Presented by Trevor R. Roycroft, Ph.D. 2008 NASUCA Annual Meeting. November 17, 2008 Roycroft Consulting Economic and Poli...
<ul><li>AT&T Bell system built a “nationwide” network to provide local and long distance services.  </li></ul><ul><li>A “p...
Distribution And Drop (Copper Twisted Pair) Feeder Copper or Fiber “ Local Loop” Local Switch Tandem Switch Local Transpor...
<ul><li>The Internet revolution. </li></ul><ul><li>Internet technology introduces: </li></ul><ul><ul><li>Packet switching....
<ul><li>Section 706 of the 1996 Act states: </li></ul><ul><ul><li>The Commission and each State commission with regulatory...
<ul><li>Competing platforms </li></ul><ul><ul><li>Cable </li></ul></ul><ul><ul><li>Telephone company </li></ul></ul><ul><u...
Downstream Upstream FTTH VDSL2 Cable Modem (DOCSIS 3.0) Cable Modem (DOCSIS 2.0) ADSL2+ WiMax Basic DSL
<ul><li>Voice over Internet Protocol </li></ul><ul><ul><li>Relies on packet switching approach. </li></ul></ul><ul><li>Use...
<ul><li>Largest telephone company. </li></ul><ul><ul><li>35 million residential subscribers in 21 states. </li></ul></ul><...
Copper Fiber replaces Copper Local Loop Overhaul (FTTN) Node Set-Top  Box Residential Gateway Household Phone Company Cent...
IP Video Hub Offices National IP Backbone IP Video Super Hub IP Serving  Offices Copper Fiber Fiber Greenfield FTTP Local ...
<ul><li>Low-bandwidth for data. </li></ul><ul><li>Fiber deployments appear to be constrained for marketing purposes to cop...
<ul><li>Second largest telephone company. </li></ul><ul><ul><li>24.5 million residential subscribers in 29 states. </li></...
FiOS Optical Network Terminal Optical Line Terminal Optical Couplers (WDM) Voice & Data   Downstream 1490 nm Upstream 1310...
<ul><li>About 1.6 million FiOS TV customers nationwide. </li></ul><ul><li>About 2.2 million FiOS Internet customers nation...
(1-year agreement) Plans FiOS  with existing Verizon phone service FiOS  without Verizon phone service   Up to 10 Mbps/2 M...
<ul><li>Qwest has announced plans for a limited FTTN deployment. </li></ul><ul><ul><li>To pass 1.5 million homes by year-e...
<ul><li>Will competition ensure affordability? </li></ul><ul><ul><li>Voice prices </li></ul></ul><ul><ul><li>Broadband Int...
<ul><li>ILECs don’t have to unbundle fiber. </li></ul><ul><li>Copper retirement. </li></ul><ul><ul><li>Strips a technology...
USA
Overview of the public switched telecommunications network (pstn)
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Overview of the public switched telecommunications network (pstn)

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  • The PSTN was designed to carry voice traffic. PSTN engineered to deliver service level consistent with the demands of voice communications. The PSTN was designed to deliver: Limited bandwidth (a “voice channel”). Low latency (no network-induced delay). Network “blocked” access if these conditions could not be met. PSTN could provide more than voice services. Fax and low-speed data ultimately were delivered over the same “voice” network. Reliable due to battery back-up.
  • Overview of the public switched telecommunications network (pstn)

    1. 1. Presented by Trevor R. Roycroft, Ph.D. 2008 NASUCA Annual Meeting. November 17, 2008 Roycroft Consulting Economic and Policy Analysis [email_address] www.roycroftconsulting.org 508-896-0151
    2. 2. <ul><li>AT&T Bell system built a “nationwide” network to provide local and long distance services. </li></ul><ul><li>A “public switched” telecommunications network (PSTN). </li></ul><ul><li>Provided services at regulated rates on a “common carriage” basis. </li></ul><ul><li>Universal Service. </li></ul><ul><ul><li>Network capabilities similar nationwide. </li></ul></ul>
    3. 3. Distribution And Drop (Copper Twisted Pair) Feeder Copper or Fiber “ Local Loop” Local Switch Tandem Switch Local Transport Copper or Fiber “ Long Distance” Network (Fiber) Mobile Telephone Switching Office “ Long Distance” Network (Fiber) Legacy PSTN Technology Deployment
    4. 4. <ul><li>The Internet revolution. </li></ul><ul><li>Internet technology introduces: </li></ul><ul><ul><li>Packet switching. </li></ul></ul><ul><ul><li>A standardized communication platform, delivering “best effort service.” </li></ul></ul><ul><ul><ul><li>No blocking. </li></ul></ul></ul><ul><ul><ul><li>Transmission latency possible. </li></ul></ul></ul><ul><ul><li>Potential for high bandwidth demand. </li></ul></ul><ul><li>How will the change affect the PSTN? </li></ul>
    5. 5. <ul><li>Section 706 of the 1996 Act states: </li></ul><ul><ul><li>The Commission and each State commission with regulatory jurisdiction over telecommunications services shall encourage the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans. </li></ul></ul><ul><ul><ul><li>“ advanced telecommunications capability' is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology.” </li></ul></ul></ul>
    6. 6. <ul><li>Competing platforms </li></ul><ul><ul><li>Cable </li></ul></ul><ul><ul><li>Telephone company </li></ul></ul><ul><ul><ul><li>RBOCs stick to their own turf. </li></ul></ul></ul><ul><ul><li>Overbuilders </li></ul></ul><ul><ul><li>Wireless </li></ul></ul><ul><ul><ul><li>RBOCs own largest wireless providers </li></ul></ul></ul><ul><ul><ul><li>AT&T and Verizon purchased majority of 700 MHz spectrum </li></ul></ul></ul><ul><ul><ul><li>WiMax on horizon? </li></ul></ul></ul><ul><li>Will competition ensure affordability? </li></ul><ul><li>Will competition ensure universal access/service? </li></ul><ul><li>Will competition deliver end-to-end compatible technologies? </li></ul><ul><ul><li>Encourage benefits of network effects. </li></ul></ul>
    7. 7. Downstream Upstream FTTH VDSL2 Cable Modem (DOCSIS 3.0) Cable Modem (DOCSIS 2.0) ADSL2+ WiMax Basic DSL
    8. 8. <ul><li>Voice over Internet Protocol </li></ul><ul><ul><li>Relies on packet switching approach. </li></ul></ul><ul><li>Uses broadband access network. </li></ul><ul><li>Within the broadband access network, the relative position of voice has changed. </li></ul><ul><ul><li>IPTV customer—200+ Gigabytes per month. </li></ul></ul><ul><ul><li>Voice customer—less than 1 Gigabyte per month. </li></ul></ul>
    9. 9. <ul><li>Largest telephone company. </li></ul><ul><ul><li>35 million residential subscribers in 21 states. </li></ul></ul><ul><ul><li>75 million wireless subscribers. </li></ul></ul><ul><ul><li>Have used DSL to deliver broadband. </li></ul></ul><ul><li>“ Fiber to the neighborhood” (FTTN). </li></ul><ul><li>Utilizes existing copper distribution network. </li></ul><ul><li>Shortens the copper run. </li></ul><ul><ul><li>Typically enables 25 Mbps downstream, 1-3 Mbps upstream. </li></ul></ul><ul><ul><li>Majority of bandwidth devoted to provision of U-verse television. </li></ul></ul><ul><li>“ IPTV” is used to compensate for limited overall bandwidth. </li></ul>
    10. 10. Copper Fiber replaces Copper Local Loop Overhaul (FTTN) Node Set-Top Box Residential Gateway Household Phone Company Central Office FTTN pushes fiber deeper into the neighborhood to shorten the copper runs to 3,000 to 5,000 feet.
    11. 11. IP Video Hub Offices National IP Backbone IP Video Super Hub IP Serving Offices Copper Fiber Fiber Greenfield FTTP Local Loop Overhaul (FTTN) Node Set-Top Box Residential Gateway Household Household
    12. 12. <ul><li>Low-bandwidth for data. </li></ul><ul><li>Fiber deployments appear to be constrained for marketing purposes to copper performance. </li></ul><ul><li>“ Pair-bonding” may double the capacity available, but delivery of HD programming may command most of this additional bandwidth. </li></ul><ul><li>Competitive pressure on cable systems, which already beat U-verse Internet bandwidth with existing platform? </li></ul><ul><li>Structural discrimination against non-U-verse video? </li></ul><ul><li>About 780,000 subscribers nationwide. </li></ul><ul><li>14 Million living units passed as of 3 rd Quarter 2008. </li></ul>
    13. 13. <ul><li>Second largest telephone company. </li></ul><ul><ul><li>24.5 million residential subscribers in 29 states. </li></ul></ul><ul><ul><li>68 million wireless subscribers. </li></ul></ul><ul><ul><li>Use both DSL and selective deployments of fiber to the home (FTTH). </li></ul></ul><ul><li>FTTH provides a direct fiber optic connection to the home. </li></ul><ul><ul><li>Replaces the copper wires in the network. </li></ul></ul>FiOS
    14. 14. FiOS Optical Network Terminal Optical Line Terminal Optical Couplers (WDM) Voice & Data Downstream 1490 nm Upstream 1310 nm Voice, Data & Video 1490 nm, 1310 nm, 1550 nm 1x32 Optical Splitter Video 1550 nm CENTRAL OFFICE CUSTOMER PREMISE PSTN Verizon IP Network Internet Video Hub
    15. 15. <ul><li>About 1.6 million FiOS TV customers nationwide. </li></ul><ul><li>About 2.2 million FiOS Internet customers nationwide. </li></ul><ul><li>Projects passing 12 million homes by year-end 2008. </li></ul><ul><li>Preferred technology, but limited to portions of Verizon’s service area. </li></ul>
    16. 16. (1-year agreement) Plans FiOS with existing Verizon phone service FiOS without Verizon phone service   Up to 10 Mbps/2 Mbps $42.99/month $47.99/month Up to 20 Mbps/5 Mbps $52.99/month $57.99/month Up to 20 Mbps/20 Mbps $64.99/month $69.99/month $139.95/month $144.95/month Up to 50 Mbps/20 Mbps
    17. 17.
    18. 18. <ul><li>Qwest has announced plans for a limited FTTN deployment. </li></ul><ul><ul><li>To pass 1.5 million homes by year-end 2008. </li></ul></ul><ul><ul><li>Mixed signals regarding video plans. </li></ul></ul>
    19. 19. <ul><li>Will competition ensure affordability? </li></ul><ul><ul><li>Voice prices </li></ul></ul><ul><ul><li>Broadband Internet access. </li></ul></ul><ul><li>Will competition ensure universal access/service? </li></ul><ul><ul><li>AT&T v. Verizon v. Qwest </li></ul></ul><ul><li>Will competition deliver end-to-end compatible technologies? </li></ul><ul><ul><li>Bandwidth differences impact application development and innovation. </li></ul></ul>
    20. 20. <ul><li>ILECs don’t have to unbundle fiber. </li></ul><ul><li>Copper retirement. </li></ul><ul><ul><li>Strips a technology platform from the network. </li></ul></ul><ul><ul><ul><li>DSL </li></ul></ul></ul><ul><ul><ul><li>Ethernet over copper. </li></ul></ul></ul>
    21. 21.
    22. 22. USA

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