The basic telephone system, or plain old telephone service (POTS), has been in existence since the early 1900s. During most of those years, POTS was an analog system capable of supporting a voice conversation. It wasn’t until the 1970s that POTS began carrying computer data signals as well as voice signals.
The local loop is the telephone line that leaves your house or business and consists of either four or eight wires. The central office (CO) contains the equipment that generates a dial tone, interprets the telephone number dialed, checks for special services, and connects the incoming call to the next point. A local access transport area (LATA) is a geographic area such as a large metropolitan area or part of a large state. A subscriber loop, such as the wire that runs between a house and the central office, has a unique telephone number associated with it. A trunk does not have a telephone number associated with it, because the trunk can carry hundreds of voice and data channels. A telephone number consists of three parts: the area code, the exchange, and the subscriber extension.
Telephone systems were originally designed to transmit the human voice. In practice, the telephone system actually allocates 4000 Hz to a channel and uses filters to remove frequencies that fall above and below each 4000-Hz channel. Any data transmission that is performed over a standard telephone line must fit within the fairly narrow band of 4000 Hz, which means the data transmission rate will also be limited.
Prior to 1984, AT&T (American Telephone and Telegraph) owned all the long-distance telephone lines in the United States, a majority of local telephone systems, and Bell Laboratories. In the 1970s, the federal government took AT&T to court, citing antitrust violations. AT&T lost the case, and in 1984 the court’s ultimate ruling, known as the Modified Final Judgment, required the divestiture, or breakup, of AT&T into separate companies. This breakup allowed AT&T to keep the long-distance lines and Bell Labs, but the company had to divest itself of all local telephone companies. At the time, AT&T consisted of 23 Bell Operating Companies (BOCs), which provided local telephone service across the country. As part of the divestiture, the 23 BOCs were separated from AT&T and were reorganized into 7 Regional Bell Operating Companies (RBOCs).
A number of other outcomes of the 1984 divestiture completely changed the landscape of the U.S. telephone system. For one, the United States was divided into the local access transport areas (LATAs) we just learned about. These LATAs determined when a telephone call was local or long distance. The breakup also allowed long-distance telephone companies other than Bell Telephone, such as MCI and Sprint, to offer competing long-distance services.
After the 1984 Modified Final Judgment the local telephone companies became known as local exchange carriers (LECs), and the long-distance telephone companies became known as interexchange carriers (IECs or IXCs).
A local exchange carrier offers a number of services, including Centrex, private and tie lines, and many other telecommunications services such as call waiting and conference calls. With Centrex, Businesses are spared the expense of having to keep up with fast-moving technology changes, because the telephone company is providing the hardware and the services, and the business is simply paying a monthly fee. An alternative to Centrex is the Private Branch Exchange (PBX). A PBX handles all in-house calls and places calls onto outside telephone lines. A PBX can also offer many telephone services such as voice mail, call forwarding, and dialing plans that use the least expensive local and long-distance telephone circuits. Private lines and tie lines are leased telephone lines that require no dialing.
An interexchange carrier, or long-distance telephone company, can also offer a large number of services, including credit card and calling card dialing; 700, 800, 888, and 900 access; international access; and operator and directory assistance.
A second major event in the recent history of the telecommunications industry occurred in 1996, with the passing of the Telecommunications Act of 1996. New providers of local telephone services were called competitive local exchange carriers (CLECs), and they could include interexchange carriers, cable television operators, small companies with virtually no equipment, and even the electric power company. The reasoning behind the development of CLECs was fairly straightforward and meant to better accommodate the way phone services were already being delivered.
Unfortunately, allowing all of these new local telephone providers into a market causes problems for the telephone lines. It is prohibitively expensive for a new telephone provider to install new telephone lines into each home and business. To solve this problem, ILECs must give CLECs access to their telephone lines. Furthermore, the ILECs must give competitors access to telephone numbers, operator services, and directory listings; access to poles, ducts, and rights-of-way; and physical co-location of equipment within ILEC buildings—and they must give these services at wholesale prices. Another interesting provision of the 1996 Telecommunications Act is that an ILEC must sell the CLECs access to the local dial tone at 17 to 28 percent less than the standard price.
When they were originally introduced many years ago, dial-up modems were capable of data transfer speeds of merely 150 to 300 bits per second. Fortunately, modem technology improved quickly, and soon data transfer speeds jumped to 1200 bps, then 2400 bps, and eventually reached what was thought to be a peak speed of 33,600 bps. Approximately two years after the 33,600-bps modem became available, the 56,000-bps, or 56k, modem was introduced.
The new 56k modems are a hybrid design, combining analog signaling and digital signaling. The upstream connection from modem to remote end still uses conventional analog signaling and modulation techniques, and thus is limited to a maximum transmission speed of 33,600 bps. The downstream link, however, is where the 56k modem really stands out. Instead of using analog signaling, the 56k modem employs digital signaling. When the telephone company transmits a digital 64-kbps telephone signal, the signal is transmitted digitally from one switching center to another. But when a telephone signal is transmitted into our homes and small businesses, it must be adjusted so that it can traverse the local loop. Before the telephone signal is transmitted over the local loop, the central office converts the digital signal to an analog signal. When the analog signal enters your house, your computer’s 56k modem converts the analog signal back to digital data, because computers manipulate digital data. When an analog signal is converted to digital data, quantizing noise is introduced. The presence of this noise is the reason it is not possible to transmit a 64-kbps data stream into the local loop. But a smaller data stream, of approximately 56 kbps, is possible. As it turns out, receiving a 56,000-bps signal is not possible either. Because noise is a bigger factor, the signal slows down more, to approximately 53,000 bps.
Private lines and tie lines are leased telephone lines that require no dialing. They are permanent direct connections between two specified points. Consider a company that has two offices in the same city that are always transferring data back and forth. To connect these offices, the company could use a dial-up telephone line with two modems, but because many telephone companies charge for all calls made, a dial-up line would be very expensive. A leased line might offer a less expensive alternative, and it will always be connected—which means an employee in one office never has to dial a telephone number to contact an employee in the other office.
The most popular example of a leased line service was the T-1. A T-1 service is an all-digital connection that can transfer either voice or data at speeds up to 1.544 Mbps (1,544,000 bits per second). Depending on the user’s wishes, the T-1 line can support up to 24 individual telephone circuits, 24 individual data lines at 56,000 bits per second each, or various combinations of these options. Like all leased line services, a T-1 connection is a point-to-point service and is always active. IntraLATA T-1 lines typically cost approximately $350 to $400 per month, while interLATA T-1 lines can cost as much as $1200 per month plus $2.50 per mile for the connection.
Digital subscriber line (DSL) is a technology that allows existing twisted pair telephone lines to transmit multimedia materials and high-speed data. The transfer speed of a particular line depends on one or more of the following factors: the carrier providing the service, the distance of your house or business from the central office of the local telephone company, and whether the DSL service is a symmetric connection or an asymmetric connection. The first of these factors, the carrier, determines the particular form of DSL technology and the supporting transmission formats, which are chosen by each carrier individually. The effect of the second factor, distance, on the transfer speed of a line is relatively straightforward: the closer your house or business is to the central office, the faster the possible transmission speed. The third factor affecting transfer speed is the type of connection: symmetric or asymmetric. A symmetric connection is one in which the transfer speeds in both directions are equal. An asymmetric connection has a faster downstream transmission speed than its upstream speed. An asymmetric service is useful for an Internet connection in which the bulk of the traffic (in the form of Web pages) comes down from the Internet to the workstation. Most residential DSL services are asymmetric.
Digital subscriber line comes in a variety of formats. Often collectively referred to as xDSL, six DSL formats are in use today:
- Asymmetric digital subscriber line (ADSL)—A popular format that transmits the downstream data at a faster rate than the upstream rate.
- Consumer DSL (CDSL)—A trademarked version of DSL with speeds that are a little slower than typical ADSL speeds.
- DSL Lite—A slower format compared to ADSL; also known as Universal DSL, G.Lite, and splitterless DSL
- High bit-rate DSL (HDSL)—The earliest form of DSL, this format provides a symmetric service with speeds usually equivalent to a T-1 service (1.544 Mbps).
- Very high data rate DSL (VDSL)—Also known as very high-speed DSL and very high bit-rate DSL, this is a very fast format (between 51 and 55 Mbps) over very short distances (less than 300 meters).
- Rate-adaptive DSL (RADSL)—RADSL is a format in which the transfer rate can vary, depending on noise levels within the telephone line’s local loop.
A cable modem is a high-speed communications service that allows high-speed access to wide area networks such as the Internet via a cable television connection. Technically speaking, a cable modem is a physical device that separates the computer data from the cable television video signal. Most cable modems are external devices that connect to the personal computer through a common Ethernet network interface card, which is either provided by the cable company or purchased at most stores that sell computer equipment. Cable modems provide high-speed connections to the World Wide Web and other Internet services, and the demand for them is growing rapidly.
A disadvantage of cable modems—quite possibly their only disadvantage—is related to a new trend. As traffic on Ethernet-based local area networks increases, overall throughput decreases (the ability to send or receive a complete message). Thus, as more customers within a local geographic area, such as a small number of neighborhood blocks, subscribe to cable modem service, traffic will increase to the point where throughput may suffer noticeably.
Frame relay is a packet-switched network that was designed for transmitting data over fixed lines (not dial-up lines). The frame relay service can be either a local service or a long-distance service. Once the service is established, the customer needs only to transmit his or her data over a local link to a nearby frame relay station. The frame relay network is then responsible for transmitting the user’s data across the network and delivering it to the intended destination site. A frame relay service provides many attractive alternatives to leased lines. One of the first noticeable characteristics of a frame relay network is its very high transfer speeds. The data transfer speeds can be very fast, up to 45 Mbps and sometimes even higher. Another advantage associated with frame relay is that their error rates during transmission are low. Last, frame relay networks are reasonably priced.
The permanent connection that is necessary to transfer data between two endpoints is called a permanent virtual circuit (PVC). When a customer establishes a permanent virtual circuit with a frame relay carrier, both customer and carrier agree on a data transfer rate called the committed information rate (CIR). Both frame relay and the Internet are packet-switched networks with widespread availability. Unlike the Internet, frame relay guarantees throughput and minimum delay. Frame relay was originally designed and used to transfer packets of data between two sites more cost effectively than leased lines could. Voice over Frame Relay (VoFR), as defined in the published standard FRF.11, allows the internal telephone systems of companies to be connected using frame relay PVCs. One of the latest developments in frame relay networks eliminates the disadvantage that a frame relay connection is not, like the Internet, dynamic in nature. A switched virtual circuit (SVC) enables frame relay users to dynamically expand their current PVC networks and establish logical network connections, on an as-needed basis, to endpoints on the same network or through gateways to endpoints on other networks.
Asynchronous Transfer Mode (ATM), like frame relay, is a very high-speed, packet-switched service that is offered by the telephone companies. ATM has several unique features that set it apart from frame relay and other packet services. In ATM, all data is sent in small 53-byte packages called cells. ATM networks were designed to simultaneously support voice, video, and data. Before ATM can transfer any data, you must first create a logical connection called a virtual channel connection (VCC). This VCC must be created over a virtual path connection. A virtual path connection (VPC) is a bundle of VCCs that have the same endpoints. When a VCC transmits user-to-network control signaling, the connection is called the user-network interface. When a VCC transmits network management and routing signals, it is called the network-network interface.
With ATM, the customer specifies a desired class of service for every VCC that is set up. ATM has defined four classes of service:
- Constant bit rate (CBR)—CBR is the most expensive class of service and is similar to a current telephone system leased line.
- Variable bit rate (VBR)—VBR is used for real-time applications and is similar to frame relay service.
- Available bit rate (ABR)—ABR is also used for traffic that may experience bursts of data, called “bursty” traffic, and whose bandwidth range is roughly known, such as that of a corporate collection of leased lines.
- Unspecified bit rate (UBR)—UBR is also capable of sending traffic that might experience bursts of data, but there are no promises as to when the data may be sent— and if congestion problems occur, congestion feedback is not provided (as is provided with ABR).
ATM has a number of significant advantages. ATM can support a wide range of applications with varying bandwidths, at a wide range of transmission speeds. Cell switching, which is performed by ATM’s high-speed, hardware-based switches that route cells down the appropriate path, is so fast that it provides short delays and high bandwidths. ATM’s different classes of service allow customers to choose service type and pricing individually for each data connection (VCC). Finally, ATM is extremely versatile. It can carry voice, packet data, and video over the same facilities. ATM also has a number of disadvantages. It is often more expensive than other data transmission options. Due to the complexity of ATM, the learning curve for setting up and managing the network is high. Lastly, compatible hardware and software may not be widely available.
Although convergence is an important trend in many areas of data communications and computer networks, it has had a particularly noticeable impact on the telecommunications market. We are seeing a number of telephone companies merging into single entities. Another important convergence issue is the speculation that data services such as frame relay and ATM may eventually give way to Ethernet.
Computer-telephony integration (CTI) is an emerging field that combines more traditional voice networks with modern computer networks. CTI integrates the PBX phone switch with computer services to create modern voice and data applications that run on computer systems. Using CTI has three advantages. First, it creates new voice/data business applications that can save companies time. Second, it makes optimal use of current resources. Third, it saves money. These advantages mean that businesses can realize many benefits from CTI applications. For example:
- Unified messaging
- Interactive voice response
- Integrated voice recognition and response
- Fax processing and fax-back
- Text-to-speech and speech-to-text conversion
- Third-party call control
- PBX graphic user interface
- Call filtering
- Customized menuing systems
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