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Assuming that the CATV network is upgraded to digital, compression techniques can be employed to provide channel capacity that is virtually limitless in support of entertainment, Internet access, remote LAN access, telephony, and other applications. Estimates are that CATV providers will capture as much as 20% of the wireline telephone market by 2005 [15-20]. The CATV providers have a leg up on the telephone companies and data network providers in the battle for I-Way dominance—that advantage is one of experience with content acquisition and management. Combining that content experience with high-capacity embedded loops and experience in a market-driven business, they stand a good chance of emerging victorious. If the telephone companies can be characterized as Wile E. Coyotes, the CATV providers are the Roadrunners in this developing cartoon of convergence [15-3].

Wireless Networks

Wireless networks in the United States are currently limited to cellular providers and those who offer wireless data services (e.g., ARDIS and RAM Mobile Data). PCS licenses have been awarded to U.S. providers, although the networks have yet to be deployed. AT&T, by the way, acquired 21 major-market PCS licenses at federal auction [15-24]. Providers of limited PCS/PCN services exist in Europe, Australia, parts of Asia, and other regions of the world.

Wireless access to the I-Way clearly offers advantages in terms of both speed and cost of deployment. Wireless Local Loop (WLL) technologies are being trialed in the United States and elsewhere, and are being deployed in many developing countries. However, WLL truly is not intended for provision of broadband network services. While standards and technologies for the delivery of Broadband PCS (B-PCS) are progressing, B-PCS likely will not be a viable technology option during this century.

Electric Power Utilities

Many electric power utilities are currently building, or planning to build, fiber optic networks, at least to the neighborhood. Ostensibly, in many cases, these networks are intended to provide a network-based means for load control management of electric power and other utilities. It is clear that many of the power utilities intend to lay a fiber optic grid and to lease capacity to providers of the Information Superhighway. While some of the major power utilities may intend to become Internet providers, none have announced such intentions. In any event, it is highly unlikely that they will do so en masse [15-25] and [15-26]. Their cautious approach is due to the fact that the communications business is foreign to them, at least in a commercial sense. While the utilities are experienced in the design and deployment of cable systems, they generally don’t have experience in terms of transaction-based billing, media content, and other areas critical to the provisioning of voice, data, and video services.

Heated discussions currently are taking place relative to pole and conduit access. Traditionally, the telephone companies and power companies each have enjoyed reciprocal rights to use the facilities of the other for hanging or pulling cables; CATV providers also traditionally have been provided access. Pole and conduit usage fees apply, although the level of such fees has always been quite reasonable. As the competition for the I-Way grid intensifies, traditional logic no longer applies. The debate already has ensued and is likely to reach significant proportions.

There are a number of small power utilities that have deployed CATV networks to support Internet access, as well as entertainment TV. Some of them have been highly successful, although in small markets. Notable in this regard is MWR Telecom, a spin-off of Midwest Power Company. The company built its own 110-mile fiber optic network to serve internal needs, and since has resold excess capacity to carriers (AT&T, MCI and Sprint) and over 70 large user organizations. Glasgow Electric Plant Board has deployed a two-way coax system that supports CATV, Internet access, and telecommunications in competition with the incumbent providers in its serving area of about 13,000 customers. The Glasgow offering has been well received, particularly in terms of Internet access and cable TV [15-10] and [15-27]. Central and Southwest Corporation, Pacific Gas & Electric, Entergy Corporation, The Southern Company, Portland General Electric are among the other investor-owned utilities experimenting with the technology and service concepts that will position them as I-Way providers [15-10]. In general, it is unlikely that the power utilities will be a major force in the world of the I-Way. While they may function as providers of the grid, they are unlikely to be successful as providers of services or content.

The Internet

The Internet is suggested by some to be the Information Superhighway, at least for the present and, perhaps, well into the future. While the Internet and the WWW are constrained by network limitations of bandwidth and packet delay, they certainly deliver many of the applications currently envisioned for the Highway. Those applications that are available and growing certainly include shopping-at-home and distance-delivered learning. As noted in Chapter 13, voice communications, videoconferencing, and radio broadcasting also are supported, but not very effectively. These applications are inappropriate for the Internet and place great strain on the available resources.

The Net and the Web certainly are not the ultimate vision of the Highway, but they do deliver a fair amount of functionality now. As the ultimate vision of the ATM-based, Fiber-to-the-Premise (FTTP), multimedia-ready Information Superhighway is years away, the Internet likely will continue to enjoy a niche in the I-Way market. In fact, the Internet ultimately will serve the same function it largely serves today—that of an application-oriented network which will be accessed by a converged local network.

The Converged Network

One scenario of the converged network is illustrated in Figure 15.2. Digital local loops that are hybrid fiber/coax or fiber/UTP in nature will terminate at the premise in a network termination unit which can be in the form of a set-top box. The set-top box will serve as a controller/splitter in support of voice, data, facsimile, video, and TV. Modular devices will provide the appropriate mix of transmission and reception capabilities for each user, including visual display. The set-top box, or perhaps each device, will contain an ATM chipset.


Figure 15.2  Converged wireline network.


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