After 1960, however, the entire picture changes. The recognition of social rules of conduct means that Hayek III no longer needs to maintain this (implicit) dichotomy. Social rules of conduct become one of the key institutions in his understanding of spontaneous socio-economic order. The telecom system can only function when embedded in the network of social rules of conduct. This means that the telecom system is a different kind of thing from the rule network, but can only function by being part of the latter.