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Stuart LipoffArthur D. Little, Inc.Cambridge, Ma 02140 USA(617) 498-5000www.adltechnology.comwww.lipoff.orgs.lipoff@ieee.org

May 14, 2001

Future Visions for AdvancedCommunications & InformationTechnology Based Applications andInfrastructure

start

2Reference No.

Abstract

Title: Future Visions for Advanced Communications & Information TechnologyBased Applications and Infrastructure

IEEE Boston Section Life Members Chapter 4:00 PM, Monday, 14 May

By: Stuart J. Lipoff, V.Pres. and Director of Communications, Arthur D. Little, Inc.

Abstract:

Deregulation, hypercompetiton, globalization, convergence, and advancedmultimedia telecomputing technologies are powerful forces driving the rapid growthof wired and wireless broadband public telecommunications infrastructure. Only afew years ago, multimedia capable communications circuits and communicationsdevices were restricted by cost to large businesses, and further restricted by sizeand weight to the desktop. However we now find millions of US homes withaffordable broadband connectionless cablemodem or ADLSL services and 3rdgeneration wireless systems only a few years from being deployed along withcompatible pocket and personal portable terminal devices. This presentation willexplore some alternative infrastructure visions for public communications networks,home networks, as well as the connected consumer electronics devices thatterminate these networks. Following identification and description of theinfrastructure the presentation will showcase several broadband and multimedia richapplications scenarios for entertainment, transactions, information, education, andcommunications. Key enabling technologies will be explored such as advancedman-machine interfaces, digital rights management, and AI based agents.

3Reference No.

Objectives & Outline

The purpose of this pre sentation is to provide a common framework ofdefinitions and a c ommon factbase to facilitate discus sions

• Historical Evolution

• Key trends & drivers

• Infrastructure alternatives

• Applications Examples

4Reference No.

The general trend has been to increase b andwidth & migrateelectronics and inte lligence to the edge of the network

Historical Ev olution of Public Netw orks

ACCESSPLANT

DISTRIBUTIONPLANT

SWITCHINGSYSTEM

INTELLIGENTNETWORK

Wire/SDM

Same

Same

Same

Wire/ISDN

Fibre Curb

Fibre Home

PCN Radio

Wire/SDM

Wire/DLC

FO/DLC

Same

Same

Same

Same

Same

Central/AnalogCircuit Switch

Central/DigitalCircuit Switch

Same

Distrib./Digital

Same

Distrib./DigitalVoIP Packet

Same

Same

Class Services

Same

2nd Generation

+Cellular Integration

Same

+Video+Voice+INet

Same

+3rd Generation PCN

EVOLUTION

5Reference No.

The pub lic switched network ha s 6 historica l segments o f interest.

I.N. & ValueAdded

FacilitiesSwitching

Distributio n• Media• Standard

Distributed &Decentralized Nodes

11 22 33

4455

66

User

Historical Ev olution of Public Netw orks Segments

ACCESSPLANT

CPE

DISTRIBUTIONPLANT

Distributio nNodes

SWITCHINGSYSTEM

EnhancedServicePlatforms

6Reference No.

The origin al Analog N etwork is as f ollows:ANALOG NETW ORK TECHNOLO GIESANALOG NETW ORK TECHNOLO GIES

MODEM

KTS

DATAPBX

KTS

MODEM

PBX

Small Business

Large Bus iness - Site A

Large Bus iness - Site B

LOCALSWITCH

ANALOGCARRIER

ANALOGCARRIER

TOLLSWITCH

LONGHAUL

NETWORK

LOCALNETWORK

Local Exchange

TelcoCustome rPremises

Resident ialAnsweringMachine

Historical Ev olution of Public Netw orks Analog Network

7Reference No.

The distrib ution and access pla nt is a wire p air of 1 voic e circuit per pair.

I.N. & ValueAdded

FacilitiesSwitching

Distributio n• Baseband an alog• SDM metallic pairs• 1V.C./pair

Passive spl ice boxes

• Limited callfwd &3party calls

• Analog o nsubscriberside

• TDM PCMon trunkside

Access- Same as distributio n: wire pair

User

Historical Ev olution of Public Netw orks Analog Network

8Reference No.

The S.A. co ncept prov ides a transistio n from distrib ution to a ccess plan t

Historical Ev olution of Public Netw orks Serving Area Concept

9Reference No.

SERVING AREA C ONCEPT

Lege nd: Single Serving Area Two Serving Areas(High Density)

Distrib ution Ca ble s

Late ral Ca ble

Historical Ev olution of Public Netw orks Serving Area Concept

The S.A. co ncept divi des the acc ess regions into abou t 0.5 miles rad ius areas

10Reference No.

I.N. & ValueAdded

FacilitiesSwitching

Distributio n• TDM PCM

digital• Metallic p air or

fiber opti cscable

• Multipl eV.C../circuit

SLC Demuxunit i n neigh borhood

• Limited callfwd &3party calls

• TDM PCMsubscriberside

• TDM PCMon trunkside

User

Access• Baseband an alog• SDM metallic pairs• 1V.C./pair

With DLC th e electronic s starts to m ove closer to the end u ser

Historical Ev olution of Public Netw orks Digital Loop Carrier/Subscriber Line Carrier

11Reference No.

DLC also f acilitates mo ving high bandwidth fiber closer t o the end user

PRE-ISN DIGITAL TELECOMMU NICATIONS NETWORKPRE-ISN DIGITAL TELECOMMU NICATIONS NETWORK

DSU

DIGITALKTS

DIGITALPBX

MUX

Small Business

Large Bus iness - Site A

Large Bus iness - Site B

FIBERMUX

FIBERMUX

TOLLSWITCH

Local Exchange

TelcoCustome rPremises

Resident ial

MAINFRAM E

LAN

MUX

DATAUNIT

PBX

MODEM

DIGITALLOOP

CARRIER(DLC)

LOCALDIGITALSWITCH

DLC

DIGITALCROSS-

CONNECT

DIGITALCARRIER

LocalNetwor k

TollNetwor k

Historical Ev olution of Public Netw orks Digital Loop Carrier/Subscriber Line Carrier

12Reference No.

With the SL C electronic s in the fie ld powering and enviro nmental prot ection is req uired

Historical Ev olution of Public Netw orks Digital Loop Carrier/Subscriber Line Carrier

13Reference No.

The origin al ISN conce pt was base d on ISDN bu t now is tre nding to VoIP with a ne ed tocontrol QoS

Historical Ev olution of Public Netw orks Integrated Services Networks and VoIP

ISN DIGITAL TELECOMMUNICATIONS NETWORKISN DIGITAL TELECOMMUNICATIONS NETWORK

ISNKITS

Small Business

Large Bus iness - Site A

FIBERMUX

TOLLSWITCH

Local Exchange

TelcoCustome rPremises

Resident ial

MUX

INTEGRATEDDLC

ISNSWITCH

B-ISNSWITCH

LocalNetwor k

C.O.TERMINAL

MODEM

ISNPBX

Video

High SpeedData

TA

MUX

Large Bus iness - Site B

ISNPBX

TollNetwor k

VoIP

gateway

14Reference No.

These ne tworks are no w competitiv e with wired networks wi th the ben efits of mob ility

I.N. & ValueAdded

FacilitiesSwitching

Distributio n• TDM PCM

digital• Metallic p air or

fiber opti cscable

• Multipl eV.C./circu it

SLC Demux& distribu ted switch ing

• Basic wiredCLASSservices

• Personalnumberingplan

• TDM PCMsubscriber side

• TDM PCM ontrunk side forvoice

• SS7 CCIS forsignall ing & I N

• Decentralized innetwork

User

• Radio ai r interface• TDMA or CDMA

digital

RFMicrocell

Cell to Cel lHandoffs

Historical Ev olution of Public Netw orks Mobile and Fixed Wireless

15Reference No.

In parallel with access and distrib ution trend s was the d evelopment of IN and A IN fordelivery of enhanced services

Com. Inf.Data-base

SMS

Data-base

SCP

Com. Inf.Pgm. inf.Com. inf.

X.25

IP VFNSSP

User User User User

CCS7

CCS7 Net(STP)

CCS7

CCS7 CCS7

ISDN

SMS

SCP

SSP

IP

VFN

Com. Inf.

Pgm. Inf.

– Service Management System

– Service Control Point

– Service Switching Point

– Intelligent Peripheral

– Vendor Feature Node

– Communication Interface

– Program interface

Historical Ev olution of Public Netw orks Intelligent Network

16Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

Key Techn ology Fou ndations & Drivers of Ch ange Drivers

GlobalCompetitiveAdvantage

1

2

34

5Deregulation

17Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5Deregulation

UnservedMarket Needs

Key Techn ology Fou ndations & Drivers of Ch ange Drivers

18Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5 Competition

Deregulation

UnservedMarket Needs

Key Techn ology Fou ndations & Drivers of Ch ange Drivers

19Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5 Competition

Deregulation

UnservedMarket Needs

EmergingTechnologies

Key Techn ology Fou ndations & Drivers of Ch ange Drivers

20Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Key Techn ology Fou ndations & Drivers of Ch ange 5 Key Themes

21Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Electronic and InternetCommerce

Electronic and InternetCommerce

Key Techn ology Fou ndations & Drivers of Ch ange 5 Key Themes

22Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Electronic and InternetCommerce

Electronic and InternetCommerce

Digital Image Processingand Compression

Digital Image Processingand Compression

Key Techn ology Fou ndations & Drivers of Ch ange 5 Key Themes

23Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Electronic and InternetCommerce

Electronic and InternetCommerce

Digital Image Processingand Compression

Digital Image Processingand Compression

Personal and PortableSupercomputing

Personal and PortableSupercomputing

Key Techn ology Fou ndations & Drivers of Ch ange 5 Key Themes

24Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Electronic and InternetCommerce

Electronic and InternetCommerce

Digital Image Processingand Compression

Digital Image Processingand Compression

Personal and PortableSupercomputing

Personal and PortableSupercomputing

UbiquitousUbiquitous

Key Techn ology Fou ndations & Drivers of Ch ange 5 Key Themes

25Reference No.

Emerging technologies are providing the bas is for 5 key themes whichin turn are changing the fundamental basis of competition for bothservice providers, e quipment suppliers, a nd strategic end use rs alike

GlobalCompetitiveAdvantage

1

2

34

5

Digital Broadband GlobalConnectivity

Digital Broadband GlobalConnectivity

Electronic and InternetCommerce

Electronic and InternetCommerce

Digital Image Processingand Compression

Digital Image Processingand Compression

Personal and PortableSupercomputing

Personal and PortableSupercomputing

UbiquitousUbiquitousCompetition

Deregulation

UnservedMarket Needs

EmergingTechnologies

Key Techn ology Fou ndations & Drivers of Ch ange The Whole Picture

26Reference No.

Key Techn ology Fou ndations & Drivers of Ch ange LEC Example- New Business Models

To succeed in the new era of deregulation, n ew market needs, andnew technologies a te lephone local exc hange carrier will need to re-invent themselve s in three dimensions - all at once!

One One Wired+2 Wireless

Several Wired+Many Wireless

Competition

27Reference No.

Key Techn ology Fou ndations & Drivers of Ch ange LEC Example- New Business Models

To succeed in the new era of deregulation, n ew market needs, andnew technologies a te lephone local exc hange carrier will need to re-invent themselve s in three dimensions - all at once!

Full Multimedia Entertainment/Transaction Leisure/Business Services

Services Provided

One One Wired+2 Wireless

Several Wired+Many Wireless

Voice Transmission

>BW Voice+Data Transmission

Video Entertainment Transmission

Video Entertainment Transmission+Content

LONG TERM

MID TERM

Competitio n

28Reference No.

Key Techn ology Fou ndations & Drivers of Ch ange LEC Example- New Business Models

To succeed in the new era of deregulation, n ew market needs, andnew technologies a te lephone local exc hange carrier will need to re-invent themselve s in three dimensions - all at once!

Full Multimedia Entertainment/Transaction Leisure/Business Services

Services Provi ded

One One Wired+2 Wireless

Several Wired+Many Wireless

Voice Transmission

>BW Voice+Data Transmission

Video Entertainment Transmission

Video Entertainment Transmission+Content

Switching& Xmission

Full Rangeof InfoChain

Content Package Process Switch Transmission CPE

Support to Primary Activities(e.g: Billing/Written Documentation/Installation/Training/Service)

LONG TERM

MID TERMValueAdded

Competitio n

29Reference No.

Telecom industry has moved beyond evolution - disruptive andexplosive changes created new and exciting businessopportunities.

Drivers ConsequencesNew competitionNew pricing modelsRapid service creationHorizontal & vertical integrationBundlingMultistandardsDesign for FlexibilityCost challengesDistributed manufacturingDistributed sourcingMultimedia ExperiencesMobility ManagementUnified MessagingConvergent Customer ServiceOne Stop ShopChoiceWirelessHigh Speed DataAdvanced MMIsDistributed Intelligent ComputingImage ProcessingInternetFiber in the Loop

New Technologies

New Market Needs

Globalization

De & Re-regulation

Key Techn ology Fou ndations & Drivers of Ch ange Consequences of Trends

30Reference No.

Distribution Plant Premise and/or User

Equipment

Copper

Switch

Conventional Networks will be Enhanced with Next Gen Infrastructure

Key Techn ology Fou ndations & Drivers of Ch ange LEC Example- New Technologies

31Reference No.

Key Techn ology Fou ndations & Drivers of Ch ange LEC Example- New Technologies

To rise to the challe nge, new multimedia b roadband architectures willneed to be deploye d

MultimediaServer

Decoder

DistributionPlant

Network

Interface

Unit

Premise and/or UserEquipment

Copper

Fiber

Coax

PCS

LMDS

Satellite

VideoServer

Voice Server

DataServer

EncoderModem

Operational Support Systems & Services (e.g. Network Management, Billing,Customer Validation, Clearing-house services)

Regional/LocalHeadend, Central

Office, Cell site, orRemote site

IntelligentNetworkFunction

s

Switch

Servers can beprovided bypublic carriersor by thirdparties

OpticalNetworks

Satellite

32Reference No.

Carriers now realize that the re is an important 4 th C

Key Techn ology Fou ndations & Drivers of Ch ange Convergence

Broadband technology a nd other trends are driving towardconvergence and a general filling in of th e entire space

Numbers

Text

Voice

Line Art

Still Image

Motion Video

Capture Store Process Switch Tra nsmit Output

Multiple Isolated Syste msLocally Networked Distribute d SystemsEnterprise Networked Distributed Sy stems

Public Metro Networked SystemsPublic Intercity Networked Sy stems

Public National Networked Sy stemsPublic Global Networks

Private

Public

Single Location Syste ms

FIXEDor

MOBILE

Key Techn ology Fou ndations & Drivers of Ch ange Convergence

34Reference No.

Applicatio ns Visions

Common to many vis ions are ubiquity, broad band, multimedia, a ndembedded intellige nce

35Reference No.

Applicatio ns Visions

Common to many vis ions are ubiquity, broad band, multimedia, a ndembedded intellige nce with all kinds of devic es

Multimedia 3rd Generation Wireless Virtual Reality Electronic Commerce

Network Based Virtual Reality Gaming Agent Assisted Telecommuting/Homework

37Reference No.

Infrastructure thatSupports the Services

Key Componentswithin the Products

Applications thatAddress Market Needs

Un-served and Under-servedMarketplace Needs & Opportunties

Communications, Transactions,and Content Services

Products and Systems in theInfrastructure

UnderlyingTechnologies

While the v isions of t he future a re not new, only recentl y have we b egun to su pply themissing lin ks to connnec t the unserved needs to t he techno logies

Conclusions The View Forward

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