications
and computer equipment and electronic data-processing services. The
seven regional holding companies spun off by AT&Ta consolidation
of the original twenty-two Bell telephone companiesare responsible
for telephone service within Local Access and Transport Areas (LATA).
In addition, they publish telephone directories, operate cellular
mobile telephone systems, and are seeking to diversify into a broad
range of new ventures.
The consumer who once relied on AT&T for telecommunications planning
and procurement must now become an involved decision-maker. For small
business and residential users, decisions concerning telecommunications
equipment and long-distance service now require an assessment of competing
alternatives. Large businesses no longer treat communications as just
a cost of doing business, but as part of their corporate strategy;
therefore, such firms are increasingly involved in developing their
own proprietary networks as well as relying on major communications
carriers. For example, telecommunications is now the third largest
cost for Citicorp, after salaries and real estate. The deregulation
of the telecommunications industry in the United States and the privatization
of telecommunications in other advanced industrial nations is leading
to the creation of a new telecommunications infrastructure designed
to serve the information-intensive activities of large metropolitan
regions. Decisions concerning investment in new telecommunications
systems are no longer made solely by governmental agencies concerned
with uniformity of service; rather, in today's competitive environment,
decisions concerning telecommunications infrastructure are based upon
market demand, and the largest, most information-intensive cities
are the first to be equipped with the latest telecommunications transmission
and switching equipment. New fiber optic systems favor heavily used
communication routes, and they are typically being built along to
link major cities, using the rights-of-way that were initially granted
for the railroads of the nineteenth century.(15)
Although not commonly recognized, the economics of the telephone
industry have long been distorted by regulatory policies. For example,
it is cheaper to build and operate a telephone system to serve 10,000
urban households living within ten square miles than to provide equivalent
telephone service to 100 households distributed across 1,000 square
miles. Just imagine how much more efficient it is to spread the costs
of a telephone company central office and equipment over 10,000 households
in Washington, D.C., than over 10,000 households in West Texas. However,
an elaborate system of cross-subsidies, based upon well-established
federal and state government policies, has meant that the price of
telephone service for the household has been roughly comparable across
the country, with urban areas subsidizing rural areas. This policy
stands in stark contrast to pricing policies for such important services
as water supply and energy, where the price of service varies greatly
across the nation, notwithstanding the enormous federal subsidies
for the construction of dams and power facilities.
Telecommunications deregulation is gradually leading to the elimination
of cross-subsidies and to a new telecommunications infrastructure,
characterized by a multiplicity of telecommunications networks, where
the choice and type of service will vary substantially, depending
upon the size and scale of the market. Most important, the spread
of fiber optic systems, "smart buildings," and national
paging systems is already revealing that the new emerging telecommunications
infrastructure will favor those metropolitan areas with information-intensive
industries and lead to disparities between urban and rural telecommunications
systems. For example, according to the Urban Land Institute, as of
January, 1985, fifty-one buildings offered shared tenant services,
and half of them were located in four metropolitan areasNew York,
Washington, D.C., Chicago, and Dallas-Ft. Worth. Similarly, a national
radio paging system is now being installed in thirty major metropolitan
areas, with other regions to be served at a later date. The diffusion
of new telecommunications systems is favoring the major metropolitan
areas, and within the metropolitan regions, large central cities are
the first to have choice and competition in business communirafinn
services.(16)
Information Flows as a Measure of Urban Activity
It is ironic that the U.S. Census gathers more data about the number
of households with indoor plumbing than the type of information systems
in homes and offices. In an information age, we must look beyond traditional
measures such as population size, land area, or employment.(17) The
world's top ten cities in terms of population are not the principal
world cities with regard to amount of economic activity, location
of information industries, or the flow of communication messages.
The number of people living in a city may be an adequate measure of
a city's importance in a nation-state, but it does not fully measure
the significance of a city in todays global economy. Population size
was critical to city growth when the purpose of cities was to provide
large numbers of laborers to work in factories devoted to the manufacture
and assembly of goods; today, the location of foreign banks, number
of long-distance telephone calls, and penetration of telex machines
may be a more appropriate barometer of a city's economic health and
vitality.(18) In order to look at information-based activity, multiple
measures are needed: in this paper, the penetration of facsimile machines
is used to measure the presence of telecommunications-intensive firms;
the flow of private international mail is examined to show the sources
and recipients of high value documents; and finally, the movement
of international air passengers and airmail is examined as a means
to depict the linkages with international cities.
An example of a measure that reflects the extent of a sophisticated
telecommunications infrastructure is the presence of facsimile machines
which deliver hard copies of documents instantaneously to physically
removed locations. The basic technology has been in existence for
decades and involves a device that reads the hard copy, transmits
it by phone lines, and returns it to hard copy form at the other end
of the phone line. Potentially, facsimile machines are available in
any location where there is phone service. In reality, it is only
available in unregulated form within national boundaries.
This analysis of the location of facsimile machines is restricted
to cities in the United States with the largest concentration of such
machines and compares these cities to the largest U.S. cities as measured
by population. This discussion demonstrates that information infrastructure
and population size are not necessarily correlated, and that information
is a separate and distinct measure of the economic activity in a city.
Cities with a high concentration of facsimile machines are likely
to have firms that are information-intensive and invest in such equipment
in order to facilitate ongoing contact with firms within the region
or in other parts of the nation.
Facsimile machines are used by a diversity of industries and have
a dispersed locational pattern, according to a survey of banking,
communications, and business firms listed in The Official Facsimile
Users Directory.(19) A comparison of cities by number of facsimile
machines and population shows that several of the cities with large
numbers of facsimile machines are cities with relatively small populations.
As shown in Figure 9-1, the most striking cities with a high per capita
number of facsimile machines are San Francisco, Washington, D.C.,
Atlanta, Boston, and Pittsburgh.
San Francisco is ranked third in number of facsimile machines for
the industries examined, yet is ranked 13 in terms of population size.
Washington, D.C. has the fifth largest number of facsimile machines
and is seventeenth in population size. Atlanta ranks sixth for facsimile
machines, but is the 31st largest city in the U.S. Boston ranks seventh
in number of facsimile machines and 20th in population size. Finally,
Pittsburgh has the tenth largest number of facsimile machines in the
industries examined, but is only the 33rd largest city. Cities with
the largest numbers of facsimile machines are not necessarily the
same cities as those with the largest populations.
New York, Los Angeles, Chicago, Houston, and Dallas follow a more
traditional pattern. Each of these cities is in the top ten for both
incidence of facsimile machines and population. On the other hand,
the cities of Phoenix, San Diego, Philadelphia, San Antonio, and Detroit
are among the top ten in population, but do not appear in the top
ten for number of facsimile machines. How far below the top ten is
difficult to determine currently, but population levels for these
cities do not appear to be directly related to this measure of information
production and flow.(20)
PRIVATE INTERNATIONAL MAIL AS A MEASURE OF INFORMATION FLOW
Another important measure of information-based activity is the use
of private mail services. While Federal Express is the largest firm
in the United States, the largest private international firm for document
and package delivery is DHL Worldwide Ltd. Unlike the previous measure
of facsimile penetration, private mail is a direct measure of information
flow, and because the cost to send a document is relatively high,
approximately $50, most of the use is for business purposes rather
than for personal correspondence.
Here we examine international communication from the United States
to Japan and Southeast Asia to determine the major information sources
in the U.S. and leading recipients of this information. Although this
data set addresses states as information producers rather than urban
areas as information producers, data available for Japan includes
information on document deliveries both to and from Japan, and it
provides information on the magnitude of deliveries to and from six
U.S. cities as well as by state of origin or destination. A comparison
of city and state totals provides some indication of how important
these cities are as major information producers in their states.
Japan is the major recipient of DHL deliveries in Southeast Asia
and receives almost twice as many documents as the next largest recipient,
Hong Kong. Other Southeast Asian countries that receive significant
numbers of DHL documents from the U.S. include South Korea, Singapore,
Taiwan, and the Philippines. In all cases, California and New York
are the origins of a significant proportion of the documents. Texas
is also responsible for a significant proportion of the total number
of documents Singapore receives from the U.S., and accounts for between
5 and 10 percent of the documents sent to other regions. Illinois
and New Jersey consistently originate a moderate amount (between 5
and 10 percent) of documents sent to each region examined. All other
states consistently provide less than 5 percent of the documents to
each country.
Japan sent 325,469 documents to the United States in 1985. California
received the greatest number of documents, and New York State was
the second largest recipient (Figure 2). In fact, New York State and
California received a total of 52.2 percent of the documents sent.
The major metropolitan areas in those states account for the vast
majority of the traffic (Figure 3). Illinois, New Jersey, and Texas
each account for slightly more than 5 percent of the document traffic
from Japan. The other 45 states account for less than 5 percent each
- 30.4 percent in aggregate.
A comparison of metropolitan area data with the level of state traffic
permits conclusions to be drawn about the importance of these cities
as their states' central information producers or recipients. Information
is available for six cities: New York, Los Angeles, San Francisco,
Memphis, Dallas, and Portland, Oregon. For the purpose of this paper,
New York, Los Angeles, and San Francisco were examined in detail since
these cities are in the two states that consistently have the greatest
volume of document traffic with Japan and Southeast Asia. New York
City, San Francisco, and Los Angeles are the points of origin for
45 percent of all documents sent to Japan (Figure 4). Of all documents
originating in California, San Francisco accounts for 51.2 percent,
and Los Angeles accounts for 44 percent. Together, the two cities
account for a total of 95.2 percent of all documents originating in
California. New York City originates 94.7 percent of all New York
State documents sent to Japan. This indicates that the majority of
DHL traffic from New York and California destined for Japan is centered
in the major urban areas.

Similar trends are apparent for traffic from Japan to the United
States. In this case the traffic to the United States totals 325,469
documents. Almost 50 percent of the documents sent were destined for
New York City, Los Angeles, and San Francisco. New York City accounts
for almost all traffic in New York State (97.2 percent). Los Angeles
and San Francisco together account for 90.3 percent of deliveries
made to California.
These comparisons of document flows to and from cities in the most
important information states show that the major cities account for
the majority of information flows observed. New York State and California
are the points of origin for an overwhelming proportion of the total
number of documents sent to Japan and Southeast Asia. For every significant
destination in the region, New York State and California each provided
20 to 30 percent of the traffic received. In addition, the states
of Texas, New Jersey, and Illinois are consistently the origin points
for a moderate amount of the traffic (see Figure 5). Information flow
from the United States to this region occurs predominantly in the
states with the largest urban centers. Based upon preliminary evidence,
the information flows to and from states identified as major information
producers are primarily flows to and from the urban centers in those
states. In both California and New York State, information flows to
and from Japan were almost exclusively to San Francisco, Los Angeles,
and New York City.
It is important to note that mail traffic has always been an indicator
of urban activity. Pred's study of information flows in the United
States found a similar pattern of urban concentration in mail, though
the specific cities were somewhat different. "In total terms,
if not in per capita terms, New York and the other major northeastern
ports dominated private information exchange through the mails in
the final pretelegraphic decades."
. . . In the early 1820s, when New York had little more than 1.5
percent of the nations population, the city accounted for about
8.5 percent of all postal receipts. . . . In both the early 1820s
and the early 1840s, as well as at every intervening date for which
data has been found. New York, Philadelphia, Boston, and Baltimore
took in close to one-quarter or more of United States postal receipts,
although the four cities had only 3.92 percent of the nations population
in 1820, and 4.94 percent in 1840.(21)
Figure 6 presents data on the leading international cities that originate
private international documents. London is the leading producer of
private international mail, followed by New York and Tokyo. The presence
of Seoul, Singapore, and Hong Kong in this list may reflect the limits
of telephone usage and time shifts but, nonetheless, it illustrates
the prominence of these Pacific Rim cities as information capitals.
What is most striking is the position of Los Angeles as the seventh-leading
international information producer.
An Information-Based Urban Hierarchy
The preceding discussion has emphasized the need for new conceptual
and empirical approaches to communications technology and urban development.
Telecommunications is creating a new urban hierarchy, in which certain
cities will function as international information capitals, with the
most extensive electronic infrastructure and richest opportunities
for human interaction. Other cities will serve as regional information
hubs, linked to the principal international capitals, but with a less
extensive geographic reach. In observing metropolitan dispersion,
Castells also found a pattern of urban centralization.
. . . the new technologies also enhance, simultaneously, the importance
of a few places as locations of those activities that cannot easily
be transformed into flows and that still require spatial contiguity,
thus, reinforcing considerably the intraurban hierarchy. In the
informational city, spatial singularity and urban centrality become
even more important than in the industrial-commercial city, precisely
because of their unique locational requirements.(22)
Advances in communications technologies do not operate in a vacuum;
rather, for those cities that already have a strong set of information-processing
functions, technology can extend the boundaries of the markets that
such cities serve. Further, technology has not eliminated the importance
of direct human contact as a mode of information exchange in business
and government. Even in the technologically intensive trading rooms
of financial institutions, direct visual and audio contact is still
essential, despite the extensive video displays and telephone lines
that each trader relies on. As an article in the Financial Times stated,
"Notwithstanding the sophisticated electronics, the most efficient
way of announcing a market crisis fast is to stand up and shout. That's
another reason for open plan floors with as wide as possible an area
of vision and one presumes - good acoustics."(23) Moreover, the
elaborate and expensive trading rooms designed for financial institutions
are remarkably similar in certain ways to the informal markets and
stock exchanges that once occupied street corners before there were
skyscrapers.
The trading area can be thought of as a kind of theatre in which
everyone is an actor and in which every actor needs to see what
everyone else is doing.(24)
Telecommunications is not necessarily an anti-urban force; rather,
it is fostering a new urban hierarchy of cities that are able to take
advantage of the demand for information-based activities in a global
economy. The strong real estate market that characterizes the downtown
areas of New York, Boston, Los Angeles, and Washington, D.C. and the
investment in new telecommunications systems to serve those cities,
reflect what Kasarda calls "the transformation of older cities
from centers of production and distribution of material goods to centers
of information exchange and service consumption."(25) The engine
of future urban economic development is information, and communications
technology is saving, not destroying, those cities that are the leading
information producers. Unfortunately, the human infrastructure to
work in information-intensive industries has not kept up with the
technological infrastructure. Finally, it is essential to recognize
that the individuals and firms that choose to do business in the central
city are not locating there in spite of telecommunications, but because
telecommunications is able to enrich and extend the power of the ideas
and decisions that are exchanged in face-to-face encounters.
NOTES
1. George Sternlieb, "The City as Sandbox," The Public
Interest, Nc 25, Fall 1971; Norton E. Long, "The City as
Reservation," The Public interest No. 25, Fall 1971.
2. President's Commission for a National Agenda for the Eighties
Report of the Panel on Policies and Prospects for Metropolitan and
Non-Metropolitan America, Urban America in the Eighties: Perspectives
and Prospects. Washington, D.C.: U.S. Government Printing Office,
1980, p. 4.
3. Ibid, p. 5.
4. Jean Gottmann, Megalopolis: The Urbanized Northeastern Seaboard
of the United States. Cambridge, MA: MIT Press, 1961, p. 597.
5. Allan R. Pred, "Industry, Information, and City-System Interdependencies."
In Spatial Perspectives on Industrial Organization and Decision-Making,
" F.E. lan Hamilton (ed.). New York: John Wiley & Sons, 1979,
p. 105.
6. Emanuel Tobier, "Economic Development Strategy for the City."
In Lyie C. Fitch and Annmarie Hauck Walsh (eds.), Agenda for a
City. Beverly Hills, CA: Sage Publications, Institute of Public
Administration, 1970, pp. 60-61.
7. Richard L. Meier, A Communications Theory of Urban Growth.
Cambridge, MA: MIT Press, 1961, p. 100.
8. Anthony Pascal, The Vanishing City: How Technology Induces
Urban Entropy and What's To Be Done About It? The Rand Corporation,
1985.
9. Harry W. Richardson, "Regional Development Theories,"
Economic Prospects for the Northeast, Temple University Press,
1985, p. 23.
10. Jean Gottmann, "Megalopolis and Antipolis: The Telephone
and the Structure of the City." In lthiel de Sola Pool (ed.),
The Social Impact of the Telephone. Cambridge, MA: MIT Press,
1977, p. 305.
11. Raymond Vernon, Metropolis 1985. Cambridge, MA: Harvard
University Press, 1960, pp. 84-85.
12. Peter G.W. Keen, Competing in Time: Using Telecommunications
for Competitive Advantage. Cambridge, MA: Ballinger Publishing
Co., 1986, p. 68.
13. Mitchell L. Moss and Andrew Dunau, "Will
the Back Offices Leave the Central City?" Real Estate
Review, Vol. 17, No. I, Spring 1987, pp. 62-68.
14. Benjamin Chinitz, "The Influence of Communications and Data
Processing Technology on Urban Forms." In Robert D. Ebel and
John P. Ross (eds.), Research in Urban Economics. Greenwich,
CT: JAI Press, 1984.
15. Mitchell L. Moss, "Telecommunications Policy and Cities,"
Intermedia, Vol. 14, No. 6, November 1986.
16. Mitchell L. Moss, "Can
States Face the Future: A New Agenda for Telecommunications Policy?"
New York Affairs, Vol. 9, No. 3, 1986.
17. George Sternlieb and James W. Hughes have discussed the limits
of traditional measures of central city business and service demand
in "The Uncertain Future of the Central City," Urban
Affairs Quarterly, Vol. 18, No. 4, June 1983, p. 470.
18. For a good discussion of computer networks in regional development,
see Mark Hepworth, "The Geography of Technological Change in
the Information Economy," Regional Studies. Vol. 20, No.
5, October 1986.
19. Facsimile Users Directory, Facsimile Directory of Publisher
Associates, Stanley Greenfield (ed.). New York, 1986. The category
of banking includes banks and credit unions. Communications firms
include common carriers and equipment manufacturers. The business
category includes management consulting firms, computer software and
hardware firms, as well as a variety of miscellaneous categories of
other firms.
20. One caveat to these findings is that they are based on three
industries rather than incidence of facsimile machines as a whole.
It may be that the data are capturing regional trends that have to
do with locations of industry types rather than real differences in
information needs. This objection will be addressed in the course
of further research on telecommunications systems and cities.
21. Allan Pred, Information Circulation and the Process of Urban
Growth: The U.S. System of Cities, 1790-1840. Cambridge, MA: Harvard
University Press, 1973, p. 93.
22. Manuel Castells, "High Technology, Economic Restructuring,
and the Urban-Regional Process in the United States," High
Technology, Space, and Society, M. Castells (ed.), Urban Affairs
Annual Reviews, Volume 28, Sage Publications, 1985, p. 18.
23. "Space Matters More Than Location," Financial Times,
October 27, 1986, p. XL.
24. Accommodating the Changing City. Report prepared for Rosehaugh
Stanhope Developments PLC by DEGW, Research Consultants and Space
Planners, London, April 1985, p. 35.
25. John Kasarda, "Urban Change and Minority Opportunities."
In Paul Peterson (ed.). The New Urban Reality. Washington,
D.C.: The Brookings Institution, 1985, p. 43.
Originally published in America's
New Market Geography,
James W. Hughes, George Sternleib, eds.
Rutgers, New Brunswick, NJ 1988