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C00011 00003	when  he  reads  their  lists  or  by  kickbacks from the publishers.
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THE HOME INFORMATION TERMINAL

 by John McCarthy
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	Visionaries have often proposed that homes be  equipped  with
information  terminals each consisting of a typewriter keyboard and a
screen capable of displaying one or more pages of print and pictures.
The  terminal  is  to  be  connected  by  the  telephone  system to a
time-shared computer which in turn has access to files containing all
books,  magazines,  newspapers,  catalogs,  airline  schedules,  much
additional  public  information  not  now  kept,  and  various  files
personal to the user.

	Through  the  terminal  the  user  can get any information he
wants,  can  buy  and  sell,  could  communicate  with  persons   and
institutions,  and process information in other useful ways.   Such a
system has never come about because it costs too much, but with  each
advance  in  technology,  it becomes more feasible.  I think that the
technology of computers,  time-sharing,  terminals,  and  application
programming  has  advanced to the point where realistic estimates are
possible of the remaining advances necessary to  make  home  consoles
feasible  and useful.  In this paper, I shall discuss the uses of the
home terminal, some potential beneficial effects on society, estimate
how  far  we are from a system people will pay for, and advocate some
pilot projects, some  standardization  efforts,  and  some  laws  and
regulations to prevent monopoly and secure adequate competition.

	We  can  start  with ordinary reading.  To get a newspaper or
book, I type its name or number and the first page appears.  The most
obvious benefits are:

	1. I can get any document instantly.

	2.  My  house  isn't  full  of  paper to be sorted and put on
shelves and dusted or put in the trash.  Trees aren't cut  down,  and
air pollution doesn't result from burning the stuff.

Some immediately apparent disadvantages are:

	1. The expense.  I'll deal with this later.

	2. I can't read in bed.  The book size portable terminal will
come later.  A household may require several terminals or perhaps  we
may  have  to  compromise  with  sin and provide a hard copy terminal
after all.

	There are two other immediate negative reactions:

	1.   The average citizen is a TV fan and doesn't read anyway.
In the first place, our system doesn't need so many subscribers to be
economical.   Secondly, after I have  described  all  the  bells  and
whistles,  you will see that even the TV fan will be tempted, and you
- oh socially conscious reader - may even want  to  coerce  him  into
buying one or coerce the government into giving him one for free.

	2. How can you think of one more convenience and comfort when
the world will come to an end in ten years unless menaces A, B, and C
are  dealt  with  immediately.  In the first place, I don't think the
world is about to come to an end or even that it  is  getting  worse,
and we Americans like new gadgets.  In the second place, you will see
that the new information system will make the public more  responsive
to  the  careful  reasoning  of  you good guys and more immune to the
crude propaganda of those bad guys.

	In order to see the effects of the  new  information  system,
suppose  that all book and newspaper information were so distributed.
What changes would occur?

	At present, a newspaper or a book is a package produced by  a
large  organization.       In our new system, the physical production
disappears, allowing a much smaller organization to put out the  same
packages  of  text  and pictures.  Moreover, the user does not face a
one shot decision to buy Life or Look.  He will be able to  read  the
"cover"  or  table of contents of each, read such items as strike his
fancy, and the system will bill him  for  what  he  reads  from  each
source.   In fact, since the cost of keeping a file of information in
the computer and making it publicly available will be small,  even  a
high  school  student  could  compete with the New Yorker if he could
write well enough and if word  of  mouth  and  mention  by  reviewers
brought him to public attention.      What, then, is a publication in
the new information system?

	A publication is an organization that  puts  out  a  list  of
material  it  has edited and recommends to its readers.  It helps its
authors produce material that it thinks will suit the readers, and it
has a financial arrangement with them about splitting the proceeds.

	There  can  be  a  wide  variety of publications of different
standards of writing and editing and different budgets  for  carrying
out  these  activities.  However, they will all be equally accessible
to all readers, and the only justification for an expensive editorial
organization will be that it can produce a more popular package.  The
price of reading a package can be set by the publishers.

	A reader may feel that he  needs  help  in  finding  his  way
through  the totality of literature available to him.  Various people
will be eager to make a living by providing it.      A  bookstore  or
library  is  a  program  that  when  called  shows  the  "covers"  of
publications.    Reviewers will produce lists for him and make  money
when  he  reads  their  lists  or  by  kickbacks from the publishers.
"Reading advisers" under some catchier name will  offer  to  generate
lists just for him according to a profile of his interests.

	Advertising  in  the sense of something that can force itself
on the attention of a reader will disappear because it  will  be  too
easy  to  read  via  a program that screens out undesirable material.
However, people will still want to know what is  for  sale  and  will
still  want  to  see the seller's story about why they should buy it.
Probably, Life will still be able to get money from advertisers; many
people  will still want to know what is advertised in Life, but those
who don't want to know will be able to avoid it automatically.

	Another effect is the possibility of  frequent  revisions  of
articles  and  books.    An author can take into account new facts or
other  people's  criticisms,  and  the  revision  will  take   effect
immediately.      This  raises  1984ish  possibilities, so it must be
provided that old versions remain available.  Those who  suspect  the
whole system will keep their own copies of favorite material in their
private files, on microfilm, or even on paper.

	Public controversy can be carried out more expeditiously than
at  present.  If I read something that seems controversial, I can ask
the system if anyone has filed a reply.     This,  together  with  an
author's  ability  to revise his original statement, will lead people
to converge on considered positions more quickly than at present even
if they do not come to actual agreement.

	Famous  authors  will not need publishers because their loyal
readers will have the system find their stuff automatically.

	To summarize:      the new information  system  will  promote
intellectual  competition by reducing the price of entry, will permit
readers to be selective, and will allow authors  to  revise  material
until  they  are satisfied that it withstands criticism as well as it
ever will.  This should make intellectual life more interesting.

	The financial  aspect  of  writing  would  presumably  be  as
follows:     a  piece of written material has a price for reading it.
(This price may be zero for amateur  writing,  political  propaganda,
advertising,  and  for scientific journals).  The reader's account is
debited  and  the  account  to  which   the   material   belongs   is
automatically credited.  The reader will have the system balk at what
he considers overpriced material.

	The new information system will have  a  profound  effect  on
buying  and  selling.      Sellers of movies, groceries, automobiles,
plumbing services and cures for baldness will find it advantageous to
list  their  wares  in  the  information system together with current
prices and availability.    The user can place an order  through  the
system as he can by telephone, but he can do much more:

	1.    He can call on someone's program to scan the sellers of
sports cars and propose what it considers the best deal. This program
might even negotiate with programs representing the sellers.

	2.    He  can  tell  the  system whether last year's cure for
baldness worked and a get a summary of  the  opinions  of  those  who
bothered  to record their opinions of the cure he contemplates trying
now.

	3.     He can  make  an  airplane  or  hotel  reservation  by
interacting  with  a program the airline or hotel reservation company
has written to tell him what is available. He  need  not  suffer  the
delays  you  now get when you call an airline or travel agent at peak
hours.

	4. Individual design and construction services can be offered
through the system although this requires the development of computer
controlled manufacturing techniques for various types of article. The
idea  is  that  automated  design  programs  can  produce designs for
articles meeting individual specifications.  Either by himself or  in
consultation  with  an  expert, an individual would use the system to
produce a design and display how it would look and  possibly  how  it
would  perform.    Candidates for individual design include clothing,
furniture, boats, electronic equipment, houses, and even cars.    The
system  would  then  produce the instructions for controlling machine
tools, fabric cutters, and also printed  instructions  for  the  hand
parts  of  the  operation.  In general, it should be possible to make
single objects  at  little  more  cost  than  present  mass  produced
objects.     In some cases, there would even be savings, because mass
production  requires  estimates  of  demand  that  are  often   wrong
resulting  in  inventories that are expensive to sell or even have to
be sold at a loss; the cost of this is made up by a general  increase
in prices.

	There  are  many  more  useful  services  that can be offered
through the new information system and again the system is  conducive
to  competition.     Writing and storing a program and announcing its
availability can be a very low capital operation, and the system  can
collect whatever price has been set for its use.

	We could go on listing services that would come to be offered
in a fully developed system, but now we shall list some  services  to
smaller  groups  of  users that are cheaper to provide and which will
help get the system started.

	1. Calculation  and  facilities  for  writing,  running,  and
debugging  computer  programs.      This doesn't interest the general
public much, but it is the present bread  and  butter  of  the  time-
sharing  service  bureaus  that  will  grow  into the new information
system.  At present, these service bureaus offer very convenient  way
of  doing  small  scientific and engineering calculations, but do not
offer reasonable prices for big computations, and are only  beginning
to offer useful services to business firms.

	2.     Editing.      Anyone who writes (writers, journalists,
scientists, advertising men, engineers  and  students)  will  benefit
from  using  an editor program.  It allows easy revision, can be made
to  check  spelling,  grammar,  and  punctuation,  and  will  produce
justified or other forms of elegant output and also indexes.

	3.  Filing.  Keeping personal files in the computer has great
advantages once documents  can  be  entered  without  retyping  them,
either because they have been prepared in a computer readable form or
because a suitable page reader is available.        Namely,  one  can
retrieve  any  document  on  the basis of its characteristics without
having taken the trouble to file it properly in the first place.

	4. Education.  Computer aided instruction (CAI) has  advanced
to  the point that a number of courses or aids to traditional courses
have been developed and have been shown to be useful.       The  main
obstacle   to  the  widespread  use  of  CAI  is  economic,  but  new
developments  in  display  technology  and  communications   give   a
reasonable  probability of cost-effective systems within this decade.
There is no special problem in having these systems available in  the
home  as  well  as  at  school.  This would be aided by standardizing
course writing languages.      Again,  we  should  try  to  stimulate
competition  by  encouraging  the  offering  of courses in particular
subjects independent of the schools.

	The development of  such  a  system  is  probably  inevitable
(unless  it  is  forbidden  by law) as soon as costs come down to the
point where it is profitable  for  time-sharing  service  bureaus  to
offer  services  to  individuals.   However,  favorable policies will
bring this about sooner and will make the effects better.

	The main danger to be avoided is the creation of services  of
limited  scope that through some avoidable feature cannot be expanded
to provide the services mentioned here and  many  more.       Another
problem  is  to  avoid monopolies; the intrinsic nature of the system
permits any person who can write computer programs  to  compete  with
large  organizations  in inventing and offering imaginative services,
but one can worry that the system might develop commercially in  some
way  that  would  prevent that.  In general, we should try to develop
information services in such a way as will enhance the  individuality
of its users.

	Between  us  and  the home information system lie a number of
problems, some in developing suitable low  cost  terminals,  some  in
programming  technology  of  time-sharing,  some in the economics and
politics of communication systems, and some in the  attitude  of  the
public  and government towards innovation.  In the following sections
we shall discuss these problems.


How we get there from here.

1. Consoles.

	The   quality  and  price  of  display  consoles  is  rapidly
improving. At present, one can add a display console with keyboard to
our  laboratory system for about $700, but to add another port on the
system so that the number of consoles active at one time is increased
by  one  costs about $2500.  A reasonable display console that can be
located at the end of a telephone line now costs about $10,000. These
consoles  are  adequate  for  any  of  the  services mentioned in the
previous  section,  although  for  reading  purposes,  it  would   be
desirable to be able to display more than 35 typed lines at a time.

	In  my opinion, the cost of an adequate display terminal that
can be located at the end of a telephone line will be in the $500  to
$1000  range  by  1975  even  without  a  market  of  the size of the
potential home terminal  market.     The  business,  engineering  and
science,  and  government  markets  will  be  large  enough and price
sensitive enough to bring this about.

	Another contender as a terminal is the plasma panel, but  the
above  estimates  are based on CRT terminals with a mini-computer and
an integrated circuit memory.


2. Communications.

	In   the   United   States,   the   facilities   for  digital
communications are growing rapidly but in  a  rather  disorderly  way
because   of  the  multiplicity  of  requirements  of  the  different
applications.   Some applications such as credit verification require
very low cost short communications with turn around times of seconds.
Others require very low cost per bit but can stand delays of  minutes
and  hence  are  candidates  for  low  performance  store and forward
systems.   The terminal systems require  long  holding  times,  short
response  times, and much higher transmission rates from the computer
to the user than in the other direction.

	For  the  purposes  of  the  home  terminal,  the  speeds  of
transmission  over  present  unconditioned voice grade circuits are a
bit too low for such applications as reading.  1200 bits  per  second
would  take  20 seconds to transmit a typed page and about four times
that for a page of a dictionary.  Eight times this rate  is  obtained
over  conditioned  voice  grade  lines,  and  this  might  be  barely
adequate.   Perhaps a better bet is the transmission facility planned
for the Picturephone service now being introduced experimentally, but
the  cost  of  this  service  for  long  holding  times  is  not  yet
determined.  The most economical system might be a specially designed
store and forward system configured to  give  fast  turn  around  for
short messages.

	Whether  such  a  service  will  be made available depends on
political as well as technical factors.  For example, if on the basis
of  present  plans,  the  digital  communication market is divided by
regulatory action among AT&T and its potential competitors, it  might
turn  out that no-one is obliged or even allowed to offer the service
required for home terminals at a reasonable cost.


3. Computer technology.

	At  present,  computer  technology  can  offer  the  services
required for  the  home  terminal  at  a  reasonable  cost,  provided
computer  configurations  are  optimized  for  the  purpose, provided
reasonable load factors can  be  obtained,  and  provided  there  are
reasonable  economies  of  scale.    Unfortunately, IBM computers are
organized in such a way that time sharing is very  expensive  because
of  their interrupt structure, their expensive terminal multiplexors,
and  their  dedication  to  the  archaic  half   duplex   method   of
communication.   The  other major computer manufacturers such as CDC,
General Electric, and Univac are not in much better shape since  they
offer  for  time  sharing,  machines  that  were  optimized for other
purposes.   Smaller companies like  DEC  are  in  a  somewhat  better
position.    However,  none  of these difficulties are permanent, and
better organized computers  may  be  expected  once  the  factors  in
computer  design  that make for good cost-performance in time sharing
become clearer to the manufacturers.

	The present magnetic disk storage units are a bit marginal in
cost  effectiveness for use with home terminals.  Thus storage on the
new IBM 3330 disk would cost a user about $.03 per month to  store  a
typewritten page making storage of extensive personal files expensive
and private copies of books  at  $5  to$10  per  month  prohibitively
expensive.    This would not be too expensive for national libraries,
but it would be economically very difficult to get enough readers  to
support  the  storage  of  books  on  magnetic disk files in the near
future.

	Fortunately, much larger files are becoming available.    The
laser  file  made by Precision Instruments Inc. is claimed to store a
trillion bits and costs $1,000,000.  This comes to about $4 per  book
which  is reasonable even for single copies.  Mass production of such
files will reduce the cost even further.


4. Computer programming.

	The  basic  technology  of writing time sharing technology is
reasonably well developed in that cost effective  systems  have  been
written,  but there is still a lot of chasing of willow-the-wisps and
quite bad  time-sharing  systems  are  often  produced  by  otherwise
competent  firms.     Before  the  programming  required to offer the
services  mentioned  in  the  first  part  of  this  paper   can   be
accomplished some further advances need to be made including at least
the following:

	1.  The interactive and file reference aspects of programming
languages and time sharing systems need to be standardized so that an
interactive system written in one system can be used in another  that
uses  different hardware and a different time sharing system. Without
this it will be very expensive for new user  services  to  get  large
markets unless some particular time sharing system gets a monopoly.

	2.  A system needs to be developed for representing text in a
computer that will include the full variety of alphabets, type  fonts
and  character  sizes and also be adaptable to diagrams, drawings and
photographs.  The consoles also have to be adapted to this variety of
styles.  This is an ultimate requirement; much can be done with texts
that are just regarded as sequences of latin letters.

	3.  The biggest task, however, is the application programming
itself.


5. Commercial organization.

	From a social point of view, one of the  attractive  features
of the provision of time-sharing services is that it is not a natural
monopoly.      Communication  is  cheap  enough  for  teletype  based
time-sharing  so  that  with local multiplexors, time-sharing bureaus
can compete all over the United States.  In principal, it  should  be
possible  to have world wide competition.  The major force that might
tend to reduce competition is the exclusive possession of proprietary
programs  or  files.    Therefore,  it  is  desirable to separate the
ownership of programs performing services from the ownership  of  the
service  bureaus  themselves  and  to  encourage enough compatibility
between different time-sharing systems so that the owner of a service
program  could  provide  it  on  a  number  of machines.   It is also
important that important files  be  accessible  and  modifiable  with
suitable  protections by actions initiated on other machines than the
one that maintains the file.


6. Needs for research and development.

	The hardware required for home consoles will be too expensive
for extensive systems for  probably  another  five  years.    In  the
meantime,  research  and  development  should  be  undertaken  in the
following areas:

	1.  Standardization of the interfaces of time-sharing systems
and their languages.

	2.   Experimentation  with services.   At present, it is very
difficult to get support for development of generally useful services
unless  either  it  can  be  claimed  that  disaster will result from
failure to support the activity or that the  supporting  organization
will itself make a profit.  This political fact is one of the reasons
for the concentration on military technology in the recent past.

	3. Research aimed at devising ways of co-ordinating the great
variety  of  time-sharing  services  into  a  mutually  communicating
network.    Neither sufficient understanding nor sufficient political
or  commercial  force  is  available  to  cause  the  development  of
time-sharing  services  to  proceed  according  to  a  unified  plan.
Nevertheless,  computers  are  flexible  enough  so  that  originally
incompatible systems can be made to communicate and use each  other's
services.      Experiments   with  the  ARPA  network  that  provides
communication between U.S.  Government sponsored  research  computers
will provide useful information.


7. Comments on the conference.

	In general, the conference showed a  poor  situation  in  the
scientific  and  technological  community and also the public affairs
community regarding technology and the human future.   There  were  a
few  technically competent but rather narrow surveys of the state and
prospects of particular tool areas of technology.    There  was  much
random doom-saying and denunciation of currently fashionable whipping
boys.   There was a fair amount of opinion that certain things should
not  be  done.     There  was  an  almost  total  lack of imaginative
discussion of the opportunities technology offers us to improve human
life.  This  lack  was  especially  notable  in those individuals and
organizations that are supposed to be professionally  concerned  with
the matter.

	This essay is part of an effort to correct the imbalance.