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Conclusion: Softswitch Will Conquer the World
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Softswitch solutions offer competitive service providers a means of bypassing the switching facilities of the incumbent local exchange carrier (ILEC). Access facilities of the ILEC can be bypassed with wireless, cable TV, or fiber optic cable (known as fiber to the home [FTTH]).
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Alternatives to the ILECs switching and access facilities open the telephone service market to a host of alternative service providers. Primarily, competitive local exchange carriers (CLECs) can offer a competitive alternative to ILEC services using softswitch and other technologies. Other alternatives are made possible by softswitch technologies. Wireless ISPs can deliver voice service via their data services using softswitched VoIP. Cable TV companies can bundle voice services in their video and data services. New technologies are coming on the market that enable the delivery of IP-based services via power lines.
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An intriguing possibility is the deployment of metro area networks (MANs) by municipalities. Ashland, Oregon; Spokane, Washington; and Longmont, Colorado are examples of cities that have deployed and own fiber optic, IP, municipally owned MANs. These municipalities operate the MAN, which is open to any and all service providers to deliver services to subscribers on the MAN, including Internet, voice, and video. In the early 1990s, one American cable TV executive promised subscribers 500 channels of video services via his cable network. A decade later no such line up of services has materialized. An IP MAN makes it possible to offer subscribers 500 different service providers who in turn can offer an almost unlimited lineup of content in video, Internet, and voice. An IP connection could be thought of as a utility not unlike a road, power line, water line, or sewer pipe connected to a residence or business. Although many would argue against government competing with business, few businesses can compete with municipalities in delivering roads, water, and sewer services for homes and businesses. Perhaps the chief reason less than 10 per-
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cent of U.S. households have access to broadband is that the cost of building the infrastructure for broadband negates an advantageous return on investment. If the cost of building broadband networks were shouldered by municipalities with an eye on the economic benefits to the community, there would be a more rapid rollout of such services. Municipalities that built such networks could recoup the expense of building those networks by charging service providers (ISPs, telephone companies, and video service providers) for access to those networks, not unlike states charging license fees and gas taxes for roads. In some cases, it is possible that a municipality could replace property tax revenue with the revenue it receives from telecommunications services, thus eliminating property taxes. This would be especially true if the municipality were the ISP, phone company, and cable TV company receiving hundreds of dollars per month per household in gross telecommunications revenue. What does all this have to do with softswitch Of the three services, data, voice, and cable TV, voice offers the greatest revenues of the three. Softswitch, because it is cheaper and more convenient to use, simplifies the delivery of voice services. Revenues from voice services or the perception of value in low-cost voice services by the subscriber (residential or business) might be the deciding factor in deploying such a network.
The End of the PSTN as We Know It
Figure 15-1 forecasts the end of the PSTN as we know it. Telephony is already only one of many applications available via an IP connection. The use of VoIP can save businesses considerable sums of money in telephony costs. Inevitably, VoIP and softswitch will replace the PSTN as we know it. The march of technology coupled with the inevitable drive in the marketplace for new market entrants to take market share from incumbents hastens the adoption of VoIP and softswitch. The rollout of broadband and wireless technologies is accelerating this trend.
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