Telecommunications Introduction to telecommunication issues New Reality Digital Superhighway Bandwidth UNDER Last Mile delivery CONOwnership STRUCTION Fat or Thin Clients Content Retail and Business-to-Business Moore’s Law Chip capacity doubles every 18 Months. Bandwidth Gordon Moore Standard Telephone System Analog Switch Analog Digital Network Modem Digital Telecommunications History • Pre 1984 Local and long distance monopoly • 1984 AT&T settlement Intense long distance competition • 1996 Telecommunications Act Local access competition Bandwidth The Telecom Wars AT&T MCI/Worldcom Sprint SBC GTE BT Cable & Wireless BellSouth Quest • • • 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 2 Packet 1 3 2 1 3 1 PAD 2 Telephone Internet • Reserved processing • 56.6 Kb/sec data speed • All traffic follows same route • Route determined when call made • Delay critical • Best effort processing • Speed depends on traffic • Packets follow different routes • Routes determined as packets sent • No delay control Bandwidth Needs • • • • Voice: Data: Image: Video: 56.6 Kbs 30KB = 4.2 sec 500KB = 70.7 sec 500 Kbs (heavily compressed) Access Any time Any place Any way • • • • • Standard voice Integrated Services Digital Network Digital Subscriber Lines Cable Modem Direct network connection Desktop Control • Who controls the desktop • Standardization and version management • Distribution • Payment for access Mindshare Ownership Client Focus Bill Gates Net Focus Larry Ellison The Information Paradigm ? Profitability ? Impact on traditional business ? Security ? Privacy