American History 1988
Chapter 284 - 274 No Other Choice

Chapter 284: Chapter 274 No Other Choice

In the conference room, under the watchful or indifferent eyes of everyone present, Cohen struggled to maintain his composure as he sat down expressionlessly by the vacant table.

His assistant, nervous, almost knocked over the freshly served coffee.

Cohen wanted to scold him, but when he looked up and saw the imposing crowd opposite him, he gulped down the words.

Well, facing the scrutiny of over thirty people’s gazes was truly a daunting task.

Even though Cohen was experienced in such situations, facing so many people alone at a single table still caused him to look solemn.

The other side hadn’t intentionally arranged for unrelated onlookers who were there for the spectacle, but the setup was definitely intentional.

The overwhelming pressure seemed to surge from all directions.

"Mr. Cohen, first of all, welcome to today’s network services conference.

Although IBM is a bit late to the game, fortunately, we have finally gathered all of America’s ISP operators."

After everyone was seated, Dean’s opening remark made many people chuckle quietly.

Then they all looked at Cohen across the table, whose complexion, needless to say, became even uglier.

This statement was actually a jibe at IBM’s previous dictatorial policies, and what was the result now? They still had to sit down and negotiate obediently.

"Mr. Price, I attended today’s meeting at the invitation of Congressman Rick Boucher.

IBM is very much looking forward to resolving the network connectivity issues following the NSFNet shutdown, but it seems that no one here is concerned about that.

We don’t feel respected here!" Cohen’s speech was righteous as if he were the victim.

"It is precisely because of the mediation by Congressman Rick Boucher and Ms. Susan Estrada that we agreed to today’s meeting.

Otherwise, no one in the CIX Alliance would negotiate with IBM about future internet interconnectivity issues!"

Dean spoke very bluntly; after all, if you are asking for a favor, you should put aside your pride.

Yes, today’s meeting was also influenced by federal government intervention.

When the disputes were at their peak, they alarmed Congress.

Subsequently, the federal government decided to investigate the matter and appointed Rick Boucher as the subcommittee chair.

He held a hearing in March, where members of the CIX Alliance attended and accused IBM of monopoly practices.

The biggest impact of this affair was the change in Congress’s view of the CIX Alliance.

Obviously, IBM had caused public outrage; otherwise, there wouldn’t be so many against them.

Back then, Congress had already begun to deliberately limit IBM, completely controlling the soon-to-be-retired NSFNet.

It was also after that time that the CIX Alliance attracted a heavyweight member, Sprint.

Sprint, following AT&T, is America’s leading telecommunications operator, on a scale comparable to MCI.

With the addition of such a giant company, the situation began to change overwhelmingly.

Enterprise users used to choose IBM because of its brand reputation, but now the CIX Alliance also had such members.

So, many companies had stopped favoring IBM and instead chose the cost-effective CIX Alliance.

In just a few months, IBM lost most of its customers.

When the monopoly was broken, market choices began to return to rationality.

IBM, already in a difficult situation, naturally did not want to see its business shrink again substantially.

Therefore, they turned to Congress, hoping to get support there.

The federal government, as the mediator, has always encouraged private settlement between both sides in such situations.

And then came today’s meeting, which, to put it plainly, was IBM admitting defeat and bowing its head.

However, perhaps because he had been in the bureaucratic IBM for too long, Cohen still hadn’t recognized the current situation.

Dean didn’t want to waste any more words with him, "Mr. Cohen, IBM now has two choices.

First, maintain the status quo and then wait to be completely isolated by the CIX Alliance.

Second, join the CIX Alliance and achieve a nationwide network interconnectivity policy."

"IBM can join the CIX Alliance, but we must retain our independence."

Of course, Cohen hoped to join the CIX Alliance, otherwise IBM’s network business would barely survive.

As the isolation became more complete, IBM’s network services were no different from a large local area network.

Its users could only exchange data with each other, trying to contact non-IBM user companies was so difficult that sending even a single email was an exaggeration.

If things continued this way, IBM’s ANS department wouldn’t have a ghost of a chance for survival.

But even with joining, Cohen still wanted to propose some conditions.

Dean gave a slight smile to Cohen, who sat up straight and proper.

"Any operator within the CIX Alliance has retained their independence.

No matter the size, everyone is on an equal footing."

"No, what I mean by independence is pricing independence; IBM hopes to maintain its previous business model."

IBM needed the vast influence of the CIX Alliance to bring as many users as possible, but at the same time, it wanted to retain the traffic billing model.

Not lacking in traffic and still doing business—that would be perfect.

Regarding Cohen’s wishful thinking, Dean didn’t even bother to rebut.

"I’ll repeat what I said before, either join or maintain the status quo.

The CIX Alliance does not interfere in the business activities of its members, but they must give up the traffic billing model."

As long as they don’t charge by traffic, no one interferes with how much members charge, because the market will teach them a lesson.

The reason the CIX Alliance insists on this point is to hope everyone collaborates in nurturing the market instead of rushing to reap profits prematurely.

Only when more people get online can everyone make money.

And if IBM is treated specially, what will the other members think?

The market we’ve nurtured, just to facilitate IBM in shearing their sheep?

So this point is non-negotiable, Dean was quite adamant.

"This is the policy set by the CIX Alliance. If IBM can abide by the treaty, we welcome them; otherwise, the CIX Alliance does not mind completely abandoning ANS."

After Dean put down the materials in his hand, he left the conference room alone.

The other members also tacitly stood up, and within a few minutes, the vast conference room was left with only two representatives from IBM.

"Mr. Cohen?" the assistant cautiously reminded.

"Let’s go back. This decision is for others to make."

Cohen picked up the materials on the table and left the place without a word.

This was only the first negotiation between the two parties. Cohen needed to take the CIX Alliance’s terms back to IBM’s internal decision-makers.

Once an agreement was reached between the two parties, they would submit a draft bill to Congress, henceforth solidifying the basic policies for internet operation.

Without exaggeration, today’s negotiations were about contending for the future discourse power of the internet.

But Cohen was aware that IBM didn’t have much of a choice, as it did not possess enough bargaining chips.

The network lines of all members of the CIX Alliance combined had long surpassed the main NSF network lines controlled by IBM.

Now it was the CIX Alliance without IBM, a reversal of the previous situation.

"Dean, will IBM agree to our terms?"

As he left the conference room, Steve Case couldn’t help gossiping, a hint of anticipation in his eyes.

"IBM has no choice, and don’t forget the rumors of it going bankrupt that are still circulating on Wall Street."

The internet business is not IBM’s core; it will not spend a fortune to build its own communication empire.

So, to avoid being completely eliminated, IBM had no choice but to join the CIX Alliance.

Why would everyone be willing to negotiate with IBM for acceptance after being ruthlessly rejected by IBM?

Is it because of fear of the blue giant? Or because of the federal government?

Neither. The real reason is that IBM controls most of the country’s main NSF network lines.

Although the CIX Alliance had its own network lines, those were largely a product of cooperation with local telephone companies.

To speak of interstate-level fiber optic communication, one must look to the specially built main NSF network lines.

If IBM were to join the CIX Alliance, it would mean that internet communication would be completely interconnected.

This hardwired foundation is crucial for the surfacing internet wave; without it, there would be no golden decade to follow.

Of course, at this moment, no one realized this; the members of the alliance were only aware that IBM’s joining would be more beneficial to the development of their own businesses.

Although today’s meeting did not result in a substantial contract, Dean knew IBM would compromise before long; they couldn’t afford to delay.

Oh right, on a side note, the reason Dean chaired the CIX Alliance meetings numerous times,

was because he had another role—Chief Cook of the CIX Alliance.

This neutral organization needed a manager that all parties trusted, and without a doubt, Dean was the most suitable.

He was the initiator of the Alliance and also established a special support fund.

The most important thing is that Dean’s own company had no direct interest in these network operators.

Others from the Alliance serving as Chief Cook might more or less face suspicion of favoring their own companies.

But Dean wouldn’t. He provided financial support to everyone, so there was no need to tilt policies in his favor furthermore.

Therefore, he was the best choice, and nobody would object.

"By the way, Steve, where can I find a good house in Washington?"

With matters on the East Coast nearly settled, Dean was now ready to consider his own personal affairs.

"You’re planning to settle here?" Steve Case asked curiously.

"No, just to have a place to stay for convenience in the future," Dean did not want to always stay at hotels whenever he came over.

Staying over at Miranda’s place was also an option, but she too rented an apartment.

Dean preferred living in his own house, and moreover, he would have to deal with Washington quite extensively in the future.

So after careful consideration, buying a house seemed to be the most appropriate choice.

"If you ask me which community in Washington suits you best, it has to be Kalorama!"

After hearing Dean’s explanation, Steve Case immediately suggested a name without thinking.

"Why?" Dean’s interest was piqued by the other’s firm conviction.

"Because it’s the backyard of the White House; you could have a big shot for a neighbor," Steve winked at him.

A few days later, Dean finally understood why Steve said the Kalorama community was the backyard of the White House.

On his first visit here, he encountered Anthony Kennedy, the Supreme Court justice, who resided in this community.

In addition, the CEO of Mobil, senior officials from the Treasury Department, the Senate Majority Leader, high officials from the Department of Education... all lived in this neighborhood.

If that wasn’t enough to illustrate the point, six former Presidents of America had been residents here, enough to reflect the area’s significance.

Thus, after a round of selections, Dean spent 5.6 million dollars to buy a residence covering nearly 2000 square meters here.

It was only meant to be his temporary abode, no need to be as lavish as the San Francisco manor.

The West Coast was his main base, at least for now.

Speaking of the West Coast, Dean, who had been away for some time, should consider returning.

John and Simon had brought Price’s List to California, and he needed to go back to check on their progress over the past six months.

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