See BOLD (reference to ASND):
1/5/98 CommunicationsWeek T21
1998 WL 2379630
InternetWeek
Copyright 1998 CMP Publications Inc.
Monday, January 5, 1998
696
Telepath
Technology Platforms
Carriers slow to use integrated access gear
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Most new IA devices are still in the early stages of development and deployment
Paul Korzeniowski
Managing a multiservice telecommunications network can be a multilevel
headache. A carrier needs to install a frame-relay access device (FRAD)
to connect a customer to frame-relay services, a multiplexer for lease
lines, a channel bank for voice communications, a router for Internet
connections and an ATM switch for multimedia services. Managing the
hodgepodge of devices can be both time-consuming and costly.
To remedy that situation, public network equipment suppliers have been
working on a new generation of network access devices. Rather than
devices that work with only one type of service, this new hardware
operates like a multipurpose Swiss Army knife: It can connect a customer
to a variety of network services. ADC Kentrox, Portland, Ore.; Ascend
Communications Inc., Alameda, Calif.; Fore Systems Inc., Pittsburgh;
Sentient Networks Inc., Milpitas, Calif; and Vina Technologies Inc.,
Fremont, Calif., are a few suppliers that have been developing such
products.
These integrated access devices offer carriers and customers many
benefits, but they are still in an early stage of development and
deployment, analysts said. The primary suppliers, many of whom are
start-up companies, have been slow to deliver their wares, and carriers
have not been as receptive to the products as suppliers anticipated. But
this could change in 1998 as vendors get the early bugs out of their
wares, analysts said.
Technical advances have made it possible to integrate several
functions into a single device. At one time, a router was an expensive,
sophisticated piece of network equipment based on proprietary features.
Standards have evolved and such devices have matured, so it is now
possible for equipment vendors to deliver integrated access systems with
starting prices ranging from $10,000 to $15,000.
The new access systems can help carriers reduce operating costs, said
Tim Kraskey, vice president of marketing for core systems at Ascend. By
consolidating a handful of stand-alone systems into a single system, a
carrier can reduce floor space requirements and simplify management.
All bundled up
Deregulation is another force driving interest in the new devices.
Traditionally, carriers offered customers individual and separate
services: lease lines, Internet access, local service, long distance,
etc. Now, carriers want to bundle those service into a complete packaged
offering that lets them simplify billing and forge tighter bonds to
customers.
A prime example is Intermedia Communications Inc., a competitive local
exchange carrier (CLEC) in Tampa, Fla. The company wanted to broaden its
reach into new markets such as long-distance services. Lauren Brockman,
a senior product manager for local services at Intermedia, said the
carrier had been looking for network equipment capable of supporting
different service types, but discovered that most devices were designed
to work with one type of service.
Then last spring, Intermedia found Vina Technologies' T1 Integrator
which includes a channel bank for voice communications, an IP gateway, a
multiplexer, a FRAD, a channel service unit/data service unit and an
Internet firewall. Intermedia tested the system in August and found it
was simple to install and operated as advertised, Ms. Brockman said. The
company now has half a dozen customers taking part in the first wave of
its SingleT service, a bundled service supported with the Vina product.
Ms. Brockman predicted more than 100 customers would be using the
service by the end of 1998.
Founded in 1996, Vina first focused on T1 access. "Traditionally, it
has taken carriers longer to roll out new services-ISDN [and] frame
relay-than initially anticipated. Consequently, we don't think
leading-edge technologies like ATM will make it out to the edge of the
public network for a couple of years," said Vina president Josh W.
Soske.
Competitors such as Ascend, Fore and Sentient disagree. Robbie
Forkish, vice president of business development at Sentient, said many
carriers have already adopted ATM in the core of their networks and now
would like to push it out to the edge. "Adopting ATM from the customer
premise to the core would enable a carrier to reduce operating costs and
offer more sophisticated services, such as quality of service," he
said.
Slowly they turn
Despite such benefits, carriers have been slow to adopt the new access
products. One reason is because telecommunications sales cycles can be
excruciatingly long. "Many carriers still have the regulated-industry
mind-set and do not move as quickly as companies in other industries,"
said Vina's Mr. Soske.
Carriers are usually unwilling to take major risks when it comes to
new products. Because their services require universal availability,
they are often leery of incorporating new technology in their networks.
"These companies are cautious and often only feel comfortable when
dealing with established products with long lists of reference
accounts," acknowledged Mr. Soske.
Many of the new equipment suppliers are start-up companies without
much of a track record. "Sometimes it isn't as easy for us to get our
foot in the door as we would like," admitted Sentient's Mr. Forkish.
Some established equipment suppliers do not see much need for the new
access devices. "These companies are just delivering enhanced routers or
FRADs. The talk of a new generation of access systems is just marketing
hype," said Ashare Baig, a product line manager at Ascom Timeplex Inc.,
a Woodcliff Lake, N.J., network equipment supplier.
That claim may be overstated. Jennifer Pigg, vice president for data
communications at the Yankee Group, a Boston-based market research firm,
said there are differences between the newer products and those from
established vendors. "These vendors have made significant investments in
their ASICs [application specific integrated circuits], so a lot of
their routing can be done with software," she explained.
The result is that network changes are simpler to make. When a company
changes its network services these days, a hardware change is often
required. The carrier may have to reconfigure software, move cables,
swap multiplexer channels and add new cards to the device. The process
can take anywhere from a few days to a few weeks. With the new devices,
changes can be made via software and can be completed in only a couple
of hours.
Still, not all suppliers see a need for new devices. "How often will a
user need to change from a lease line to a frame-relay service?" asked
Adam Lourant, an assistant vice president of product management at
Newbridge.
While the access systems are targeting a need, carriers may be looking
at other issues. "With networks becoming more complex, carriers want to
limit the number of suppliers they deal with and work with companies
that offer a strong line of products rather than a target solution," Mr.
Lourant said.
Not surprisingly, the smaller companies have a different view.
"Carriers have the networking expertise needed to work with multiple
vendors and are willing to work best-of-breed products," said Sentient's
Mr. Forkish.
But to date, they have been moving to these new systems at a slow
pace. Right now, Vina has about half a dozen customers. Sentient is
also working with only a couple of carriers. Only Ascend claims to have
shipped hundreds of its access units.
Despite the current problems, there are reasons to expect that sales
of the new products will pick up in 1998. "These new access devices
have the potential to help carriers cut their operating costs," Ms.
Pigg said. "Once the suppliers convince carriers their products operate
as advertised, I expect sales of these systems will rise
significantly."
Paul Korzeniowski is a free-lance writer in Sudbury, Mass., who
specializes in networking issues. E-mail reactions to this article to
telepath@cmp.com.
---- INDEX REFERENCES ----
COMPANY (TICKER): ADC Telecommunications Inc.; Ascend Communications Inc.; Fore Systems Inc. (ADCT ASND FORE)
INDUSTRY: Communications Technology; Telecommunications, All (CMT TEL)
Word Count: 1237
1/5/98 COMMWK T21
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