Data Leaves Voice Standing Still
teledotcom.com
As data traffic surpasses voice, carriers turn to new backbone technologies
By Rachael King. Rachael King is business editor for tele.com. She can be reached over the Internet at rking@cmp.com.
The migration of voice traffic from conventional circuit-switched networks to packet-switched networks has begun in earnest.
In a watershed announcement last month, Sprint Corp. said it plans to carry all of its traffic-voice, video, and data-over its asynchronous transfer mode (ATM) network. The approach will cut the cost of delivering a voice call by 70 percent, said Sprint CEO William T. Esrey.
Sprint is not alone in making the shift. AT&T, Frontier Corp. (Rochester, N.Y.), IXC Communications Inc. (Austin, Texas), Level 3 Communications Inc. (Omaha, Neb.), and Qwest Communications International Inc. (Denver) count themselves among the growing number of service providers planning to ship voice traffic over their data networks.
Their reasoning is simple: If data traffic hasn't already overtaken voice traffic on backbone networks, it will soon. So it makes sense to use a backbone that is optimized to handle data more efficiently than today's voice network, which is based on circuit-switching and time-division multiplexing.
"We're rapidly migrating from being a voice network that also carries data into a data network that also carries voice," Bell Atlantic Corp. chief executive Ivan Seidenberg said last month at the Supercomm '98 trade show. Bell Atlantic this month plans to begin building what it calls a backbone voice-data network, spending $200 million on the ATM project over the next five years.
Ameritech Corp. chairman Richard Notebaert told the same convention that his company is considering a similar move-if more cautiously. "Packet switching with a high-quality voice overlay soon will become a reality," he said. "And when it does-that is, when the quality is at least equivalent to current voice technology-we'll incorporate it into the 1,480 central offices in our network. When that happens, the public switched voice network will become the public switched data network."
It's about money
The key factor behind the shift-the one that will account for Sprint's 70 percent cost reduction in delivering a voice call over a data network-is the performance/cost ratio of data switches and routers versus conventional Class 4/5 central office switches.
While many service providers agree that integrating all types of traffic onto one data backbone makes sense, they don't all agree on which data technology to deploy. Sprint, AT&T, Frontier, and IXC favor a scheme of packetizing voice over an ATM backbone. Level 3 and Qwest say they will instead use packet switches and an Internet protocol over Synchronous Optical Network (IP over Sonet) infrastructure.
Level 3 CEO James Q. Crowe outlined his company's motivation for deploying an all-IP network during a presentation in late May at Vortex 98, a conference for top Internet and telephone industry executives. His reasoning all came down to cost. Packet switching has a better performance/cost ratio than ATM or conventional class 4/5 switches, Crowe said, and the difference is growing.
To support his claims, Crowe cited research by Peter Sevcik, a senior associate at Northeast Consulting Resources Inc. (Boston), who demonstrated that each successful new generation of switching technology cuts the performance/cost doubling time in half. That is, conventional central office switches double their performance/cost ratio every 80 months, according to Sevcik, while ATM switches do it in 40 months. Even better, packet switches and routers double their performance/cost ratio every 20 months, while frame switches double their ratio every 10 months.
It is the prospect of quick improvements in packet technology and its performance/cost ratio that has executives like Level 3 CEO James Crowe and Qwest CEO Joseph Nacchio building next-generation IP over Sonet networks. "Don't ever bet against compounding," says Crowe.
Sprint chief technology officer Martin J. Kaplan agrees there are major benefits to moving away from the industry's conventional class 4/5 central office switches. The data-handling capabilities and efficiencies of ATM are such that Sprint could simultaneously serve 100,000 videoconferencing customers from one ATM switch, he says. The same load would take a half-dozen conventional switches, he says.
Issues with management
Kaplan, however, favors an ATM infrastructure rather than IP over Sonet. Carrying mission-critical voice and data traffic for business and residential customers still requires a network that is reliable and-most importantly-manageable, Kaplan says. IP over Sonet cannot yet provide those kinds of capabilities for the high traffic volumes that Sprint carries, he says.
Observers say Sprint is making a big bet on its new approach. It is still unclear whether the company's new architecture is one that will last for many years, they say, or whether it will turn out to be merely a stepping stone to an entirely non-circuit-switched architecture like IP over Sonet.
In the meantime, the fact that Level 3 and Qwest handle much lower traffic volume than Sprint may make it easier for them to deploy IP over Sonet networks, industry experts say. By the time they reach the level where it becomes necessary to have more sophisticated network and traffic management capabilities, like those found in ATM, new management systems may already be developed for IP over Sonet. In fact, since Level 3's network won't be completely built for four to six years, the say, the company can afford to look ahead and gamble on a cost-effective next-generation network.
Whatever their choices, all of the service providers see the need to act quickly. Underscoring the rapid pace the voice migration would take, Notebaert pointed out that this year, for the first time, fully half of Ameritech's traffic will be data instead of voice. "The percentage will grow to something like 99 percent of all network traffic minutes by the year 2000," he said.
"On a symbolic level, it represents what Intel's Andy Grove calls a strategic inflection point-the moment where the paradigm shifts and conventional wisdom ceases to apply," Notebaert said.
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