The Current State Of
Telecommunications
Dan Barker
TNT Consulting Group
1084_06F9_c3
© 1999, Cisco Systems, Inc.
1
Current State of Telecom
First A Little History…
1996 Telecommunications Act
Requirements:
The regional Bells have to open the local markets to
competitive carriers
They have to allow their competitors access to their
networks under the unbundled network elements
platform (UNE-P) at set, wholesale prices.
Benefits:
Receive state and federal approval for offering long
distance in their regions.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
2
CurrentState
State of
Current
ofTelecom
Telecom
Dec 20 2002
BellSouth became the first Bell company to gain
FCC approval to provide long-distance service
throughout its region.
• The Bells inching ever closer to completing the
271 approval process throughout their regions
• Verizon has just two states
• Qwest has 271 applications pending for nine
of its 14 states
1084_06F9_c3
© 1999, Cisco Systems, Inc.
3
CurrentState
State of
Current
ofTelecom
Telecom
It is imperative that the FCC retain the UNE
(unbundled network elements) platform to
preserve the long-distance/local telecom
balance envisioned by Congress when it
drafted the Telecom Act.
So how does this affect us?
1084_06F9_c3
© 1999, Cisco Systems, Inc.
4
CurrentState
State of
Current
ofTelecom
Telecom
So how does this affect us?
It could remove competition
Reduce choices for the consumer.
Pricing could change depending on how the FCC
holds the Regional Bells to the letter of the
Telecom Act.
MCI, AT&T, and Sprint announce price increases of
approx 10% across the nation.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
5
Current State of Telecom
Keep An Eye on Your Bill… Phone-bill-alert.com
Current Statewide No-Call List
Current Legislation For National No-Call List
1084_06F9_c3
© 1999, Cisco Systems, Inc.
6
Current State of Telecom
Internet Connectivity
 Dial Up – Issues & Advancements
 Broadband DSL
 Broadband Wireless
 Broadband Satellite
 Fiber Optic
 Other Last Mile Solutions
1084_06F9_c3
© 1999, Cisco Systems, Inc.
7
Current State of Telecom
SLC (Subscriber Loop Carrier)
DLC (Digital Loop Carrier)
•Last Mile Infrastructure Still
Limits Our Choices.
•Technology is limited to the
physical connection offered
by the phone company not
the Internet Provider.
•Some of the newest
equipment limits dial-up
connections.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
8
Current State of Telecom
V.92
•Quick connect - Enables dial-up modems to complete a
connection to a service provider much faster than with V.90only technology.
•Modem-on-hold giving users the ability to accept an
incoming phone call during an Internet session without
losing the dial-up connection.
•Faster Upstream - increases the speed at which a user
can send information to a network - up to 48,000 bits per
second, compared to 31,200 bits per second with V.90.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
9
Current State of Telecom
V.92 Will Not Help
Overcome Telecom
Issues
Most ISP’s Won’t Spend
the $$$
1084_06F9_c3
© 1999, Cisco Systems, Inc.
10
Current State of Telecom
•Very Fast Speeds (200 Times Faster Than
Modem
•Always On Connection
•Can Be Shared With Multiple Computers
1084_06F9_c3
© 1999, Cisco Systems, Inc.
11
Current State of Telecom
 Digital Cable
 xDSL – ADSL, SDSL, HDSL
 Wireless
 Satellite
1084_06F9_c3
© 1999, Cisco Systems, Inc.
12
Current State of Telecom
Cable Modems
• Limited Coverage
• Some Security Concerns
• Shared Bandwidth
By the mid 2002 9.2 million people
were served by Cable in the US
1084_06F9_c3
© 1999, Cisco Systems, Inc.
13
Current State of Telecom
DSL
• Covers 3 Miles From Central Office or DLC
Cabinet
• Possible to serve a large portion of the serving
areas - depending on the technology used
• Voice and Data on Same Pair of Wires
1084_06F9_c3
© 1999, Cisco Systems, Inc.
14
Current State of Telecom
DSL
• Mid 2002 - 16.2 million DSL lines in the US. Of
these, 14 million lines served residential and small
business customers
• Many of the larger carriers have stopped
expansion into less populated areas due to
economic reasons.
• Signed into law an economic security package that
will speed depreciation schedules aiding deploying
the advanced technologies needed for the highspeed Internet which is capital intensive.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
15
Current State of Telecom
Fixed Wireless
2000-2001
• Geography Sensitive
• Limited Reach
• Good Speeds
• Equipment Costs Still High
1084_06F9_c3
© 1999, Cisco Systems, Inc.
16
Current State of Telecom
Fixed Wireless
2002-2003
• Security A Huge Issue
• Better Foliage Penetration
• Meshed Technology
• Extended Ranges
• Speeds Just Getting Better
• Equipment Costs Halfed
1084_06F9_c3
© 1999, Cisco Systems, Inc.
17
Current State of Telecom
Equipment Costs $499
Installation starts at $199.
Monthly service fees vary $69.99 per month.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
18
Current State of Telecom
Pricing Edging Closer to Traditional Broadband
1084_06F9_c3
© 1999, Cisco Systems, Inc.
19
Current State of Telecom
Statewide Fiber Optic Connectivity
Continues to Get Better
Connecting More Rural Communities Than
Ever Before
Last Mile Connectivity Still An Issue
1084_06F9_c3
© 1999, Cisco Systems, Inc.
20
Current State of Telecom
1084_06F9_c3
© 1999, Cisco Systems, Inc.
21
Current State of Telecom
1084_06F9_c3
© 1999, Cisco Systems, Inc.
22
Current State of Telecom
The Government Gets Involved…
Congress to pass an extension of the moratorium
on Internet access taxes, which will help keep
Internet access, including broadband access,
affordable.
President’s Council of Advisors on Science and
Technology (PCAST) to review and make
recommendations on how to facilitate broadband
deployment, focusing on issues related to consumer
demand.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
23
Current State of Telecom
The Government Gets Involved…
The President signed into law the largest federal
R&D budget in history including programs such as
the $1.9 billion Networking and Information
Technology Research and Development (NITRD)
initiative, help lay the foundation for advances in
broadband technologies.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
24
Current State of Telecom
The Government Gets Involved…
Administration proposed broadening access to the
research and experimentation tax credit to make it
easier for companies to deduct many costs
associated with developing new technologies.
Administration supported successful efforts to lift the
wireless spectrum ownership limits, which
constrained the wireless industry’s ability to provide
quality service.
1084_06F9_c3
© 1999, Cisco Systems, Inc.
25
Current State of Telecom
Better Connectivity Will Improve…
•Video conferencing
•Collaboration
•Telemedicine
•Distance Learning
•Voice Over IP
•Streaming Media
1084_06F9_c3
© 1999, Cisco Systems, Inc.
26
Questions?
1084_06F9_c3
© 1999, Cisco Systems, Inc.
27