AOL Settles Lawsuit on Billing Practices

July 6, 1996

America Online settles 11 class action lawsuits alleging misleading billing practices. Among the claims raised against AOL were that customers were not aware that charges were rounded up to the next full minute, that 15 seconds were added to each session for “connection time”, and occasionally billing customers for time in “free areas”. AOL continued to charge by the hour until December of that year, switching to a flat monthly rate of $19.95. Who here remembers that point in time when this pricing change caused AOL to have such a huge spike in new users that for a time it was almost impossible to connect to AOL due to the busy signals!

AOL was a major driver of the growth of Internet usage in the 1990’s as their blanket marketing campaign of distributing free trial disks was the introduction for many people to the nascent global network. It is reported that at one point in the 1990s, half of all CDs pressed were AOL installers. To illustrate AOL’s growth, and by proxy users accessing the Internet, from 200,000 subscribers in 1993 when AOL first offered Internet access, AOL had grown to 1 million subscribers in 1994, 4 million in 1995, 8 million in 1996, 10 million in 1999, and through continued growth by marketing and acquisitions of other online services such as Compuserve, 23 million subscribers in the year 2000 where they made over $4 billion in subscription fees. In 2001 AOL made the biggest merger in history at the time with Time Warner and in 2002 reached over 26 million users before the emergence of broadband DSL and cable Internet services began the slow decline of the once-dominant company.

 

 

Simple as 1-2-3: IBM Buys Lotus

IBM LotusJuly 6, 1995

IBM completes a $3.5 billion buyout of Lotus Development, the producer of the once-dominant Lotus 1-2-3 spreadsheet software and the then-popular Lotus Notes groupware. IBM had hoped to leverage Lotus 1-2-3 to challenge the increasingly demanded Microsoft Excel software, but alas, there was little slowing down the Microsoft juggernaut during the 1990’s. Lotus 1-2-3 steadily lost marketshare, and IBM finally announced the end of support for the software in 2013.

Lotus Notes groupware faired little better than 1-2-3, succumbing to Microsoft Exchange as the dominant groupware platform among large companies, but it remained entrenched among certain corporations for many years under the name IBM notes. In 2018 IBM sold Notes along with other software products to HCL Software for $1.8 Billion. HCL still develops and supports Notes to this day with a focus on security and lower cost as a way to compete with Microsoft Exchange.

The First 16mm Film System Introduced

Cine-Kodak Model AJuly 5, 1923

Kodak introduces the hand-cranked Cine-Kodak Model A, the first complete 16mm film system. 16mm film was developed to be an amateur alternative to 35mm film most often used by professionals. However, it found widespread use during World War II and later for television production, especially TV news. 16mm film is still in use today for certain applications.

Keyboards and Computers, Together at Last!

MIT Whirlwind ComputerJuly 4, 1956

MIT’s Whirlwind, which had been completed five years earlier, becomes the first computer in the world to allow its users to enter commands through a keyboard. Previously, all input was accomplished through dials, switches, and/or punch cards.

World, Meet the Internet

Boelter Hall, UCLAJuly 3, 1969

UCLA issues a press release stating that it “will become the first station in a nationwide computer network which, for the first time, will link together computers of different makes and using different machine languages into one time-sharing system.” It went on to say that “Creation of the network represents a major forward step in computer technology and may server as the forerunner of large computer networks of the future.”

How right they were! Of course, this was the first step in creating what became known as the Internet. The first transmission on that newly created internet wasn’t actually sent until October 29th.

I could only find the text of the press release from the above link, which is a scan from a book. So I took the liberty of transcribing it using Siri along with a little manual editing. The text of the UCLA press release dated July 3rd, 1969 follows:

UCLA will become the first station in a nationwide computer network which, for the first time, will link together computers of different makes and using different machine languages into one time-sharing system.

Creation of the network represents a major forward step in computer technology and may serve as the forerunner of large computer networks of the future.

The ambitious project is supported by the Defense Department’s Advanced Research Project Agency (ARPA), which has pioneered many advances in computer research, technology and applications during the past decade. The network project was proposed and is headed by ARPA’s Dr. Lawrence G. Roberts.

The system will, in effect, pool the computer power, programs and specialized know-how of about 15 computer research centers, stretching from UCLA to M.I.T. Other California network stations (or nodes) will be located at the Rand Corp. and System Development Corp., both of Santa Monica; the Santa Barbara and Berkeley campuses of the University of California; Stanford University and the Stanford Research Institute.

The first stage of the network will go into operation this fall as a subnet joining UCLA, Stanford Research Institute, UC Santa Barbara, and the University of Utah. The entire network is expected to be operational in late 1970.

Engineering professor Leonard Kleinrock, who heads the UCLA project, describes how the network might handle a sample problem:

Programmers at Computer A have a blurred photo which they want to bring into focus. Their program transmits the photo to Computer B, which specializes in computer graphics, and instructs B’s program to remove the blur and enhance the contrast. If B requires specialized computational assistance, it may call on Computer C for help.

The processed work is shuttled back and forth until B is satisfied with the photo, and then sends it back to Computer A. The messages, ranging across the country, can flash between computers in a matter of seconds, Dr. Kleinrock says.

UCLA’s part of the project will involve about 20 people, including some 15 graduate students. The group will play a key role as the official network measurement center, analyzing computer interaction and network behavior, comparing performance against anticipated results, and keeping a continuous check on the network’s effectiveness. For this job, UCLA will use a highly specialized computer, the Sigma 7, developed by Scientific Data Systems of Los Angeles.

Each computer in the network will be equipped with its own interface message processor (IMP) which will double as a sort of translator among the Babel of computer languages and as a message handler and router.

Computer networks are not an entirely new concept, notes Dr. Kleinrock. The SAGE radar defense system of the Fifties was one of the first, followed by the airlines’ SABRE reservation system. At the present time, the nation’s electronically switched telephone system is the world’s largest computer network.

However, all three are highly specialized and single-purpose systems, in contrast to the planned ARPA system which will link a wide assortment of different computers for a wide range of unclassified research functions.

“As of now, computer networks are still in their infancy,” says Dr. Kleinrock. “But as they grow up and become more sophisticated, we will probably see the spread of ‘computer utilities’, which, like present electronic and telephone utilities, will service individual homes and offices across the country.”

The First Mass-Produced Computer

IBM 650July 2, 1953

IBM announced its 650 series of computers, the first mass-produced computer, and the dominant computer of the decade. The IBM 650 stored information on a rotating magnetic drum and received it on programmed punch cards. Its memory stored numbers with up to 10 decimal digits.

Sony Walkman Makes Music Portable

Sony Walkman TPS-L2July 1, 1979

The first Sony Walkman, the TPS-L2, goes on sale in Japan. It would go on sale in the US about a year later. By allowing owners to carry their personal music with them, the Walkman and their iconic headphones introduce a revolution in listening habits and popular culture at large.

The Transition to Transistors Begins

Replica of First TransistorJune 30, 1948

Originally designed to create improvements to electromechanical relays and vacuum tubes in telephone switching equipment, Bell Labs holds a press conference in New York to publicly demonstrate the first point-contact transistor. The transistor represents a significant advance in technology. As it is developed over the next few years, it will become the successor to the vacuum tube, the primary method of controlling electronic circuitry at the time. The use of transistors allows the development of the integrated circuit and microchips which kickstarted the rapid advance of electronic and computerized technology over the last 70+ years. Every industry that utilizes technology, from communications to computers to space travel to video games to media, owes a great deal to the development of the transistor.

The Phone That Changed Everything

The Original iPhoneJune 29, 2007

Nearly 6 months after it was introduced, Apple’s highly-anticipated iPhone goes on sale. Generally downplayed by Old Word Technology pundits after its introduction, the iPhone was greeted by long lines of buyers around the country on that first day. Quickly becoming an overnight phenomenon, one million iPhones were sold in only 74 days. Since those early days, the ensuing iPhone models have continued to set sales records and have completely changed not only the smartphone and technology industries, but the world as well.

Apple Takes Podcasting Mainstream

June 28, 2005

Apple releases iTunes 4.9, the first version of iTunes to incorporate Podcast subscribing and listening. Podcasting was a growing phenomenon and Apple realized it could both help build the medium and also become the defacto Podcast standard by linking it to its incredibly popular iTunes and iPod platforms. On this date there were 3000 Podcasts available in the iTunes directory. Apple’s move paid off and as of 2021 there were over 2 million Podcasts listed in the Apple Podcast Directory. Apple’s Podcast platform is still considered the standard on which podcasters should publish their shows.

There was an up and coming Podcast directory named Odeo at the time. Given Apple’s move Odeo suddenly became irrelevant. However, the people behind the company shifted focus and soon created a new service called Twttr, soon to be renamed Twitter. Isn’t it so interesting the way technology history weaves itself?