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After PBXs caught on in the industry, local exchange carriers began to lose some of their more lucrative business margins. The response to the PBX was Centrex. Centrex is a service offered by a local telephone service provider (primarily to businesses) that enables the customer to have features that are typically associated with a PBX. These features include three- or four-digit dialing, intercom features, distinctive line ringing for inside and outside lines, voice mail, call-waiting indication, and others. Centrex services flourished and still have a place for many large, dispersed entities such as large universities and major medical centers. One of the major selling points for Centrex is the lack of capital expenditure up front. That, coupled with the reliability associated with Centrex due to its location in the telephone company central office, has kept Centrex as the primary telephone system in many of the businesses referenced previously. PBXs, however, have cut into what was once a lucrative market for the telephone companies and are now the rule rather than the exception for business telephone service. This has come about because of inventive ways of funding the initial capital outlay and the significantly lower operating cost of a PBX versus a comparable Centrex offering.
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Harte, Lawrence. Telecom Made Simple. Fuquay-Varina, NC: APDG Publishing, 2002.
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Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
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The earliest approach to getting multiple conversations over one circuit was frequency division multiplexing (FDM). FDM was made possible by the vacuum tube where the range of frequencies was divided into parcels that were distributed among subscribers. In the first FDM architectures, the overall system bandwidth was 96 kHz. This 96 kHz could be divided among a number of subscribers into, for example, 5 kHz per subscriber, meaning almost 20 subscribers could use this circuit. FDM is an analog technology and suffers from a number of shortcomings. It is susceptible to picking up noise along the transmission path. This FDM signal loses its power over the length of the transmission path. FDM requires amplifiers to strengthen the signal over that path. However, the amplifiers cannot separate the noise from the signal and the end result is an amplified noisy signal. The improvement over FDM was time division multiplexing (TDM). TDM was made possible by the transistor that arrived in the market in the 1950s and 1960s. As the name would imply, TDM divides the time rather than the frequency of a signal over a given circuit. Although FDM was typified by some of the frequency all of the time, TDM is all of the frequency some of the time. TDM is a digital transmission scheme that uses a small number of discrete signal states. Digital carrier systems have only three valid signal values: one positive, one negative, and zero. Everything else is registered as noise. A repeater, known as a regenerator, can receive a weak and noisy digital signal, remove the noise, reconstruct the original signal, and amplify it before transmitting the signal onto the next segment of the transmission facility. Digitization brings with it the advantages of better maintenance and troubleshooting capability, resulting in better reliability. Also, a digital system enables improved configuration flexibility. TDM has made the multiplexer, also known as the channel bank, possible. In the United States, the multiplexer or mux enables 24 channels per single four-wire facility. This is called a T-1, DS1, or T-Carrier. Outside North America and Japan, it is 32 channels per facility and known as E1. These systems came on the market in the early 1960s as a means to transport multiple channels of voice over expensive transmission facilities.
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