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The
emergence of convergence?
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November
2001
With
all the talk and hyperbole over networks and convergence,
you could be forgiven for thinking that all is ‘hunky dory’
in the world of communications, carriers and their customers.
Unfortunately, this is far from the truth. There is a lot
more to ‘convergence’ than just being at the bleeding edge
of technology
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For some time
now, it has been impossible to listen to the speeches of the numerous
industry luminaries – pontificating on the latest direction for
the communciations industry – without hearing the words ‘network’
and ‘convergence’ in the same sentence. And, far from being just
another ‘buzz’ word, convergence [of networks and services] is increasingly
being seen as the technical and business model on which to build
a successful future.
Moreover, the
well publicised feature of the cable companies to offer their ‘triple
play’ of voice, data and video is an ability an increasing number
of traditional telcos are attempting to emulate. In the, now, cut
throat business of electronic communications, the ability to utilise
existing network for the provision of multiple services could be
the difference between commercial boon and bankruptcy.
Of course,
the simplicity of the convergence concept belies its highly complex
reality – where a multitude of different technologies, architectures
and protocols must be brought together in such a way that their
combined value is more than the sums their parts. Furthermore, there
is a separate sub argument at the technical and commercial level
concerning which component technologies most accurately reflect
future market developments. In short, convergence is not something
that can be approached lightly.
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Times have
changed
According to
Swedish telecoms giant Ericsson, existing telcos can do the ‘impossible’
and transform their single service networks into networks with full
multiservice capabilities. Key to such a change will be via implementing
multiservice networks with comprehensive management intelligence,
tying wireless and wireline access networks together over an IP-based
backbone to handle voice, data and video seamlessly.
In the view
of Ericsson, because of ATM’s QoS (quality of service) features
– enabling it to differentiate and prioritise different types of
services – it will form the underlying layer upon which IP services
can be run. However, it is expected that in the near future, IP
will develop its own QoS features enabling ATM to be phased out.
Grant Notman,
UK General Manager of RAD Data Communications thinks that telcos
have already been converging their networks for a very long time
– well before cable companies came on the scene. "The difference
now is that they are being asked to provide it all from one platform,"
says Notman.
He continues:
"On the face of it, this should be very simple: select the target
customers, decide on the features to offer to win these customers,
select the platform they feel does the best job and get on with
it. However, real life, as we know, is not as simple as this. Telcos,
like everyone else, are having to make the political compromises
that corporates have been making for years."
Notman also
stresses that network convergence was never black and white. "Very
few of them came into the market with the view that they could offer
all requirements on the same platform," he says. "Even if they did,
they soon found out that they had few customers that wanted everything
at the start and were swung in one direction or another by the customers
they actually had."
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Legacy issues
Indeed, many
telcos that are now approaching the convergence conundrum, understandably,
come from a background where their networks have been optimised
over the years for the provision of voice services. And this affects
what they can do to integrate other applications like data and video
into their existing service offerings.
Furthermore,
says Notman, the problems of convergence run deeper than digital
technology. "Strangely, for these people the first major problem
they encountered was not so much the technology but the work force
they had,” he says. "If they were from a voice background, getting
them to understand data and video sometimes just would not happen.
Clearly, if they could not get their sales force to understand the
offer, then getting orders was going to be hard work, and for most
it was."
Paul Fileman,
group product manager of Siemens Communications believes that the
main challenge posed by offering voice, data and video through the
same line is the quality of service issue. "This issue has been
around for a couple of years and is still a high priority. The bandwidth
which has been available has struggled to cope with voice, data
and video over one line, and many people have had bad experiences
where data was dropped, calls muffled, or images jittery and of
poor quality."
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A local problem?
As we move ever
more steadily towards packet switching technologies and IP, the
need for bandwidth availability is crucial and explains the need
for local loop unbundling. According to Vince Kerr, director of
Northern Europe from Zhone Technologies, a telecommunications equipment
manufacturer, convergence of voice, data and video in the backbone
network is, for the most part, complete.
"The challenge
is convergence in the access network," he says. "One method of achieving
this is through cable, which is fine for cable companies who have
invested in cable infrastructure. For telcos, however, the most
cost-effective and widely deployed solution is xDSL, which offers
the equivalent bandwidth for voice, data and video integration as
a cable solution and has the added benefit of being a non-shared
medium."
Robert Curran,
director of product marketing at Cramer, a supplier of network resource
management software, thinks traditional telcos have a long way to
go in changing their thinking on network structures. He believes
they need to move away from the fixed path switching world to take
advantage of IP technology.
"Telcos are
fundamentally based on providing what is essentially a very high
quality and technically demanding product – voice services – in
switched networks. The data world upsets that idea by giving access
to a wider range of possible qualities by swapping visibility for
flexibility," says Curran.
However, Native
Network’s Eli Erlich, believes that competitive carriers already
understand the merits of utilising Ethernet to carry IP-based services
such as data and video in tandem with native TDM (Time Division
Mulitplexing) circuits. This, he says, enables them to carry toll
quality voice services while opening the door to future IP value-added
services.
"The traditional
telcos are a bit slower in adopting new technologies, but they are
starting to come round,” says Erlich. “In the last few months more
and more telcos are issuing RFIs (request for information) and RFPs
(request for proposal) to modernise their existing SONET/SDH networks
by adding Ethernet capabilities that will enable them to offer new,
IP-based services in a more efficient and cost effective manner,”
he says.
Clearly, for
telcos, there are numerous challenges to be overcome before they
are able to offer credible competitive services in the way the cable
community is able to. Today, only the cable companies have the two-way
network capacity needed to deliver 'triple-play' packages of data,
voice and video services to consumers.
While the telcos
have a consumer reach the cable companies can only dream of, the
question remains, however, ‘are they prepared to exploit it’. While
they undoubtedly have the will, arguably, many will be unable to
develop expensive full service networks until they are able to shrug
off their respective millstones of 3G debt hanging heavily around
their necks.
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