Overview of technology Transformation in the PSTN

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Overview of technology Transformation in the PSTN

• Presented by Trevor R. Roycroft, Ph.D.
• 2008 NASUCA Annual Meeting.
• November 17, 2008

Roycroft Consulting Economic and Policy
Analysis trevor_at_roycroftconsulting.org www.roycrof
tconsulting.org 508-896-0151
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In the beginning. . .

• ATT Bell system built a nationwide network to
  provide local and long distance services.
• A public switched telecommunications network
  (PSTN).
• Provided services at regulated rates on a common
  carriage basis.
• Universal Service.
• Network capabilities similar nationwide.

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Long Distance Network (Fiber)
Legacy PSTN Technology Deployment
Local Loop
Local Switch
Tandem Switch
Feeder Copper or Fiber
Local Transport Copper or Fiber
Distribution And Drop (Copper Twisted Pair)
Mobile Telephone Switching Office
Long Distance Network (Fiber)
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Technology sea change

• The Internet revolution.
• Internet technology introduces
• Packet switching.
• A standardized communication platform, delivering
  best effort service.
• No blocking.
• Transmission latency possible.
• Potential for high bandwidth demand.
• How will the change affect the PSTN?

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transition to broadband access networks

• Section 706 of the 1996 Act states
• 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.
• 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.

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Is competition up to the job?

• Competing platforms
• Cable
• Telephone company
• RBOCs stick to their own turf.
• Overbuilders
• Wireless
• RBOCs own largest wireless providers
• ATT and Verizon purchased majority of 700 MHz
  spectrum
• WiMax on horizon?
• Will competition ensure affordability?
• Will competition ensure universal access/service?
• Will competition deliver end-to-end compatible
  technologies?
• Encourage benefits of network effects.

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Broadband Deployment Menu
Downstream
Upstream
FTTH
Cable Modem (DOCSIS 3.0)
VDSL2
ADSL2
Cable Modem (DOCSIS 2.0)
WiMax
Basic DSL

• 25 20 15 10 5 0 5 10
  15 20 25 100 175
• MBPS

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Emergence of Voip

• Voice over Internet Protocol
• Relies on packet switching approach.
• Uses broadband access network.
• Within the broadband access network, the relative
  position of voice has changed.
• IPTV customer200 Gigabytes per month.
• Voice customerless than 1 Gigabyte per month.

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Corporate broadband strategies

• Largest telephone company.
• 35 million residential subscribers in 21 states.
• 75 million wireless subscribers.
• Have used DSL to deliver broadband.
• Fiber to the neighborhood (FTTN).
• Utilizes existing copper distribution network.
• Shortens the copper run.
• Typically enables 25 Mbps downstream, 1-3 Mbps
  upstream.
• Majority of bandwidth devoted to provision of
  U-verse television.
• IPTV is used to compensate for limited overall
  bandwidth.

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FTTN
FTTN pushes fiber deeper into the neighborhood
to shorten the copper runs to 3,000 to 5,000
feet.
Phone Company Central Office
Fiber replaces Copper
Household
Set-Top Box
Copper
Node
Local Loop Overhaul (FTTN)
Residential Gateway
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U-verse Architecture
IP Video Hub Offices
IP Video Super Hub
National IP Backbone
IP Serving Offices
Household
Household
Set-Top Box
Fiber
Fiber
Copper
Node
Greenfield FTTP
Local Loop Overhaul (FTTN)
Residential Gateway
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Issue with u-verse

• Low-bandwidth for data.
• Fiber deployments appear to be constrained for
  marketing purposes to copper performance.
• Pair-bonding may double the capacity available,
  but delivery of HD programming may command most
  of this additional bandwidth.
• Competitive pressure on cable systems, which
  already beat U-verse Internet bandwidth with
  existing platform?
• Structural discrimination against non-U-verse
  video?
• About 780,000 subscribers nationwide.
• 14 Million living units passed as of 3rd Quarter
  2008.

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FiOS

• Second largest telephone company.
• 24.5 million residential subscribers in 29
  states.
• 68 million wireless subscribers.
• Use both DSL and selective deployments of fiber
  to the home (FTTH).
• FTTH provides a direct fiber optic connection to
  the home.
• Replaces the copper wires in the network.

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FiOS
CENTRAL OFFICE
CUSTOMER PREMISE
Voice Data Downstream 1490 nm
Voice, Data Video 1490 nm, 1310 nm,
1550 nm
Optical Line Terminal
Optical Network Terminal
Optical Couplers (WDM)
Optical Splitter
Upstream 1310 nm
1x32
Video 1550 nm
PSTN
Verizon IP Network
Internet
Video Hub
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Issues with Fios

• About 1.6 million FiOS TV customers nationwide.
• About 2.2 million FiOS Internet customers
  nationwide.
• Projects passing 12 million homes by year-end
  2008.
• Preferred technology, but limited to portions of
  Verizons service area.

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Issues with Fios
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Network upgrades
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Missing in Action?

• Qwest has announced plans for a limited FTTN
  deployment.
• To pass 1.5 million homes by year-end 2008.
• Mixed signals regarding video plans.

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Summary are market forces working?

• Will competition ensure affordability?
• Voice prices
• Broadband Internet access.
• Will competition ensure universal access/service?
• ATT v. Verizon v. Qwest
• Will competition deliver end-to-end compatible
  technologies?
• Bandwidth differences impact application
  development and innovation.

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Other Regulatory Issues

• ILECs dont have to unbundle fiber.
• Copper retirement.
• Strips a technology platform from the network.
• DSL
• Ethernet over copper.

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Average Monthly Broadband subscription price, Oct
2007, USD PPP
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International comparison
USA
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International Comparison