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Whatever the case, some CLECs have initiated differentiation programs to help them garner the favor of customers, such as payback plans for downtime, online real-time usage reports, and negotiated service level agreements. Ultimately, the success of the CLECs relies on three critical success factors. Local number portability must be viable, functional, and available; operations support standards must be in place and accepted; and discounts for unbundled network elements from ILECs must be on the order of 50 percent. Like the ILECs, the CLECs stand to benefit greatly from the creation of the optical edge. They too will benefit from a simplified network architecture that will in turn lead to better, faster customer service. It will also enable the efficient migration to a packet network that will satisfy the demands of IP customers.
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The Interexchange Carriers (IXCs)
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Today s IXC has a multitiered network with central offices interconnected by DWDM-enhanced optical spans. They often employ ATM as their switching protocol and as a way of provisioning granular service quality levels. In their eyes, the edge of the network is the metropolitan hub point where multiple disparate services are aggregated for transport across high-speed backbone facilities. The interexchange carriers face the greatest challenge of all the players, but are also the companies demonstrating the most innovative behavior in the face of adversity. With companies like Qwest and Level 3 building massively overcapacitized fiber networks, bandwidth is becoming so inexpensive and so universally available that it is evolving to a true commodity. The margins on it therefore are dropping rapidly. Furthermore, the number of companies that have entered the long-distance market has grown, as has their diversity: although the legacy players (AT&T, Sprint, and WorldCom) continue to hold the bulk of the market, a collection of power companies, satellite providers, and bandwidth barons have entered the game and are seizing significant pieces of marketshare from the incumbents. In response, the IXCs are fighting back by diversifying. All have entered the ISP game, offering Internet access across their backbones at competitive prices. They have also bought or built local twisted pair access infrastructures, cable companies, satellite companies, and a host of others.
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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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Consider AT&T as an example. Beginning with their long lines division, the company has grown into a multifaceted powerhouse that now owns a broad collection of companies offering diverse network services. They are a longdistance, local, wireless, ISP, portal, cable company, and have aggressive plans to be a true, full-service telecommunications provider as they flesh out their strategy for market positioning. The optical edge provides a benefit to the IXCs in a variety of ways. It enables them to reduce their managed protocol layers (SONET/SDH, ATM) as a way to improve service provisioning and ongoing management, and helps them improve their cost effectiveness by reducing the total number of managed elements they must deal with.
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The Bandwidth Barons (aka Carriers Carriers)
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These companies make their money by efficiently provisioning and selling bandwidth as a commodity to large volume customers. Their network is typically a DWDM backbone, often running ATM at Layer 2 and IP at Layer 3, that interconnects major metropolitan hub locations where traffic can be aggregated at enormous volumes for transport across the backbone. For these companies, the edge of the network is typically at these aggregation points where individual DWDM lambdas are connected to add-drop multiplexers and core network routers, sometimes running MPLS. These companies used their access to right-of-way to build massive, global, optical transport networks. They include such heavyweights as Qwest, Level 3, Global Crossing, 360Networks, and Tyco. Their intention has always been to make bandwidth as inexpensive as possible in order to become the carrier s carrier, selling bandwidth to everyone in huge, inexpensive quantities. Most of them started as commodity providers, but soon moved up the optical food chain as they added new services. Consider, for example, Qwest CyberSolutions, the joint venture company between Qwest and KPMG that provides global ASP services. Qwest s network architecture speaks to their commitment to provision massive amounts of bandwidth: two diversely routed conduits house two cables, each with 96 optical strands per cable. Each strand is further subdivided through DWDM into 40 individual wavelengths, each operating at OC-192; the result is a network that offers an almost unimaginable 154 Tbps of bandwidth, many times the capacity of AT&T s network. Again, the key to success in this market is to provide more than simply bandwidth.
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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