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Plethora is a great word for describing the diversity of players in the ATM services provisioning game. The traditional service providers (ILECs, CLECs, and IXCs) support a wide variety of physical interfaces including T1, DS3, OC3, OC-12, OC-48, and OC-192. Most support both CBR and VBR, frame-relay interworking, and port oversubscription. ATM is a technology that continues to be deployed in a broad range of industries because it works well. One could say that ATM is like a wellbehaved child: it plays well with others. It is far from being the ideal technology solution for the transport of any particular protocol or service; after all, the Public Switched Telephone Network (PSTN) is the best solution for voice, whereas a dedicated network is better for video. For the broad mix of multiple protocol types, however, ATM is ideal. In that sense, it is a lot like a duck. A duck walks, swims, flies, and makes bird noises, but does none of them particularly well but it does do them all.
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So let me summarize the main points of this chapter. First of all, ATM remains a robust, capable technology, with a great deal of promise in the evolving transport and switching realm. It appears that its role will evolve to that of an edge technology, sitting at the periphery of the network cloud, serving as an aggregation technology for diverse traffic types for transport across what will most likely be an IP-based wide area network fabric. The ATM standards and services are largely mature, and offer granular control over quality of service measures, class of service assignment, and bandwidth management. Because of its cability to aggregate and therefore simplify network architectures, it will help service providers avoid the Winchester Mystery House networking problem, while still offering a diversity of service types across a single, technologically simple, robust cloud. All the players are here service providers, manufacturers, and customers are working well together to develop and support applications that run well across ATM and that take advantage of its unique capabilities. Furthermore, it continues to evolve as a key technology in the ever-expanding realm of everything over IP. In short Keep watching: the game ain t over!
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Players and Futures in the SONET/SDH Game
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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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Players and Futures in the SONET/SDH Game
6
For the past 13 years, I have spent the majority of my professional life studying, writing, and teaching about the telecommunications industry and the companies that comprise it. It has always been a matter of some fascination to me how those players roles have evolved over time as they adapt to the changing winds of the telecommunications marketplace and the chaotic evolutionary track of the various technologies that periodically evolve from those that came before. SONET and SDH live in a segment of the telecommunications industry that is devoted to one thing and one thing only: improving the financial success of the companies that build SONET and SDH networks. These include incumbent local exchange carriers (ILECs) and PTTs, competitive local exchange carriers (CLECs) and city carriers, long-distance carriers, and more and more, the players in the non-traditional transport industry including cable television, power, pipeline, railroad, and anyone else with underutilized or redeployable right-of-way. Think about it: Sprint and Qwest both emerged as spin-offs from the railroad industry; WorldCom has its roots in Oklahoma s natural gas pipelines; and any number of transport providers have emerged from power companies all over the world. We have already seen that bandwidth demand is at an all-time high and will continue for the foreseeable future. We also know that the generic transport services that the incumbents, new entrants, and long-distance companies provide are rapidly becoming commodities, available from any number of providers at rock-bottom prices. In classical supply and demand terms, as supply goes up, demand goes down and in another model, as supply goes up and commoditization takes place, the price plummets, as shown in Figure 6-1. When the price of a commodity drops precipitously, margins on that product disappear. This is precisely the conundrum that bandwidth providers face. Their principal deliverable, bits per second, is offering rapidly accelerating and diminishing rates of return, which portends one thing: if those companies wish to remain in business and solvent, they must offer enhanced services to their customers above and beyond simple bandwidth. That s the increase revenue part of the equation described previously. Furthermore, they must come up with a way to offer that bandwidth in such a way that even in the face of precipitous margin decline, it remains a profitable offering. That s the reduce costs part of the equation.
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