20th Century Model

1
20th Century Model

• Build and MAINTAIN a VOICE Network
• Long Term Planning
• Backward Compatibility
• Average pricing concept
• Geographic franchise

2
Long Term Planning

• 3 - 5 years reaction time for service demand
• highly mechanized systems to reduce unit cost
• TIRKS

3
40 Years

• Emphasis on high quality
• Long useful life
• 2.5 ammortization

4
Building a PhoneBox

• Built like Rock of Gibralter
• Single Occupant
• Single Owner
• All common space
• External security
• All common power
• Integrated design

5
Unfriendly Legal Matters

• CarterFone - 1969
• Modified Final Judgement - 1984
• Judge Harold Greene
• Telecom Act 1996
• FCC Unbundled Services

6
Whats in YOUR Wallet?

• Open Network Architecture
• External Security
• Internal Security
• Expensive
• Unwieldy
• Messy, ugly, etc.
• Not designed for it.

7
Unbundled Loop

• Spur competition
• Congressional Direction
• FCC interpretation
• Stifled competition
• Delayed implementation
• DSL

8
Video vs. Old Model

• Short Interval
• Reactive delivery
• Overlay Networks
• Specialized Techs, Tools, Processes
• Labor Intensive
• Small Base
• Double Overhead
• TLC Required

9
New Developments

• Rapid technical advances
• FCC mandates
• New services are needed
• Latest delivery vehicle demanded

10
Bargains Actively Sought

• Smart and frugal buyers
• Outsmart tariffs
• Comparison shoppers
• Cancel delivery in favor of a better deal

11
Video Services Not Profitable

• Acute specialization
• Low volume
• No cross application
• Double overhead
• Demographics
• Situation deteriorating
• New capital required

12
Dark Shadows

• The prognosis is grim
• Demographics
• Sun City, here we come!
• Retiring Video Specialists not replaced
• New Owners are entrepeneurs

13
Old Model Rx

• Get Pro-active
• Increase service base
• Commit to terrestrial transport
• Contract for services over a broad area
• 3 - 5 year window

14
21st Century Model

• Its all IP
• Data Centers
• Stingers, DSLAM and the DSL Motel
• Follows the talent
• Legal friendly

15
Data Centers

• Vast capacity
• Superb facilities
• POWER
• SECURITY

• Flexible accomodations
• Vast array of technical services
• Vast array of support services
• APPLICATIONS support services

16
Stinger/DSLAM

• SAC locations
• Companion cabinets
• Commercial Power
• Battery back-up
• xDSL capable of 20 megabits

• CLEC guests
• access to all distribution cable pairs
• all levels of feeder services available

17
Qwest Internet

• Not a Telephone Co.
• Buildings not Single Family
• OSP not ONA or unbundled

• IP, data, voice, video
• Data Centers designed to serve guests
• Stinger Motels provide remote co-location

18
Video 21st Cent. Model

• IP video transport
• Data Centers house TV applications
• Pipe synergies
• Application expertise

• Mainstream transport
• Future model
• No longer fighting the system
• New technical elite

19
Video Transport Power

• Emerging needs, HDTV, Digital Cinema
• Huge bandwidth
• Volume discounts

• Become a major market
• Great revenue potential
• Working Partnerships

20
VSF 21st Century RX

• Embrace the new model
• Lead the industry
• Drive the standards to include video
• Drive the standards to FEATURE video
• Build the boxes