The Free Territory of Skype, Forbidden In Cuba

An article has been added to the saga against information technologies maintained by the official press. Last Thursday a report against phone fraud left many Juventude Rebelde (Rebel Youth) readers feeling that cellphones are a source of endless problems. To the barrage of accusations about the destabilizing plans that arrive via text messages, and the collapse of networks caused by titles that travel from one cellphone to another, we can now add the “personal profit” of those who use tricks to pay less for a call or for a text message abroad.

Every crime of fraud or embezzlement is legally and morally contemptible. However, the context in which these infractions are committed should be taken into account. We live under an absolute state monopoly of telecommunications. The only phone company in the country, ETECSA, has no competitors in its field and thus sets its prices much higher than the tariffs common in the rest of the world. A one minute call overseas costs the average worker about two days wages. With such a large population having emigrated, it’s easy to imagine the Island’s need to communicate with the rest of the world.

To this must be added the limited and scarce Internet access. Without any new facilities for services such as Skype, many prefer to resort to fraudulent practices rather than to give up calling other parts of the world. Penalizing the offenders who resort to tricks like voice bypass will not resolve the problem. I don’t imagine a lady in her sixties, with a son who emigrated, risks being fined for phone fraud when she can pay barely pennies to call via the Internet. Pushing a population into crime, and then condemning them for engaging in it, seems to me, at the very least, pure cynicism.

Yoani Sánchez, Havana, 31 May 2014 | 14ymedio

Want This New Innovation? Shark Sushi Plate

Shark Sushi PlateCue the “Jaws” theme music! Just when you thought it was safe to eat sushi again! Da dum. Da dum. This clever plate for serving sushi and sashimi comes with an open shark’s jaw. It is the perfect vessel to handle soy sauce or any other delightful sauce you may have for dipping. You could also fill the shark’s mouth with cocktail sauce and serve shrimp.

Head of Intel's former internet TV project abandons ship

When Intel formally abandoned its IPTV project in a sale to Verizon, the team behind it transitioned as part of the deal. Now, only four months later, the man who’s been in charge of the venture all along has washed his hands of it, too. Erik…

Americans' Car Ownership, Driving In Steep Decline

The ’57 Chevy was still a year away when the launch of the interstate highway system kicked U.S. car culture into high gear. But six decades later, changing habits and attitudes suggest America’s romance with the road may be fading.

After rising almost continuously since World War II, driving by U.S. households has declined nearly 10 percent since 2004, with a start before the Great Recession suggesting economics is not the only cause. “There’s something more fundamental going on,” says Michael Sivak of the University of Michigan Transportation Research Institute. The average American household now owns fewer than two cars, returning to the levels of the early 1990s.

More teens and 20-somethings are waiting to get a license. Less than 70 percent of 19-year-olds now have one, down from 87 percent two decades ago.

“I wonder if they’ve decided that there’s another, better way to be free and to be mobile,” says Cotten Seiler, author of “Republic of Drivers: A Cultural History of Automobility in America.”

Those changes — whether its car trips replaced by shopping online or traffic jams that have turned drives into a chore — pose complicated questions and choices.

TRYING ALTERNATIVES: Each day, about 3,500 people bike the Midtown Greenway, a freight rail bed converted to cycle highway in Minneapolis, where two-wheel commuting has doubled since 2000. It’s still a small percentage, but more residents are testing the idea of leaving cars behind.

A second light rail line opens in June. Street corners sprout racks of blue-and-green shared bikes. About 45 percent of those who work downtown commute by means other than a car, mostly by express bus. That syncs with figures showing Americans took a record 10.7 billion trips on mass transit last year, up 37 percent since 1995.

“There’s a lot of people who want the less-driving lifestyle, definitely,” says Sam Newberg, an urban planning consultant and transportation blogger.

They include Kimani Beard, 40, who used to drive for a package express company. Now he’s a graphic and apparel designer who walks or bikes to a coffee shop a few days a week, with its Wi-Fi providing an instant office.

“I don’t want to drive anywhere,” he says. “I’ve spent my time behind the wheel, but I think I’ve done enough.”

Meanwhile, some are rethinking the paradigm of vehicle ownership.

In the suburbs just north of Chicago, Eugene Dunn and Justin Sakofs live four miles apart, but met only because Dunn’s 2005 Pontiac broke down.

Dunn, 43 and a math tutor, takes a train to work. But getting to his second job, refereeing youth basketball on weekends, required a car he didn’t have.

Luckily, Sakofs, the director of a Jewish day school, had a Nissan he didn’t need from sundown Friday to sundown Saturday, when his Sabbath observance precludes driving. They found each other through RelayRides, whose app pairs individual car owners with neighbors looking to rent.

“Right now, I just need (a car) to get back and forth and make money,” Dunn said.

TESTING THE BONDS: Car culture is about an emotional attachment that can be hard to measure.

A good place to start is Carlson’s Drive-In in Michigan City, Indiana, where a car hop arrives at the window before you turn off the ignition.

“It definitely takes you back to an older time,” says Barry Oliver, recalling teen nights driving the strip and stopping here.

Places like Carlson’s were destinations for Americans embracing driving as recreation. As recently as the 1990s, Indiana had nearly 60 vintage drive-ins. Today just five or six are left. Drive-in movie theaters, which numbered 4,300 nationally in 1957, have dwindled to just 350.

Where does that leave car culture?

“Gear heads live here,” says Todd Davis, a Lansing, Michigan native visiting the R.E. Olds Transportation Museum from Orlando. Away from Michigan, “it’s not like that.”

But Davis’ cousin, Sol Jaffee, isn’t convinced.

“Kids will always be interested in cars! I mean, cars are America, don’t you think?”

But at Wisconsin’s Oshkosh North High School, enrollment in driver’s education, no longer required for graduation or subsidized by the state, has declined 40 percent.

Like other states, Wisconsin eliminated funding for driver’s ed, raising the price of in-school programs. Today’s young people often rely on parents for rides, says driver’s ed teacher Scott Morrison. And then there’s Facebook and other social media. While most students still look forward to the freedom conferred by a license, a small but self-aware contingent says it can wait.

“I’ve never really needed” to drive, says senior Ashwinraj Karthikeyan. “It’s almost like a rite of passage for people to drive, but I know offhand probably about 15 or 20 people who don’t have their license.”

THE FUTURE: In 1939, General Motors captivated World’s Fair crowds with a futuristic vision of technology linking highways and cars. But in 2014, Debby Bezzina will tell you that future is fast approaching.

Bezzina, of Michigan’s Transportation Research Institute, has just begun to explain the technology inside her 12-seat van when a bend in Baxter Road interrupts, setting off a staccato beep that warns the vehicle to slow down. For nearly two years, 2,800 vehicle owners here have been participating in this federally financed bid to connect vehicles with their surroundings so they can join drivers in decision-making.

Meanwhile, on the institute’s second floor, a Nissan Versa wired to let drivers navigate a simulated cityscape will soon be reprogrammed to make it almost entirely self-driving.

There are bound to be complications as people turn over some control to their cars, says the institute’s director, Peter Sweatman. But imagine, he says, summoning a driverless car you might not even own, being picked up and dropped off at curbside, and watching it pull away.

China's Quarter Century Of Cracking Down On Dissent

BEIJING (AP) — When visiting friends in China’s capital, environmental activist Wu Lihong must slip away from his rural home before sunrise, before the police officers watching his home awaken. He rides a bus to an adjacent province and jumps aboard a train just minutes before departure to avoid being spotted.

In a neighboring province, veteran dissident Yin Weihong finds himself hauled into a police station merely for keeping in touch with old friends from the 1989 Tiananmen Square pro-democracy movement. While he’s technically a free man, the treatment makes it virtually impossible to keep a job or have a normal home life. A quarter century after the movement’s suppression, China’s communist authorities oversee a raft of measures for muzzling dissent and preventing protests. They range from the sophisticated — extensive monitoring of online debate and control over media — to the relatively simple — routine harassment of government critics and maintenance of a massive domestic security force.

The system has proven hugely successful: No major opposition movement has gotten even a hint of traction in the 25 years since Tiananmen. President and Communist Party leader Xi Jinping seems intent on ensuring things stay that way.

“It’s extremely bad right now, much worse than in past years,” said Yin, who spent several months in prison for his role as a student leader during the 1989 protests. “There’s less and less space for civil society or, if you’re like me, even to just live your life freely.”

Each year’s anniversary brings a crackdown on dissent, but this year has been especially harsh, say dissidents and human rights groups. Lawyers and others taking part in even minor private commemorations have been detained. Outspoken relatives of those killed in the crackdown have been forced out of Beijing.

Journalists, including those in the foreign media, have been issued stern orders not to report on unspecified sensitive topics around the June 4 anniversary, with warnings of dire consequences.

“We are seeing a crackdown very large in scope,” said William Nee, Amnesty International’s Hong Kong-based China researcher. “What we have seen thus far under the Xi Jinping government hasn’t been very good.”

Caught unaware and unprepared by the Tiananmen protests, China now anticipates, detects and chokes off political and social activism before it can challenge authorities. Despite a huge rise in prosperity and vast social changes, political activism and organization outside the control of the ruling Communist Party is strictly verboten.

“The authorities are very careful to nip any potential dissent in the bud at the local level, the focus being on ensuring they can’t link up and become a nationwide movement,” said Human Rights Watch Asia researcher Maya Wang.

Yin said China’s rights conditions have deteriorated since party stalwart Xi Jinping’s appointment as general secretary in late 2012. While going after corrupt officials, Xi has demanded strict ideological orthodoxy and pushed a campaign to denigrate liberal values such as Western-style constitutional democracy and the independence of the media.

Government critics and public intellectuals face ever-more-intrusive harassment, Yin said. Liu Xia, the wife of imprisoned Nobel Peace Prize winner Liu Xiaobo, is under house arrest and constant supervision. An unknown number of others can leave home or work only with permission.

Some veteran activists say the room for independent organization is tighter than it was in 1989. A limited number of nominally non-governmental organizations are permitted, but they operate only at the pleasure of the authorities and must confine themselves to non-political issues such as environmentalism, child welfare and workers rights.

“It’s OK to hold lectures and conferences, at least in principle, but you can’t really conduct research and seriously delve into the topics,” said Wu, an environmental activist from the eastern city of Wuxi who has endured more than a decade of harassment, including a three-year prison sentence on fraud charges he says were trumped up.

Some degree of labor activism has been permitted, especially in the southern industrial heartland of Guangdong province, but the only legal unions remain under tight government control and strikes are extremely rare.

Independent workers’ rights activists are under constant scrutiny. Anita Chan, a China labor expert at Australia National University, said police are more frequently calling the activists in to “drink tea” — a form of low-level intimidation.

And while religious activity is permitted under the auspices of party-controlled bodies, crackdowns have escalated against independent groups such as Protestant “house churches.” In Zhejiang province alone, 64 churches were demolished, had their crosses removed or were threatened, according to Bob Fu, a former dissident and underground church pastor now based in Texas.

Meanwhile, the state has developed increasingly sophisticated mechanisms of surveillance and censorship, taking advantage of technological improvements and a huge boost in domestic security spending. An army of young, computer-savvy censors checks social media and websites and removes content on sensitive topics.

Users of social media such as the hugely popular microblogging and instant messaging applications Weibo and QQ must be registered and identified.

Many foreign websites are blocked, including news outlets and Twitter, Facebook and YouTube. Those who care to make the effort can find technological workarounds, such as virtual private networks, but most Chinese appear content with the Internet that the government allows.

The government has come down hard on some outspoken online opinion leaders, detaining many for so-called rumor mongering, including a well-known liberal commentator, Chinese-American investor Charles Xue.

Wang, of Human Rights Watch, said the government is trying to compel people to censor themselves.

“It’s so that when people go about their business, they already consider the potential risks and make sure they don’t even get close to the red lines,” Wang said.

Another standard control method is to restrict travel. Many critics of the government, including Wu and Yin, have been denied passports — both as a punitive measure and a means to keep them from addressing foreign audiences about China’s problems.

And while Wu can use some ingenuity to visit his friends in Beijing, he said, “As soon as they find I’m gone, they send officers to bring me back. You try to adapt, but it takes a real toll on your family and on you psychologically.”

Shortly after The Associated Press interviewed him, Wu was taken from a friend’s home and interrogated for 24 hours straight.

Despite these efforts, China sees what many of what it calls “mass incidents” threatening social stability. One Chinese sociologist, Sun Liping, has estimated there are about 180,000 per year, ranging from organized marches to spontaneous protests and even violence sparked by anger over working conditions, corruption, environmental degradation and ethnic unrest.

A premium is placed on quickly containing and dissolving such incidents, unlike in 1989, when protests were allowed to build up over more than a month.

The government also has focused heavily on avoiding military force such as the tanks and troops that tore their way through citizen barricades to the heart of the protests in Tiananmen Square, leaving hundreds, possibly thousands dead.

Instead, the government has vastly expanded its domestic security apparatus. Much of the effort has gone into improved training and equipment for the 1.5 million-member paramilitary People’s Armed Police, the Chinese interior security force. Grassroots-level officials and public security department heads have undergone training in responding to unrest.

Meanwhile, the party has tackled many of the major contributing causes of the 1989 protests, devoting funds and attention to fighting corruption, boosting employment and housing and even holding down pork prices. That has eliminated many sources of discontent, though many Chinese remain deeply cynical about corruption among the newly rich and political elites.

“They realize that economic growth is not enough, so the whole strategy is to avoid cases of large-scale unrest through an entire social security package,” said Joseph Cheng.

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AP reporter Kelvin Chan contributed to this report from Hong Kong.

Verizon NY Charged 'Basic Rate' Phone Customers Multiple Rate Increases for the Deployment of the FiOS, Title II, FTTP Broadband Networks

Verizon NY lost $11 billion over the last five years and paid no income taxes. Isn’t FIOS profitable?

Part II of a new series based on the new report: “It’s all Interconnected.

In Part I we outlined that Verizon’s FiOS services ride on a Title II, common carriage, telecommunications FTTP, (Fiber-to-the-Premises) network. FiOS products include cable TV, phone, Internet and broadband service. But “Title II” is only one part in solving Net Neutrality. Another question is — Are customers really defacto investors and are their rights to have ‘open networks’ being trampled on?

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Starting in 2006, Verizon New York (VNY) was able to get the NY State Public Service Commission (NYPSC) to agree to multiple rate increases on business and residential POTS (“Plain Old Telephone Service”) customers, including low income families, as well as increased the prices for ‘ancillary services’, such as Caller ID, inside wiring and non-published numbers. The price of basic local service went up 84 percent while these other services increased 100-300 percent. This added over $500.00 per line to customers’ phone bills, about $4.4 billion in extra charges.

The NYPSC allowed these increases in reliance upon Verizon’s claims of ‘massive deployments of fiber optics’ and financial losses, among other reasons.

And Verizon New York is using a Title II classification for their FTTP networks as it gives them the use of the utility rights-of-way and the ability to charge POTS local phone customers for FiOS deployment.

Who’s Funding Verizon’s FiOS, Title II, FTTP Broadband?

Using the Verizon New York filings and NY Public Service Commission orders, etc, let’s go through what happened.

In June 2009, the NYPSC issued a press release stating the rate increase was being done due to a ‘massive deployment of fiber optics’.

“We are always concerned about the impacts on ratepayers of any rate increase, especially in times of economic stress,” said Commission Chairman Garry Brown. “Nevertheless, there are certain increases in Verizon’s costs that have to be recognized. This is especially important given the magnitude of the company’s capital investment program, including its massive deployment of fiber optics in New York. We encourage Verizon to make appropriate investments in New York, and these minor rate increases will allow those investments to continue.” (Emphasis added).

We tracked these rate increases and found that they started in 2006. In granting the 2008 rate increase, the NYPSC said that one of reasons was because of the ‘magnitude of the company’s capital investments’ for fiber optics.

“This is especially important given the magnitude of the company’s capital investment program, including its massive deployment of fiber…” (Emphasis added).

Prices Increased 84 percent since 2006.

When tracking the monies, we found:

  • Based on actual New York City customer phone bills, since 2006 the price of residential ‘dial tone’ service (one line item on the bill) went up 84 percent, while other services, such as inside wire maintenance, went up 132 percent.
  • Based on Verizon New York’s information about the number of POTS access lines in service from 2006 to 2013, price increases approved by the NYPSC allowed VNY to collect an estimated $2.4 billion extra for the ‘dialtone’ line. We estimate that between $1.4 to $2.0 billion more in additional charges were added for optional or ancillary services, such as Caller ID, inside wiring and non-published numbers. Including estimated taxes, the total added charges since 2006 amount approximately $4.4 billion.
  • On average, POTS customers paid about $500.00 in excess charges per line.

Verizon New York also revealed that raising the price of POTS service would force customers to buy bundles of Verizon’s other services.

“Moreover, this price change will encourage the migration of customers towards higher-value service bundles, consistent with the trend toward bundled service offerings in the market as a whole.”

Financial Losses

Then we have the losses. In the 2009 request for a rate increase, Verizon New York’s filing quoted the State that had paraphrased Verizon’s statements about their losses.

“There seems to be little question that the company is in need of financial relief; Verizon [New York] reported an overall intrastate return of a negative 4.89 percent in 2006 and its reported intrastate return on common equity was a negative 73.6 percent. i3 For 2007, Verizon reported an overall intrastate return of negative 6.24% and an intrastate return on common equity of negative 46.0 percent.”

In fact, Verizon lost $11 billion dollars over the last 5 years, with an ‘income tax benefit’ of $5 billion that was used by Corporate to lower their tax liability. This whopping amount — about $2.2 billion annually, was surprising as Verizon Communications overall annual report for wireline services showed no losses in any of these years. I’ll get back to that.

But the bottom line is that Verizon New York’s financials showed that the company paid no income tax over the last five years.

Unfortunately, tying these losses to POTS service costs is questionable as the price of local service should have been continually decreasing.

  • There is supposed to be competition that lowers the price.
  • Most of the copper networks have already been fully depreciated (written off).
  • POTS is based on the copper networks and they are not being upgraded.
  • The construction budgets were moved to pay for FIOS.
  • There have been multiple staff reductions and much of the union employees serving these networks were either moved to other products, like FiOS, or laid off.
  • The company no longer advertises the product so those costs are all gone.

And while the number of POTS lines has been in steady decline, there is no accounting of the total, actual copper-based lines still in service. (There are a host of other copper-based lines, like DSL, or special access, that are not part of the accounting of access lines.) And ironically, the losses appear to be coming from Verizon’s largest competitor –Verizon, as FiOS directly competes (or is being substituted for) the copper-based lines. And, Verizon Wireless is also another major competitor to the wired services.

Losses in Verizon’s Other States

Verizon New York wasn’t the only Verizon company with losses. In our previous report on five of Verizon’s state-based companies (2012) — New York, Pennsylvania, New Jersey Rhode Island and Massachusetts — all were all losing money in 2009 and 2010, which was the last year that the SEC-state-based reports were available from Verizon.

From 2009-2010, Verizon’s state-based SEC 4th quarter reports revealed $5.4 billion in losses with an income tax benefit of $1.96 billion. While Verizon New York had the largest losses with $2.2 billion in just 2010, in the state of New Jersey, Verizon claimed to have lost $786 million in 2009-2010 and received an income tax benefit of $321 million. These losses appear to be common throughout the Verizon territories as in just 2 years, 2009-2010 New England Telephone (Massachusetts & Rhode Island) claimed to have lost $1.2 billion and had a tax benefit of $477 million while Pennsylvania claimed $202 million in losses and a tax benefit of $62 million.

2014-05-31-fivestates.png

(NOTE: Massachusetts and Rhode Island are combined because they are part of “New England Telephone” which was part of the original regional Bell Company, NYNEX.)

And based on the data from Verizon New York, we assume all of these companies are still showing losses, even though their financial information is no longer publicly available.

Verizon Communications’ Overall Wireline Business Showed No Losses.

But here’s the real conundrum. In our current report we examined Verizon Communications, Inc, the parent company’s overall wireline profits and found that in every year the “Mass Market” wireline services were profitable. The details of Verizon Communications Annual Report for 2011 (covering also 2009 and 2010) showed no loss of revenues and even profits for the wireline ‘Mass Market’, while other categories of services, such as Global Wholesale, had losses. (Global Wholesale, from 2009-2011, lost $1.56 billion.)

2014-05-31-verizonmass.png

Verizon’s wireline services for local service and FiOS services are referred to as “Mass Markets”.

“Mass Markets” Mass Markets operations provide local exchange (basic service and end-user access) and long distance (including regional toll) voice services, broadband services (including high-speed Internet, FiOS Internet and FiOS Video) to residential and small business subscribers.”

How can some of Verizon’s largest states have had massive losses, but at the same time, Verizon Communications wireline services, which includes Verizon New York, showed no losses?

Here is a clue to this. The next exhibit shows that the “switched access lines”, i.e., the utility POTS services, have declined while ‘broadband lines’ (sometimes called “broadband connections”) increased. Verizon apparently makes a distinction as the “broadband lines” are not part of the accounting of lines given to the public. These “broadband lines” include DSL or the FiOS brand of services from Internet, cable TV or broadband services can also be bundled with phone service.

2014-05-31-broadbandlines.png

Reading the details of the financial reports by year we see that the ‘local exchange revenues’, which include the ‘switched access lines’ are losing money but the FiOS services, using the fiber optic networks, are profitable. This is from the Verizon Communications 2011 Annual report:

“2010 Compared to 2009 — The increase in Mass Markets revenue during 2010 compared to 2009 was primarily driven by the expansion of consumer and small business FiOS services (Voice, Internet and Video), which are typically sold in bundles, partially offset by the decline of local exchange revenues principally as a result of a decline in switched access lines.”

Connecting the Dots

If POTS customers were charged for the ‘massive deployment of fiber optics’ and if the FTTP is Title II, are the revenues from the FiOS services paying any part of the FTTP, Title II networks? And are the losses being caused by POTs customers or by the expenses to deploy FiOS?

And we mentioned low income families in the opening; our next article will discuss this issue in more detail.

Part III — Did Verizon Short Change “Upstate” New York, and are POTS Customers, Especially Low Income Families, Paying for Fiber Optic Services They Will Never Get?

On Win Streak, Mainline GOP Takes Tougher Stance Toward Tea Party

Tea Party thunder fills the Hilton Riverside ballroom with denunciations of President Obama and criticism of congressional Republicans for not being tough enough on him. The atmosphere has the energetic but hostile tone that helped propel conservatives to success in 2010.

GOP Lawmakers Say Obama's Prisoner Exchange Violated Law

WASHINGTON (AP) — Two Republican lawmakers on Saturday accused President Barack Obama of breaking the law by approving the release of five Afghan detainees held at Guantanamo Bay, Cuba, in exchange for a U.S. soldier believed held by Islamist insurgents for five years.

The White House agreed that actions were taken in spite of legal requirements and cited “unique and exigent circumstances” as justification. Sgt. Bowe Bergdahl, 28, of Hailey, Idaho, was handed over to U.S. special operations forces by the Taliban. In return, five Afghans who were held at a U.S. detention facility in Cuba were released to the custody of the government of Qatar, which served as a go-between in negotiations for the trade.

Rep. Howard “Buck” McKeon of California and Sen. James Inhofe of Oklahoma said in a statement that Obama is required by law to notify Congress 30 days before any terrorists are transferred from the U.S. facility. They said Obama also is required to explain how the threat posed by such terrorists has been substantially mitigated.

McKeon is chairman of the House Armed Services Committee. Inhofe is the top Republican on the Senate Armed Services Committee.

In response, the White House said it moved as quickly as possible given the opportunity that arose to secure Bergdahl’s release. Citing “these unique and exigent circumstances,” the White House said a decision was made to go ahead with the transfer despite the legal requirement of 30 days advance notice to Congress.

While saying they celebrate Bergdahl’s release, McKeon and Inhofe warned that the exchange “may have consequences for the rest of our forces and all Americans.”

“Our terrorist adversaries now have a strong incentive to capture Americans. That incentive will put our forces in Afghanistan and around the world at even greater risk,” they said.

Senate Majority Leader Harry Reid, a Nevada Democrat, said in a statement that “the safe return of Sgt. Bowe Bergdahl is an answer to the prayers of the Bergdahl family and a powerful reinforcement of our nation’s commitment to leave no service member behind.”

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Associated Press writer Douglass K. Daniel contributed to this report.

Are Video Games Too Expensive These Days? This Developer Certainly Thinks So

Bulletstorm’s Creative Director this week sat down for an interview with gamesindustry International. He shared many details about what he learned during his time at People Can Fly – including that the price of modern games is far, far too high. Let’s talk about that.

The Forgotten History Of CGI

The Forgotten History Of CGI

The roots of CGI lie in the first mechanical aids to drawing and painting. The earliest of these were developed to help solve a problem every artist has found to be sticky: perspective.

Read more…