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



PhoneSystem

LANInternet


xDSL

Voice Gateway

DS3/ OC3

303

Class 5

PSTN

IAD



Supplied by Jetstream, FlowPoint, Efficient, Ramp, Netopia,...

Integrated Access Device (IAD)

Multiplexes multiple telephone lines and data onto single DSL circuit

(single copper pair)



PhoneSystem

LANInternet


xDSL

Voice Gateway

DS3/ OC3

303

Class 5

PSTN

IAD



DSL Access Multiplexer (DSLAM)

Multiplexes multiple subscribers onto a single back-haul facility

Supplied by Nokia, Alcatel, Cisco, Copper Mountain, Nortel,...



PhoneSystem

LANInternet


xDSL

Voice Gateway

DS3/ OC3

303

Class 5

PSTN

IAD



Integrates subscriber voice traffic into Class 5 local switch

Supplied by

Voice Gateway (CPX-1000)



PhoneSystem

LANInternet


xDSL

Voice Gateway

DS3/ OC3

303

Class 5

PSTN

IAD



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



Phone System

Router

Phone System

Router


Voice Switch

Data Switch

PSTN


PSTN

Internet

Cost of current TDM technology

only permits profitable service

delivery to subscribers with

14 or more telephone lines



Phone System

Router

Phone System

Router


Voice Switch

Data Switch

PSTN


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


Small Businesses & Residences

LAN

LAN

LAN

LAN

PhoneSystem

PhoneSystem

PhoneSystem

PhoneSystem

LAN

LAN

LAN

LAN

PhoneSystem

PhoneSystem

PhoneSystem

PhoneSystem


Class 5

PSTN

Internet


ILEC Wire Center

ISP Facilities

IAD

IAD

IAD

IAD

VoDSL Access NetworkVoDSL Access Network

Voice Gateway

303

DSLAM

xDSL

DS-3 /OC-3DSLAM


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


PhoneSystem

LAN

PhoneSystem

LAN

PSTN

Number of additional lines increasing

ILEC Copper ExhaustILEC Copper Exhaust

ILEC CO

Voice Switch


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


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

voice over dsl convergence where it counts. jeff jenkins jetstream communications ieee - bay area...

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