Terman Library in the Terman Community Center, 661 Arastradero Road, Palo Alto, CA
Jim Sands spoke about the rapid changes in telecommunications, particularly in the past few years. He discussed the "Last Mile" connections for all businesses and residences. There is a range of services available already. Analog modems are robust and faster than before. Analog phone lines have 4 KHz bandwidth but it can support data rates up to 28.8 kbps (kilo-bit/sec) using standardized modem protocols. U.S. Robotics just introduced a new 56kps modem using proprietary compression technology. They only talk to other US Robotics modems. There is no single standard for the 56 kbps modems yet. US Robotics is competing with Rockwell and Motorola for control of 56 kbps modem market. Pacific Bell offers a range of connectivity solutions, including ISDN at 128,000kps. Digital Data Service (DDS) is an older technology, which requires dedicated lines and modems and operates at 56,000kps. DDS is no longer sold by Pacific Bell. ADN, or Advanced Digital Network replaced DDS in the marketplace. ISDN meets international standards and operates over phone lines and has excellent signal quality. For example, JPL has thousands of ISDN lines installed for internal and external communications. The growth of the Internet over the past few years has been amazing, and it keeps growing. Pacific Bell invests $1 to $2 Billion/year in upgrading communications infrastructure in California. ISDN is a switched, digital loop technology and is the 'high end' product for switched services. In the data service portfolio Pacific Bell offers 56Kbps over ADN, T-1, Frame relay from 56Kbps to 1.536Mbps (T-1) with intermediate speeds in between, SMDS from 56K to 34Mbps, with intermediate speeds in between, and ATM at SONET speeds down to T-1. The next technology is ATM, which will replace frame relay. Pacific Bell offers connectivity to end users, and will connect to any requesting customer.
Marvin Lee asked if Pacific Bell would tie into the Palo Alto fiber ring. Jim said that probably the chance is less than 30% since they have their own fiber network in Palo Alto.
Connection of the end user to the fiber ring is a big issue. Interconnecting fiber to the existing copper infrastructure is the "last mile". It is the common infrastructure that ties everyone together. We need to set up standards , otherwise the usability of the system will be greatly limited. The other issue is connecting to the world for other services that support applications other than Internet connectivity. The issue here is really the application. If the user application is Internet access, the service required will be determined by what the ISP (Internet Service Provider) will support. Of course, any use of the fiber ring will require electronics connecting the fiber to the end devices. Bandwidth in this fiber optic only, point to point scenario, is traditionally DS3(45Mbps) or SONET. The ISP will provide the Internet connectivity to the rest of the world. This only works for the entity interfacing with the ISP over the fiber, not the rest of the Palo Alto citizens. How the small businesses and residences connect up is an issue. Generally, you can only get to them via existing copper or wireless (in future?). Pacific Bell has more lifelines than any others in the nation, and more than all others combined.
Jay Thorwaldson noted we are trying to expedite bringing the "Last Mile" to a very savvy community, which has at least 60 to 70% of residents on line. How do those areas that don't have these facilities get served? Particularly in remote areas, and in poorer neighborhoods, etc. How do we make services available at reasonable cost and not just get the profitable areas such as businesses signed up? Mary Jo Levy wanted assurances that not just businesses but homes will be served. Jay also noted the problem of competing organizations coming in and digging up streets. What is the role of Pacific Bell in providing adequate universal service?
Jim Sands said Pacific Bell prices for ISDN are the lowest in the country - $30/month. Installation costs $70 for any line, with the $125 added ISDN installation waived for 2 years. In San Jose there was a trial hybrid fiber-coax network installed which also allows them to provide cable TV.
Replacement of the existing copper network with hybrid is very expensive. So Pacific Bell is going to roll out new service called ADSL (Asymmetric Digital Subscriber Loop) late in 1997 to provide 1.5 mbps (mega-bit-per second) down, 384 kbp up on a dedicated line within 18,000 feet (3.5 miles) from a central office. ADSL will be a service offered to those who need T-1 type speeds in support of telecommuting applications - Internet being the most obvious, but enterprise intranet and PC to host communications as well. ADSL provides for POTS (Plan Old Telephone Service operating at 0 to 4KHz) as well. ADSL will work over the existing telephone wires. This is the beauty of it. No special infrastructure in the streets, no fiber/coax hybrid network, no undo digging up streets to provide it. The wire is there already. He sketched the network connection system and described it. The upstream speed limits desktop video, but the downstream speed is high enough for video. Most Internet use doesn't require high speed upstream or even downstream since it is mostly for text or graphics. It's possible to buy products such as cars over the net. The major investment will be for the ADSL switches and the splitter at the user, not the wiring.
Margaret Cooley noted that Palo Alto has lots of people who do need high-speed upstream capability because there are many who work from home and create information and need to get it upstream. She had problems partly because the wiring in her area is old, and rain creates major problems with data. They had to move to an office downtown because service in the residential area was unacceptable.
Van Heimke asked what the cost would be for the ADSL equipment. Estimates have been $1,000 to $2,000 for a pair of modems. The response from Jim was that prices have not been set, but early adapters will pay more, and prices for equipment will drop rapidly.
Is Pacific Bell still interested in wireless cable (TV)? Jim replied that there is development in Southern California, but there's no major interest now in Northern California The fiber optic-coax network was installed in San Jose and there is a franchise agreement, which requires some performance. The new network may have some video capability but he's not sure what. The competitive landscape has many forms. TCI has several varieties of service deliveries. They have not established a single type yet.
Bob Moss noted that the early 1Mega-bit/sec cable modems have 84kbps upstream and have very good performance and very desirable, with the new 30 Mega-bit/sec modems very much in demand.
Jim pointed out that heavy simultaneous usage of cable modems would reduce system data rates significantly. The more the users the lower the speed. There also can be real problems with packet collisions and upstream interference, which is hard to track, especially if users have different types of equipment. Bob noted that it is possible to fix the interference problems but it can be labor-intensive and take some time.
Van said the staff is working on a report to discuss use of the fiber ring and providing service. They are interested in what Pacific Bell can do to utilize the fiber and provide service in Palo Alto. There was no response from Pacific Bell to inquiries as to interest in using the fiber ring.
Jim noted there are physical limits to what kinds of information can be transported. The cost of fiber is a minor expense. The electronics and switches are the major expense. Since Pacific Bell has the infrastructure in the area already they consider tying into the Palo Alto fiber ring a competitive issue. The same applied to SCVWD [San Jose Water Reclamation Project], which asked if Pacific Bell wanted to use any of their fiber and the answer was maybe 15%. This is the most fiber-rich area in the world. The operation has to be done on a business level. There are many issues to offering service - customer service, billing, maintenance, etc. The important factor is customer care and customer service, not the infrastructure by itself (Well, infrastructure is important, but providing communication services without a robust customer care organization will not be effective). If competitors take away the high end business, Pacific Bell has problems with continuing to serve residences below cost. Phone companies are fighting all the time not to provide services below cost, plus getting into other markets such as long distance. There is significant competition in the phone market now. For example, AT&T uses Pacific Bell lines to sell local service. They charge the same basic rate, but total costs are higher.
Next meeting will be Wednesday, April 2, 7:30 AM at the Terman library. Imsong will seek the next speaker. We would like another phone company speaker to give us even more insight into their plans for advanced telecommunications. Technology to be used and the migration path would be of interest.
Meeting adjourned at 8:55 AM.
Submitted by Bob Moss