1. TMitTI 1 © Sakari Luukkainen Content Previous technology cycle Analog Modems ISDN Technology cycle of fixed broadband Case ADSL Case DOCSIS Conclusion

2. TMitTI 2 © Sakari Luukkainen Analog Modems In the 1950’s the modems were proprietary and based on the technology used previously in the radios The international standardization of modems started in the 1960’s The analog modem technology started to develop incrementally and reached 56 kbit/s speed in the 1990’s

3. TMitTI 3 © Sakari Luukkainen ISDN The core network started to digitalize in the 1970’s and the name of the related technology was PCM, later PDH The recommendations to digitalize the switching were made in 1984, the related standard was ISDN The evolution of ISDN started slowly because of different ways to implement standards, interoperability problems between the operators After the harmonization of the implementations ISDN started to diffuse to the market in the 1990s

4. TMitTI 4 © Sakari Luukkainen The final part of connection - the local loop - is still the analog twisted pair copper line The end-user services of the ISDN like videophone or fax did not succeed in the market ISDN was unexpectedly used as a 128 kbit/s Internet access Recently ISDN and analog modems have largely been displaced by the broadband technologies ISDN

5. TMitTI 5 © Sakari Luukkainen Case ADSL The main goal was to be able to reach fast data speeds over the present copper line With an existing base of local loops, it made feasible to develop a technology, which could reuse the infrastructure ADSL uses an advanced modulation method and works simultaneously with the telephone service The connection is always on

6. TMitTI 6 © Sakari Luukkainen Case ADSL The development of the hardware technologies enabled to integrate the new algorithms into the chipset The network cost per subscriber decreased, while the cost of the ADSL chipset started to fall in the late 1990’s The replacement of copper by fibre was planned in the early 1990’s, but it proved to be expensive and uncertain

7. TMitTI 7 © Sakari Luukkainen Case ADSL The telephone operators thought that an interactive VOD service would be important application The long distances of the local loop, the inadequate quality of the twisted-pair copper wire and electrical interference prevented from transmitting digital signals at the speed required by the video Proprietary DSL technologies caused interoperability problems at the beginning of the technology cycle

8. TMitTI 8 © Sakari Luukkainen Case ADSL ADSL has been the most popular technology of the xDSL family, it was originally standardized by ANSI in 1995 and the first international ITU standard G.992.1 was introduced in 1999 The ADSL standard was also approved by ETSI (European Telecommunications Standards Institute) This standard enabled speeds up to 8 Mbit/s downstream and up to 640 Kbps upstream In 2002 ITU standardized a new family of ADSL standards known as ADSL2

9. TMitTI 9 © Sakari Luukkainen Case ADSL The deregulation acts in USA ended the operators’ monopolies ISP could request the local telephone company for access to the local loop at a regulated tariff rate and CATV companies were able to offer data services Mobile phones also started to substitute fixed telephone calls, and ADSL provided incumbent local telephone operators with a way still to make business with their local loop The ADSL mass market emerged first in the USA The commercial launch of ADSL services started in 1999 in several countries of Europe

10. TMitTI 10 © Sakari Luukkainen Case ADSL In 2004 about 65 million ADSL lines were globally, ADSL dominates the consumer market Similarly to the case of ISDN, ADSL based services emerged much more differently than it was originally expected: as a high speed access to the Internet Flat rate pricing method important success factor The ADSL based Internet broadband access also stimulates all kinds of new applications and business over the Internet

11. TMitTI 11 © Sakari Luukkainen Case DOCSIS The deregulation acts in the mid-1990’s ended monopolies by opening the competition in the USA CATV companies were able to offer data access over their existing network and compete with the telephone operators’ ADSL services Because of the early deregulation the first CATV data mass market first emerged in the USA In the first years of the CATV data evolution the technologies used were proprietary, many different solutions in the market

12. TMitTI 12 © Sakari Luukkainen Case DOCSIS US vendors and operators started to develop a standard called DOCSIS (Data Over Cable Service Interface Specification) The standard defines the addition of high-speed data transfer to an existing CATV system The first DOCSIS specification 1.0 was released in 1997 This technology allowed data access over the CATV system by using parallel phone lines for the upstream traffic

13. TMitTI 13 © Sakari Luukkainen Case DOCSIS The technical challenges related to the return channel were solved in the following version DOCSIS 1.1 DOCSIS was further revised in order to increase upstream transmission speeds in a new specification 2.0 ITU also adopted DOCSIS as the international standard

14. TMitTI 14 © Sakari Luukkainen Case DOCSIS The CATV data architecture includes a CMTS (Cable Modem Termination System) unit, which is similar to DSLAM in the ADSL network The DOCSIS 1.1 standard enabled mass markets, and CATV data started to diffuse to Europe DOCSIS 2.0 introduced a new modulation method, no backward compatible, investments in new CMTS and modems In the USA there were 20 million CATV data users in 2004, 8 million in Europe

15. TMitTI 15 © Sakari Luukkainen Conclusion impact of deregulation to new market creation contradiction between proprietary innovation and interoperability typically first a fragmented phase which leads to a single dominant technology reuse of the existing infstaructure - evolution unexpected end user applications, flexibility to react enough new added value by reasonable cost for the end user