IP Telephony:

1
IP Telephony Keeping New York Competitive in
the Global Marketplace
Eva Lerner-Lam PresidentPalisades Consulting
Group, Inc. elernerlam_at_palisadesgroup.com Rebuild
New YorkMajor Infrastructure Conference March
28, 2000
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Theres a Revolution Going On

• Telecommunications is the New Millenniums
  Industrial Revolution

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Silicon Alley in an Infrastructure Do-Loop?

• Were leading the world in high tech development
  of the Internet
• BUT--are we falling behind in deploying the
  infrastructure for global competitiveness?

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Leading the World in Development of Broadband
Applications

• Wireless Mobile-Commerce (M-Commerce)
• Internet Protocol (IP) Telephony
• Application Server Providers (ASP)
• Video Streaming
• Music Downloads
• Etc.

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but we cant get on-line

• The Last Mile Problem is 1990s history
• For now and beyond, its the First Mile

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The Last Mile is now the First Mile
THE INTERNET
THE INTERNET
Pre-2000
Post-2000
Last Mile
First Mile
Users
Users
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Does it have a T1 line?

• Growing disparity between haves and have-nots
• Within our own society
• Globally

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The Irony

• We have the large-scale network infrastructure
  (early ones built by the Defense Department and
  new ones now built by the private telecom
  sector)
• We cant seem to overcome the Last Mile/First
  Mile problem

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What if?

• We organized national consortia to collaborate in
  the design and building of functionalities for
  ubiquitous Internet access?

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What if

• The Consortia consisted of hospitals, schools,
  utilities companies, social services
  organizations, banks, financial institutions,
  transportation agencies in short, all major
  infrastructure sectors?
• The Consortia offered training and certification
  in design, engineering, construction, operation
  and maintenance of the backbone and support
  networks?

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What if?

• The Consortia provided a mechanism for the
  pooling of resources to overcome the Last
  Mile/First Mile problem?

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Then New York would have

• An infrastructure base for enabling, empowering
  and energizing e-commerce and e-administration
  using the Internet
• An organizational framework for business,
  government, academia and others to
• Define their respective needs
• Determine the best approaches to meeting those
  needs
• Pool resources to implement strategies

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Then, New York would be

• Globally competitive

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And, what if we dont?
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Look at Who is

• China Golden Bridge Network (CHINAGBN) is the
  National Public Economic Information and
  Communication Network (NEICN).
• It supplies the data communication and
  information services to government, enterprises
  and individuals.
• Golden Bridge Project is THE major information
  technology development project of Chinas Ninth
  Five-year Plan.

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Chinas Golden Bridge Network

• State Council began the project in February
  1996.
• Established four Internet backbone networks in
  China Chinanet, CHINAGBN, CERnet and CASnet.
• CHINAGBN is the public data communication
  network, which is one of the two networks
  (CHINAGBN and Chinanet) allowed for commercial
  use.
• Using both satellite channels and terrestrial
  optic fibre lines, CHINAGBN covers all of China.

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Chinas Golden Bridge Network

• CHINAGBN has established 10 backbone nodes in the
  cities of Beijing, Shanghai, Guangzhou, Wuhan,
  Shenzhen, Qingdao, Shenyang, Dalian, Changchun,
  and Chongqing.
• There are hundreds of group users, enterprises
  and ISPs that have connected to CHINAGBN they
  were instrumental in the development process of
  the Network.

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China Unicom

• Owned and operated by the Ministry of Railways
  (the country within a country), Unicom is China
  Telecoms only sanctioned competitor.
• Will invest nearly US6 billion in communications
  construction in 2000, including US3.6 billion in
  mobile communications, US.5 billion in data
  communications, US.8 billion in fixed
  communications, and US.8 billion in wireless
  paging.

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China Unicom

• Unicom is nearly finished building its 39k km
  fiber optic backbone 470 metro nodes
• This year, the company plans to add
• 5.16 million GSM lines
• 11.3 million CDMA lines
• It will add 8.4 million new mobile phone users to
  reach a total of 13.63 million users

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China Unicom

• Works closely with MOR units responsible for
• Health
• Education
• Housing
• Research
• Construction
• Utilities

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China Telecoms Internet Access and IP Telephony

• Started in Beijing Fall, 1999
• Now in Shanghai and at least a dozen other major
  metropolitan regions

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China Telecoms Internet Access

• Dial 169 for 56k modem access
• US 0.009/minute
• No ISP or additional monthly fee

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Chinas IP Telephony

• Domestic and International
• Pre-paid cards
• Instant hit

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Major Differences

• Strong leadership at the national level for
  strengthening the use of the Internet for
  economic development
• Last Mile and First Mile being worked on at
  the same time
• Stakeholder Consortia at the local level banks,
  financial institutions, schools, university
  research centers, government agencies,
  transportation system operators, hospitals,
  libraries, etc. etc.

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Staying Competitive

• Our Achilles Heel Last Mile/First Mile
  infrastructure between the User and the Internet
• Our technology is exploding but our
  institutional/stakeholder support is lagging,
  even non-existent at the local and regional levels

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Rebuild America The Opportunity

• Create a National Internet Last Mile/First
  Mile Strategy
• Take it down to the Regional, Metropolitan and
  local levels
• Let the users speakand empower them to act

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Rebuild America Identify the suppliers

• Telephone
• Cable
• Utilities
• Wireless

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Rebuild America Organize the stakeholders

• Banks and financial institutions
• Schools
• Hospitals
• Libraries
• University and private research centers
• Government agencies
• Transportation agencies
• Utilities
• Other infrastructure sectors

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One Model
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Local Examples

• Blacksburg, VA Building a smart community
  with Virginia Tech
• Concord, MA Looking to joint ventures with
  cable, ISPs and telephone company
• Falcon, CA Forming partnerships with local
  Internet service providers to offer residents
  high-speed Net access.
• Palo Alto, CA The "Last Mile" initiative to
  connect Palo Alto residents and businesses to the
  City's Fiber Ring information infrastructure.

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SUMMARY

• We lead the world in technology and broadband
  applications, but were stymied by the Last
  Mile/First Mile obstacle
• Our global competitors are gaining on us at our
  Achilles Heel
• Lets organize a national framework and implement
  a strategy for overcoming the Last Mile/First
  Mile problem so we can get on with the business
  of global competition.