Business Data Communications

1. Business Data Communications Standards and Laws

2. What are Standards? • Documented agreements • Technical specifications or other precise criteria to be used consistently as rules, guidelines, or definitions of characteristics • Ensure that materials, products, processes and services are “fit for their purpose”

3. Why Are Standards Important to Telecommunications? • Attracts firms to produce products while… • Promoting interoperability of components. • Consumers may select components made by different vendors. • Having many vendors keeps prices down for consumers. • Greatly simplifies the process of creating components and creating networks, which reduces costs throughout the value chain. • Worldwide standards promote the creation of worldwide communications systems. • Standard setting process promotes intelligent discussion of problems and possible solutions.

4. Who Sets Standards? • International Organization for Standardization (ISO) • A.k.a. L’organisation Internationale de Normalisation • “ISO” does not stand for anything, BTW. • A worldwide federation of national standards bodies from 130 countries, one from each country • HQ in Geneva, Switzerland

5. Who Sets Standards? • International Telecommunications Union(ITU-T) • Formerly the Comité Consultif International Télégraphique et Téléphonique (CCITT) • In 1993, the CCITT became part of the (ITU-T) but it’s still widely known as the CCITT • HQ in Geneva, Switzerland

6. Who Sets Standards? • American National Standards Institute (ANSI) • Private, nonprofit membership organization of nearly 1400 companies, government agencies, institutions, and organizations • Also a member of the ISO • HQ in New York City, satellite office in Washington, D.C.

7. Who Sets Standards? • Institute of Electrical and Electronics Engineers (IEEE) • An international non-profit technical professional association of more than 330,000 individual members in 150 countries • Produces 30 percent of the world's published literature in electrical engineering, computers and control technology • Holds annually more than 300 major conferences • Has more than 800 active standards with 700 under development.

8. Who Sets Standards? • Electronics Industries Alliance (EIA) • Represents the entire spectrum of US companies involved in the design and manufacture of electronic components, parts, systems and equipment. • Seven industry sectors/groups • Access to domestic and foreign marketing data • Lots of perqs for member companies • Lobbies Congress and government agencies.

9. Who Sets Standards? • Internet Engineering Task Force (IETF) • A large open international community of network designers, operators, vendors, and researchers. Open to any interested individual. • Considers the evolution of the Internet architecture and the smooth operation of the Internet. • Meets thrice/year but working groups collaborate via e-mail.

10. De Facto Standards • A condition existing within a particular industrial sector when the large majority of products or services conform to the same standards. • Results from consensus agreements reached between all economic players in that industrial sector - suppliers, users, and often governments. • Examples: IBM PC, TCP/IP, Ethernet

11. Major USA Laws and Rulings • Back in “the day”, we had one nationwide telephone company—AT&T. • Granted a monopoly, in effect, for promising to be a common carrier and providing universal access. • Other countries had government monopolies (PTTs) which offered huge opportunities for patronage. • There were always small, independent local phone companies scattered about and there still are. • For example, CT Communications a.k.a. “The Concord Telephone Company”

12. Major USA Laws and Rulings • Modified Final Judgement (1982) • Divested ATT of the 22 Bell Operating Companies, which grouped into 7 Regional Bell Operating Companies (RBOCs) -- the “Baby Bells” • RBOCs regulated by state public service commissions • RBOCs cannot enter LD market or e-publishing • RBOCs given equal rates for access to LD system • RBOCs given the Yellow Pages • ATT allowed to enter any unregulated market and to keep Western Electric and Bell Labs • Competition (Sprint, MCI) and falling rates for long distance!

13. This is How the RBOCs Started

14. Major USA Laws and Rulings • Telecommunications Act of 1996 - a huge change for LD, local phone service providers, TV, radio, and cable industries. • Deregulated long-distance pricing and allowed LDCs to enter market for local phone service • RBOCs can enter LD market and e-publishing under certain condition • Prevents some telecomm mergers • V-chip • Cable companies can enter local phone market once cable rates are deregulated but cannot enter the “direct TV” market • and much more...

15. Summary • Standards promote interoperability of components. • Standards serve both vendors and consumers by increasing the options available to both parties. • Standards may be official, de facto, or both. • Telecommunications standards are set by several organizations. • Government policies have a tremendous impact on the development of the telecomm industry.