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20th Century Model

20th Century Model. Build and MAINTAIN a VOICE Network Long Term Planning Backward Compatibility Average pricing concept Geographic franchise. Long Term Planning. 3 - 5 years reaction time for service demand highly mechanized systems to reduce unit cost TIRKS. 40 Years.

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20th Century Model

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  1. 20th Century Model • Build and MAINTAIN a VOICE Network • Long Term Planning • Backward Compatibility • Average pricing concept • Geographic franchise

  2. Long Term Planning • 3 - 5 years reaction time for service demand • highly mechanized systems to reduce unit cost • TIRKS

  3. 40 Years • Emphasis on high quality • Long useful life • 2.5% ammortization

  4. Building a “PhoneBox” • Built like Rock of Gibralter • Single Occupant • Single Owner • All common space • External security • All common power • Integrated design

  5. Unfriendly Legal Matters • CarterFone - 1969 • Modified Final Judgement - 1984 • Judge Harold Greene • Telecom Act 1996 • FCC Unbundled Services

  6. What’s in YOUR Wallet? • Open Network Architecture • External Security • Internal Security • Expensive • Unwieldy • Messy, ugly, etc. • Not designed for it.

  7. Unbundled Loop • Spur competition • Congressional Direction • FCC interpretation • Stifled competition • Delayed implementation • DSL

  8. Video vs. Old Model • Short Interval • Reactive delivery • Overlay Networks • Specialized Techs, Tools, Processes • Labor Intensive • Small Base • Double Overhead • TLC Required

  9. New Developments • Rapid technical advances • FCC mandates • New services are needed • Latest delivery vehicle demanded

  10. Bargains Actively Sought • Smart and frugal buyers • Outsmart tariffs • Comparison shoppers • Cancel delivery in favor of a better deal

  11. Video Services Not Profitable • Acute specialization • Low volume • No cross application • Double overhead • Demographics • Situation deteriorating • New capital required

  12. Dark Shadows • The prognosis is grim • Demographics • “Sun City, here we come!” • Retiring Video Specialists not replaced • New Owners are entrepeneurs

  13. Old Model Rx • Get Pro-active • Increase service base • Commit to terrestrial transport • Contract for services over a broad area • 3 - 5 year window

  14. 21st Century Model • It’s all IP • Data Centers • Stingers, DSLAM and the DSL Motel • Follows the talent • “Legal” friendly

  15. Vast capacity Superb facilities POWER SECURITY Flexible accomodations Vast array of technical services Vast array of support services APPLICATIONS support services Data Centers

  16. SAC locations Companion cabinets Commercial Power Battery back-up xDSL capable of 20 megabits CLEC “guests” access to all distribution cable pairs all levels of “feeder” services available Stinger/DSLAM

  17. Not a Telephone Co. Buildings not Single Family OSP not ONA or “unbundled” IP, data, voice, video Data Centers designed to serve “guests” Stinger Motels provide “remote co-location” Qwest = Internet

  18. IP video transport Data Centers house TV applications “Pipe” synergies Application expertise Mainstream transport “Future” model No longer “fighting the system New technical elite Video & 21st Cent. Model

  19. Emerging needs, HDTV, Digital Cinema Huge bandwidth Volume discounts Become a major market Great revenue potential Working Partnerships Video Transport Power

  20. VSF 21st Century RX • Embrace the new model • Lead the industry • Drive the standards to include video • Drive the standards to FEATURE video • Build the boxes

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