The Local Exchange Network in 2015 Lawrence Vanston,Ph.D.. Basic Conclusion• By the end of 2015, we will have transformed the local exchange from a narrowband network of circuit switch
Trang 1The Local Exchange Network
in 2015
Lawrence Vanston,Ph.D.
President
Technology Futures, Inc.
13740 Research Blvd., Bldg C • Austin, Texas 78750-1859 U.S.A.
Trang 2Basic Conclusion
• By the end of 2015, we will have
transformed the local exchange from a
narrowband network of circuit switches
and copper cable to a broadband network
of packet switches and fiber optics
Trang 3The World of 1986
Household PC Penetration: <1%
Household Online Penetration: 0%
Office LAN Connections (% of PCs): 6%
Typical Modem Speed: 1.2K
Typical PC: 286(XT)
Typical Hard drive: 20 Meg
Cellular Penetration (% of pop.): <1%
CDs (% of Recordings): 7%
Trang 4The LEC World of 1986
Digital Switching (% of lines): < 17%
Fiber Interoffice (% of circuits): < 12%
Fiber Feeder (% of lines): < 1%
SONET Penetration: 0%
ATM & IP Switching Penetration: 0%
Trang 5The Local Exchange Network
Trang 6• Forecasting
• Market Assessment
• Strategy
• Planning
Technology Futures, Inc (TFI)
TFI Mission: To help you take advantage of
technological progress and market opportunities.
• Consulting • Research • Seminars • Publications
Created 1978
Trang 8Broadband Internet Access 2015
Trang 9U.S Adoption of Broadband Access
Trang 10U.S Adoption of Broadband Access
Trang 11Broadband Access by Data Rate
3 kft 0.9 km
@52M b/s
1 kft 0.3 km
18kft
Maximum copper lengths
shown in italics.
Trang 12Data Rate Increases for Analog
Modems and Broadband
96000
0.1 1.0 10.0
4 times every 4 years.
Trang 13Computer Systems Policy Project
“ today’s typical digital subscriber line (DSL) and cable modem speeds, at less than 1 Mbps, are not fast enough to realize the full potential of emerging applications.”
“ the benefits from widespread, affordable, nextgeneration
broadband wll be significant. The advances in medicine,
education, national security, commuting, home entertainment and shopping will bring dramatic improvements to our quality of life.”
includes Dell, Compaq, HewlettPackard, Motorola,IBM, Intel, NCR, EMC, and Unisys
Building the Foundation of the Networked World, A Vision for 21st
Century Wired and Wireless Broadband, CPSS, Washington, January 2002. See ”http://www.cspp.orgreports/networkedworld.pdf”.
Trang 14Computer Systems Policy Project
transmission rates of almost 4 Mbps, and high definition video
requires 19.8 Mb/s. Some experts set the frontier for highspeed access to highquality, digital, skipfree audio and video as high as
100 Mbps.”
Continued
Trang 15Computer Systems Policy Project
capacity.”
Trang 16A National Imperative: Universal Availability of Broadband by 2010,
TechNet, January 2002. See http://www.technet.org/new/newsreleases/2002 0115.64.pdf.
includes Cisco, 3Com and Palm, Genuity, Intel, Microsoft, and Excite@Home
“TechNet calls on the President and policymakers
to make broadband a national priority and to set a goal of making an affordable 100megabits per
second broadband connection available to 100
million American homes and small businesses by 2010.”
Trang 17
peertopeer computing.”
Trang 18Video 2015
TV (many HDTV).
Trang 19U.S Households with Digital TV
Trang 20Wireless 2015
low-speed data.
wireline telephone connection.
public places
Trang 21North American Subscribers by
1G (Analog)
2G (Digital)
2.5G / 3G (Voice/Data)
Trang 22Competition 2015
Trang 23Competition for Narrowband
Trang 24Major ILEC Switched Access Lines
Trang 25Cable Telephony on the Rise
– 1999 198,000
– 2000 850,000
– 2001 1.5 Million
Telephone has achieved 24% total market
penetration
penetration overall and 40% penetration in some
suburbs
Trang 26Facilities-Based Competition
from Cable
• “ it is difficult to implement a business model
that relies heavily on purchasing essential inputs from one’s fiercest competitor A far more
reliable approach is to make capital investments
in one’s own infrastructure and to decrease
reliance on the ILECs as much as possible.”
– National Cable Telephony & Telecommunications Association, Cable
Telephony: Offering Consumers Competitive Choice, July 2001.
Trang 27ILEC-Provisioned Access Lines
including Broadband
0 20
DSL Broadband
Trang 28Basis for Future Competitiveness
bandwidth for the best price, including
bandwidth for voice, data, and video in the same package
low speed data access to be available any
time, anywhere, and almost for free
Trang 29Outside Plant 2015
Trang 30The Interoffice Network 2015
Trang 31The Feeder Network 2015
Trang 32TFI 2000 Feeder Forecast, Percentage
Trang 33most Deep Fiber Systems
Trang 34Average Percentage Distribution
Middle Scenario
Late Scenario
Trang 35Circuit Equipment 2015
Trang 36Dense Wavelength Division
Trang 37Maximum Data Rate of
Commercial Fiber Systems
0.01 0.10 1.00 10.00
Trang 38The Optical Transport Network 2015
network nodes on demand
Trang 39Fate of Existing Circuit
Equipment by 2015
• Analog Equipment - Long Gone
• Pre-SONET Equipment - Long Gone
• 1st Generation SONET - Gone
• 2nd Generation SONET - Mostly Gone
• 1st Generation DSL Equipment - Mostly Gone
• Traditional DLC systems - All but gone
• Existing ATM/IP Switches - Replaced
Trang 40ADSL Households—Middle Scenario
Trang 41Switching 2015
Trang 42What’s Happened to Circuit
Trang 43Adoption of ATM/IP Switching—
Percentage of Equivalent Access Lines
Trang 44Most Likely to Succeed
• Optical Transport Network (OTN): Wavelength Switching
with DWDM
• IP Switching
– Using OTN wavelengths as "trunks"
– Multiple Protocol Label Switching (MPLS) for Quality of
Service (QOS)
– Mesh Networks for minimum latency
• Likely victims: Circuit switches, SONET/SDH and ATM.
Trang 45Summary—Forecasts for 2015
• Broadband: 24-100 Mb/s
• Wireless Dominates Voice and Low-Speed
Data
• Fiber Displaces Copper in Outside Plant
• Fiber Displaces DSL and DLC
• ATM/IP Switching displaces circuit switching
Trang 46Final Conclusions
• Customers will demand more bandwidth for the best price, including voice, data, and video
• By 2015 the local exchange will be a broadband network of packet switches and fiber optics
• Of the $355 billion of network investment in
place in 2001, $5 billion will be in use in 2015
• These changes are difficult, but necessary to
remain competitive in the wireline business
Trang 47Your Bridge To The Future
Technology Futures