Telecommunications

Introduction to telecommunication issues

NewReality

Bandwidth

Last Mile delivery

Ownership

Fat or Thin Clients

Content

Retail and Business-to-Business

Digital Superhighway

UNDERCON-

STRUCTION

Chip capacity doubles every 18 Months.

Gordon Moore

Moore’s Law

Bandwidth

Digital

Standard Telephone System

Analog

Network

Analog Digital

Modem

SwitchSwitchSwitch

Network

Telecommunications History

• Pre 1984Local and long distance monopoly

• 1984 AT&T settlementIntense long distance competition

• 1996 Telecommunications ActLocal access competition

Bandwidth

The Telecom Wars

AT&TMCI/WorldcomSprintSBCGTEBTCable & WirelessBellSouthQuest • • •

Telephone Changes

• Rapidly decreasing long distance rates

• Value added telephone services

• Cellular access

• Flat rate long distance?

• Internet access

Datagram Logic (IP)

Packet n Packet 1Packet 2

32

1

31

2

32

1

PAD

Telephone• Reserved

processing

• 56.6 Kb/sec data speed

• All traffic follows same route

• Route determined when call made

• Delay critical

Internet• Best effort

processing

• Speed depends on traffic

• Packets follow different routes

• Routes determined as packets sent

• No delay control

Bandwidth Needs

• Voice: 56.6 Kbs

• Data: 30KB = 4.2 sec

• Image: 500KB = 70.7 sec

• Video: 500 Kbs (heavily compressed)

Any time Any place Any way

Access

• Standard voice

• Integrated Services Digital Network

• Digital Subscriber Lines

• Cable Modem

• Direct network connection

• Who controls the desktop

• Standardization and version management

• Distribution

• Payment for access

Desktop Control

Mindshare

Ownership

Bill Gates

Client Focus

Net Focus

Larry Ellison

The Information

Paradigm

? Profitability? Impact on traditional business? Security? Privacy