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• W802493712 abstract "The bottleneck in local networks is opening up That puts 90 percent of service revenues up for grabs What consumers get will depend an where they are Access networks - the lines that link individual customers to telephone operators' larger networks have long been considered natural monopolies. The huge capital cost of building networks past every home in a locality, regardless of whether residents subscribe, means that few new networks have been built even in deregulated markets to rival those of incumbent operators. Would be competitors have thus found network access blocked. All this is about to change. A slew of new technologies will reduce the high fixed costs of traditional access networks, enabling new networks to make a profit at relatively low market shares. The nature of the competition will depend on geography. In the United States and Benelux, areas that already have cable infrastructure to deliver television, cable operators are using optical electronics and modems to offer telephony and high-speed Internet connections and to challenge local telephone operators.(*) Elsewhere, markets will evolve along different lines. It is easy to forget that most of the world's population have never made a telephone call, let alone used the Internet, because developing countries have been unable to afford traditional twisted copper wire networks. But with the new technologies, and wireless in particular, they may never need a copper wire network. Just who gets what around the world, and when, will depend on the performance and economics of the technologies under development and, crucially, on the starting point of each market. Technologies under development Some of the new technologies work by piggybacking communications services onto existing networks not originally designed for communications use, such as electricity or cable television networks. Others do away with the need for a physical network by using radio signals. Whatever the system, the cost of building the infrastructure is constantly falling. There are three broad types of access technology - fixed, wireless, and satellite - although each type embraces many categories (see text panel). No one type has so far emerged a winner. Performance and economics will determine which of them does. Performance The new technologies are about to encounter the test of a large-scale commercial rollout. Outstanding issues include the bandwidth customers get in practice from cable or xDSL modems; interference in xDSL or telephony over cable retrofit; LMDS signal degradation in heavy rain; and line-of-sight problems (because buildings can obstruct signals) and inferior voice quality (with mobile phones) in fixed wireless. Quality and deployment difficulties dogged Ionica, the United Kingdom-based fixed wireless operator that went into receivership recently, while in the United States, the government's LMDS spectrum auction raised the disappointing sum of $834 million - far short of the $4 billion estimate. Concerns about line-of-sight restrictions partly accounted for the lack of interest. But it is also worth recalling that four years ago, Time Warner heralded the imminent rollout of a full service network capable of providing telephony, video on demand, and other interactive broadband services. Such a service has yet to materialize anywhere. Economics Performance issues are important, but the deciding factor will be economics. How much will the various technologies cost to deploy? What level of demand can operators expect for their new services? And what will they be able to charge? The answers to these questions depend on several interrelated factors: Geodemographics. The economics of each access technology vary across regions, topographies, and population densities. Within developed countries, rural and urban areas lend themselves to particular forms of access. …" @default.
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• W802493712 title "Who Will Connect You" @default.
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