This Year's 10 Hottest Technologies in Telecom (Part I) [ASND references in Part II]
telecoms-mag.com
What's on the radar screen this year for promising, new technologies that will drive the next wave of development? Read on and find out.
Patrick Flanagan
Technologies come and technologies go. Mostly, however, like the proverbial Top 40 hits, they keep on coming. At this juncture, the industry shows no signs of lessening the attempt to find better ways to conserve bandwidth, optimize transmission rates, and find new, more efficient, and less expensive ways to accomplish basic communications tasks. While it's true that there is some commodization taking place in local area and campus infrastructures, there are still plenty of challenges ahead as Internet telephony continues its paradigm-altering migration into the public network.
As is the practice every year, we talked with a wide variety of experts, including the heads of leading telecom consulting firms. Their recommendations varied widely, but our qualitative approach clustered around a specific set of technologies where agreement was reasonably assured. In commenting on the technologies themselves, we have also tried to mention, where applicable, the leading-edge vendors who are putting these technologies out in the marketplace.
Here in no particular order are Telecommunications magazine's 10 hottest technologies for 1998:
1. Multilayer Ultrafast Routing/Switching
2. Erbium Doped Fiber Amplifiers
3. Packetized Voice
4. LMDS for Broadband Interactive Services
5. Wireless Local Loop (WLL)
6. Internet Virtual Private Networks
7. Web-Enabled Call Centers
8. XML (eXtensible Markup Language)
9. TMN Technology
10. Java-Based Network Management
Multilayer Ultrafast Routing/Switching: The Need for Speed
With traffic on the Internet doubling every six months, backbone capacity continues to be an urgent carrier concern. The newest solution is a new generation of multilayer Gigabit and terabit switch routers that are emerging from the big four--Bay Networks, Cabletron, Cisco, and 3Com--as well as a number of start-up ventures. One impact is that the differences between routing and switching are disappearing on IP network backbones. The goal is to put as few switches and/or routers within the backbone infrastructure as possible, while increasing line speeds into the Gigabit and terabit ranges. Terminology to describe this emerging technology accurately is a problem. Currently, any number of descriptors are being used, including Gigabit switch routers (Cisco), multi-technology, Gigabit switching (Digital), terabit switch/router (Avici Systems), and Layer 3 switching (13 vendors ranging from Acacia Networks to Torrent Networking Technologies). The best umbrella term to describe the technology involved is multilayer switching/ routing because Layers 1 to 4 (SONET, frame relay, IP, and TCP) are all involved, as is what at least one vendor calls "Layer 0" for the deployment of wavelength division multiplexing (WDM) on fiber optic backbones.
In addressing increased IP backbone capacity, the vendors are focused on three areas: performance, scaleability, and quality of service (QoS). The primary performance concerns of latency and network congestion are being addressed in terms of the impact on service levels. Recovery from congestion and efficient allocation of bandwidth are driving product development. Scaleability is being improved by technologies and platforms that can grow rapidly and elegantly as end users require more and more bandwidth from the core network. No longer is it possible to add another router or switch to resolve regional bandwidth problems. QoS is the most pressing concern. Without it, service providers cannot offer value-adds such as high-priority transmission of mission-critical applications and managed LAN/legacy services. The solution is for switches and/or routers to identify different service classifications of traffic and handle each efficiently without incurring large amounts of network overhead.
One emerging technology for addressing these performance, scaleability, and QoS issues is packet-by-packet Layer 3 (PPL3) switches that act as full-blown routers at speeds up to 7 million packets per second. Another approach is cut-through switching, which doesn't peer into each packet as PPL3 does, but rather determines the destination from the first few packets in a series and then switches the flow to Layer 2 once a connection is made. Nick Lippis, president of Strategic Networks in Rockland, Mass., likes PPL3 because "it means really fast routing without having to change anything on your network." Other schemes abound, such as Avici Systems' Direct Connection Fabric (70-Gbps routing), the Pluris Massively Parallel Router (622 Mbps), Neo Networks' StreamProcessor (2.5 Gbps), and Torrent Networking Technologies' Shared Memory Switch Fabric (millions of packets per second). Argon Networks and Nexabit Networks are also developing products with similar capabilities. "These companies are coming at the architectural approaches for Gigabit and terabit rates from different angles, depending on their backgrounds, while they're all trying to crack the same nut," said Brendan Hanigan, an analyst with Forrester Research in Cambridge, Mass.
Erbium Doped Fiber Amplifiers (EDFA): Enter the All-Optical Network
Last year, wavelength division multiplexing (WDM) was a hot technology. Already, it is running up against limitations as technologies such as multilayer switching demand greater bandwidth. Today as many as 40 channels can be multiplexed on a single channel--a vast improvement from the original WDM capacity of four. However, each time the number of optical channels is doubled, there is a corresponding 3dB reduction in signal gain. Enter erbium doped fiber amplifiers (EDFA) with the ability to amplify several optical channels in the erbium passband, creating what is becoming widely known as dense wave division multiplexing (DWDM).
There's new EDFA technology becoming available as well. Silica-based EDFA has been around for several years as a displacement for the need for costly electrical regeneration of an optical signal. Now the EDFA flat-gain amplifier with advanced filtering technology to provide a flatter gain curve is becoming available commercially. In the pipeline from Lucent Technologies' Bell Laboratories is a new amplifier based on silica EDFA and capable of supporting 100 wavelength channels having 100-GHz spacing. It uses two sections: One is optimized for long-wavelength channels beyond L band (1565 nm), while the other is optimized for conventional C-band channels (1525 nm to 1565 nm). The addition of a second gain-equalizing, fiber-grating filter provides uniform gain over the entire 80-nm spectrum.
"EDFA is a key enabling technology in the continued evolution to the all-optical network," said Thomas Fuerst, a Lightwave product marketing manager for Alcatel Telecom of Richardson, Texas. One direction will be to expand DWDM network technology into metropolitan-area networks and eventually to LANs and local access. In addition to Lucent and Alcatel, several vendors are entering the EDFA marketplace. Ortel Corp. of Alhambra, Calif., has a number of fiber optic transmission products, particularly EDFA for 1550-nm broadband transmission and continuous wave pump lasers for EDFA. ADC Telecommunications of Minneapolis incorporates EDFA into its Homeworx HWX transmission platform. Optigain in Peace Dale, R.I., produces Model 2100 EDFA for SONET/SDH and DWDM systems as a pre-amplifier, booster, or in-line amplifier.
Packetized Voice: Telephony By Other Means
Packetized voice has reached the point that voice packets are delivered by cell or packet transport with the integrity and quality users expect from the public-switched voice network, and it is still rapidly evolving. Voice traffic is launched and received PC-to-phone, PC-to-PC, and phone-to-phone, with each possibility offering a slightly different application of the packetized voice technology. The marketplace is currently focused on pirating consumer voice traffic from traditional carriers by offering significantly lower prices while using the public Internet as the primary transport mechanism. The pioneers are start-ups such as Delta Three and VIP Calling, companies that worked the bugs out of the technology and educated the public. Now Internet service providers (ISPs) are entering the IP phone business. They see it as a way to increase revenues beyond the commoditized $20 per month they receive from all-you-can-eat Internet access services.
The real potential lies in the corporate use of packetized voice technology over enterprise networks, particularly virtual private IP networks. Two examples of this are currently in operation. A pioneer in this area, NetWorks Telephony Corp. of El Segundo, Calif., offers a PC-to-any-device calling service that delivers calls globally on and off the Internet. The traffic is carried over Infonet's managed worldwide backbone network on which voice packets are prioritized using a proprietary multimedia cell technology. NetWorks Telephony is primarily marketing its services to ISPs, including the building of gateways at ISPs' points of presence (POPs)--a cost savings for ISPs that want to get into the IP telephony business. Infonet, also of El Segundo and which was spun off NetWorks Telephony as a separate entity, uses the same backbone for its Integrated Media Services that target multinational corporations; the company positions it as the "world's largest integrated voice, fax, and data network offering service and local support in more than 35 countries."
There continues to be a lot of debate about the viability of packetized voice services. From the IP telephony viewpoint, Dataquest analysts predict a $3 billion market by 2001. The corporate user world is interested, according to analysts at Forrester Research, who found that 42 percent of 52 Fortune 1000 telecom decision-makers surveyed planned to "experiment with" IP voice and fax by 1999. Whether or not these predictions come true depends a great deal on how well the switched voice carriers defend their services. "These are the cheapest, highest quality networks in the world," said Thomas Pincince, founder and executive vice president of New Oak Communications, which is now part of Bay Networks.
LMDS for Broadband Interactive Services: Cable Modems--Watch Out!
Local multipoint distribution service (LMDS) is a wireless, two-way multichannel data, video, and telephony technology that could provide the long-promised, ubiquitous broadband telecom nirvana envisioned for the now rarely mentioned information superhighway. LMDS occupies one of the broadest expanses of radio wave spectrum devoted to any one service, a bandwidth of 1.3 GHz surrounding the 28-GHz Ka-band. This is a much higher frequency than most existing wireless applications. Baud rates are in excess of 1 Gbps downstream and 200 Mbps upstream, and since LMDS uses a very small cell configuration (2- to 7-mile radius), it is able to polarize and reuse spectrum in a highly effective manner over a small area. In addition, this enormous bandwidth means that LMDS is not hampered by the interference found with other wireless systems. (Line-of-sight blockages occasionally obstructed signals and storms caused "rain fade" in early deployments. Newer versions of the technology appear to have overcome these drawbacks.) Since there are no wires or cables to deploy and maintain, the economics of LMDS are one of this technology's strongest points. But unlike mobile wireless, LMDS works only between fixed points--offices, towers, homes, and other structures. Total sales for subscriber and network equipment are projected by Insight Research Corp. of Parsippany, N.J., to be $3.1 billion in 2001.
The initial uses for LMDS are to distributed cable TV in areas where in-ground infrastructure is too expensive to install. Related to this is the use of LMDS as a less expensive way of bringing competition into entrenched cable TV and local telephony markets. The longer range prospect is for LMDS to blossom into the technology for linking corporate campuses to the enterprise network at speeds rivaling those now offered by fiber optic networks. The critical step of FCC licensing is now completed with an auction that netted $578.6 million. Venture capital-fueled start-ups dominated the auction, as was expected, because they got a 45-percent discount. Of the top 10 bidders, only US West Communications in 10th place was an established carrier. In part, this is because local exchange carriers, particularly the RBOCs, are only allowed to purchase 10 percent of the LMDS spectrum in their service areas. The top five bidders were WNP Communications, NEXTBAND Communications, WinStar LMDS, Baker Creek Communications, and Cortelyou Communications. WNP and NEXTBAND bid in excess of $325 million for more than 2 million POPs, compared to $156 million for the other eight top bidders.
Predictions about when LMDS will become widely available vary greatly, particularly in geographic areas with a high density of existing broadband capacity. "Realistically, 1998 is a year of definition and positioning, and there will be many false starts. But next year, we will get a much better picture of what LMDS is and what it's useful for," said Richard Sfeir, director of marketing for CommQuest Technologies in Encinitas, Calif. Laurence Swasey, an analyst with Allied Business Intelligence in Oyster Bay, N.Y., predicted that business users will be pragmatic, "looking to utilize LMDS if there are no other high-speed carriage options available."
The marketplace will get more competitive as well, with wider availability of cable modems, DSL, satellite systems, and wireless local loop. LMDS has an edge because it is "viable at low-take rates," which is industry lingo for the ability to make money with a low percentage of potential subscribers. The start-up costs can be as low as $16 per household within a typical service area with a population of 13,000, including seven business cells and 22 residential cells. Profitability could be obtained in the third year if 60 percent of major employers and 10 percent of residences sign up. Those are big ifs, but they present a much rosier scenario than can be constructed for any of the current in-ground broadband alternatives.
Wireless Local Loop: Getting Unwired
The idea behind wireless local loop (WLL) is "think small," which is the exact opposite of the usual wireless logic. At this time, there are three primary uses for WLL: to provide advanced services in urban areas and within business complexes, to replace wireline services in residential areas, and to bring telephony inexpensively to remote and underserved areas, particularly outside the United States. The technology comes in four flavors: analog, digital cellular, proprietary (broadband CDMA), and low-power, or cordless, radio systems. Today and in the future, the focus is on broadband CDMA and low-power radio except for emerging, or "first phone," countries. The universal strength of all forms of WLL is significantly lower costs than wireline services. On a per-line basis, the cost for WLL ranges from $500 to $1000 and is decreasing, while wireline telephony provisioning can run as high as $2500 per subscriber.
The big WLL push for the future is in wireless office solutions deploying low-power radio technology. Hughes Network Systems, Ericsson, AT&T Wireless, AG Communication Systems, RogersCantel, and others are actively launching in-building systems. The workforce can be reached at anytime over a portable handset anywhere within the coverage area, within a single building or over a campus. When the user leaves the coverage area, the handset continues to function by being handed off to a public wireless carrier on either 850-MHz cellular or 1900-MHz PCS. In residential areas, WLL is being marketed as an alternative to wireline POTS, but one with greater available bandwidth for data, particularly Internet access. The hope is that the convenience of a single wireless phone installation for use in and out of the home, combined with lower rates for in-home use, will cause customers to abandon their twisted-wire POTS connections. Since 1995, AT&T has offered its AirLoop system as a way of meeting competition and curbing the maintenance and repair costs associated with traditional wireless infrastructure. Now a large number of manufacturers are involved, including Lucent Technologies, Qualcomm, Motorola, and Nippon.
Estimates vary on how large the market will be for WLL. MTA-EMCI, a research firm in Washington, D.C., projects 60 million installations by 2000. In developing nations, the estimate is $125 billion in revenues by 2004, plus another $10 billion from the industrially developed group of seven (G7) nations. Melanie Posey, a senior analyst with Northern Business Information in New York, predicted that "the market will begin to take off after 1998, as an increasing number of wireline operators incorporate WLL in their network expansion plans and as new operators in competitive markets try for rapid market entry and value-added mobility." She expected WLL to account for 17 percent of all local loop construction by 2000, but noted that this number could be as high as 30 percent "if all cost, technical, and regulatory obstacles suddenly clear up." |