track 4 additional topics. by request… you asked for a few notes on these topics…
TRANSCRIPT
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Track 4
Additional Topics
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By Request…
you asked for a few notes on these topics….
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How to connect to Everyone Else
Purchase a link to another ISP in your region
BUY “transit” from them wholesale / retail relationship BUT
no control over price no control over quality
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How to connect to Everyone Else
LEASE your own circuit to another country
Become a customer of a remote ISP Which country
US Provider? EU Provider? Regional Provider?
Price Quality
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How to connect to Everyone Else
What kind of circuit? Satellite
slower cheaper? Available?
Cable circuit faster higher lease cost may not be available
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How to connect to Everyone Else
MultiProvider issues domestic exchange domestic settlement
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Content Policy
A network is a collection of packet switches
Packet switches use packet headers not data payloads
Packet switches cannot enforce content policy
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Content Policy
Site Filtering Block access to certain sites from the
boundary of the network list maintenance list enforcement
YOU CAN MAKE IT LESS OBVIOUS BUT YOU CANNOT STOP IT
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Content Policy
Use the right tool to enforce public policy
Human policy problems typically require human solution, NOT network solutions
A packet switch cannot enforce policy if you want to have a productive and scaleable network
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To Sell a Network
Why do you want to sell? For capital gain? Mismatch with core business Mismatch with public positioning Capital crisis
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To Sell a Network
What are you selling? Line Leases ? Routers and servers? Locations ? Staff expertise ? Business expertise ? Customers ? Futures ?
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To Buy a Network
Why do you want to buy a network? Profit opportunity To enter the market quickly To lever off existing related skills and
services To purchase skills and market share
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Communications Industry Trends
Voice is highly profitable Allows high grade engineering for
peak demand Voice is highly predictable Voice is easy to build and evidently
profitable to operate
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Communications Industry Trends
Data used the margins of voice engineering
Data was very very small scale Data was used by corporates for
private networks Data was priced at voice pricing levels Data was was highly profitable
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Communications Industry Trends
Internet entry Public network High value add low entry cost to the market over subscription of the IP transmission
system high growth in data demands
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Communications Industry Trends
Deregulation of the communications industry new entrants competing Initial competition in high profit voice
mobile telephony international voice
competition for data transmission market reduced voice market share for traditional
telco
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Communications Industry Trends
The Internet crisis data is now about 70% of the transmission
network exponential growth
data is now about 2% of the revenue to the traditional telco
lower margins less money to expand the network limited available network for more IP-based
activities
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Communications Industry Trends
So where is the Internet money?
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Communications Industry Trends
reduce cost of transmission switching by combining all traffic into a single switch and transmission fabric ATM
BUT data does not use ATM efficiently ATM is expensive to use for data
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Communications Industry Trends
The Internet will drive a market for low margin dedicated communications plant
Voice bypass over the Internet will increase for a while - until voice prices come down
Telco copper plant operating margins will decrease - mobile will remain good business
WDM will further drive down transmission costs
unit data switching costs will come down
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Communications Industry Trends
Are we willing to forego the telephone completely? No - ‘traditional’ voice has a viable future
circuit switching WORKS for telephony mobile telephony WORKS
But ‘viable’ is not the same as ‘highly profitable’
SO WHAT WILL HAPPEN? Very uncertain!