1. 1 1084_06F9_c3 © 1999, Cisco Systems, Inc. The Current State Of Telecommunications Dan Barker TNT Consulting Group

2. 2 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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. Current State of Telecom

3. 3 1084_06F9_c3 © 1999, Cisco Systems, Inc. Dec 20 2002 BellSouth became the first Bell company to gain FCC approval to provide long-distance service throughout its region. Current State of Telecom 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

4. 4 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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? Current State of Telecom

5. 5 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom 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. So how does this affect us? Current State of Telecom

6. 6 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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

7. 7 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom Internet Connectivity  Dial Up – Issues & Advancements  Broadband DSL  Broadband Wireless  Broadband Satellite  Fiber Optic  Other Last Mile Solutions

8. 8 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom 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. SLC (Subscriber Loop Carrier) DLC (Digital Loop Carrier)

9. 9 1084_06F9_c3 © 1999, Cisco Systems, Inc. Quick connect - Enables dial-up modems to complete a connection to a service provider much faster than with V.90- only 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. V.92 Current State of Telecom

10. 10 1084_06F9_c3 © 1999, Cisco Systems, Inc. V.92 Will Not Help Overcome Telecom Issues Most ISP’s Won’t Spend the $$$ Current State of Telecom

11. 11 1084_06F9_c3 © 1999, Cisco Systems, Inc. Very Fast Speeds (200 Times Faster Than Modem Always On Connection Can Be Shared With Multiple Computers Current State of Telecom

12. 12 1084_06F9_c3 © 1999, Cisco Systems, Inc.  Digital Cable  xDSL – ADSL, SDSL, HDSL  Wireless  Satellite Current State of Telecom

13. 13 1084_06F9_c3 © 1999, Cisco Systems, Inc. Cable Modems Limited Coverage Some Security Concerns Shared Bandwidth Current State of Telecom By the mid 2002 9.2 million people were served by Cable in the US

14. 14 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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 DSL Current State of Telecom

15. 15 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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 high- speed Internet which is capital intensive. DSL Current State of Telecom

16. 16 1084_06F9_c3 © 1999, Cisco Systems, Inc. Fixed Wireless Geography Sensitive Limited Reach Good Speeds Equipment Costs Still High Current State of Telecom 2000-2001

17. 17 1084_06F9_c3 © 1999, Cisco Systems, Inc. Fixed Wireless Current State of Telecom 2002-2003 Security A Huge Issue Better Foliage Penetration Meshed Technology Extended Ranges Speeds Just Getting Better Equipment Costs Halfed

18. 18 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom Equipment Costs $499 Installation starts at $199. Monthly service fees vary $69.99 per month.

19. 19 1084_06F9_c3 © 1999, Cisco Systems, Inc. Pricing Edging Closer to Traditional Broadband Current State of Telecom

20. 20 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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

21. 21 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom

22. 22 1084_06F9_c3 © 1999, Cisco Systems, Inc. Current State of Telecom

23. 23 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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.

24. 24 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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.

25. 25 1084_06F9_c3 © 1999, Cisco Systems, Inc. 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.

26. 26 1084_06F9_c3 © 1999, Cisco Systems, Inc. Video conferencing Collaboration Telemedicine Distance Learning Voice Over IP Streaming Media Better Connectivity Will Improve… Current State of Telecom

27. 27 1084_06F9_c3 © 1999, Cisco Systems, Inc. Questions?