DSLcon-00–Telcos prepare for evolution of DSL into voice and video, delegates told

Digital subscriber lines are in the process of moving from a niche service to a volume service, delegates attending a recent conference on the technology were told. Gary Bolton, VP marketing for Catena Networks, was one of several panelists participating in the DSLcon conference and exhibition in Toronto. Bolton predicted that within five years the demand for high speed access will move past 50 per cent penetration on all access lines, thus leading to the convergence of voice and data on a packet-based network. Remote terminals (RTs) will become the central office of the future as fibre will continue to be moved closer to subscribers. Within three years, RTs will be serving the majority of subscribers. There are problems, however. Real estate and costs are the two major challenges facing telcos as they seek to rollout DSL. Right of way constraints, the accelerated spread of furniture and the basic esthetics work against the rollout. It can cost up to $80,000 to pour concrete and purchase and install an OSP cabinet, exclusive of the electronics involved. Back haul facilities are expensive for what is currently a limited number of subscribers. Bolton suggests that overlay DSL solutions are impractical in most RT applications. Keynote speaker Glenn Ward of Bell Canada laid the framework for Bolton's presentation earlier that morning. He announced that Bell's data traffic had passed voice traffic last June. He said DSL is essential for deploying all services in the Bell empire, calling it the company's single biggest priority. "We've been in the telephone business for 100 years," he told the conference. "We're in year two or three of broadband." Ward maintains the market is ready for DSL, citing the demand for high speed, content, competitive costs, and the fact it is always on. He quoted a study by the Yankee Group in Canada that found consumers are 50 per cent more likely to prefer telcos to cable companies as their high-speed providers. "Customers want their PC jack near a phone jack, not a coaxial cable jack," he said. The future for Time Division Multiplex networks appears less promising, according to Bolton, even though data comprise half of the network traffic and is growing. But duplicated equipment and overlay network make it uneconomic. Copper exhaust and tromboning and rewiring of the Main Distribution Frame cause problems with deployment. Use of a splitter on the central office strands valuable spectrum. This forces telcos to increase the TDM for data without a coincidental growth in revenue. Ward boasts that Canada has the cheapest DSL service in the world. Bell is undertaking a rapid launch of its Advantage high speed service and is initiating a new portal and new email. Currently 30 ISPs are employing Bell Nexxia's DSL service and the company is hoping to increase that this year. Bell is seeking to expand its coverage area. It currently reaches over 70 per cent of its market with DSL. It wants to be at 80 per cent by 2001 and 85 per cent by 2002. The telco is actively looking at bundling services from other Bell divisions into its package.The company is also testing VDSL in the Etobicoke region of Toronto. A high-rise apartment in the city was offered a full range of Bell services using the new technology. The 101 participants each had between two and five televisions and one to three PCs. They were offered the full range of Bell products, such as voice, Internet service and satellite television. Clayton Mangione, Bell's director of technology development, said concerns had been raised about the wiring since the building under study was over 25 years old, yet no problems developed. He conceded that certain adjustments had to be made to accommodate the older architecture, such as dropping lines down greater distances. This shouldn't be a problem in more modern buildings. Worries about loss of 911 service during power outages also proved to be unfounded, he told conference registrants. Bell is building on the initial trial. This year it is offering residents of the building screen-assisted telephony and more channels on the ExpressVu system. Voice over DSL is not yet available, but likely will be. Ward told delegates his company is more excited at the prospect of VoDSL than it is by VoIP. He expects the equipment for VoDSL will be ready by the third quarter of this year. He admitted that video transmission is a situation that "keeps us up at night". Bell subsidiary Aliant is keen on developing video as a revenue generator and Sympatico has been doing trials using content from CTV NewsNet. Ward warned telcos to be alert to the challenge presented by their cable rivals. "In the Internet economy, being paranoid about your competition is the best way to stay ahead."

DSLcon-00–Telcos prepare for evolution of DSL into voice and video, delegates told

News | May 9, 2000

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