Telecommunications Introduction to telecommunication issues.

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Presentation transcript:

Telecommunications Introduction to telecommunication issues

New Reality

Bandwidth Last Mile delivery Ownership Fat or Thin Clients Content Retail and Business-to-Business Digital Superhighway UNDER CON- STRUCTION

Chip capacity doubles every 18 Months. Gordon Moore Moore’s Law Bandwidth

Digital Standard Telephone System Analog Network Analog Digital Modem Switch Network

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 1Packet 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

Issue: e-Business Content Electronic Storefronts Business to Business

E-commerce

The Information Paradigm ? Profitability ? Impact on traditional business ? Security ? Privacy