Network Centric Operations: Background and Oversight Issues for Congress







Prepared for Members and Committees of Congress



Network Centric Operations (also known as Network Centric Warfare) is a key component of
DOD planning for transformation of the military. Network Centric Operations (NCO) relies on
computer equipment and networked communications technology to provide a shared awareness
of the battle space for U.S. forces. Proponents say that a shared awareness increases synergy for
command and control, resulting in superior decision-making, and the ability to coordinate
complex military operations over long distances for an overwhelming war-fighting advantage.
NCO technology saw limited deployment in Afghanistan and, more recently, increased
deployment in Operation Iraqi Freedom (OIF). Several DOD key programs are now underway for
deployment throughout all services.
Congress may be concerned with oversight of the DOD organization and the individual services
as they transform through NCO programs that are intended to promote a management style and
culture with joint objectives. Oversight may involve a review of service efforts to improve
interoperability of computer and communications systems, and may also involve questions from
some observers about whether DOD has given adequate attention to possible unintended
outcomes resulting from over-reliance on high technology. Updates may also be required on
emerging threats that may be directed against increasingly complex military equipment.
This report describes technologies that support NCO, and includes (1) questions about possible
vulnerabilities associated with NCO; (2) a description of electronic weapons, and other
technologies that could be used as asymmetric countermeasures against NCO systems; (3)
descriptions of several key military programs for implementing NCO; (4) a list of other nations
with NCO capabilities; and, (5) a description of experiences using NCO systems in recent
operations involving joint and coalition forces. The final section raises policy issues for NCO that
involve planning, network interoperability, acquisition strategies, offshore outsourcing,
technology transfer, asymmetric threats, coalition operations, and U.S. military doctrine.
Appendices to this report give more information about the global network conversion to Internet
Protocol version 6 (IPv6), views on Metcalfe’s Law of Networks, and possible perverse
consequences of data-dependent systems.
This report will be updated to accommodate significant changes.






Introduc tion ..................................................................................................................................... 1
Backgr ound ..................................................................................................................................... 1
Defense Transformation............................................................................................................1
Definition of Network Centric Operations................................................................................2
Advantages of the Net Centric Approach..................................................................................3
Questions About the Net Centric Approach..............................................................................5
NCO Theory Remains Scientifically Untested...................................................................5
Overconfidence about the Effectiveness of NCO...............................................................6
Reduced Effectiveness for Urban Counter-Insurgency Operations....................................7
Underestimating our Adversaries........................................................................................7
Overreliance on Information...............................................................................................8
Management of Information Overload...............................................................................9
Increasing Complexity of Military Systems.......................................................................9
Vulnerabilities of Military Software and Data..................................................................10
Vulnerabilities of Military Equipment to Electronic Warfare...........................................12
Net Centric Technologies and Related Issues.........................................................................12
Command, Control, Communications, Computers, and Intelligence...............................12
Interoperability .................................................................................................................. 13
Space Dominance..............................................................................................................13
Networked Weapons.........................................................................................................15
Bandwidth Limitations......................................................................................................15
Unmanned Robotic Vehicles (UVs)..................................................................................16
Sensor Technology............................................................................................................16
Software Design................................................................................................................16
Computer Semiconductors and Moore’s Law...................................................................17
Technology Transfer Threat to U.S. Net Centric Advantages.................................................17
Weak Export Controls for High Technology.....................................................................18
Microchip Manufacturing Moves Offshore......................................................................18
Increased Offshore Outsourcing of R&D.........................................................................18
Operational Experiences.........................................................................................................19
Network Communications................................................................................................20
Sensors ........................................................................................................................ ...... 20
Satellites ............................................................................................................................ 21
Bandwidth and Latency....................................................................................................21
Air Dominance..................................................................................................................22
Operations in Iraq with Coalition Forces..........................................................................22
Network Capabilities of Other Nation States..........................................................................23
NATO ........................................................................................................................... ..... 24
Austra li a ...................................................................................................................... ...... 24
France ......................................................................................................................... ....... 24
Germany ............................................................................................................................ 25
United Kingdom...............................................................................................................25
Is rael.................................................................................................................................. 25
China .......................................................................................................................... ....... 25
Network Capabilities of Extremist Groups.............................................................................26
Attacks by Unknown Foreign and Domestic Adversaries................................................26
Hizballah...........................................................................................................................27





Hama s ............................................................................................................................... 27
Al Qaeda...........................................................................................................................28
Key Military Programs............................................................................................................28
Global Information Grid (GIG)........................................................................................28
Air Force Advanced Tactical Targeting Technology (AT3)..............................................29
Air Force Link 16.............................................................................................................29
Navy Cooperative Engagement Capability (CEC)...........................................................29
Army Force XXI Battle Command Brigade and Below (FBCB2)...................................29
Joint Tactical Radio System (JTRS).................................................................................29
Army WIN-T and JNN.....................................................................................................30
Army FCS.........................................................................................................................30
Oversight Issues for Congress.......................................................................................................30
Sufficient Information for Effective NCO Oversight..............................................................30
Sufficiently Joint NCO Planning.............................................................................................31
Future Combat System (FCS).................................................................................................31
Satellites .................................................................................................................................. 31
Unmanned Vehicles.................................................................................................................32
FBCB2 (Blue Force Tracker)..................................................................................................32
Joint Tactical Radio System (JTRS)........................................................................................33
Value of NCO Information......................................................................................................33
Networking Classified Data with Coalition Forces.................................................................33
NCO Technology Transfer......................................................................................................34
Speeding Acquisition for NCO Technologies.........................................................................35
NCO Doctrine.........................................................................................................................36
Related Legislation........................................................................................................................36
Possible Vulnerabilities...........................................................................................................39
Appendix A. The Transition from Internet Protocol Version 4 (IPv4) to IPv6..............................37
Appendix B. Changing Views on Metcalfe’s Law of Networks....................................................40
Appendix C. Perverse Consequences of Data-Dependent Systems..............................................42
Author Contact Information..........................................................................................................44






This report provides background information and discusses possible oversight issues for Congress
regarding DOD’s strategy for implementing a network centric approach to warfare, otherwise
known as Network Centric Operations (NCO). NCO forms a central part of the Administration’s
plans for defense transformation.
Proponents argue that a Network Centric approach may improve both the efficiency and
effectiveness of U.S. combat operations. However, when NCO was originally envisioned, the
U.S. military was structured to counter conventional threats, including possibly, two regional war 1
scenarios involving national armies. Now, partly from recognition that U.S. forces were
inadequately prepared for the insurgency in Iraq and the wider hunt for terrorists worldwide,
DOD reportedly may be considering new policy that places less emphasis on waging
conventional warfare and more on dealing with counterinsurgency, terrorist networks, and other 2
non-traditional threats.
Some observers now question the effectiveness of Network Centric Operations, and its relevance
to different types of conflict, including close urban combat. Others argue that technology may be
dictating military strategy, and point out that the military’s extreme reliance on high technology 3
may also present a new vulnerability that adversaries may exploit. Still others pose questions
about (1) the interoperability of information systems for joint and coalition forces, (2) a shortage
of available bandwidth to support Net Centric Operations, and (3) possible unexpected outcomes
when organizations rely on data-dependent systems.

NCO is recognized as the cornerstone of military transformation that is occurring in many
countries around the world. Defense transformation for the U.S. military involves large-scale and
possibly disruptive changes in military weapon systems, organization, and concepts of operations.
These changes are the result of technology advances, or the emergence of new international 4
security challenges. Many observers believe that a U.S. military transformation is necessary to
ensure U.S. forces continue to operate from a position of overwhelming military advantage in

1 Vice Adm. A. Cebrowski, John Gartska, Net-Centric Warfare: Its Origin and Future, Proceedings, U.S. Naval
Institute, January 1998, http://www.usni.org/Proceedings/Articles98/PROcebrowski.htm. Ivan Eland, Bush Versus the
Defense Establishment, Issues Online, National Academy of Sciences, Summer 2001, http://www.issues.org/17.4/
eland.htm. U.S. Defense Policy, GlobalSecurity.Org, http://www.globalsecurity.org/military/intro/intro.htm.
2 Bradley Graham, Pentagon Prepares to Rethink Focus on Conventional Warfare, Washington Post, January 26, 2005,
A2.
3 Military technology emulates commercial technology in the hope that adapting the latest commercial innovation to
war may bring to national security the same benefits that accrued to commercial enterprises. Alfred Kaufman, Caught
in the Network: How the Doctrine of Network-Centric Warfare Allows Technology to Dictate Military Strategy, Armed
Forces Journal, February 5, 2005, p.20-22.
4 For more information, see CRS Report RL32238, Defense Transformation: Background and Oversight Issues for
Congress, by Ronald ORourke.





support of national objectives.5 The Administration has stated that DOD must transform to
achieve a fundamentally joint, network centric, distributed force structure capable of rapid
decision superiority. To meet this goal, DOD is building doctrine, training, and procurement
practices to create a culture of continual transformation that involves people, processes, and
systems.
Past experimentation to stimulate wider innovation for military operations and NCO has been
coordinated by the DOD Office of Force Transformation (OFT). However, DOD plans to shift
many ongoing technology initiatives formerly managed by the OFT into the DOD Research and
Engineering Directorate. In addition, a reorganization of the office of the DOD Undersecretary
for Policy will lead to establishment of a new Office of Strategic Futures, which will examine
technology issues that may affect U.S. defense policies. The reorganization is reportedly planned 6
for early 2007, and will require congressional approval for a new assistant secretary position.
NCO is a theory which proposes that the application of information age concepts to speed
communications and increase situational awareness through networking improves both the
efficiency and effectiveness of military operations. Proponents advocate that this allows combat
units to be smaller in size, operate more independently and effectively, and undertake a different 7
range of missions than non-networked forces. Networked sensors are sources of data, and data is
processed into information. NCO is intended to increase collaboration through enabling the free
flow of information across the battlespace so that acquired data is shared, processed into 8
information, and then provided quickly to the person or system that needs it.
Proponents argue that a strong and flexible network linking military forces will speed up the pace
of warfare, prevent or reduce fratricide, and also provide the means for getting more combat 9
power out of a smaller force. These proponents also argue that theory and practice have merged
through achieving proof of concept in the major operations phase of Operation Iraqi Freedom, 10
and that NCO is now an accepted and enduring part of current and future combat. Procurement

5 U.S. Department of Defense, Transformation Planning Guidance, April 2003.
6 Gopol Ratnam, Pentagon to dissolve transformation office, AirForceTimes, August 29, 2006,
http://www.airforcetimes.com/story.php?f=1-292925-2066882.php.
7 The Office of Force Transformation (OFT) and the Command and Control Research Program (CCRP) of the Office of
the Assistant Secretary of Defense for Command, Control, Communications, and Intelligence (ASD/C3I) have been
collaborating to develop metrics to support experiments, studies, and analyses related to Military Transformation and
Net Centric Operations. To date the effort has been led by RAND, with support from Evidence Based Research, Inc.
(EBR), and participation of the government sponsors. The NCO theory posits that the application of information
technologies has a positive impact on military effectiveness. Independent variables include networking, information
sharing, collaboration, etc. Dependent variables include speed of command and force effectiveness. Dr. Kimberly
Holloman, Evidence Based Research, Inc., “The Network Centric Operations Conceptual Framework,Presentation at
the Network Centric Warfare 2004 Conference, Washington, D.C., January 20, 2004, http://www.oft.osd.mil/library/
library.cfm?libcol=2.
8 Ted McKenna, Developers of Net-Centric Warfare Battle Complexity, Journal of Electronic Defense, July 2005,
No.7, p. 23.
9 John Tirpak, The Network Way of War, Air Force Magazine, March 2005, p. 31.
10 Dan Gonzales, et.al., Assessing the Value of Information Superiority for Ground ForcesProof of Concept, National
Defense Research Institute, 2001, RAND, Sant Monica, California. Dennis Murphy, Network Enabled Operations in
Operation Iraqi Freedom: Initial Impressions, Center for Strategic Leadership, U.S. Army War College, March 2005,
vol. 06-05, p. CSL-4.





policy to support joint NCO efforts is also intended to improve economic efficiency by
eliminating stove-pipe systems, parochial interests, redundant and non-interoperable systems, and
by optimizing capital planning investments for present and future information technology
systems.
Command and control objectives of NCO include the following:
(1) Self-synchronization, or doing what needs to be done without traditional orders.
(2) Improved understanding of higher command’s intent.
(3) Improved understanding of the operational situation at all levels of command.
(4) Increased ability to tap into the collective knowledge of all U.S. (and coalition) forces to 11
reduce the “fog and friction” commonly referred to in descriptions of fighting.
Some argue that as new concepts and technologies are proven over time, NCO may also become
a stabilizing deterrence against extended conflict. For example, if adversary targets are
neutralized by NCO systems before they can engage in fighting with U.S. forces, then the battle 12
can be finished before it has really begun. Others argue that wealthy countries now only have a
temporary advantage which may be reduced as NCO technology becomes less expensive and as 13
technical knowledge spreads to other nations, and also to terrorist groups. Hence, to maintain its
advantage, the United States must continue to refine the uses of technology to increase
adaptability for both joint and coalition NCO operations.
Other observers have wondered whether proponents of NCO are making claims that create
unrealistic expectations. They wonder if the DOD model for network centric operations may
underestimate an enemy’s ability to deceive high technology sensors, or block the information
necessary for NCO to be effective. A possible vulnerability cited by observers may be the fact
that DOD has openly published its plans for using NCO technologies in future warfare, thus 14
giving an enemy time to create strategies to avoid strengths and attack weaknesses.
National security in the “Information Age” involves a complex environment, where U.S. forces
are confronted by instantaneous media coverage, insurgencies, terrorist cells, regional instability,
and adversaries using commercially available state-of-the-art high technology devices. Therefore,
military operations are now characterized by greater complexity. Events involving greater
complexity are less effectively controlled through traditional industrial-age methods that de-

11Fog is the term that describes the uncertainty about what is going on during a battle, whileFriction” is the term
that describes the difficulty translating a commander’s intent into battlefield actions.
12 Dr. Kimberly Holloman, Evidence Based Research, Inc., The Network Centric Operations Conceptual Framework,
Presentation at the Network Centric Warfare 2004 Conference, Washington, DC, January 20, 2004,
http://www.oft.osd.mil/library/library.cfm?libcol=2.
13 Scott Renner, C2 Information Manager, MITRE Corporation, Building Information Systems for NCW, 4th Annual
Multinational C4ISR Conference, McLean, Virginia, May 6, 2004.
14 Alfred Kaufman, “Be Careful What You Wish For: The Dangers of Fighting with a Network Centric Military,”
Journal of Battlefield Technology, vol 5, no.2. July 2002, and “Networking in an Uncertain World,” Journal of
Battlefield Technology, vol 5, no.3, November 2002.





construct problems into a manageable series of predictable pieces.15 However, the command and
control objectives of NCO seem to align closely with many of the key properties of complexity—
nonlinear interaction, decentralization, and self-organization.
Proponents of NCO support the theory that power is increasingly derived from information
sharing, information access, and speed. This view is reportedly also supported by results of recent 16
military operational experiences showing that when forces are truly joint, with comprehensively
integrated capabilities and operating according to the principles of NCO, they can fully exploit 17
the highly path-dependent nature of information age warfare. Some resulting military
advantages that are expected from applying NCO systems to military operations include the
following:
(1) Networked forces can consist of smaller-size units that can travel lighter and faster, meaning
fewer troops with fewer platforms and carrying fewer supplies may be able to perform a
mission effectively, or differently, at a lower cost.
(2) Networked forces can fight using new tactics. During OIF, U.S. Army forces utilized
movement that was described by some as “swarm tactics.” Because networking allows
soldiers to keep track of each other when they are out of one another’s sight, forces in Iraq
could move forward spread out in smaller independent units, avoiding the need to maintain a
tight formation. Using “swarm tactics,” unit movements are conducted quickly, without
securing the rear. Network technologies enable all units to know each other’s location. If one
unit gets into trouble, other independent units nearby can quickly come to their aid, by
“swarming” to attack the enemy from all directions at once. Benefits may include the
following: (1) it is harder for an enemy to effectively attack a widely dispersed formation; (2)
combat units can cover much more ground, because they do not have to maintain a formation;
(3) knowing the location of all friendly units reduces fratricide during combat operations; and
(4) swarming can allow an attack to be directed straight into the heart of an enemy command
structure, undermining support by operating from the inside, rather than battling only on the
periphery.
(3) The way individual soldiers are expected to think and act on the battlefield is also changing.
When a unit encounters a difficult problem in the field, they can radio the Tactical Operations
Center, which types the problem into an online chat room, using Microsoft Chat commercial
software. The problem is then “swarmed” by experts who may be located as far away as the 18
Pentagon.

15 Murray Gell-Mann, “What is Complexity? Complexity, John Wiley and Sons, 1995, Vol. 1, No.1.
16 John Garstka, “Network-Centric Warfare Offers Warfighting Advantage,Signal Forum, Signal Magazine, May
2003.
17 Path-dependence means that small changes in the initial conditions will result in enormous changes in outcomes.
Therefore, a military force must define initial conditions that are favorable to their interests, with the goal of developing
high rates of change that an adversary cannot outpace. Dan Cateriniccia and Matthew French, “Network-Centric
Warfare: Not There Yet,Federal Computer Week, June 9, 2003, http://www.fcw.com/fcw/articles/2003/0609/cov-
netcentric-06-09-03.asp.
18 Joshua Davis,If We Run Out of Batteries, This War is Screwed,” Wired Magazine, June 2003,
http://www.wired.com/wired/archive/11.06/battlefield.html.





(4) The sensor-to-shooter time is reduced. Using NCO systems, soldiers in the field may have the
capability to conduct an “on site analysis” of raw intelligence from sensor displays, rather 19
than waiting for “return analysis” reports to arrive back from the continental United States.
This has led some to question the investment in NCO.
DOD officials have stated that it is irregular and unconventional conflicts, rather than
confrontations with standing armies, that will dominate U.S. military operations for the 20
foreseeable future. Accordingly, some observers question the utility of NCO in urban combat
operations and for counterinsurgency operations, and ask whether the U. S. military currently
places too much emphasis on high-technology. In operations in Afghanistan and in urban warfare 21
in Iraq, NCO has reportedly reduced fratricide among friendly forces. However, in Afghanistan
and Iraq, the insurgents mix in with the population, and are able to get very close to U.S. forces.
This tactic alone reportedly may negate much of the technological and military advantage of 22
superior coalition forces. Others question whether information itself may be overrated as a
useful military asset (See Appendix C, “Perverse Consequences of Data-Dependent Systems”).
Proponents say that a growing body of evidence highlights a very strong relationship between
information advantage, cognitive advantage, and increased lethality and survivability at the 23
tactical level. DOD has conducted several exercises to demonstrate the effectiveness of network 24
centric strategies to improve success in combat scenarios. However, some researchers warn that 25
thorough testing of NCO concepts is vital before systems are deployed, and others argue that 26
NCO theory may manifest important and pervasive flaws. These researchers state that “... the

19 For example, one UAV equipped with multiple sensors can survey the same area as ten human sentries, or one could
monitor areas contaminated with radiological, chemical or biological agents without risk to human life. Today, DOD
has in excess of 90 UAVs in the field; by 2010, this inventory is programmed to quadruple. U.S. Department of
Defense, Office of the Secretary, Unmanned Aerial Vehicles Roadmap, 2002-2007, December 2002.
20 Donna Miles, Army Experts: Unconventional Conflicts to Dominate Future Operations, American Forces
Information Service News Articles, October 12, 2006. John Doyle, Conuterinsurgency Forces Need to Control
Cyberspace, Aviation Week and Space Technology, October 23, 2006, p.64.
21 Rodney Pringle, NCW Changing Urban Warfare, Official Says, AviationWeek NetDefense, February 3, 2005,
http://www.aviationow.com/avnow/news/channel_netdefense_story.jsp?view=story&id=news/NCW02035.xml.
22 Jim Garamone, No Silver Bullet to Counter Explosive Devices, Head of Anti-IED Office Says, American Forces
Information Services DefenseLink, September 7, 2006, http://www.defenselink.mil/News/NewsArticle.aspx?ID=743.
23 John Garstka, Network-Centric Warfare Offers Warfighting Advantage, Signal Magazine, May, 2003. Walter Perry,
et.al., Exploring Information Superiority: A Methodology for Measuring the Quality of Information and Its Impact on
Shared Awareness, National Defense Research Institute, 2004, RAND, Santa Monica, California.
24 Guy Norris, Major Exercise to Prove Net Warfare, Flight International, December 2004, p.5.
25 Walter Perry, James Moffat, Information Sharing Among Military Headquarters, http://www.rand.org/pubs/
monographs/MG226/.
26 Metcalfe’s Law observes that the potential value of a communications network increases (or scales) as a function of
the square of the number of nodes that are connected by the network. Critics of NCO argue that Metcalfes Law breaks
down at a sufficiently large number of nodes. The military symptoms are chronic bandwidth deficiency, information
overload, and increasing costs for information management solutions, such as “data fusion centers. Ralph Griffin and th
Darryn Reid, A Woven Web of Guesses, Proceedings of the 8 International Command and Control Research and
(continued...)





theory of network-centric warfare ... cannot substantiate a claim to scientific status, despite its
mesmerizing transformational luster.” They also state that “... the [NCO] thesis simultaneously
overstates the promise of information and communications technology, while being incapable of 27
adequately realizing the great potential the technology does offer.”
Their argument is that NCO theory has several paradoxes, including (1) no proper definition of
NCO yet exists, but proponents claim that experimentation supports the NCO hypothesis, (2)
experimental evidence equally supports multiple alternative explanations for potentially improved
performance with networking, and (3) the conclusions of proponents are based on an invalid
notion of knowledge development, known as “inductivisim”. These researchers maintain that a
close examination of the structure of repeated NCO experiments shows that the only hypothesis
that has actually been tested is a refutation of the theory that networks cannot yield
improvements.
Finally, these researchers have asked how it can be possible for faults to remain unrecognized
despite troubling results found through critical review and testing. They warn that contemporary
military theory may be encouraging NCO proponents to seek confirmation and ignore refutation
of their ideas.
Proponents of NCO say that shared situational awareness enables collaboration and self-
synchronization and enhances speed of command, which increasing mission effectiveness.
Critics, however, are concerned that dangerous assumptions are being made by military planners
about how future forces will benefit from “information dominance” to such a degree that fewer
soldiers will be needed, or that U.S. forces will not require as much protection because they will
be able to act ahead of enemy action. They believe that the doctrine of “see first, act first”, that
underlies NCO, may be flawed because the tempo of operations may outpace the ability of U.S. 28
forces to assess and respond.
While a network may provide better access to information, usually about the activities of one’s
own side, that information may not be complete and may not necessarily enable an accurate
understanding of the situation. They have indicated that sensor-based situational awareness may 29
not reflect an accurate picture of operational reality.
Other observers say that the military leadership’s commitment to NCO may stifle useful criticism
from operational commanders. These observers question whether the U.S. military is constructing
it forces to prepare to fight the type of wars they want to fight, and rather than the wars they are

(...continued)
Technology Symposium, Washington D.C., June 17-19, 2003. For more information on Metcalfes Law, see Appendix
B, “Changing Views on Metcalfes Law of Networks.”
27 Darryn Reid et. al., All that Glitters: Is Network-Centric Warfare Really Scientific?, Defense and Security Analysis,
vol.21, No.4, p. 359 and p.360.
28 Proponents of NCO say that Information Age technology makes time and distance less relevant, thus increasing the
pace of events and the operational tempo of warfare. David Alberts, John Garstka, Frederick Stein, Network Centric
Warfare, DOD Command and Control Research Program, October 2003, p. 21. Ted McKenna, Promises, Promises,
Journal of Electronic Defense, November 2005, vol. 28, No.11, p. 10.
29 Giles Ebbutt, Flaws in the system: modern operations test the theory of network centricity, Jane’s International
Defence Review, July 2006, Vol 39, p.67.





likely to fight. For example, if NCO is intended to make wars short in duration, then inferior
adversaries may likely try to draw U.S. forces into a protracted conflict of lower intensity, and
will seek to win merely by avoiding defeat, while U.S. political will dissolves as expenses mount.
The inferior opponent may avoid superior U.S. firepower by simply denying a target for our 30
complex and sophisticated weapons.
Some military researchers say that opponents using guerilla tactics can significantly reduce the
value of high-technology security measures, and that the utility of NCO can be less certain in 31
urban counter-insurgency operations. When NCO is employed against conventional forces, a
sensor detects a target, passes information to a decision-making process, the most effective
weapon available is selected, and the target is engaged. However, when opponents hide behind
walls, in sewers, or inside buildings, they may be difficult for NCO sensors to detect. If the
enemy is better at concealment than U.S. forces are at finding them, then our forces may also 32
become more vulnerable.
Some observers report that during Operation Iraqi Freedom (OIF), in order to understand the
enemy, U.S. forces had to “go out and meet them on the ground”, meaning that effective
reconnaissance often required engaging the enemy in close combat. These observers say that
interviews with OIF warfighters suggested that modern surveillance technology did not alter that
condition, and in some instances did not “...provide forces in Iraq in Spring 2003 and onwards 33
with very much insight on the opposing forces”. This suggests that DOD should perhaps
reexamine several of its basic assumptions about NCO and the power of technology for
surveillance and information dominance.
NCO relies heavily on deployment of a network of sensors to detect movement and position of
both friendly and enemy forces. However, a study by the Rand Corporation in 2002 concluded
that, “...as remote assets become more capable, it is likely that a future [enemy] force will
develop counter technologies and become more sophisticated at cover, concealment, deception,
and electronic warfare. Taking all of these into consideration, the net effect may actually be a 34
decrease of knowledge and ultimately of situational awareness on the battlefield.”

30 J. Bailey, “Over by Christmas: Campaigning, Delusions and Force Requirements, AUSA Land Warfare Institute,
The Land Warfare Papers, No. 51, September 2005, http://www.ausa.org/pdfdocs/LWP_51WBailey.pdf.
31 Brian Jackson, Breaching the Fortress Wall: Understanding Terrorist Efforts to Overcome Defensive Technologies,
presentation by RAND corporation at the Rayburn House Office Building, October 24, 2006. J.A. Bailey, Over by
Christmas: Campaigning, Delusions and Force Requirements, The Institute of Land Warfare, Association of the
United States Army, Land Warfare Papers, No. 51, September, 2005.
32 Giles Ebbutt, Flaws in the system: modern operations test the theory of network centricity, Jane’s International
Defence Review, July 2006, Vol 39, p.57.
33 Curtis Taylor, Trading the Saber for Stealth: Can Surveillance Technology Replace Traditional Aggressive
Reconnaissance?, AUSA Land Warfare Institute, The Land Warfare Papers, No. 53, September 2005,
http://www.ausa.org/pdfdocs/LWP_53.pdf.
34 John Matsumura, et. al., Preparing for Future Warfare with Advanced Technologies, Rand, Arroyo Center, 2002,
p.11.





Our adversaries in Iraq and Afghanistan have taken actions to directly bypass U.S. NCO sensors,
and to negate the usefulness of U.S. high technology NCO weapons. Examples include (1) use of
suicide bombings and Improvised Explosive Devices (IEDs); (2) hostile forces intermingling with
civilians used as shields; or (3) irregular fighters and close-range snipers that swarm to attack, and 35
then disperse quickly.
Other possible uses of technology by adversaries of the United States to attack NCO capabilities 36
may include use of (1) powerful directed energy devices to disrupt commercial satellite signals; 37
(2) smaller directed energy devices to burn out computer circuits at a distance, and (3) malicious
computer code to subvert controls for complex weapon systems.
Some observers state that huge information resources may be overrated as an asset for creating
effective military operations, and that important military decisions may not always lend 38
themselves to information-based rational analysis. They argue that discussions of military
transformation have been overwhelmingly focused on the rewards of information, and that the
military services, national security establishment, and intelligence community have not 39
thoroughly studied the risks associated with data-dependent military doctrine. Some issues
raised by these observers include:
(1) Reliance on sophisticated information systems may lead to management overconfidence.40
(2) Quantitative changes in information and analysis often lead to qualitative changes in
individual and organizational behavior that are sometimes counter-productive; e.g., as
information technology reveals more targets, ammunition may be expended faster, leading to 41
greater dependence on logistics support.

35 For more information, see CRS Report RS22330, Improvised Explosive Devices (IEDs) in Iraq and Afghanistan:
Effects and Countermeasures, by Clay Wilson.
36 A group of Iranians last summer reportedly jammed a U.S.-built commercial satellite broadcasting pro-rebel
information into that Middle Eastern country. The specific transponder that was carrying the broadcast was disrupted
for about two weeks by Iranians operating at a teleport in Cuba, according to industry sources. Amy Butler, “Heavy
DoD Reliance On Commercial SATCOM Prompts Questions of Protection,Defense Daily, April 13, 2004.
37 Directed energy weapons could include a High-Energy Microwave device (HPM), activated by a chemical explosion.
Such a bomb-driven device, the size of a suitcase and using a specially-shaped antenna, could theoretically direct a
narrow-beam energy pulse that could damage a computer within a distance of 1 kilometer. Prof. Robert Harney, Naval
Postgraduate School, personal communications, April 12, 2004.
38 Martin Burke, Information Superiority Is Insufficient To Win In Network Centric Warfare, Joint Systems Branch,
Defense Science and Technology Organization, 2001, http://www.dodccrp.org/events/2000/5th_ICCRTS/cd/papers/
Track4/024.pdf.
39 Michael Schrage, Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and
Transparency, Security Studies Program Working Paper, Massachusetts Institute of Technology, E38-600, May 2003,
p.15.
40 Michael Schrage, Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and
Transparency, Security Studies Program Working Paper Massachusetts Institute of Technology, E38-600, May 2003,
p.4.
41 Dr. Kimberly Holloman, Evidence Based Research, Inc., “The Network Centric Operations Conceptual Framework,
Presentation at the Network Centric Warfare 2004 Conference, Washington, D.C., January 20, 2004,
http://www.oft.osd.mil/library/library.cfm?libcol=2.





(3) An information-rich, opportunity-rich environment may shift the value of the information,
redefine the mission objectives, and possibly increase the chances for perverse consequences.
(See Appendix C, “Perverse Consequences of Data-Dependent Systems.”)
The proliferation of sensors in the battlefield has created what some would call “data overload”,
where large inflows of real-time data could overwhelm users, and jeopardize the decision-making
process. DOD is examining using new “data fusion” centers, which would use special software to
filter out battlefield data that is unneeded by warfighters. Also, to make sure that radio
frequencies in use don’t encounter interference, the US Air Force Electronic Systems Center is
working to design a universal tool called the Joint Interface Control Officer (JICO) Support 42
System, which is intended to manage all radio communications traffic in tactical situations.
Military systems and software are becoming increasingly complex. Software is used to process
sensor data, identify friend and foe, set targets, issue alerts, coordinate actions, and guide
decisions for manned and unmanned combat vehicles on land, sea, and in the air. For example,
observers estimate that at least 31 million lines of computer code will be required to operate the 43
Army Future Combat System. Also, many military combat systems which now operate as stand-44
alone equipment will eventually be tied into network systems. However, as complexity grows,
components of networked systems may sometimes process information received from other 45
systems whose capabilities, intentions, and trustworthiness are not always known.
A recent article published by the Carnegie Mellon Software Engineering Institute about the
growing complexity of military computerized systems argues the following:
With modern complex systems of systems, most systems are described as “unbounded”
because they involve an unknown number of participants or otherwise require individual
participants to act and interact in the absence of needed information.
For the complex systems of systems being constructed today and defined for the future, it
is no longer possible for any human or automated component to have full knowledge of
the system. Each component must depend on information received from other systems
whose capabilities, intentions, and trustworthiness are unknown.
Unbounded systems of systems are fast becoming the norm in many of the most
demanding military and commercial applications. These include command-and-control
systems, air traffic control systems, the electric power grid, the Internet, individual
aircraft, enterprise database systems, and modern PC operating systems. For example, in

42 Staff, U.S. Forces in Iraq Face Obstacles in Getting Intelligence They Need, Inside the Pentagon, May 5, 2005, Vol.
21, No.18, p.10. Ted McKenna, Orchestrating Tactical Communications, Journal of Electronic Defense, August 2005,
No 8, P. 22.
43 David Talbot, How Technology Failed in Iraq, Technology Review, November 2004, p. 1.
44 Goodrich Engine Control Systems, http://www.enginecontrols.goodrich.com/small/products/ecu.shtml.
45 David Fisher, Dennis Smith, Emergent Issues in Interoperability, Carnegie Mellon Software Engineering Institute,
No.3, 2004, http://www.sei.cmu.edu/news-at-sei/columns/eye-on-integration/2004/3/eye-on-integration-2004-3.htm.





net-centric warfare as applied by U.S. troops at the beginning of the current war in Iraq,
agility and rapid progress were achieved by direct interactions among ground troops,
helicopters, artillery, and bombers using equipment whose designs did not anticipate such
usage and the accompanying mission changes.
Most systems of systems use their component systems in ways that were neither intended
nor anticipated. Assumptions that were reasonable and appropriate for individual
component systems become sources of errors and malfunction within systems of systems.
As a result, the individual systems—and the system of systems as a whole—acquire
vulnerabilities that can be triggered accidentally by normal actions of users and
automated components, or exploited consciously by intelligent adversaries.
Often when problems of interoperability arise in complex systems, there is a tendency to
try to gain greater visibility, to extend central control, and to impose stronger standards.
Not only are these actions ineffective in complex systems, they also increase the
likelihood of certain kinds of accidents, user errors, and other failures. What are called
normal accidents are inherent and occur naturally in complex systems. The frequency of
normal accidents increases with the degree of coupling in systems. Coupling is increased
by central control, overly restrictive specifications, and broadly imposed interface 46
standards. Developers of systems of systems should strive for loose coupling.
Military computers are continuously threatened by attack from hackers, or others with malicious
intent. One example of a hacker attack is the British programmer, Gary McKinnon, who
reportedly used commercially-available off-the-shelf software in several attacks through the 47
Internet to successfully penetrate hundreds of military computers, causing measurable damage, 48
and forcing portions of several military network to shut down temporarily. Also, in Afghanistan,
stolen military portable computer drives, some containing classified data and software, were 49
recently discovered for sale in the streets, in public markets, and in local shops.

46 David Fisher and Dennis Smith, Emergent Issues in Interoperability, News@ SEI, 2004, No.3,
http://www.sei.cmu.edu/news-at-sei/columns/eye-on-integration/2004/3/eye-on-integration-2004-3.htm.
47 Gary McKinnon has been indicted for breaking into approximately 100 military networks between 2001 and 2002.
He is charged with installing Trojan Horses and back doors, stealing military passwords, and disabling networks at Fort
Meyers, Fort McNair, the Pentagon, and other locations belonging to the Army, Navy, and Air Force. However, DOD
officials claim that no classified data was taken. In May 2006, the U.S. prosecutors secured his extradition from Britain
to the United States, where he could face 70 years in prison, plus fines. Larry Greenmeier, To Catch A Hacker,
Information Week, May 15, 2006, p. 31. Maija Palmer, “Hacker Cites Easy Access to U.S. Data”, Los Angeles Times,
May 8, 2006. Brooke Masters, “Briton Indicted as Hacker, Washington Post, November 13, 2003, p. A11,
http://www.washingtonpost.com/wp-dyn/articles/A45963-2002Nov12.html. MARADMIN, “Marine Corps
Announcement of Website Breach,” Inside Defense, October 15, 2003, http://www.insidedefense.com.
48 U.S. Attorney’s Office, District of New Jersey, Public Affairs Office, November 11, 2002, http://www.usdoj.gov/
usao/nj/publicaffairs/NJ_Press/files/mc1112_r.htm.
49 Stolen portable hard drives from military computers, some containing sensitive and classified military information,
were found for sale at a local bazaar in Afghanistan. The drives may have come from the main U.S. air base in Bagram,
Afghanistan. In addition to launching an investigation, military officials reportedly coped with the problem by sending
staff to buy up all the portable computer drives at the local bazaar. Paul Watson, U.S. Military Secrets for Sale at
Afghan Bazaar, Los Angeles Times, April 10, 2006, p.A1. Carlotta Gall, At Afghan Bazaar, Military Offers Dollars for
Stolen Data, The New York Times, Asia Pacific, April 15, 2006, http://www.nytimes.com/2006/04/15/world/asia/
15afghanistan.html?ex=1145332800&en=e12bbb6b87a5b3fb&ei=5087%0A.





There is growing controversy about whether the U.S. military should rely on general purpose
“open-source” commercial computer software for the command, control, and communications
functions in advanced defense systems for tanks, aircraft and other complex equipment. An
example of open-source code is the popular computer operating system known as Linux, which
has been developed by a worldwide community of programmers who continuously add new
software features by building on each others’ openly-shared source code. Subscriptions can be
purchased from different commercial vendors who will provide technical support for specific
versions of the Linux open-source software. In contrast, proprietary code created by other
commercial vendors is called “closed-source”, and includes software products such as Microsoft
Windows. Both open-source and closed-source products which are supported by commercial
software vendors are commonly referred to as commercial-off-the-shelf (COTS). However, open-
source software appears much less expensive than proprietary software, and the reputation it has
earned for general soundness and reliability is helping open-source software gain acceptance by
different government organizations and the global business community.
NSA has researched a secure version of Linux, but it is not clear that all military computer 50
systems that use Linux are restricted by the results of that research. Some experts believe that
open-source software violates many security principles, and may be subverted by adversaries who
could secretly insert malicious code to cause complex defense systems to malfunction. Other
computer experts disagree, stating that precisely because Linux is openly reviewed by a
worldwide community of contributing programmers, it has security that cannot easily be
compromised by a foreign agency. The open review by many contributors acts as a safeguard
against insertion of malicious code.
A recent study by the Defense Information Systems Agency (DISA) states that DOD currently
uses a significant variety of open-source computer software programs, and concluded that open-
source software is vital to DOD information security. This is partly because many information
security tools used by DOD are built using open-source code, and effective counterparts are not
available from proprietary COTS products. The study also states that DOD web services and
DOD software development would be disrupted without continued use of open-source software.
This is because many tools that are basic to web design and software development are based on 51
open-source code.
Experts at the Naval Post Graduate School reportedly have stated that “software subversion” can
only be avoided by using “high-assurance” software that has been proven to be free of any 52
malicious code. Because of the added development rigor and intensive test procedures required
to achieve such proof, high-assurance software would cost considerably more than open-source 53
software. However, researchers at the Massachusetts Institute of Technology have reportedly

50 See NSA Security Enhanced Linux, http://www.nsa.gov/selinux/index.cfm.
51 DISA, “Use of Free and Open-Source Software (FOSS) in the U.S. Department of Defense,” Mitre Report No. MP
02 W0000101, Version 1.2, October 2002, p. 20, http://unix.be.eu.org/docs-free/dodfoss.pdf.
52 Alexander Wolfe,Green Hills calls Linux ‘Insecure’ for Defense, EETimes, April 9, 2004, http://eetimes.com/
showArticle.jhtml?articleID=18900949 and Charles J. Murray, April 19, 2004,Linux: Unfit for National Security?,
EETimes, http://eetimes.com/showArticle.jhtml?articleID=18901858.
53 Research at the Naval Postgraduate School has resulted in new security tools for protecting against unauthorized
computer and network intrusions. The new technology has been licensed to Lancope Inc. of Alpharetta, Georgia, which
has created a new commercial version of the intrusion detection tool, called “StealthWatch.” The license was granted
because the Naval Postgraduate School intended that the technology become more developed through marketing in the
commercial world. William Jackson, “Hasta La Vista, Attacks,” Government Computer News, vol.23, no.6, March 22,
2004, p.27.





found that as the complexity of a system increases, additional testing does not always reduce the 54
number of vulnerabilities that can remain hidden in computer software.
U.S. military forces may be vulnerable to electronic warfare attacks, such as Electromagnetic
Pulse (EMP), which is an instantaneous, intense energy field that can overload or disrupt at a
distance numerous electrical systems and high technology microcircuits, which are especially
sensitive to power surges. A single, specially designed low-yield nuclear explosion high above a
local battlefield area can produce a large-scale electromagnetic pulse (EMP) effect that could
result in widespread disruption of electronic equipment, without any fatalities due to blast or
radiation. A similar EMP effect on a more limited scale could also be produced by using a high-55
power microwave device, triggered by a conventional explosive.
Commercial electronic equipment is now used extensively to support logistics to support the
operation of complex U.S. weapons systems. For example, a large percentage of U.S. military
communications during Operation Iraqi Freedom was carried by commercial satellites, and much 56
military administrative information is currently routed through the civilian Internet. Many
commercial communications satellites, particularly those in low earth orbit, reportedly may 57
degrade or cease to function shortly after a high-altitude EMP attack. Special shielding could
reduce this vulnerability in future commercial satellites. However, the current vulnerability of
high technology equipment and communications to the effects of EMP could create a new
incentive for other countries, or terrorists and extremists, to develop or acquire electronic warfare
weapons.
The following is a list of key technology areas used to implement NCO for U.S. forces, and
related issues.
C4I capabilities are the nervous system of the military. DOD is seeking to move from a policy of
information “push”, where information is labeled and sent by data “owners” only to recipients
who are deemed appropriate, to a policy of information “pull”, where authenticated users within a
given community of interest can request and receive all information available to solve a problem,
regardless of the data owner. This shift in policy is intended to promote more widespread 58
information sharing and collaboration.

54 Simson Garfinkel, Battling Bugs: A Digital Quagmire, Wired News, November 9, 2005, http://www.wired.com/
news/technology/bugs/0,2924,69369,00.html.
55 For more on EMP, see CRS Report RL32544, High Altitude Electromagnetic Pulse (HEMP) and High Power
Microwave (HPM) Devices: Threat Assessments, by Clay Wilson.
56 Jefferson Morris, “DISA Chief Outlines Wartime Successes,” Federal Computer Week, June 6, 2003; and “GAO:
DOD Needs New Approach to Buying Bandwidth, Aerospace Daily, December 12, 2003.
57 U.S. Congress, House Armed Services Committee, Hearing on Commission to Assess the Threat to the United States
from Electromagnetic Pulse Attack, July 22, 2004.
58 Memorandum by John Stenbit, DoD Net-Centric Data Management Strategy: Metadata Registration, April 3, 2003.





NCO relies on a high-bandwidth communications backbone consisting of fiber optics and
satellites, all communicating using Internet Protocol (IP). By 2008, DOD is planning to switch all
communications systems from IPV4 to the newer IPV6 to improve communications mobility,
create more IP addresses, and reduce system management problems. (For more on IPV6, See 59
Appendix A, “The Transition from Internet Protocol Version 4 (IPv4) to IPv6.”)
NCO is highly dependent on the interoperability of communications equipment, data, and
software to enable networking of people, sensors, and manned and unmanned platforms. Parts of
NCO technology rely on line-of-sight radio transmission for microwave or infrared signals, or
laser beams. Other parts of the technology aggregate information for transmission through larger
network trunks for global distribution via fiber optic cables, microwave towers, or both low-
altitude and high-altitude satellites. The designs for this technology must enable rapid
communications between individuals in all services, and rapid sharing of data and information 60
between mobile platforms and sensors used by all military services. The architectures must also
have the ability to dynamically self-heal and re-form the network when one or more
communications nodes are interrupted. DOD officials have noted that the new military Global
Information Grid (GIG) must be also designed to interoperate securely with the networks of other
organizations outside of DOD, including state and local governments, multinational military 61
commands, and the commercial and research communities.
Some observers question whether the U.S. military can achieve true network and systems
interoperability among all services. DOD reportedly intends to integrate the architectures of
network systems used by all branches of the military to create a network centric capability linked
to the GIG (see section below). To help accomplish this integration, the DOD Joint Staff has
created a new Force Capability Board (FCB) to monitor NCO programs for mismatches in
funding, or mismatches in capability. When an issue is detected, the FCB reports to the Joint
Requirements Oversight Council, which then provides guidance during budget deliberations at 62
the Pentagon.
Satellites are crucial for enabling mobile communications in remote areas, as well as for
providing imagery, navigation, weather information, a missile warning capability, and a capability
to “reach back” to the continental United States for added support. For example, the Global
Positioning System (GPS), consisting of 28 navigation satellites, helps identify the location of

59 Rodney Pringle, DOD Faces Challenges, Risks in Transition to IPV6, GAO Study Says, Aviation Week NetDefense,
June 6, 2005, http://www.aviationnow.com/avnow/news/channel_netdefense_story.jsp?view=story&id=news/
IPV606095.xml.
60 For more information about military network interoperability issues, and the Global Information Grid, see CRS
Report RS21590, Defense Program Issue: Global Information Grid, Bandwidth Expansion (GIG-BE), by Clay Wilson.
61 Sebastian Sprenger, GIG CONOPS Stresses Interoperability with Non-DOD Agencies, Allies, Inside the Pentagon,
September 39, 2005.
62 Brigadier General Marc Rogers, Director Joint Requirements and Integration Directorate/ J8, for U.S. Joint Forces
Command, in U.S. Congress, House Armed Services Subcommittee on Terrorism, Unconventional Threats and
Capabilities, Hearing on Military C4I Systems, October 21, 2003 http://www.cq.com, and Rich Tuttle,New
Organization to Stress Importance of Network Programs,” Aerospace Daily, January 30, 2004.





U.S. forces, as well as the locations of targets for guided U.S. weapons, such as cruise missiles.
The United States maintains 6 orbital constellations for Intelligence, Surveillance, and
Reconnaissance (ISR): one for early warning, two for imagery, and three for signals intelligence.
Recently, the Army deployed the Coalition Military Network, a new satellite communications
system designed to add bandwidth to support coalition forces in remote areas of Iraq.
However, despite the growing number of military satellites, the Defense Information Systems
Agency (DISA) reported that up to 84 percent of the satellite communications bandwidth 63
provided to the Operation Iraqi Freedom (OIF) theater was supplied by commercial satellites.
Some drawbacks using commercial satellite services became apparent during OIF. U.S. Army
officials indicated that the high volume of traffic on Iridium communications satellites at times
overwhelmed that system, which also had to suspend service periodically for updates. In addition,
the military reportedly was unable to get encrypted data transmission services from the Inmarsat
satellite system at transmission rates of 128 kilobits per second, and instead had to settle for rates 64
of 64 kilobits per second, which was too slow for the Army’s needs.
The Transformational Satellite Communications (TSAT) program, run by the Air Force, is part of
a plan to build a satellite-based military Internet. The future TSAT program involves launching 5
military satellites in geosynchronous orbit, with laser communication links and Internet-like 65
routers to provide high-speed, high-capacity communications to U.S. warfighters worldwide.
The first TSAT satellite is scheduled to be launched in 2014, with full operational capacity 66
scheduled for 2018.
The United States remains highly-dependent on space assets, and has enjoyed space dominance
during previous Gulf conflicts largely because its adversaries simply did not exploit space, or act
to negate U.S. space systems. However, the United States may not be able to rely on this same
advantage in the future. For example, a non-state group could possibly take advantage of
commercial space-based technology by leasing satellite bandwidth, or by purchasing high-
resolution imagery from suppliers in the Soviet Union, China, or other countries that own and
operate space assets. Also, less-technically advanced nations and non-state actors may employ 67
electronic jamming techniques, or launch attacks against satellite ground facilities. News reports
show that over a period of several years China has fired high-power laser weapons at U.S.
military optical spy satellites as they fly over Chinese territory. Experts say this may have been
testing of a new ability to blind the spacecraft. It is not clear how many times China may have

63 DOD satellites could not satisfy the entire military demand for satellite bandwidth, and therefore DOD has become
the single largest customer for commercial satellite services. DOD sometimes leases commercial satellite bandwidth
through DISA, and at other times bypasses the process to buy directly from industry. Bypassing DISA may reduce
interoperability and increase redundancies. Jefferson Morris, “GAO: DOD Needs New Approach to Buying
Bandwidth,” Aerospace Daily, December 12, 2003; “DISA Chief Outlines Wartime Successes,” Federal Computer
Week, June 6, 2003.
64 Warren Ferster, Military Bandwidth Demand Energizes Market, SpaceNews, September 2, 2003,
http://www.space.com/spacenews/archive03/militaryarch_090203.html.
65 Rebecca Christie, DoD Space Programs Costs Rise as New Plan Takes Shape, Wall Street Journal, February 21,
2006.
66 James Canan, Timing in Battle: The T-Sat Edge, American Institute of Aeronautics and Astronautics, Inc., Aerospace
America, January, 2006, p. 39.
67 Testimony from the hearing on Army Transformation, Senate Armed Services Committee, Subcommittee on
Airland, March 12, 2003, CQ.com, http://www.cq.com/aggregatedocs.do.





tested their ground-based laser system against U.S. satellites, or whether the tests were 68
successful.
Individual air-to-ground weapons will be integrated into network centric operations. Recent tests
under the Weapons Data Link Network (WDLN) Advanced Concept Technology Demonstration
have shown that various weapons can use standard methods to report their status after release
from an aircraft, and provide information on their impact. When pilots and ground controllers
have two-way communications with network-enabled weapons after they are in flight, new
information can be continually supplied to shift the weapon as the target changes location, or to
shift the attack to a different target, or to abort the attack. Networked weapons with these 69
capabilities are projected to become operational by 2010. However, if a large volume of
weapons are used concurrently in a conflict, this may add considerably to the demand for network
bandwidth.
Bandwidth is the transmission capacity for any given channel on a network. Since 1991, there has
been an explosive increase in military demand for bandwidth, largely due to efforts to speed up
the delivery of digital information. Defense officials remain concerned about whether the
bandwidth available through DOD communications systems will grow to keep up with increasing
military demand in the future. Some observers question whether enough bandwidth will be
available in the future to support DOD plans for major NCO systems, such as the Future Combat 70
System, Warfare Information Network - Tactical, and Joint Tactical Radio System.
When the supply of bandwidth becomes inadequate during combat, military operations officers
have sometimes been forced to subjectively prioritize the transmission of messages. They do this
by literally pulling the plug temporarily on some radio or computer switching equipment in order
to free up enough bandwidth to allow the highest-priority messages to get through. This can delay
messages, or cancel other data transmissions. Latency, or delays in information updates resulting
from a bandwidth shortage could leave some units attempting to fight on their computer screens
with outdated information, when the enemy changes position faster than the screen image data
can be updated. An example of this type of problem occurred in April 2003, when a U.S. Army
battalion was surprised by a large force of Iraqi tanks and troops because intelligence systems
were unable to update enemy information in databases quickly enough to keep front line units 71
accurately informed.
By the year 2010, the Congressional Budget Office estimates that the supply of effective
bandwidth in the Army is expected to fall short of peak demand by a ratio of approximately 1 to 72
10. According to former Assistant Secretary of Defense for Networks and Information

68 Vago Muradian, China Tried to Blind U.S. Sats with Laser, Defense News, September 25, 2006, p.1.
69 Rich Tittle, Promise of Networked Weapons is Shown in Eglin Demos, NetDefense, January 19, 2006,
http://www.aviationnow.com/avnow/news/channel_netdefense_story.jsp?view=story&od=news/EGLIN01196.xml.
70 Scott Nance, Krepinevich: FCS Revolutionary But Irrelevant?, Defense Today, March 31, 2005, p. 3.
71 Greg Grant, “Net-Centric Warfare Experts Look to Improve Communications”, C4ISR The Journal of Net-Centric
Warfare, October 11, 2005, http://www.isrjournal.com/story.php?F=1166143
72 Anticipated hardware improvements by 2010 will shift the existing bandwidth bottleneck from the brigade level to
(continued...)





Integration (ASD/NII), Paul Stenbit, the primary barrier to achieving the NCO Internet paradigm
is finding new ways to meet the demand for bandwidth. Communications infrastructure must
have enough bandwidth to allow, for example, several people at different locations in the
battlefield to pull the same problem-solving data into their computer systems at the same time, 73
without having to take turns sharing and using the same limited local bandwidth.
UVs, also known as Unmanned Aerial Vehicles (UAVs), Ground Vehicles (UGVs), and
Underwater Vehicles (UUVs) are primarily used for surveillance. However, their mission is 74
evolving to also include combat, under the title Unmanned Combat Vehicles (UCVs). During
OIF, approximately 16 Predator and 1 Global Hawk UAVs were in operation, and all were
controllable remotely via satellite link from command centers in the continental United States.
UVs each require a large amount of bandwidth for control and for transmission of reconnaissance 75
images.
Sensors are being developed to remotely detect movement and heat signatures of enemy
equipment. However, some observers have warned that it is likely that future foes will develop
technologies to counter U.S. weapons, and will become more sophisticated in cover and
concealment, with the possible net effect that U.S. situational awareness on the battlefield could 76
decrease, depending upon the sophistication of the adversary.
Software is an important component of all complex defense systems used for NCO. GAO has
recommended that DOD follow best practices of private sector software developers to avoid the
schedule delays and cost overruns that have plagued past DOD programs dependent on 77
development of complicated software. Many observers of the software industry believe that

(...continued)
the corps level. If the Joint Tactical Radio System (JTRS) performs as the Army projects, the new radio may provide
more than enough bandwidth for the lower tactical levels of command, with a margin for growth of demand beyond
2010. However, at the division and corps level, the projected demand is still expected to be much greater than the likely
supply. U.S. Congressional Budget Office, “The Armys Bandwidth Bottleneck,” August 2003, http://www.cbo.gov.
73 In certain situations, some commanders had access to only one communications channel. If someone else was using
it first, the commander had to wait until it was free for him to use. Matthew French, “Bandwidth in Iraq a subject of
debate,” Federal Computer Week, October 20, 2003, p. 43.
74 The two key programs for UAV development are the USAF’s X-45 and the Navy’s carrier-capable X-47. Both
projects are under the Joint Unmanned Combat Air System (J-UCAS) program, which is led by DARPA. DOD
believes that merging these two projects will lead to greater efficiencies and reduced acquisition costs. Adam Herbert,
“New Horizons for Combat UAVs, Air Force Magazine, December 2003.
75 For more information about UVs, see CRS Report RS21294, Unmanned Vehicles for U.S. Naval Forces:
Background and Issues for Congress, by Ronald ORourke.
76 Greg Grant, “Net-Centric Warfare Experts Look to Improve Communications, C4ISR The Journal of Net-Centric
Warfare, October 11, 2005, http://www.isrjournal.com/story.php?F=116143.
77 U.S. General Accounting Office,DEFENSE ACQUISITIONS: Stronger Management Practices Are Needed to
Improve DOD’s Software-Intensive Weapon Acquisitions,” GAO-04-393, March 2004.





globalization of the economy dictates a global process for software development. In keeping with
the GAO recommendation, contractors for DOD often outsource software development to smaller
private firms, and in some cases, programming work is done by offshore companies. This raises
questions about the possibility of malicious computer code being inserted to subvert DOD
computer systems. However, DOD is currently investigating ways to increase confidence in the
security of both foreign and domestic software products, for example, by co-sponsoring with the
Department of Homeland Security a series of software assurance forums where government,
industry, and academic leaders discuss security methodologies that promote integrity and 78
reliability in software..
Gordon Moore’s Law of Integrated Microprocessor Circuits observes that computer
semiconductor chips follow an 18-month cycle of evolution where they will become twice as
dense and twice as fast for about the same cost. Commercial industries have long relied on the
predictability of Moore’s Law as a guide for investing in future technology systems. DOD plans
for NCO also rely on the predictable growth in computer processing power, but this predictability
may be affected by advances in new technologies. New technology developments could be
disruptive, for example by reducing circuit size to nanometer units giving rise to extreme
miniaturization, or by quickly lowering costs and giving adversaries and terrorist groups easier 79
access to more sophisticated and powerful commercial high-technology equipment.
Electronic technologies are critical to the operation of modern, complex systems for
communications and weaponry, and much of the technology for U.S. military data networking 80
reportedly comes from Commercial-Off-The-Shelf (COTS) products. Much of this same state-
of-the-art COTS technology is readily available on the open market, and is also available to our
adversaries. Some officials in DOD also say that off-shore outsourcing of critical design and
manufacturing capabilities, along with other factors, has contributed to the erosion of the U.S. 81
lead in key defense technologies. These DOD officials warn that the United States may some

78 It is virtually impossible to find unauthorized and malevolent code hidden deep within a sophisticated computer
program module that may have originated from a company in one of more than a half-dozen countries commonly used
for software outsourcing. Mark Willoughby, “Hidden Malware in offshore products raises concerns,” Computerworld,
September 15, 2003, http://www.computerworld.com.
79 Todays electronic transistors are reaching physical limits where electrical circuits can leak across microscopic
insulators, and the manufacturing process is increasingly expensive. Photonic computers will use photons of laser light
instead of electrons, will be thousands of times faster than electronic computers, and far less expensive to manufacture.
However, the effort to produce the necessary inexpensive nonlinear crystals that switch light beams quickly, and at
reasonable power levels, has so far not been successful enough for commercial application. The CoolScience Center,
http://www.rmrc.org/photonics/photon1.htm.
80 Ted McKenna, US Military Slow to Adapt to Net-Centric Warfare, Journal of Electronic Defense, August 2005, No
8, p.24.
81 In 2003, of the 2,027 doctorates awarded by U.S. universities for electrical engineering and computer science, 63
percent were earned by foreign nationals. Of the 15,906 masters degrees awarded in these same fields, 56% were
earned by non-U.S. residents. Eric Chabrow and Marianne McGee,Immigration and Innovation,” Information Week,
February 23, 2004, p. 20.





day no longer have the asymmetric technology advantage it once had over our existing and 82
potential adversaries.
The Defense Science Board has reported that the 1996 voluntary Wassenaar Arrangement, which
replaced the Cold War-era international regime that governed semiconductor exports, is not an
effective tool for assuring that potential adversaries do not have access to technology for leading-83
edge design and fabrication equipment for integrated circuits. In addition, non-allied foreign
acquisition of any U.S. company that manufactures or develops items of defense significance can
erode the security of the defense industrial base. China, in particular, has reportedly procured
advanced weapons and technology from abroad to make up for deficiencies in its domestic
military sector. In doing so, China has reportedly developed an active policy of acquiring foreign
industrial and manufacturing production lines, and then seeking U.S. export licenses for advanced 84
semiconductor fabrication instruments and equipment.
The Defense Science Board has also identified the increasing shift of U.S. semiconductor
fabrication and design technology offshore as a critical national security challenge. Past supplies
of classified integrated circuits have come from government-owned facilities operated by the
National Security Agency (NSA) and Sandia National Laboratory. However, technological
evolution, and new methods for mass production, have reportedly raised the cost of low-
production-volume custom integrated circuits used by DOD, and made government facilities
obsolete. As a result, there is no longer a diverse base of U.S. integrated circuit fabricators 85
capable of meeting DOD needs. The DSB report calls for DOD and the defense industry to
develop a new economic model for profitably producing a limited number of custom circuits and
equipment for U.S. military systems.
U.S. corporations are now sending more high-level research and development (R&D) work to
off-shore partners. For example, as early as 1998, Intel Corporation, Microsoft Corporation, and
other IT vendors opened new R&D facilities in Beijing and other parts of Asia. Microsoft also
reportedly has 200 Ph.D. candidates and 170 researchers currently working in its Asia R&D 86
facilities. The Gartner Group research firm has reported that corporate spending for offshore

82 OSD Memorandum accompanying the March 2006 Joint Report from the U.S. Defense Science Board, U.K. Defence
Scientific Advisory Council Task Force on Defense Critical Technologies.
83 Defense Science Board Task Force on High Performance Microchip Supply, U.S. Department of Defense, February
2005, http://www.acq.osd.mil/dsb/reports/2005-02-HPMS_Report_Final.pdf.
84 John Tkacik, China’s Military Power, testimony before the House Committee on Armed Services, July 27, 2005, p.
7.
85 Defense Science Board Task Force on High Performance Microchip Supply, U.S. Department of Defense, February
2005, http://www.acq.osd.mil/dsb/reports/2005-02-HPMS_Report_Final.pdf.
86 Patrick Theobald and Sumner Lemon, “R&D Starts to Move Offshore,” Computerworld, vol. 38, no. 9, March 1,
2004, p. 1.





information technology (IT) services will increase from $1.8 billion in 2003 to more than $26 87
billion in 2007, with half of the work going to Asian countries such as India and China.
Contracting for national defense is reportedly among the most heavily outsourced of activities in
the federal government, with the ratio of private sector jobs to civil service jobs within DOD 88
nearly five to one. However, a 2004 study by DOD concluded that utilizing foreign companies 89
as sources for high-technology equipment does not affect long-term military readiness.
Operation Iraqi Freedom (OIF) might be more accurately characterized as a transitional rather
than transformational operation because NCO technology was not fully deployed in all units 90
during OIF, and some systems proved not to be user-friendly. Nevertheless, some observers feel 91
that OIF proved the effectiveness and potential of network enhanced warfare, while others
believe that it is hard to interpret the NCO experiences objectively, partly because the review
process may sometimes be distorted by the internal military bias that favors force transformation.
Still others point out that experiences using NCO technology may be misleading because recent
U.S. adversaries were relatively weak militaries, including Panama (1990), Iraq (1991), Serbia 92
(1999), and Afghanistan (2001).
A March 2005 report from the U.S. Army War College asserts that network-enabled operations
achieved proof of concept in the major combat operations phase of Operation Iraqi Freedom. The
report further states that net centric operations enhanced the ability of U.S. forces to conduct
battles and campaigns by providing a common operating picture and situational awareness never 93
before experienced in combat. A case study by the Office of Force Transformation concluded
that the deployment of some net centric technologies during OIF improved operational

87 Paul McDougall, “Optimizing Through Outsourcing,” Information Week, March 1, 2004, p. 56.
88 Ann Markusen, Director, Project on Regional Industrial Economics, University of Minnesota, “Statement Made to
David Walker, Chairman Commercial Activities Panel, GAO, June 5, 2001 and Pender M McCarter, 500,000 U.S. IT
Jobs Predicted to Move Overseas by Year-end 2004; IEEE Sees Continued Loss in U.S. Economic Competitiveness,
National Security,” IEEE-USA News, July 21, 2003, http://www.ieeeusa.org/releases/2003/072103pr.html.
89 U.S. Department of Defense, Office of the Deputy Undersecretary of Defense for Industrial Policy, Study on Impact
of Foreign Sourcing of Systems, January 2004.
90 Some argue that OIF experiences validate Admiral Cebrowski’s view that technology is not NCW, but rather only
the enabler of NCW. Loren B. Thompson, CO Lexington Institute, ISR: Lessons of Iraq, Defense News ISR Integration
Conference, November 18, 2003. See also CRS Report RL31946, Iraq War: Defense Program Implications for
Congress, by Ronald ORourke.
91 Lt. General William Wallace, Commander Combined Arms Center, in U.S. Congress, House Armed Services
Subcommittee on Terrorism, Unconventional Threats and Capabilities, Hearing on Military C4I Systems, October 21,
2003, http://www.cq.com.
92 Some traditional virtues such as air superiority, may be under emphasized. The review process may exaggerate the
role of “jointness” and special operations, according to Loren B. Thompson, Analyst at the Lexington Institute, “ISR:
Lessons of Iraq, Defense News ISR Integration Conference, November 18, 2003. “The Iraqis made so many mistakes
it would be foolish to conclude that defeating them proved the viability of the new strategy,” Dan Cateriniccia and
Matthew French, “Network-Centric Warfare: Not There Yet,Federal Computing Week, June 9, 2003,
http://www.fcw.com/fcw/articles/2003/0609/cov-netcentric-06-09-03.asp.
93 Dennis Murphy, Network Enabled Operations in Operation Iraqi Freedom: Initial Impressions, CSL Issue Paper,
March 2005, Vol. 06-05, http://www.oft.osd.mil/initiatives/ncw/docs/csl_issue_paper_0605.pdf.





effectiveness specifically for planning, command and control agility, tempo, and 94
synchronization.
Increased networking during OIF reportedly allowed U.S. forces to develop a much improved
capability for coordinating quick targeting. In Operation Desert Storm in 1991, coordinating
efforts for targeting required an elapsed time of as much as four days. In Operation Iraqi 95
Freedom, U.S. forces reduced that time to about 45 minutes. During April 2003, the Marine
Corps Systems Command compiled comments from some soldiers about their experiences using
several new communications systems during combat operations in Iraq. Comments from soldiers
and other observers follow:
(1) Several communicators, operations officers, and commanders reportedly stated that they
felt generally overloaded with information, and sometimes much of that information had
little bearing on their missions. They stated that they received messages and images over
too many different networks, requiring them to operate a large number of different 96
models of communications equipment.
(2) Some troops stated that when on the move, or when challenged by line-of-sight 97
constraints, they often used military email and “chat room” messages for
communications (This usually required linking to a satellite).
(1) Force XXI Battle Command, Brigade and Below (FBCB2), with Blue Force Tracker,
received widespread praise from troops for helping to reduce the problem of fratricide.
Blue Force Tracker (BFT) is a generic term for a portable computer unit carried by
personnel, vehicles, or aircraft that determines its own location via the Global Positioning
System, then continuously transmits that data by satellite communications. The position
of each individual unit then appears as a blue icon on the display of all other Blue Force
Tracker terminals, which were used by commanders on the battlefield, or viewed at
remote command centers. Clicking on any blue icon would show its individual direction
and speed. A double-click reportedly would enable transmission of a text message
directly to that individual unit, via satellite.
(2) Objective Peach involved U.S. forces defending a captured bridge from Iraqi forces on the
morning of April 3, 2003. The commander of the U.S. forces reportedly complained that
he received no information from sensors to provide warning when his position was

94 Office of Force Transformation, US/UK Coalition Combat Operations during Operation Iraqi Freedom, March 2,
2005, http://www.oft.osd.mil/library/library_files/
document_389_Final_Cleared_US_UK_Coalition_Combat_Ops_in_OIF.pdf. Other NCO case studies can be found at
http://www.oft.osd.mil/initiatives/ncw/studies.cfm.
95 Dan Cateriniccia and Matthew French, “Network-Centric Warfare: Not There Yet,Federal Computing Week, June
9, 2003, http://www.fcs/com.
96 Matthew French, “Technology a Dependable Ally in Iraq War, Federal Computer Week, vol. 18, no.8, March 29,
2004, p. 46.
97 John Breeden, “Bantu Sails with the Navy, Government Computer News, May 26, 2003, p. 1.





attacked by 5,000 Iraqi soldiers approaching under cover of night, backed up by 25 tanks
and 70 armored personnel carriers. Subsequent investigation revealed that at division
level and above, the sensor information was adequate, but among front-line Army 98
commanders, there was inadequate support to aid situational awareness on the ground.
(3) During a blinding sandstorm lasting from March 25 to 28, 2003, a U.S. radar plane
detected Iraqi forces maneuvering near U.S. troops. U.S. bombers attacked the enemy
units using satellite-guided bombs that were unaffected by poor visibility. The Blue Force
Tracker system ensured that friendly forces were identified and not harmed during the 99
successful bombing attack.
Satellite communications played a crucial role for transmitting message and imagery data during
OIF operations, and also enabled U.S. forces in the field to “reach back” to the continental United
States for support. However, a growing dependence on space communications may also become a
critical vulnerability for NCO.
(1) Commercial satellites were used to supplement military communications, which lacked
capacity despite the fact that a number of military satellites were moved to a better 100
geostationary orbital position for both Afghanistan and Iraq. DOD satellites cannot
satisfy the entire military demand for satellite bandwidth, and therefore DOD has become
the single largest customer for commercial or civilian satellite services. DOD sometimes
leases commercial satellite bandwidth through DISA, and at other times bypasses the
process to buy directly from industry. However, bypassing DISA may reduce
interoperability between the services, and may increase redundancies.
(2) During the OIF conflict, communications trunk lines, including satellite transmissions,
were often “saturated”, with all available digital bandwidth used up. The peak rate of
bandwidth consumed during OIF was approximately 3 Gigabits-per-second, which is 101
about 30 times the peak rate consumed during Operation Desert Storm in 1991.
Some problems with delayed arrival of messages during OIF may have occurred due to
unresolved questions about managing and allocating bandwidth. Sometimes, when demand for
bandwidth was high, NCO messages with lower priority were reportedly dropped deliberately so 102
that other messages with a higher priority could be transmitted.

98 David Talbot, “How Technology Failed in Iraq”, MIT Technology Review, November 2004,
http://www.technologyreview.com/articles/04/11/talbot1104.asp.
99 Ibid.
100 Brigadier General Dennis Moran, U.S. Central Command/ J6, in U.S. Congress, House Armed Services
Subcommittee on Terrorism, Unconventional Threats and Capabilities, Hearing on Military C4I Systems, October 21,
2003, http://www.cq.com .
101 Jefferson Morris, “GAO: DOD Needs New Approach to Buying Bandwidth, Aerospace Daily, December 12, 2003
and “DISA Chief Outlines Wartime Successes,” Federal Computer Week, June 6, 2003,
102 U.S. Congressional Budget Office, The Army’s Bandwidth Bottleneck, August 2003, http://www.cbo.gov, and Lt.
General William Wallace, Commander Combined Arms Center, in U.S. Congress, House Armed Services
(continued...)





(1) The speed with which U.S. forces moved, a shortage of satellite communications, and the
inability to string fiber nationwide hampered efforts to provide adequate bandwidth. At
times, some commanders were required to share a single communications channel, 103
forcing them to wait to use it whenever it became free.
(2) Brigade-level command posts could view satellite and detailed UAV images, but
battalion-level commanders, and lower command levels, could not view those same
images. The lower-level commands are where greater detail is critical.
(3) Although the Army has invested in military-only decision-support systems, some of the
planning and collective decision-making during OIF was handled through email and chat-
rooms that soldiers were familiar with, that were “user-friendly” and reliable, that were
available when other systems experienced transmission delays, and that required little or 104
no training.
UAVs sometimes carry thermal cameras that can see through darkness or rain. These reportedly
gave military planners so much confidence when orchestrating raids, they often skipped the usual 105
time-consuming rehearsals and contingency planning. However, without early air dominance,
UAVs and other Intelligence Surveillance and Reconnaissance (ISR) aircraft could not have been
used to provide information needed for NCO systems. UAVs, and other support aircraft, such as
refueling support tankers, are nearly defenseless and reportedly cannot operate without early air
dominance.
Using NCO technology with coalition forces resulted in reduced fratricide during OIF. However,
during OIF, coalition assets reportedly operated as separate entities, and were often locked out of
U.S. planning and execution because most information was posted on systems accessible only to
U.S. forces. For example, most major air missions, that used NCO technology for coalition 106
operations, involved only U.S. aircraft.
Policy for sharing of classified information requires a separate contract agreement between the
United States and each coalition partner. DOD currently maintains 84 separate secure networks
for NCO coalition operations: one for each coalition partner. This is because U.S. National 107
Disclosure Policy restricts what information may be released to coalition partners. In addition,

(...continued)
Subcommittee on Terrorism, Unconventional Threats and Capabilities, Hearing on Military C4I Systems, October 21,
2003, http://www.cq.com.
103 Matthew French, “Bandwidth in Iraq a Subject of Debate, Federal Computer Week, October 20, 2003,
http://www.fcw.com/fcw/articles/2003/1020/tec-iraq-10-20-03.asp.
104 U.S. Congressional Budget Office, “The Armys Bandwidth Bottleneck,” August 2003, http://www.cbo.gov.
105 “In Iraq, Soldiers Wage War Via Computer,” Baltimore Sun/A.P., January 4, 2004.
106 Lt. General Daniel Leaf, Vice Commander for U.S. Air Force Space Command, in U.S. Congress, House Armed
Services Subcommittee on Terrorism, Unconventional Threats and Capabilities, Hearing on Military C4I Systems,
October 21, 2003,http://www.cq.com.
107 Each coalition partner must agree to protect classified military information that the United States shares with them.
(continued...)





each coalition partner nation has a corresponding policy for release of its own sensitive
information. As a result of these policies, operations planning information was distributed to 108
coalition forces using a manual process, and the transfer of data fell behind combat operations.
A secure single network is required to efficiently share information among multiple partners, with
a capability to dynamically add and subtract coalition partners. DOD has initiated a program
called “Network Centric Enterprise Services” (NCES, also known as “Horizontal Fusion”) to
make information immediately available to coalition partners, while also providing strong 109
security through network encryption technologies and dynamic access controls. However, this
technical solution may not affect the differences in the individual policies that restrict information
sharing among coalition partners.
Military operations today generally are generally conducted with coalition partners. A coalition
member that is unable to efficiently communicate situational information and other data
electronically exert an unacceptable drag on the collective operations of all coalition members.
Therefore, militaries of some other countries have developed Network Enabled Capability (NEC) 110
technologies similar to those used by joint U.S. forces.
NEC is the European equivalent of NCO, and is at the heart of defence transformation ongoing in
militaries throughout Europe. NEC is defined as the coherent integration of sensors, decision-
makers and weapon systems along with support capabilities to create superior decision-making.
This will enable military forces to operate more effectively in the future strategic environment 111
through the more efficient sharing and exploitation of information.
Some countries also view NEC as a way to reduce their military budgets by gaining efficiency 112
through networking with coalition partners. Observers note that European and other coalition
partners now deploying NEC equipment are still not yet interoperable with NCO equipment 113
operated by the U.S. military.

(...continued)
DOD Directive 5230.11, June 16, 1992, implements the October 1, 1988 “National Policy and Procedures for the
Disclosure of Classified Military Information to Foreign governments and International Organizations,” or the National
Disclosure Policy, within the Department of Defense, http://www.dtic.mil/whs/directives/corres/pdf/d523011_061692/
d523011p.pdf.
108 Meagan Scully, “Out of Touch: Policies, Technology Hindered Data-Sharing with Allies in Iraq,” ISR Journal, vol.
3, no. 4, May 2004, p. 32.
109 Cheryl Roby, Deputy Secretary of Defense, OASD, NII, Information Sharing Challenges in Coalition Operations,
presentation at the 4th Annual Multinational C4I Conference, McLean, Virginia, May 4, 2004 and Matthew French,
“DOD Blazes Trail for Net-centric Strategy, FCW.com, June 9, 2003, http://www.fcw.com/fcw/articles/2003/0609/
news-dod-06-09-03.asp.
110 The military organizations of Denmark, Norway and the Netherlands have also adopted the term Network Centric
Warfare. Australia uses the term Network-Enabled Warfare, while the U.K. uses the term Network-Enabled Capability,
and the Republic of Singapore uses the term Knowledge-Based Command and Control. John Garstka,Network-
Centric Warfare Offers Warfighting Advantage,Signal Forum, Signal Magazine, May 2003.
111 From the Network Enabled Capabilities Conference, December 2006, Brussels, Belgium,
http://www.marcusevans.com/events/cfeventinfo.asp?eventID=10885.
112 Frederick Stein, Senior Engineer, MITRE Corporation, Presentation on Network Centric Warfare Operations, 4th
Annual Multinational C4ISR Conference, McLean, Virginia, May 6, 2004.
113 Brooks Tigner, Fixing a Disconnect: EU Tries to Assess Compatibility Problems, Defense News, October 31, 2005,
(continued...)





NATO is currently building a NEC capability for dynamic interoperability with U.S. forces in the
future and is developing a framework for high-technology warfare using the combined forces of
multiple nations. Called the NATO Network Enabled Capabilities (NNEC), it is similar to the 114
U.S. military’s Joint Vision 2020. The confidential NATO 2005 Defense Requirements Review
reportedly describes newer capabilities needed by allied commanders, including a description of 115
technologies for sensors for sharing intelligence among allied warfighters. However, problems
have been encountered with the U.S. National Disclosure Policy, which restricts release of
classified information, and with the International Traffic in Arms rules which govern the export of
unclassified technical data, and affect technology transfer (see previous section titled, 116
“Technology Transfer Threat to U.S. Net Centric Advantages”).
Initially, the DOD Office of Force Transformation constructed a conceptual model to study net
centric operations. However, NATO has since developed another conceptual model to test newer 117
network centric approaches to military command and control (C2). To resolve differences, and
establish open, interoperable standards for NEC and NCO, a new Network Centric Operations
Industry Consortium has been created. The consortium consists of about 80 defense and 118
information technology companies, of which 19 are European.
The Australian Defense Force is developing innovative networked sensor technologies, and
testing autonomous unmanned vehicles to offset the small size of their military. They are testing
network communications that will allow one operator to control a formation of unmanned aerial
vehicles that can be programmed to peel off independently for surveillance, or to launch an 119
attack.
The French reportedly are implementing a concept called “Guerre Infocentre”, or Infocentric
Warfare, which emphasizes the importance of information flows rather than the network itself.
The initial program is called the Future Air Land Combat Network System, which will enable 120
different combat platforms to contribute to cooperative engagement of targets.

(...continued)
p.11.
114NATO Network Enabled Capability (NNEC),” Times staff, March 3, 2003, “NATO Starts ‘Transformation’
Process,NavyTimes.com, February 5, 2004, http://www.navytimes.com/.
115 Sebastian Sprenger, NATO to Unveil Plan for Wartime Information Sharing by Next Summer, Inside the Pentagon,
December, 2005.
116 Rati Bisnoi, Report: Net-Centric Warfare Training Needed for NATO Response Force, Inside the Pentagon,
November 3, 2005.
117 David Alberts and Richard Hayes, Understanding Command and Control, The Future of Command and Control,
CCRP Publication 2006, P.200, http://www.dodccrp.org/publications/pdf/Alberts_UC2.pdf.
118 Brooks Tigner, Standards Urged To Smooth Allied Network-Centric Ops, Defense News, January 2, 2006, p.10.
119 David Fulghum, Cyber-Hammer, Aviation Week and Space Technology, May 29, 2006, p.48.
120 Giles Ebbutt, Flaws in the System: Modern Operations Test the Theory of Network Centricity, Jane’s International
(continued...)





Plans call for development of a future soldier system for the German Army, called “Infanterist der
Zuknft”, which will introduce new ways of networking between combat units and higher
command levels. The system includes optical components, soldier-level computing equipment, 121
and a tactical military internet which links voice and data systems.
The UK is reportedly building its own Global Information Infrastructure, which is a single,
general purpose network, with a specialized security architecture and a family of joint command 122
battlespace management applications. The UK system design will expand to allow
multinational forces, such as the United State, Canada, Australia, and New Zealand to also reach
through each others’ protective electronic boundaries to share a common operating picture 123
through Voice Over IP and video teleconferencing.
During the brief 2006 conflict with Syrian- and Iranian-supported Hizballah, Israel reportedly
combined tactical unmanned aerial vehicles with their new Tzayad digitized command-and-
control systems to locate and destroy many of Hizballah’s rocket launchers. Experts reported that
Israeli brigades that were equipped with the latest digital equipment were able to apply firepower 124
in a very effective manner.
China reportedly has considerable and growing capabilities for developing information
technology and networks. Chinese officials have reportedly noted that future military plans call
for China to focus on developing new-concept weapons, such as electromagnetic pulse (EMP)
systems for jamming adversary networks, and new satellites for establishing a unique GPS 125
network for the Chinese military. China has also reportedly networked its forces using the 126
European “Galileo” space-based global positioning system

(...continued)
Defence Review, July 2006, p. 61.
121 Staff, “German Soldier Networking System Evolves, International Defense Digest, Janes International Defense
Review, July 2006, p.10.
122 Giles Ebbutt, Flaws in the System: Modern Operations Test the Theory of Network Centricity, Jane’s International
Defence Review, July 2006, p.57.
123 Giles Ebbutt, Flaws in the System: Modern Operations Test the Theory of Network Centricity, Jane’s International
Defence Review, July 2006, p.61.
124 Babara Opall-Rome, Israel Wants More Active Defenses, Better Intel, DefenseNews, August 14, 2006, p.8.
125 Mary Fitzgerald, China plans to control space and win the coming information war, Armed Forces Journal,
November 2005, p.40.
126 David Gompert, Irving Lachow, and Justin Perkins,Battle-Wise: Gaining Advantage in Networked Warfare,
Center for Technology and National Security Policy, National Defense University, January 2005, p.13.





Recent publications from China on security and national defense policy use terms such as
“informationalization” and “Integrated Network-Electronic Warfare” (INEW), while describing
how warfare is becoming more information oriented. Chinese military officials have stated that
the INEW concept is comparable to U.S. Net Centric Operations. However, while INEW involves
acquiring both defensive and offensive information operations capabilities, there is a priority 127
placed on developing active strategies for offensive information operations.
DOD officials acknowledge that China has been conducting research to develop ground-based
laser anti-satellite weapons. Some officials claim that China in recent years may have tested the
means to harm or destroy U.S. satellites. However, a recent statement by DOD did not confirm or
deny this possibility. The United States military relies on commercial satellites for up to 80 128
percent of DOD space-based communications, according to space officials.
DOD officials also report that hacker attacks directed against U.S. military networks increased
approximately fifty percent between 2003 and 2004. Officials also state that most of these
computer intrusions were originating from within China, with one extended attack involving the
theft of perhaps 10 to 20 terabytes of data from the DOD Non-Classified IP Router Network.
These attacks may indicate that China, and perhaps other countries, are developing or testing 129
skills to defeat U.S. Network Centric Operations.
Other non-state groups also watch as the United States and other countries network their forces.
In many cases, these groups are able to bypass much of the R&D associated with creating and
testing new networked services, and instead are able to purchase Commercial-Off-Shelf (COTS)
products and equipment adequate for their purposes. These sophisticated commercial
technologies may enable smaller countries, or Al Qaeda or Hamas, to project an advanced and 130
adaptive electronic warfare threat.
In 2003 the U.S. government launched an investigation code named “Titan Rain” after detecting a
series of persistent intelligence-gathering cyberattacks directed at military computer systems. The
attackers demonstrated a high level of sophistication, and the investigation led many security
experts to believe that the computer intrusions originated from sources in China. The targeted
systems included (1) the U.S. Army Information Systems Engineering Command at Fort
Huachuca, Arizona, (2) the Defense Information Systems Agency in Arlington, Virginia, (3) the
Naval Ocean Systems Center in San Diego, California, (4) the U.S. Army Space and Strategic
Defense installation in Huntsville, Alabama, and many other installations. In 2004, the Army base

127 Timothy Thomas, Chinese and American Network Warfare, Joint Forces Quarterly, Issue 38, #rd Quarter 2005, p.
76.
128 Elain Grossman, Top Commander: Chinese Interference with U.S. Satellites Uncertain, Inside the Pentagon,
October 12, 2006.
129 Peter Brookes, The Art of Cyber War, The Conservative Voice, August 29, 2005,
http://www.theconservativevoice.com/articles/article.html?id=7860.
130 J.R. Wilson, High-Tech Challenge: Terrorists present Electronic Warfare Threat, Too, Armed Forces Journal,
February 5, 2005, pp. 38-39.





at Fort Campbell, Kentucky initiated a multimillion-dollar program to secure its computer
systems after its networks were penetrated for a period of approximately two months, during a 131
sustained intelligence-gathering cyberattack. Although these attacks persisted over a long 132
period of time, the U.S. government claims that no classified information was compromised.
Recently, China was also blamed for cyber intrusions that disabled the computer networks of the
Department of Commerce Bureau of Industry and Security, which is responsible for controlling
U.S. exports of software and technology for both commercial and military use. The attacks were 133
traced to websites registered with Chinese Internet service providers.
However, other analysts caution that a sophisticated opponent, such as China, would not leave
clues pointing back to itself. Instead, another sophisticated opponent could use China as a
platform for third party computer attacks. China’s civilian computer networks are very vulnerable
to viruses. Some estimates reportedly say that up to 90% of the software used in China is pirated,
lacking in the most important security patches, and especially vulnerable to being taken over by
malicious code. Therefore, any attack that can be traced back to China may actually demonstrate
very little about the true source. Sophisticated hacking tools are widely available on the Internet,
and some hackers advertise their cybercrime skills for hire to other organizations, which could 134
include extremists, both domestic and international.
After the 34-day war with Israel in 2006, Hizballah was described by some Israeli officials as a
well-equipped, networked force still capable of commanding its combat units after weeks of high-
intensity fighting. Hizballah’s units were supported by a well-fortified terrestrial communications
network supplemented by satellite telephone and broadcast services, including the Al-Manar
television network. Hizballah units also reportedly had the capability to attempt eavesdropping on 135
Israeli cellular networks.
Hamas was reportedly inspired by the way Hizballah fought against Israel in Lebanon, and the
organization continues to receive increasing support from both Iran and Hizballah in the form of
weapons, funding, and training. Hizballah is also reportedly sharing with Hamas operatives many 136
of the lessons they learned from the recent military engagement with Israel.

131 Frank Tiboni, Army Rebuilds Networks after Hack Attack, Federal Computer Week, September 6, 2004,
http://www.fcw.com.
132 Tom Espiner, Security Experts Lift Lid on Chinese Hack Attacks, ZDNet, November 23, 2005,
http://www.zdnet.co.uk/print/?type=story&at=39237492-39020375t-10000025c. Nathan Thronburgh, The Invasion of
the Chinese Cyberspies (And the Man Who Tried to Stop Them), Time, August 29, 2005, http://www.time.com/time/
magazine/printout/0,8816,1098961,00.html.
133 Alan Sipress, Computer System Under Attack, Washington Post. October 6, 2006, A21.
134 James Lewis, Computer Espionage, Titan Rain and China, Center for Strategic and International Studies, December
14, 2005, http://www.csis.org/index.php?option=com_csis_pubs&task=view&id=2576.
135 Barbara Opall-Rome, Combating the Hizballah Network, Defense News, October 9, 2006, p.6.
136 Alon Ben-David, Hamas Boosts its Weapons Stocks, Janes Defence Weekly, October 25, 2006,
http://www4.janes.co m/ subscribe/jdw/doc_view.jsp?K2 Do cKey=/ content1/jan esdata/mags/ jdw/history/ jdw2006/
jdw30827.htm@current&Prod_Name=JDW&QueryText=.





Al Qaeda networks, in addition to technology, often rely on dispersed cells of people that are
under central direction, which allows the organization to be highly flexible, elusive, and
adaptable. As Al Qaeda evolves to using newer commercially available communication systems,
dispersed cells may become more coordinated and self-organizing, with increased situational
awareness, with the possible future capability of conducting their own network operations, in 137
ways similar to the network operations of current U.S. military units.
The following are key DOD programs related to NCO.
The GIG is the communications infrastructure that supports DOD and related intelligence
community missions and functions, and enables sharing of information between all military
bases, mobile platforms, and deployed sites. The GIG also provides communications interfaces to
coalition, allied, and non-DOD users and systems. Key service network architectures for
implementing an important NCO capability through the GIG are the Air Force C2 Constellation, 138
Navy and Marine Corps ForceNet, and Army LandWarNet. The Joint Task Force - Global
Network Operations is tasked with operation and defense of the GIG.
DOD is planning that 2008 military communications equipment will use the new Internet
Protocol version 6 (IPv6) as the standard for all transmission through the Global Information Grid
(GIG), and for all Defense Information System Network systems that will interoperate with the 139
GIG. The new IPv6 protocol offers greater message security and better tracking of equipment,
supplies, and personnel through use of digital tags (See Appendix A, “The Transition from
Internet Protocol Version 4 (IPv4) to IPv6”).
It is noteworthy that in a 2006 study, the Government Accountability Office found that the GIG
lacks clearly defined leadership able to cut across organizational lines. GAO warned that without
adequate leadership the GIG program could exceed cost and schedule requirements, partly due to 140
development and acquisition methods characterized as “stovepiped” and “uncoordinated”.

137 David Compert et. al, Battle-Wise: Gaining Advantage in Networked Warfare, Center for Technology and National
Security Policy, National Defense University, January 2005, p. 15.
138 For more information about the GIG, see CRS Report RS21590, Defense Program Issue: Global Information Grid,
Bandwidth Expansion (GIG-BE), by Clay Wilson.
139 Staff, “DOD Now Preparing for Rapid Move to IPv6, Hi-Tech Chief Says, LookSmart, July 2, 2003,
http://www.findarticles.com/cf_dls/m0PJR/13_1/110307574/p1/article.jhtml.
140 Zachery Peterson, Report Finds DOD Management Style Hindering Development of GIG, Inside the Navy, February
6, 2006.





The AT3 system combines information collected by an airborne network of sensors to identify the
precise location of enemy air defense systems. The system relies on coordination of information 141
from different systems aboard multiple aircraft.
Tactical Data Links (TDLs) are used in combat for machine-to-machine exchange of information
messages such as radar tracks, target information, platform status, imagery, and command
assignments. The purpose of this program is to insure the interoperability of Air Force TDLs.
TDLs are used by weapons, platforms, and sensors of all services.
The CEC system links Navy ships and aircraft operating in a particular area into a single,
integrated air-defense network in which radar data collected by each platform is transmitted in a
real-time to the other units in the network. Each unit in the CEC network fuses its own radar data
with data received from the other units. As a result, units in the network share a common,
composite, real-time air-defense picture. CEC will permit a ship to shoot air-defense missiles at
incoming anti-ship missiles that the ship itself cannot see, using radar targeting data gathered by
other units in the network. It will also permit air-defense missiles fired by one ship to be guided 142
by other ships or aircraft.
FBCB2, used with Blue Force Tracker computer equipment, is the U.S. Army’s main digital
system that uses the Tactical Internet for sending real-time battle data to forces on the battlefield.
During Iraq operations, this system was used in some Bradley Fighting Vehicles and M1A1
Abrams tanks, and replaced paper maps and routine reporting by radio voice communication. The
computer images and GPS capabilities allowed tank crews to use Blue Force Tracker to pinpoint
their locations, even amid Iraqi sand storms, similar to the way pilots use instruments to fly in bad
weather. Officials stationed at the Pentagon using Blue Force Tracker receivers were also able to 143
observe the movements of U.S. forces.
The software-based JTRS Program is intended to bring together separate service-led programs 144
into a joint software-defined radio development effort. JTRS is a family of common, software-

141 Hampton Stephens, “USAF Will Begin Air-Defense Targeting Demonstration In FY-04,” IDGA, June 27, 2003,
http://www.idga.org/iowa-robot/document.html?topic=196&document=30568.
142 For more information, see CRS Report RS20557, Navy Network-Centric Warfare Concept: Key Programs and
Issues for Congress, by Ronald ORourke.
143 Frank Tiboni and Matthew French, “Blue Force Tracking Gains Ground,Federal Computer Week, vol. 18, no. 7,
March 22, 2004, p. 49.
144 GAO report to the U.S. House of Representatives Committee on Appropriations, Subcommittee on Defense,
Challenges and Risks Associated with the Joint Tactical Radio System Program, August 2003.





defined, programmable radios that are intended to interoperate with existing radio systems and
provide the additional capability to access maps and other visual data by allowing the war fighter 145
to communicate directly with battlefield sensors. DOD has determined that all future military
radio systems should be developed in compliance with the architecture for JTRS. JTRS will
initially be used by the Army as its primary tactical radio for mobile communications, including
satellite communications. Acquisition for the JTRS program is being carried out through a series
of five separate but interrelated clusters, with each cluster intended to meet a specific DOD
requirement.
The Warfighter Information Network (WIN-T) is a high-capacity network system that will allow
units and command centers to communicate while on the move. The Joint Network Nodes (JNN)
is the bridge between the Cold War legacy 30-year-old Mobile Subscriber Equipment and the
WIN-T. JNN currently gives brigade and battalion command posts a “reach-back” capability for
direct contact with bases in the continental United States, or other locations. JNN provides a
significant increase in capability to Army modular units by providing satellite-based high 146
bandwidth communications down to the battalion level.
The Future Combat System (FCS) is intended to be the U.S. Army’s multi year, multi-billion-
dollar program at the heart of the Army’s transformation efforts. It is to be the Army’s major
research, development, and acquisition program consisting of 18 manned and unmanned systems
tied together by an extensive communications and information network. FCS is intended to
replace such current systems as the M-1 Abrams tank and the M-2 Bradley infantry fighting 147
vehicle with advanced, networked combat systems.

Potential oversight issues for Congress pertaining to NCO include the following.
Does Congress have sufficient information on the full scope of the Administration’s strategy for
implementing NCO to conduct effective oversight? Are programs critical for NCO adequately
identified as such in the DOD budget? Does the Administration’s plan for defense transformation
place too much, too little, or about the right amount of emphasis on NCO? Is the strategy for
implementing NCO paced too quickly, too slowly, or at about the right speed? Does the

145 Stephen Trimble,Pentagon AddsNetwork Router to List of JTRS Missions, Aerospace Daily, vol. 206, no 13,
April 17, 2003.
146 Lieutenant General Steven Boutelle, U.S. Army, testimony at the Congressional hearing on Information Technology
Issues and Defense Transformation, House Armed Services Subcommittee on Terrorism, Unconventional Threats and
Capabilities Holds Hearing, April 6, 2006.
147 See CRS Report RL32888, The Armys Future Combat System (FCS): Background and Issues for Congress, by
Andrew Feickert.





Administration’s strategy for implementing NCO programs call for too much, too little, or about
the right amount of funding? How are “network centric” items identified separately in the budget
line items?
Is the Administration’s strategy for implementing NCO sufficiently joint? Officials at DOD have
recently said that when individuals responsible for program management fail to collaborate
properly, program offices sometimes move forward working on requirements tailored for their 148
specific service, rather than working on joint requirements. Is there adequate overall DOD
information architecture or enterprise architecture? Do the current service network
architectures—Army LandWarNet, Navy ForceNet, Air Force C2 constellation—allow systems to
work together through the GIG, or do they function along service boundaries inconsistent with the
joint environment?
Has DOD provided industry with sufficiently clear definitions of the architectures for its various
desired NCO systems? If not, when does DOD plan to provide industry with such definitions?
What are the potential risks of inadequately defined architectures?
What is the role of the Defense Information Systems Agency (DISA) in managing the DOD
implementation of NCO? Does DISA have too much, not enough, or about the right amount of
policy and funding authority to fulfill its role? Has DISA developed an adequate NCO roadmap to
help guide investments, and if not, when does DISA plan to issue such a roadmap?
The FCS concept originally consisted of consisting of 18 manned and unmanned systems to be
tied together by a network of advanced offensive, defensive, and communications/information 149
systems, including WIN-T and the JTRS. The FCS is experiencing a number of program
development issues - with some technologies advancing quicker than anticipated, others 150
progressing along predicted lines, while still others are not meeting the Army’s expectations. Is
the FCS high technology concept appropriate for the types of conflicts that the U.S. will likely
experience in the Global War on Terror?
Some additional security features that help protect satellites from electronic attack may consume
portions of bandwidth that could otherwise be used for communications. News reports note that

148 John Bennett, C4ISR Programs Need Fewer Milestone Decision-Makers, Myers Says, InsideDefense, January 20,
2006, http://www.insidedefense.com/secure/defense_docnum.asp?f=defense_2002.ask&docnum=AIRFORCE-17-3-9.
149 Lieutenant General Steven Boutelle, U.S. Army, testimony at the Congressional hearing on Information Technology
Issues and Defense Transformation, House Armed Services Subcommittee on Terrorism, Unconventional Threats and
Capabilities, Hearing, April 6, 2006.
150 See CRS Report RL32888, The Armys Future Combat System (FCS): Background and Issues for Congress, by
Andrew Feickert.





DOD may, in some cases, be designing military satellites with reduced security features in order 151
to free more bandwidth to support growing communications needs.
Over 100 different UAVs of 10 different types were used in Operation Iraqi Freedom. Worldwide
spending on UAVs will likely increase over the next decade to $4.5 billion annually, according to 152
one defense analyst. However, officials from the Government Accountability Office recently
reported that DOD lacks a “viable and strategic” plan for developing and acquiring unmanned
vehicles. This problem has resulted in cost overruns, delivery delays, and duplication of effort. As
a result of the Quadrennial Defense Review, the joint structure of the Joint Unmanned Combat
Aerial System (J-UCAS) program was ended, and some UAV programs are now being developed
separately by the Navy and Air Force.
The J-UCAS program had combined the efforts previously conducted under the DARPA/Air
Force Unmanned Combat Air Vehicle (UCAV) program and the DARPA/Navy Naval UCAV
(UCAV-N) program, for a common architecture to maximize interoperability. It is uncertain how
many crossover benefits can be mutually provided by separate Navy and Air Force efforts
because requirements are now very divergent. Other problems reportedly include issues of
interoperability of UAVs with ground forces, limited availability of bandwidth, and problems 153
with having both manned and unmanned aerial vehicles share airspace.
“Blue Force Tracker” describes a technical capability that has received widespread praise from
troops for helping to reduce the problem of fratricide. During the 1991 Gulf War, friendly fire
accounted for about 24 percent of 148 U.S. combat deaths, however, the rate declined to about 11
percent of 115 U.S. deaths during major combat in Iraq in 2003. Many top leaders credit Blue 154
Force Tracker (BFT) technology with saving lives during combat.
The Blue Force Tracking System reportedly proved so successful in Iraq and Afghanistan that the
Army is fielding it to additional units. Observers state that BFT is directly responsible for
significant reduction in vehicle-to-vehicle fratricide, and, for example, allowed the Third Infantry 155
Division to fight through darkness and sandstorms on its way to Baghdad.
Some questions remain that may affect the future development of BFT equipment and
capabilities. Will the Blue Force Tracker database be designed with sufficient categories to enable

151 Vago Muradian, China Tried to Blind U.S. Sats with laser, Defense News, September 25, 2006, p.6.
152 Doub Beizer, Network Centric warfare Takes Flight, Washington Technology, July 18, 2005,
http://www.washingtontechnology.com/cgi-bin/udt/im.display.printable?client.id=wtonline-test&story.id=26588.
153 Testimony by Sharon Pickup, Hearing on FY2007 Budget: Unmanned Aerial Vehicles and Intelligence,
Surveillance, and Reconnaissance Capabilities, House Armed Services Subcommittee on Tactical Air and Land Forces,
April 6, 2006.
154 Charles Dervarics, “Broadening Blue Force Tracking,Defense News, October 11, 2004.
155 Lieutenant General Steven Boutelle, U.S. Army, testimony at the Congressional hearing on Information Technology
Issues and Defense Transformation, House Armed Services Subcommittee on Terrorism, Unconventional Threats and
Capabilities, April 6, 2006.





tracking of different weapon types, vehicles, and individual soldiers for future joint, and coalition
operations? Is training adequate for military operators to handle complex BFT capabilities? Will
the military have sufficient bandwidth available for future needs? As technology evolves, will the
supply of bandwidth support the deployment of miniaturized BFT communications equipment for
the individual soldier? Is BFT adequately supported when operating in urban areas and complex
terrains, where structures may block radio signals?
The Joint Tactical Radio System (JTRS) is intended to enable faster, more streamlined
communications among many different types of forces, but stalled development of this system 156
may have created an obstacle to the full implementation of net-centric operations. Originally,
the JTRS program was intended to replace DOD legacy radios operating between 2 megahertz
and 2 gigahertz, and which were not designed to communicate with each other. However,
requirements were modified in 2004 so that future JTRS radios would also include frequencies
above 2 gigahertz, to allow communication with satellites and to support future access to the
military Global Information Grid. To spur development of JTRS, DOD in November 2004,
developed a policy that restricted the purchase of non-JTRS radios already on the market.
However, this policy was cited by Congress as an impediment to meeting the needs of operational 157
commanders in the field. JTRS is seen now as a program to enhance, rather than replace,
existing legacy radios, and JTRS systems will eventually replace legacy radios as they wear 158
out.
Is information overrated as an asset for NCO? How thoroughly has the administration studied the
risks associated with data-dependent military doctrine? Several observers have argued that DOD
plans stress only the rewards of information without including adequate analysis of the risks
associated with possible over-reliance on data-driven systems. Some elite network centric
corporations with state-of-the-art systems that offer “information superiority” have experienced
perverse results, and sometimes even catastrophic economic losses (See Appendix C, “Perverse
Consequences of Data-Dependent Systems”). Congress could encourage DOD to examine the
economics of information in order to avoid similar perverse consequences on the battlefield that 159
may be created by “information abundance.”
How well are coalition forces adapting to NCO? How are U.S. forces affected if coalition
networks to which we must link are not as secure and robust? What are implications for future

156 For more information about JTRS, see CRS Report RL33161, The Joint Tactical Radio System (JTRS) and the
Army’s Future Combat System (FCS): Issues for Congress, by Andrew Feickert.
157 H.Rept. 108-622, July 20, 2004, p.170.
158 Scott Nance,Army Sets Narrower Aims on Radio System,” Defense Daily, February 18, 2005, p.4.
159 Modern portfolio theory, Baysian analysis, and Monte Carlo simulation are quantitative tools that can be used to
examine when and where the benefits of information transparency consistently outweigh the costs. Michael Schrage,
Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and Transparency, Security
Studies Program Working Paper, Massachusetts Institute of Technology, E38-600, May 2003.





NCO operations when there is a need to share classified information with coalition forces and
foreign countries? Is it possible to give Allies access to C4ISR information to improve
collaboration during high-speed combat operations, while still protecting other information that is
sensitive or classified? Will differences in the national disclosure policies for each coalition
nation restrict sharing of necessary information among all partners during training operations, and
if so, will this threaten the effectiveness of training? Will U.S. analysts or warfighters be
overwhelmed by the vast increase in information that will flow if all coalition NCO networks are
seamlessly linked to the U.S. NCO network? Will potential enemies probe for weaknesses in the
links between the different networks operated by less sophisticated coalition forces, and thus find
a way to disrupt the networks of U.S. forces?
The same issues that affect DOD operations with coalition partners may also affect coordination
with U.S. first-responders during domestic attacks by terrorists. Should DOD networks also be
extended to first-responders who may need support during possible widespread attacks involving
nuclear bombs or biological weapons; for example, geo-spatial images from UAVs monitoring
domestic areas? Should policy allow domestic first-responders to input, view, or update important
data during such an attack, even though some may not have appropriate security clearances?
The global diffusion of technology will lead to the eventual loss of the monopoly position now
enjoyed by U.S. forces using sophisticated networks and communications equipment. The United
States may eventually face adversaries equipped with COTS technologies that provide many
NCO capabilities. Technology transfer and offshore outsourcing may also increase the number of
foreign-nationals who are experts in newer Internet technologies and software applications (See
Appendix A, “The Transition from Internet Protocol Version 4 (IPv4) to IPv6”). Does the
Administration’s strategy pay sufficient attention to possible national security issues related to
technology transfer? What controls does DOD have in place regarding offshore subcontracting
that ensure security?
Several potential adversaries reportedly have a military strategy that focuses on engaging the
United States asymmetrically, rather than with conventional forces. China, for example, is
reportedly tailoring its military capabilities to directly, or indirectly, undermine U.S. technological 160
advantages. Does the Administration’s strategy for implementing NCO pay sufficient attention
to asymmetric threats and growth of technology skills in other countries? How is DOD working
with industry to find ways to protect software against cyber threats, including those possibly
related to offshore outsourcing of R&D and information technology services? Several policy
options that may reduce risk to the effectiveness of NCO due to growth of technology skills in
foreign countries may include (1) encourage companies to maintain critical design and
manufacturing functions inside the U.S., (2) encourage highly skilled individuals to relocate to
areas in the U.S. where industries are in need of technical professionals, or (3) encourage U.S. 161
high technology workers to update and increase their set of job skills.

160 Vago Muradian, China Tried to Blind U.S. Sats with Laser, Defense News, September 25, 2006, p.6.
161 Paul J. Kostek, Chair, American Association of Engineering Societies, Globalization vs Outsourcing and Their
Impact on Competitiveness, October 30, 2003, http://www.planetee.com/Forums.





Does the Administration’s strategy for implementing NCO incorporate the right technologies and
strategy for acquisition? Some observers have stated there is not enough coordination between 162
DOD and the private sector officials involved in information technology acquisition. Others
have suggested that the acquisitions community must communicate more directly with the most
forward areas of the military, where the business processes deliver value to the war-fighter, so 163
that needs are more clearly understood.
DOD Directive 5000 requires that acquisition for all equipment and systems must follow a
standard process which involves an examination of requirements, safety testing, developmental 164
testing, and operational testing. However, the acquisition for an information system sometimes
requires the same processes as that used for acquiring a major weapons system.
For a critically needed system, an operational needs statement (ONS) can sometimes shorten the
debate about requirements, and also shorten the traditional testing process, thereby speeding
acquisition and deployment of critical systems to warfighting units. Also, in some circumstances,
to reduce delays in deployment of critical equipment and systems, the Secretary of Defense was
given rapid acquisition authority to waive all federal acquisition regulations for acquisition of 165
equipment. Some observers have suggested that another possibility for speeding up the process
for acquisition and deployment would be to give Combatant Commanders limited acquisition
authority. For example, the United States Special Operations Command (SOCOM) already has
been granted acquisition authority, and reportedly they use it efficiently, and find they are able to 166
buy off-the-shelf technologies to meet some requirements.
Future research into areas such as nanotechnology will likely lead to radically new innovations in
material science, fabrication, and computer architecture. However, the basic research to develop
new technologies requires high-risk investment, and increasingly involves international
collaboration. Maintaining a U.S. military advantage for NCO may require stronger policies that
encourage domestic education in science and high-technology, and that nurture long-term
research that is bounded within the United States private sector, universities, and government 167
laboratories.
(1) Technologies: Is DOD making sufficient investments for R&D in nanotechnology?
Nanoscience may fundamentally alter military equipment, weapons, and operations for U.S.

162 Representatives Kline and Meehan, Congressional Hearing on Information Technology Issues and Defense
Transformation, Armed Services Subcommittee on Terrorism, Unconventional Threats and Capabilities, April 6, 2006.
163 Paul Brinkley, Deputy Undersecretary of Defense, Congressional Hearing on Information Technology Issues and
Defense Transformation, Armed Services Subcommittee on Terrorism, Unconventional Threats and Capabilities, April
6, 2006.
164 DOD Directive 5000.1, The Defense Acquisition System, May 2003, http://akss.dau.mil/dag/
DoD5000.asp?view=document&doc=1.
165 Lieutenant General Steven Boutelle, U.S. Army, testimony at the Congressional hearing on Information Technology
Issues and Defense Transformation, House Armed Services Subcommittee on Terrorism, Unconventional Threats and
Capabilities Hearing, April 6, 2006.
166 Representative Saxton, Congressional Hearing on Information Technology Issues and Defense Transformation,
House Armed Services Subcommittee on Terrorism, Unconventional Threats and Capabilities, April 6, 2006.
167 Gerald Borsuk and Timothy Coffey, Moores Law: A Department of Defense Perspective, Defense Horizons, Center
for Technology and National Security Policy, National Defense University, No. 30, July 2003.





forces, and possibly for future U.S. adversaries. Does the Administration’s plan pay sufficient
attention to creating solutions to meet bandwidth requirements for implementing NCO?
Latency, which is often caused by a bandwidth bottleneck, is an important complaint of
warfighters. How do messages that are either dropped, lost, or delayed during transmission
alter the effectiveness of Network Centric Operations?
(2) Acquisition: All DOD acquisition programs require a key performance parameter for 168
interoperability and for successful exchange of critical information. Development of some
weapons in the past has rendered them obsolete by the time they are finally produced,
sometimes 15 to 20 years later. Admiral Arthur Cebrowski, former director of the DOD
Office of Force Transformation reportedly proposed that program development cycles be
brought in line with those of commercial industry, which are typically measured in months 169
and years, instead of decades. How does the traditional DOD long acquisition cycle keep 170
up with new commercial developments for high technology?
NCO enables the military to fight with smaller units, moving rapidly using “swarming tactics”.
Has DOD developed adequate joint doctrine for NCO? Do training exercises involve coalition
partners with complimentary NCO capabilities? How do differences in NCO capabilities of other
coalition partners affect U.S. warfighting capabilities? What are the potential risks of
inadequately developed doctrine for joint or coalition operations using NCO?
Does doctrine for NCO also stress civilian casualty prevention and protection? What are the
changing requirements for finding and recruiting personnel who are qualified to operate high-
technology NCO equipment? Finally, if terrorist groups become more local and smaller in size,
will law-enforcement activities, coupled with good intelligence, displace military operations as a
more effective pre-emptive strategy for the future, partly because it may be seen as less
controversial?

No bills have yet been introduced in the current congress that are directly related to network
centric operations. This report will be updated as events warrant.

168 Lt. General Daniel Leaf, Vice Commander for U.S. Air Force Space Command, in U.S. Congress, House Armed
Services Subcommittee on Terrorism, Unconventional Threats and Capabilities, hearing, Military C4I Systems, October
21, 2003, http://www.cq.com.
169 Keith Phucas, “The New Military: Proposing Change,” Norristown, Pennsylvania Times-Herald, November 28,
2003.
170 The Army Science Board recently completed a study of high-risk technologies that will be developed as part of the
Army Future Combat System (FCS) program. The study identifies 7 major technology areas that will be emphasized
throughout the FCS incremental acquisition strategy: joint interoperability, network survivability, bandwidth efficiency,
smart antennas, software, transparent battle space, and systems reliability, https://webportal.saalt.army.mil/sard-asb/
ASBDownloads/FCS-Exec-Briefing.pdf.







The Internet Protocol version 4 (IPv4) is the name of the digital signal transport protocol that has
been used for global communications through the Internet since the 1970s. The U.S. military now
uses several transport protocols for digital communications in addition to IPv4. However, DOD
planners see a need for more network capabilities to support future NCO operations. By 2008,
DOD is planning to convert digital military communications to use the newer Internet Protocol
version 6 (IPv6) as the standard for all transmission through the Global Information Grid (GIG),
and for all systems that are part of the Defense Information System Network (DISN) that will
interoperate with the GIG.
IPv6 technology is considered the next-generation Internet transport protocol, and all commercial
network communications equipment (also heavily used by the military) will eventually transition
to its use, and gradually reduce support for IPv4. This is because IPv6 offers advantages in speed,
capacity, and flexibility over IPv4. For example, IPv6 will enable network users to more easily set
up a secure virtual private network (also known as secure tunneling through a network) than with
IPv4. Using IPv6, hardware devices can be attached to a network and configured more easily, 171
which will also provide mobile users with easier and faster access to network services.
However, because use of IPv4 is so firmly embedded in the commercial systems now used in the
United States, the transition for the civilian communications infrastructure in other countries may
go more smoothly and quickly. This is because new communications infrastructures now being
built in other countries will use the newest equipment with IPv6 capability already built in. This
may also mean that much of the talent for managing the new IPv6 technology may eventually
belong to technicians and programmers who reside in countries outside the United States.
Research has shown that regional agglomeration of technical expertise increases active sharing of 172
tacit knowledge among groups of innovators. Some of that tacit knowledge may also include
sharing of information about newly-discovered vulnerabilities for the IPv6 technology.
What follows is a brief explanation of some technical differences between IPv4 and IPv6, and a
discussion of possible economic and security issues related to the coming transition to the new
Internet protocol.
Information is sent through the Internet using packets (approximately 4000 digital bits per
packet), and which include the address of the sender and the intended destination. Internet
Protocol version 4 (IPv4) has been used globally since before 1983. However, IPv4 information

171 Brian Robinson, “IPv6: Built for Speed,” Federal Computer Week, August 30, 2004.
172 Geographic concentration of information technology employment increases labor productivity among IT workers.
Research indicates that geographic proximity matters most where tacit knowledge plays an important role in the
generation of innovative activity, and tacit knowledge does play an very important role during the early life cycle of an
information technology system. Christian Le Bas and Frederic Miribel, “Is the Death of Distance Argument Relevant:
The Agglomeration Economies Associated with Information Technology Activities, http://www.ish-lyon.cnrs.fr/labo/
walras/Objets/Membres/Miribelebas_paper.pdf, p. 20.





packets are designed to carry an address in a 32-bit field, which means that IPv4 can only support
approximately 4,000,000,000 Internet devices (computers, routers, websites, etc.). With Internet
access expanding globally, and with more types of equipment now using Internet addresses (e.g.,
cell phones, household appliances, and PDAs) the number of Internet addresses needed for
connected equipment could soon exceed the addressing capacity of the IPv4 protocol.
For example, slightly more than 3 billion of the 4 billion possible 32-bit IPv4 addresses are now
allocated to U.S.-operated ISPs. In contrast, China and South Korea, with a combined population
of more than 1.3 billion, are allocated 38.5 million and 23.6 million respectively. Therefore, Asian
counties are especially interested in the possibilities that come with adoption of IPv6.
Internet Protocol version 6 (IPv6) quadruples the size of the address field from 32 bits to 128 bits
(IPv1-IPv3, and IPv5 reportedly never emerged from testing in the laboratory). IPv6 could
theoretically provide each person on the planet with as many as 60 thousand trillion-trillion
unique Internet addresses. Theoretically, by switching to IPv6, humanity will never run out of
Internet addresses. IPv6 is also believed to be more secure than IPv4 because it offers a feature
for encryption at the IP-level.
However, several drawbacks may slow the global adoption of the IPv6 standard. Switching to
IPv6 means that software applications that now use Internet addresses need to be changed. Every
Web browser, every computer, every email application, and every Web server must be upgraded
to handle the 128-bit address for IPv6. The routers that operate the Internet backbone now
implement IPv4 via computer hardware, and cannot route IPv6 over the same hardware. By
adding software to route IPv6 packets, the routers will operate more slowly, which may cripple
the Internet. Alternatively, upgrading and replacing the hardware for millions of Internet routers
would be very costly.
IPv4 also uses a technology feature called Natural Address Translation (NAT) which effectively
multiplies the number of IP address that may exist behind any single firewall. This technology
trick is widely employed within the United States, and its usage also adds an extra layer of
security to both commercial networks and home PC networks that have a router. NAT allows a
home user to connect multiple PCs to their home network, so they all can share a single IPv4
address behind the router/firewall. By using NAT, it is possible, and certainly much cheaper, to
put off or ignore the problem of running out of IPv4 addresses. At least temporarily, in the United
States, most technologists prefer sticking with NAT rather than switching over to IPv6.
Also, despite the new feature that allows IP-level encryption, there may be new security problems
associated with converting to IPv6. Whenever new code is deployed onto computers,
undiscovered bugs are usually soon discovered through study and repeated experimentation by
hackers. Therefore, IPv6 may well hold security surprises that the designers have simply not
found through extensive testing. And because switching over to IPv6 will be a global undertaking,
some of the newly discovered security problems could possibly become critical, and even
threaten the functioning of the Internet itself.
IPv6 also offers other technical advantages over IPv4. For example, IPv6 makes peer-to-peer
communication between individual computers much easier than with IPv4. This will make
applications like Internet telephony and next generation multi-media groupware work much more
smoothly.





The opportunity to leapfrog past older Internet technology may someday result in increased
expertise in newer technology for technicians and engineers who reside outside the United States.
For example, countries such as India, North Korea, Iran, Pakistan, and Iraq that are now building
new communications infrastructures for Internet commerce, may initially adopt the latest network
switching equipment using the newer IPv6 technology, and thus leapfrog over IPv4.
Meanwhile, industries in the United States, which are already heavily invested in older IPv4
technology, may remain tied to IPv4 using the NAT technology for a longer time. This is because
NAT can extend the useful life of older IPv4 applications, and can defer the cost of conversion by
transferring that cost to the ISPs, who would then set up gateways to translate between all IPv4
and IPv6 Internet traffic going into and out of the United States. The U.S. could then become
divided from the technology used in the rest of the world, at least for a while, by an IPv4/IPv6 173
difference that is similar to the U.S./metric divide we see today.
U.S. military forces, to save time and expense, sometimes connect staff at multiple locations to
the DOD secure SIPRNET network by using an encryption technique known as tunneling, which
lets users traverse a non-secure network to access a top-secret one. For example, Marine Corps
staff recently began using tunneling through the non-classified NIPRNET to extend the DOD 174
classified SIPRNET to 47 sites in the Marine Forces Pacific Command. However, during OIF
as much as seventy percent of NIPRNET traffic reportedly was routed through the civilian
communications infrastructure. This means that when there is need for a high volume of U.S.
military communications, security may be partly dependent on reliability of IPv6 equipment 175
found in the civilian infrastructure and in commercial satellites.
Countries with emerging communications infrastructures, and purchasing the latest commercial
network equipment, may also be the home countries of those best able to exploit IPv6 technical
vulnerabilities. If this includes countries where the United States may be involved in military
activity, hostile groups with appropriate technical knowledge of IPv6 vulnerabilities may be
positioned to attempt to interfere with U.S. military communications.

173 Simson Garfinkel, The Net Effect, January 7, 2004, http://www.simson.net/pubs.php.
174 Dan Cateriniccia, “Marines Tunnel to SIPRNET,FederalComputerWeek, December 9, 2002, http://www.fcw.com.
175 Christopher Dorobek and Diane Frank,Dod May Pull Key Net from the Internet,” InsideDefense, December 26,
2002, http://www.insidedefense.com.







Differing interpretations of what is known as “Metcalfe’s Law” may lead to different priorities for
acquisition and deployment of NCO technologies, systems, and equipment.
In the past, some observers have stated that according to Metcalfe’s Law, “the ‘power’ of a 176
network is proportional to the square of the number of nodes in the network.” Proponents of
NCO in the past have also stated that network centric computing is governed by Metcalfe’s Law,
which asserts that the “power” or “payoff” of network-centric computing comes from
information-intensive interactions between very large numbers of heterogeneous computational 177
nodes on the network.
However, Metcalfe’s Law observes that the potential value of a communications network
increases (or scales) as a function of the square of the number of nodes that are connected by the
network. After some deliberation, many of the same proponents now argue differently about the
applicability of Metcalfe’s Law to NCO, saying that it only provides insight into the fact that the 178
“value” of a network to its users depends mainly on the interaction between the following:

1) content, quality, and timeliness of information interactions enabled by the network;


2) network-enabled, value-creation logic; and

3) user-value functions.


These proponents further state that NCO does not focus on network-centric computing and
communications, but rather on information flows and the nature and characteristics of battlespace
entities. However, it is also noteworthy that other military observers now propose a corollary to
Metcalfe’s Law: the complexity of a system is proportional to the cube of the number of nodes, 179
and the reliability of a system is inversely proportional to its complexity.
In line with this corollary, some observers propose that different types of networks could have
indirect limitations that may begin to appear as those networks reach very large numbers of
nodes. Briscoe et. al. (2006) use observations of the rise and fall of Internet companies to propose
that use of Metcalfe’s Law to predict organizational success can sometimes result in 180
organizational damage, if expectations are set too high. Other observers agree, stating that, with

176 Col. T.X. Hammes, War Isn’t A Rational Business, Proceedings, U.S. Naval Institute, July 1998,
http://www.usni.org/Proceedings/Articles98/PROhammes.htm.
177 Vice Admiral Arthur Cebrowski, John Garstka, Network-Centric Warfare: Its Origin and Future, Proceedings U.S.
Naval Institute, January 1998, http://www.usni.org/Proceedings/Articles98/PROcebrowski.htm.
178 David Alberts, John Garstka, Frederick Stein, Network Centric Warfare: Developing and Leveraging Information
Superiority, 2nd edition, February 2000, pp. 103, 252, 265.
179 Col. T.X. Hammes, War Isn’t A Rational Business, Proceedings, U.S. Naval Institute, July 1998,
http://www.usni.org/Proceedings/Articles98/PROhammes.htm.
180 Bob Briscoe, Andrew Odiyzko, Benjamin Tilly, Metcalfes Law is Wrong; Communications Networks Increase in
Value as they Add Membersbut by How Much? The Devil is in the Details, IEEE Spectrum, July 1, 2006, vol.43, no.
7.





very large networks, other negative factors begin to emerge. For example, the number of
messages increases beyond the capacity of the reader to handle. Many network users may then
see a strong need to operate within a “less-noisey” network by using editors, moderators, or 181
automatic filters to limit the number of messages. These observers agree that more research is
need in the area of indirect limitations of networks.

181 Brad Templeton, The Opposite of Metcalfe’s Law, Comments on IEEE article by Briscoe, Andrew, and Tilly, July
2006, http://www.templetons.com/brad/metcalfe.html.







The Office of Force Transformation http://www.oft.osd.mil/ has indicated that DOD must
continue to refine the rules and theory of network centric operations through simulation, testing,
and experimentation. This section notes that although some experiences have shown that
networking may increase certain advantages in warfare, other experiences may also indicate that
relying on information systems can sometimes lead to unexpected results.
Information-Age warfare is increasingly path-dependent, meaning that small changes in the initial
conditions will result in enormous changes in outcomes. Speed is an important characteristic for
NCO because it enables a military force to define initial conditions favorable to their interests, 182
and then pursue a goal of developing high rates of change that an adversary cannot outpace. To
this end, whenever data-links are employed between military units and platforms, digital
information can be shared and processed instantaneously, which produces a significant advantage
over other military units that must rely on voice-only communications.
Examples that illustrate this advantage are found in several training exercises conducted in the

1990’s between Royal Air Force jets equipped with data-links, referred to as Link-16, and U.S.


Air Force jets with voice-only communications. A series of air-to-air engagements showed that
the RAF jets were able to increase their kill ratio over the U.S. jets by approximately 4-to-1.
Other training engagements, involving more than 12,000 sorties using 2-versus-2, or 8-versus-16,
aircraft showed that jets equipped with Link-16 increased their kill ratio by 150 percent over
those aircraft having voice-only communications. Similar results were seen in training exercises 183
involving Navy and Army units equipped with new networking technology.
However, some observers believe that important military decisions may not always lend 184
themselves to information-based rational analysis. They argue that the military services,
national security establishment, and intelligence community have not thoroughly studied the risks
associated with a data-dependent military doctrine.
Issues raised by these observers include the following:
(1) Information flows may be governed by a diminishing marginal utility for added
effectiveness. Quantitative changes in information and analysis may lead to qualitative
changes in individual and organizational behavior that are sometimes counter-productive.
(2) An information-rich, opportunity-rich environment may shift the value of the information,
redefine the mission objectives, and possibly increase the chances for perverse
consequences.

182 Dan Cateriniccia and Matthew French, “Network-centric Warfare: Not There Yet,Federal Computer Week, June 9,
2003, http://www.fcw.com/fcw/articles/2003/0609/cov-netcentric-06-09-03.asp.
183 John Garstka, “Network-Centric Warfare Offers Warfighting Advantage,Signal Forum, Signal Magazine, May
2003.
184 Martin Burke, Information Superiority Is Insufficient To Win In Network Centric Warfare, Joint Systems Branch,
Defence Science and Technology Organisation, 2001, http://www.dodccrp.org/events/2000/5th_ICCRTS/cd/papers/
Track4/024.pdf.





In 1999, large-scale army experimentation with better visualization of the battlefield resulted in
surprises such as requests for up to five times the normally-expected amounts of ammunition.
Instead of concentrating on only critical targets, the experimental army units were overwhelmed
with the vast array of potential targets they could now see. The unprecedented requests for larger
quantities of ammunition caused logistical failures. More information did not assure better 185
decision-making, but rather it exposed doctrinal flaws.
A similar effect was observed in later experiments conducted as part of the Network Centric
Operations Conceptual Framework. Ammunition was expended at a faster rate, possibly because
more information creates a target-rich environment. These observations imply a possibly greater 186
demand for logistics support.
Issues raise by other observers of data-driven systems are:
(3) Reliance on sophisticated information systems may lead to management overconfidence.
(4) Different analytical interpretations of data may lead to disagreements among commanders
about who is best situated to interpret events and act on them.
The past economic under-performance of many hedge fund organizations and other technology
firms that have employed very sophisticated network centric management techniques may serve
as examples to caution DOD against over-reliance on data-driven military information systems.
For example, Long-Term Capital Management (LTCM), a highly-leveraged multi-billion dollar
hedge fund, and Cisco Systems, a well-respected high-tech firm, both used sophisticated systems
to track market conditions and expand their data-driven “situational awareness” to gain and
maintain competitive advantage. However, in 1998 a U.S. government-led consortium of banks
bailed out LTCM after its trading losses put the entire world’s financial system at risk of
meltdown. Also, in 2001 Cisco was forced to take a $2.25 billion inventory write-down. While
there is yet no professional consensus explaining these poor performance problems, many
analysts agree that the presumed excellence of information systems may have invited managerial
over-reliance, and that over-reliance led to overconfidence. Executives may have ignored 187
unambiguous external signals in favor of their own networked data.
Finally, some believe that more information imposes a higher degree of accountability on actions.
Failure to minimize casualties or protect civilians may be digitally reviewed and used to politicize
flawed military decisions.
These observers suggest that modern portfolio theory, Bayesian analysis, and Monte Carlo
simulation are three quantitative tools that military decision makers should explore if they want
the benefits of information transparency to consistently outweigh its costs. These tools could
answer questions, such as: (a) if information were to be managed as a portfolio of investment

185 Robert R. Leonhard, “Principles of War for the Information Age, (Novato, CA: Presidio Press, 2000) p. 156, and
p.224.
186 Dr. Kimberly Holloman, Evidence Based Research, Inc., “The Network Centric Operations Conceptual
Framework, Presentation at the Network Centric Warfare 2004 Conference, Washington, DC, January 20, 2004,
http://www.oft.osd.mil/library/library.cfm?libcol=2.
187 Michael Schrage, Perfect Information and Perverse Incentives: Costs and Consequences of Transformation and
Transparency, Security Studies Program Working Paper, Massachusetts Institute of Technology, E38-600, May 2003,
p.4.





risks much as asset classes like equities, fixed income, and commodities, how would commanders
diversify to maximize their returns; (b) what information asset classes would they deem most
volatile; (c) what information would they see as most reliable; and (d) which information classes 188
would be co-variant, and which would be auto-correlated?
Clay Wilson
Specialist in Military Information Technology
cwilson@crs.loc.gov, 7-8748


188 Ibid, 15.