Voice over DSL Convergence where it counts. Jeff Jenkins Jetstream Communications IEEE - Bay Area...
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Transcript of Voice over DSL Convergence where it counts. Jeff Jenkins Jetstream Communications IEEE - Bay Area...
Voice over DSLVoice over DSL
Convergence where it Convergence where it counts.counts.
Jeff JenkinsJeff JenkinsJetstream CommunicationsJetstream Communications
IEEE - Bay Area Chapter MeetingIEEE - Bay Area Chapter MeetingJune 9, 1999June 9, 1999
"In my opinion, and not to be melodramatic here, it is the most
important trend in the industry in the past 10 years, the coming together of
voice and data networks"
--Jonathan Haller, principal analyst covering network services for market researcher Current Analysis Inc.,
(Sterling, Va.).
What the analysts say:What the analysts say:
AgendaAgenda
• The True DSL OpportunityThe True DSL Opportunity
• CLEC ImplicationsCLEC Implications
• ILEC ImplicationsILEC Implications
• Subscribers BenefitsSubscribers Benefits
TotalEst.
SmallBusiness
7.4M
Home Office/Res.
104M
Total 111.4M
Yesterday’s DSL Yesterday’s DSL OpportunityOpportunity
DSL is ideally suited for delivering data services to this market...
$4.2B
$4.7B
$8.9B
Data Rev./Year
61%
25%
31M
Internet Access
Source: IDC
Today's DSL Today's DSL OpportunityOpportunity
TotalEst.
SmallBusiness
7.4M
Home Office/Res.
104M
Total 111.4M
Voice Rev./Year
$30B
$35B
$65B
…and DSL is ideal for delivering Voice as well!
$4.2B
$4.7B
$8.9B
Data Rev./Year
61%
25%
31M
Internet Access
Source: IDC
Small Business: Voice Small Business: Voice vs. Datavs. Data• The typical small business The typical small business
spent $6,645 on voice spent $6,645 on voice services and $568 on data services and $568 on data in 1998in 1998
• By 2002, data will By 2002, data will represent nearly 10% of represent nearly 10% of total landline total landline expenditures. 90% of expenditures. 90% of expenditures are on voice!expenditures are on voice!
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
1997 1998 1999 2000 2001 2002
Voice
Data
Average Annual Small BusinessLandline Expenditure per Business
Source: IDC, January 1999
DSL Access NetworkDSL Access Network
DSL Rtr.
PhoneSystem
LANInternet
DSLAM ISP Facilities
xDSLClass 5
PSTN
RegionalPacket Network
Subscriber ILECWire Center
RegionalSwitching Center
Voice over DSLVoice over DSL
RegionalSwitching Center
PhoneSystem
LANInternet
DSLAM ISP Facilities
xDSL
Voice Gateway
DS3/ OC3
303
Class 5
PSTN
IAD
RegionalPacket Network
Subscriber ILECWire Center
Supplied by Jetstream, FlowPoint, Efficient, Ramp, Netopia,...
Integrated Access Device (IAD)
Multiplexes multiple telephone lines and data onto single DSL circuit
(single copper pair)
Voice over DSLVoice over DSL
RegionalSwitching Center
PhoneSystem
LANInternet
DSLAM ISP Facilities
xDSL
Voice Gateway
DS3/ OC3
303
Class 5
PSTN
IAD
RegionalPacket Network
Subscriber ILECWire Center
DSL Access Multiplexer (DSLAM)
Multiplexes multiple subscribers onto a single back-haul facility
Supplied by Nokia, Alcatel, Cisco, Copper Mountain, Nortel,...
Voice over DSLVoice over DSL
RegionalSwitching Center
PhoneSystem
LANInternet
DSLAM ISP Facilities
xDSL
Voice Gateway
DS3/ OC3
303
Class 5
PSTN
IAD
RegionalPacket Network
Subscriber ILECWire Center
Integrates subscriber voice traffic into Class 5 local switch
Supplied by
Voice Gateway (CPX-1000)
Voice over DSLVoice over DSL
RegionalSwitching Center
PhoneSystem
LANInternet
DSLAM ISP Facilities
xDSL
Voice Gateway
DS3/ OC3
303
Class 5
PSTN
IAD
RegionalPacket Network
Subscriber ILECWire Center
A carrier can deliver up to 16 telephone lines and data service over a single copper pair
VoDSL Advantages:VoDSL Advantages:Dynamic Bandwidth AllocationDynamic Bandwidth Allocation
0
100
200
300
400
500
600
700
Ban
dw
idth
(K
)
7am 8am 9am 10am 11am 12pm 1pm 2pm 3pm 4pm 5pm
Average bandwidth available for data
Average bandwidth used by telephony
8 lines serving 32 extensions at P.01 over a 768kbps SDSL line
On a fully utilized 768 SDSL line...
Available Bandwidth during Busy Hour
Dynamic BandwidthDynamic Bandwidth
• 50% of bandwidth avail. 90% of the time
• 80% of bandwidth avail. 50% of the time
The CLEC VoDSL The CLEC VoDSL OpportunityOpportunity
To extend the reach of their already To extend the reach of their already successful voice and data bundling successful voice and data bundling strategy to the next big markets...strategy to the next big markets...
Small Business, Home Office & Small Business, Home Office & High-end ResidentialHigh-end Residential
The CLEC VoDSL The CLEC VoDSL OpportunityOpportunity
Small Bus, HO and High-end Residential Large Business
$34B$88B
…which is also a significantly larger voice opportunity
Source: IDC
The Current CLEC The Current CLEC OpportunityOpportunity
Large/Mid-Size Businesses
Phone System
Router
Phone System
Router
CLEC RegionalSwitching Center
Voice Switch
Data Switch
PSTN
Internet
Run T1/T3s over Fiber, WLL, or Leased from ILEC
The Current CLEC The Current CLEC OpportunityOpportunity
Large/Mid-Size Businesses
Phone System
Router
Phone System
Router
CLEC RegionalSwitching Center
Voice Switch
Data Switch
PSTN
Run T1/T3s over Fiber, WLL, or Leased from ILEC
PSTN
Internet
Cost of current TDM technology
only permits profitable service
delivery to subscribers with
14 or more telephone lines
The Current CLEC The Current CLEC OpportunityOpportunity
Large/Mid-Size Businesses
Phone System
Router
Phone System
Router
CLEC RegionalSwitching Center
Voice Switch
Data Switch
PSTN
Run T1/T3s over Fiber, WLL, or Leased from ILEC
PSTN
Internet
95% of Small Businesses and 99%+ of Residences use
12 or fewer telephone lines!
The CLEC ChallengeThe CLEC ChallengeThe CLEC ChallengeThe CLEC ChallengeFinding a cost-effective access
network architecture that leverages the ‘last mile’ copper network
Deploying a single multi-service network that efficiently scales to deliver both VOICE and DATA.
ILEC Wire Center
Voice Switch
Data Switch
PSTN
Internet
CLEC RegionalSwitching Center
Small Businesses & Residences
LAN
LAN
LAN
LAN
PhoneSystem
PhoneSystem
PhoneSystem
PhoneSystem
LAN
LAN
LAN
LAN
PhoneSystem
PhoneSystem
PhoneSystem
PhoneSystem
RegionalSwitching Center
Class 5
PSTN
Internet
Small Businesses & Residences
ILEC Wire Center
ISP Facilities
IAD
IAD
IAD
IAD
VoDSL Access NetworkVoDSL Access Network
Voice Gateway
303
DSLAM
xDSL
DS-3 /OC-3DSLAM
RegionalPacket Network
VoDSL Benefits to VoDSL Benefits to CLECsCLECs
• Solves the economic and operational challengesSolves the economic and operational challenges• Single network for voice and data - “On Net”Single network for voice and data - “On Net”
• Single copper pairSingle copper pair
• Requires only a DSLAM in CORequires only a DSLAM in CO
• Single back-haul facilitySingle back-haul facility
• Solves the marketing challengesSolves the marketing challenges• Increases customer acquisition and retention through Increases customer acquisition and retention through
bundled voice and data servicesbundled voice and data services
Successfully penetrate the small business, home office and high-end residential markets
The ILEC VoDSL The ILEC VoDSL OpportunityOpportunity• Overcome Copper Exhaust ChallengesOvercome Copper Exhaust Challenges
ILEC Copper ExhaustILEC Copper Exhaust
ILEC CO
Voice Switch
Small Businesses & Residences
PhoneSystem
LAN
PhoneSystem
LAN
PSTN
Number of additional lines increasing
ILEC Copper ExhaustILEC Copper Exhaust
ILEC CO
Voice Switch
Small Businesses & Residences
PhoneSystem
LAN
PhoneSystem
LAN
Data Switch
Internet
DSLAM
PSTN
New copper-based services - DSL
ILEC Copper ExhaustILEC Copper Exhaust
ILEC CO
Voice Switch
Small Businesses & Residences
PhoneSystem
LAN
PhoneSystem
LAN
Data Switch
Internet
DSLAM
PSTN
New copper-based services - DSL
ILEC Copper ExhaustILEC Copper ExhaustILEC Copper ExhaustILEC Copper Exhaust
ILEC CO
Voice Switch
Small Businesses & Residences
PhoneSystem
PhoneSystem
Data SwitchDSLAM
LAN
LAN
Data Switch
Internet
DSLAM
Voice GatewayIAD
IAD
PSTN
Where DSL is deployed...
…utilize VoDSL to overcome exhaust
VoDSL Benefits to ILECsVoDSL Benefits to ILECs
• Overcome copper exhaustOvercome copper exhaust
• Generate additional voice and data revenueGenerate additional voice and data revenue• Drive more lines through bundlingDrive more lines through bundling
• Faster return on DSL investmentFaster return on DSL investment
• Entrench customers before competition doesEntrench customers before competition does
Subscriber BenefitsSubscriber Benefits
• One-stop shopping for voice & dataOne-stop shopping for voice & data
• Consolidated billingConsolidated billing
• Competitive, compelling service offeringsCompetitive, compelling service offerings• Bundled data if you switch dial-tone providerBundled data if you switch dial-tone provider• Discounted telephone serviceDiscounted telephone service• Bundled local and long distanceBundled local and long distance
In SummaryIn Summary• DSL is not just for data anymoreDSL is not just for data anymore
• It’s about bundled services.It’s about bundled services.
• Data Data sellssells and voice and voice payspays. Not the other way around.. Not the other way around.
• If in two years you’re only in the voice business or only in If in two years you’re only in the voice business or only in the data business, you should be nervous.the data business, you should be nervous.
• VoDSL is a Win-Win-WinVoDSL is a Win-Win-Win• Carriers: Access to new markets and generate more $$$.Carriers: Access to new markets and generate more $$$.
• Subscribers: Receive compelling new services.Subscribers: Receive compelling new services.
• DSL equipment suppliers: DSL deployments increase.DSL equipment suppliers: DSL deployments increase.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1998 1999 2000 2001 2002
xDSL ForecastsxDSL Forecasts
• Current adoption estimates based on customer willingness Current adoption estimates based on customer willingness to pay premium for faster data. An isolated data decision.to pay premium for faster data. An isolated data decision.
• What if it were based on customers with at least a few What if it were based on customers with at least a few phone lines that could use higher speed data?phone lines that could use higher speed data?
The LeaderThe Leaderinin
Voice over DSLVoice over DSLJeff JenkinsJeff Jenkins
(408) 399-1300(408) [email protected] [email protected]
www.jetstream.comwww.jetstream.com