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The Shape of Digital Things to Come
By Christian Peralta
Planning, September 2002

Technology has always had a role in shaping cities. Electricity helped create the 24-hour city. Air conditioning led to the Phoenix and Las Vegas that we know today. Elevators changed the skyine.

If we imagine the Internet is to the 21st century what the automobile was to the 20th, then the cities of the future will most certainly be reshaped both by the Internet and by the telecommunications and information technologies that support it. The impacts of the digital revolution are poised to affect nearly every aspect of modern life, including the choices we make about how and where we live and work.

Wired working
The Internet's biggest impact has been on the workplace, with the number of telecommuters continuing to grow, says Patricia Mokhtarian, a civil and environmental engineering professor at the University of California–Davis, who has conducted research on telecommuting. Various studies say 18 to 19 million salaried workers — about one-fifth of the labor force — telecommuted at least once a week in 2001. And that number doesn't include those who work in home-based businesses.

In addition, about 70 percent of the nation's 4,000 two- and four-year colleges offered online courses in 2000, up from 48 percent in 1998. Many schools and universities are exploring ways to deliver online classes; they are also developing digital campuses for students in remote locations or those with tight schedules.

Joel Kotkin, author of The New Geography: How the Digital Revolution Is Reshaping the American Landscape, says that technology workers — a substantial proportion of the nation's telecommuters — are moving in two directions: toward the suburbs and exurbs on the one hand and, on the other, toward cities such as San Francisco, Portland, and Denver, whose urban cores are being revitalized by tech savvy professionals seeking chic live-work spaces.

Transportation planners hope that increases in telecommuting will help reduce the total number of vehicle trips and their attendant emissions and traffic congestion. Although the results thus far have translated into small reductions — much less than one percent, Mokhtarian says — future growth in the number of vehicle trips may be stemmed as the number of teleworkers and telestudents grows.

The new e-conomy
Even with the current gloom in the Internet sector of the economy, business on the World Wide Web has never been better. The U.S. Department of Commerce estimates online sales totaled close to $10 billion during the first quarter of 2002, up 19 percent from a year earlier. In addition, business-to-business commerce, or B2B, has emerged as a major force in the new economy, cutting millions from the costs of doing business. Worldwide online B2B transactions reached $950 million in 2001 and are expected to approach $4 billion by the end of 2003, according to one study by the Gartner Group, Inc., a consulting and research firm.

The overall increase in e-commerce means that goods distribution channels must be rethought. In general, this means two things for cities. First, more capacity will be needed at seaports and airports, particularly those near large urban centers. (See "The Long Haul," January 2001.)

Second is a potential shift in the amount and location of commercial and industrial space that businesses will need to store and sell goods. Just-in-time manufacturing and inventory have freed some companies from large warehouses, whereas big online retailers now need big warehouses located near the population centers they serve.

Most bricks-and-mortar retailers are now moving to a clicks-and-mortar (also called bricks-and-clicks) model. National big box chains such as Best Buy and Barnes & Noble, which offer goods that are easily purchased online, have rushed to establish online stores in order to recapture customers who had drifted to Amazon.com and Buy.com.

To prepare for these changes, some shopping malls are moving toward goods that are best sold in person, such as fashion and home furnishings. Others are developing into lifestyle centers offering entertainment and dining options as well as shopping.

It is not yet clear to what degree these changes will affect urban commercial real estate markets. Anthony Townsend, an associate research scientist at New York University's Taub Urban Research Center, cautions that many of the anticipated effects have yet to materialize.

Creating online communities
One of the key strengths of the Internet is helping people interact. Neighborhoodwide intranets are springing up in communities across the nation.

Resident Interactive, an Atlanta-based company, has created a custom platform for communities that want to provide household, neighborhood, and local community content over the Internet. Founded by three former colleagues at the Oracle Corporation, the firm has worked on several large projects, including a citywide intranet for LaGrange, Georgia, which offered broadband Internet service to all 25,000 residents.

With his firm's software, says founder Bill Roberts, "residents can quickly and easily organize themselves into online communities of interest."

Homeowners groups, youth groups, and municipal governments can use a community intranet to deliver information, conduct surveys and elections, even hold online garage sales.

Local community information makes the Internet "much more relevant to your day-to-day life," says Tom Reiman, founder and president of the Broadband Group, a Sacramento, California, telecommunications consulting firm that is working on community intranets at several new master planned developments.

Extending the superhighway
Although Internet access is at an all-time high, many communities still lack the broadband connections that make the Internet truly useful. To increase capacity and connectivity, many cities have installed fiber-optic lines along major highways and railroads.

Putting aside cities such as Cleveland and Los Angeles, which have become major data hubs and have problems with the spread of telecom hotels, many local governments have not yet planned for the technology facilities needed to give their residents high-speed Internet connections.

Private developers are somewhat more up to speed on the need for Internet hookups and the infrastructure that goes with them, says Reiman. That is why many developers are building that infrastructure right into new houses and apartments — and marketing those amenities to potential buyers.

Reiman's firm has developed technology master plans for several high-profile communities, including Playa Vista in west Los Angeles, and the redevelopment at Denver's Stapleton Airport. Reiman says the major planning issues in accommodating high-speed data networks include negotiating service franchises to foster competition and creating easements for multiple telecommunications carriers.

Most local governments have long-term relationships with existing service providers, says Reiman, and that may make them reluctant to promote the entry of other carriers and services. That may be one reason that developers are hooking up with service providers.

Brambleton, a high-tech community being built in suburban Virginia (and one of Reiman's clients), has partnered with Verizon to offer fiber-optic connections directly to the housing there—one of the first developments in the nation to do so. The developer is marketing to employees of nearby technology firms such as America Online and MCI/Worldcom, many of whom telecommute on occasion and therefore value connections to the Internet.

The new virtual reality
The popularity of digital communication and commerce has changed how we interact with others. School children play video games with friends in Singapore or Germany. Goods and services formerly bought at the local mall are now being bought online and shipped from warehouses hundreds of miles away.

My generation, now of college age, is the first to be completely swept up by this phenomenon. During the past three years at the University of Southern California, many of my fellow students and I skipped the long lines at the college bookstore and ordered our textbooks online. Some of us bought our groceries online through the late, lamented HomeGrocer.com. We correspond with our professors via e-mail instead of meeting them during office hours. We meet online to study and socialize.

People will always meet face to face. But as we interact digitally more often, our cities and towns — the places where we live, work, and play — will have to adapt to changing lifestyles.

Further, as the Internet steams forward and more and more Americans become citizens of the World Wide Web, planners may want to keep an eye on which social interactions are replaced by digital impulses, and which remain in the physical realm. Then they will be better prepared to create the places that the future netizens of America will want to reside in when they choose to meet IRL — in real life.

Christian Peralta is a senior at the University of Southern California majoring in urban planning and development. When not studying, he splits his time between Urban Insight, a Los Angeles Internet consulting firm, and Livable Places, a nonprofit housing developer and policy advocate. He is the webmaster for APA's Los Angeles section.

Resources
On the web:

In print:

  • The New Geography, by Joel Kotkin (Random House, 2000).
  • "Electronic Cottages," by William J. Mitchell, in Smart Growth: Form and Consequences, edited by Terry S. Szold and Armando Carbonell (Lincoln Institute of Land Policy, 2002).

This article first appeared on www.planning.org, the website of the American Planning Association.

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