Metcalfe's law states that the value of a telecommunications network is proportional to the square of the number of connected users
of the system (n2). First formulated in this form by George Gilder in 1993, and attributed to Robert Metcalfe in regard to Ethernet, Metcalfe's law was originally presented, c. 1980, not in terms of users, but rather of "compatible communicating devices" (e.g., fax machines, telephones). Only later with the globalization of the Internet did this law carry over to users and networks as its original intent was to describe Ethernet connections.
Network effects
Metcalfe's law characterizes many of the network effects of communication technologies and networks such as the Internet, social networking and the World Wide Web. Former Chairman of the U.S. Federal Communications Commission Reed Hundt said that this law gives the most understanding to the workings of the Internet. Metcalfe's Law is related to the fact that the number of unique possible connections in a network of
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