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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (10625)	3/2/2001 4:28:25 AM
From: AlexGK	Read Replies (1) \| Respond to of 12823

MikeM, Due the nature of circuit-switched networks every placed phone call will need a dedicated path in the core of the network (assuming the call will need to be transported over the core). An end-to-end dedicated path needs to be established between callers and will be dedicated for the duration of the call. This path will be dedicated even if data (the actually voice conversation) is not being transported over the path. For example, if there is silence during the phone conversation, then no data is being transported over the path. As we know these dedicated paths need 64K in the current circuit-switched network. That means that 64K is being dedicated per call but we know that the whole or even some of the 64K is not being utilized at 100% all of the time. Therefore under a circuit-switched model there are going to be inherent inefficiencies. However with VoIP these calls can be transported in a packetized format at rates lower than 64K and only when actual data needs to be transported (again, when people are actually talking). With VoIP in the core network no dedicated path needs to be established and therefore network utilization is optimized. A VoIP architecture allows a carrier to make less capital investments in the core because they don't need to provide as many resources (leased lines, fiber, network elements, etc.) as the circuit-switched network. Also this reasoning does not consider the significant cost savings of consolidating current data (i.e., IP) and voice networks into a single, unified network. Today, data and voice networks are almost wholly operated separately and over separate infrastructures.