To: Frank A. Coluccio who wrote (1905 ) 8/17/1998 9:18:00 AM From: Frank A. Coluccio Respond to of 12823
Sprint Weighs ION Access, Technology Options [This looks like a job for the new TAC IPDC protocol. See the post following this one.] August 17, 1998 Inter@ctive Week via NewsEdge Corporation : Even as Sprint Corp. prepares to move from testing to commercial use of Integrated On-Demand Network for corporate customers, it still has a long way to go before it has all the pieces in place to get local services to the mass market. The most obvious missing pieces are on the access side, where uncertainties about the availability and reach of Digital Subscriber Line (xDSL) service from local phone companies are prompting Sprint to take a close look at cable and wireless access options. But Sprint (www.sprint.com) also faces key questions concerning the internal design of Integrated On-Demand Network (ION), in particular regarding the integration of Intelligent Network (IN) capabilities into ION's Internet Protocol (IP) implementation. IN is at the heart of many public switched network services, including how the network sets up and completes calls. Local Cords Access issues are front and center right now, in part because they touch on potential partnership strategies. William Esrey, Sprint's chief executive officer, told attendees at last month's Internet World conference in Chicago that cable is much on the company's mind as it seeks to find ways to reach into the local marketplace. The pending merger of AT&T Corp. and Tele-Communications Inc. has intensified cable companies' interest in finding major telecom partners. Gerald Levin, CEO of Time Warner Inc., told analysts and reporters at a mid-July meeting that "the most sensible thing" for Time Warner Cable to do in the telephony business might be to lease access to its lines to a long-distance carrier. Levin indicated that Time Warner (www.timewarner.com) has been talking with a number of long-distance carriers, including AT&T (www.att.com), but he named no others. Other cable industry executives, speaking on background, say they also are exploring a variety of options, but no one is willing to say who they're talking with. Sprint also may explore broadband wireless as a last-mile delivery option, although that strategy will depend on when providers put services in place. The new holders of spectrum licenses for Local Multipoint Distribution Service (LMDS) could be a good alliance fit for Sprint, notes one industry insider. "Many holders of these licenses are start-ups in need of alliances, so it's an obvious area to look into," says an executive at a company that is bringing Sprint and some LMDS license holders together for discussions. Intelligent Questions The biggest immediate technology issues on Sprint's plate concern the importation of IN capabilities into the IP component of ION. Sprint's plan calls for all services, including voice, to be delivered to end users over Asynchronous Transfer Mode (ATM) connections. To do that, Sprint must integrate IP technology into the IN framework that is so integral to the public switched network. That framework includes Signaling System 7 (SS7), which provides for initial call setup and all the connectivity involved in tying together other IN features and services -- such as call waiting, caller ID and toll-free calling -- across the network. The challenge of integrating IP with IN now faces all major carriers as they migrate to packet-switched architectures, as well as new entrants in the packet voice arena. These providers aren't likely to get any immediate help from public network equipment and software vendors, which only recently started to work out solutions. Bellcore (www.bellcore.com), which supplies the network management components for ION, plans to roll out next month an IN-over-IP offering that "has important implications for Sprint," says Jack Simensen, vice president and general manager at Bellcore's Soliant Internet Systems unit. But Simensen acknowledges that it will take Bellcore at least another 18 months before it can deliver the full suite of capabilities needed for toll-quality service over IP networks. Sprint will take what Mike Gettles, Sprint's lead engineer for advanced technology development, calls the most expeditious approach to bringing IN to packet telephony: making as much use of the legacy IN infrastructure as possible. "Part of what we need to evaluate is what makes the most sense to replicate in the way of IN features inside the IP network, vs. providing the same features on the life cycle of what's outside," Gettles says. " There are plenty of service capabilities that already exist in the public switched telephone network environment that are useful in a packet network. We have to be careful about reinventing the wheel." Gettles says Sprint's strategy involves ensuring not only that gateway servers between the IP and circuit-switched components of ION can understand the IN protocols running on class 5 public network circuit switches, but also that IP gear is equipped to work off the same IN elements. The latter point represents somewhat of a technology trade-off, because IP technology lends itself to creating a means of service provisioning and management that may be more flexible, feature-rich and easier to use within a pure IP environment. Sprint also is sorting through where it will locate the intelligence as it builds out ION, Gettles says. "In the type of data network we're building, you're not confined by physically locating the intelligence at a switch, but we're still in the process of determining how to distribute it," he says. One decision already has been made, however: Sprint won't rely too heavily on endpoints to deliver network intelligence, Gettles says. "What I'm trying to do is make the hub at the premises as efficient a manager of bandwidth as I can and place the intelligence where it makes the most sense," Gettles explains. "Some things are better done on a shared or virtual basis." Sprint's Gettles: 'We have to be careful about reinventing the wheel' <<Inter@ctive Week -- 08-14-98>>