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By using Cisco s technology, MPLS guaranteed bandwidth services can be used to construct voice trunking and toll-bypass trunking applications, offering an alternative approach in the multi-billion dollar market for longhaul voice networking equipment Service providers benefit in the following ways:
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Offering new premium services for high-priority traffic, such as voice traffic or online transaction processing with tight guarantees for throughput, delay, and more Increasing bandwidth utilization by load balancing traffic on alternate traffic engineered paths Achieving higher network availability by using Cisco MPLS FRR to use alternate traffic engineered paths quickly in 50 ms or less Simplifying network manageability and reducing costs with the Cisco MPLS AutoBandwidth allocator to take advantage of available tunnel bandwidth while providing guarantees for high-priority traffic Preventing service theft with policing An important requirement for maintaining bandwidth guarantees is the ability to police traffic to check if the traffic is in profile Service providers can do so using the policing feature in Cisco IOS software Policing allows each user of a guaranteed bandwidth tunnel to gain a fair share of its allocated
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Eight
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capacity No overall degradation occurs due to heavy usage of one application/user, and theft of resources is avoided With Cisco IOS QoS, the following can help reduce and prevent service theft:
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Policing and traffic shaping (smoothing) at the network edge (customer edge or provider edge) Reexamining the markings and possible remarking Increasing the probability of packet drop when the network becomes congested because a customer is transmitting over a purchased guaranteed /assured bandwidth link (specifically, use RED and WRED features)
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Appendix A: Telecom Traffic Indicators
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The following analysis has been prepared by Tim Kelly and Mark Woodall of ITU16 For an economist, indicators of international telecommunications traffic are highly meaningful After all, traffic is the single most important output from the telecommunications sector and the direction of traffic flows reveals much about the patterns of commercial and social interaction between countries However, it is likely that, in the future, traffic statistics reported by public telecommunications operators will carry less weight This is because an increasing share of traffic is not being reported There are a number of reasons for this:
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Because voice and fax traffic is passing over networks other than the PSTN notably over the Internet, leased lines, or Frame Relay networks Because an increasing share of the market is held by smaller carriers and resellers that are not obliged to report traffic to regulators Because an increasing share of traffic is not passing through the traditional accounting rate system but operates under other regimes For instance, traffic might be carried to the destination country over circuits wholly owned by one carrier and then delivered into the network of a terminating carrier at the local level, requiring only the payment of an interconnect fee, instead of a settlement payment
Historically, international traffic statistics have provided economists and other analysts with a rich source of information concerning the operation of
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the global economy17 Traffic statistics were collected and reported on a bilateral basis because of the requirements of the accounting rate system As the accounting rate system is progressively being superseded by a regime based on crossborder interconnect, traffic statistics will become harder to collect and less reliable A good example of this problem is provided by the latest traffic statistics for 1998 For the world as a whole, the total reported output of traffic amounts to around 93 billion minutes The United States accounts for some 26 percent of that total, but for the first time in many years, the US share fell during the year Outgoing international traffic in the United States rose by only 8 percent during 1998 compared with a historical growth rate of over 20 percent per year since the mid-1980s Given that the US economy was experiencing an economic boom in 1998, it is hard to credit this slowdown to growth The explanation would seem to be that the missing traffic is not being measured Despite the slower growth, the United States is still the major exporter of traffic to the rest of the world with an excess of outgoing over incoming traffic of over 15 billion minutes in 1998 As a result, US operators must make payments to operators in other countries for the termination of traffic under the accounting rate system These net settlements have become a cause c l bre in US politics in recent years and are one of the main factors behind the FCC Benchmark Order The growth in the amount of the US net settlement has stabilized since 1996, but it still amounts to over $5 billion (see Table 8-3) The main beneficiaries of the settlement are Latin America, the Caribbean, and Asia (see Figure 8-14) But the United States is not alone in making net settlement payments to other countries In total, more than 30 other countries, as diverse as the
Figure 8-14 Distribution of US net settlements and outgoing traffic by region in 1998 Source: ITU/ TeleGeography Inc, "Direction of Traffic Database", FCC
US net settlement, 1998, by region E Europe, 27% W Europe, 74% Africa, 70%
US outgoing traffic, 1998, by region E Europe, 27%
W Europe, 226%
Asia-Pacific, 366% Latin America & Carribean, 458%
Asia-Pacific, 245% Africa, 50% Latin America & Carribean, 452%
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