As businesses of all sizes and all industries reach for the brass ring
of e-business, demand for high-speed Internet access continues to rise,
creating a tremendously attractive opportunity for service providers. Today's Digital Subscriber Line (DSL)
broadband technologies are ideally suited for the task. With DSL, service
providers can bypass the local loop -- and avoid paying a "toll"
to the local exchange carriers with whom they compete -- while
cost-effectively leveraging the existing copper in the customer premise.
For small business subscribers, DSL offers all the advantages of a
high-speed broadband pipe at a cost far lower than a dedicated T1 line.
DSL has significantly lowered the barriers to entry in the high-speed
Internet game, pitting Internet Service Providers (ISPs) against a host of
competitive local exchange carriers (CLECs), including so-called
"next-gen" carriers. In fact, DSL is creating a whole new
category of building-centric service providers focused on providing
broadband access on a building-by-building basis. Even real estate
investment trusts (REITs) and other companies that own and manage
multi-tenant unit (MTU) buildings are competing. Recognizing a revenue
opportunity when they see one, REITs are partnering with DSL hardware and
service providers to deliver high-speed access to their tenants. This is
especially prevalent in commercial buildings, where DSL availability is
rapidly becoming a prerequisite to tenants signing a lease.
The Next Big Thing
But even as it opens the door to new revenue models, DSL poses a
challenging question to building-centric service providers: what next? To
date, DSL has served primarily as affordable, high-speed Internet
access to business and residential users. The fact is, DSL has been
severely underutilized. Where are the broadband services that would
elevate DSL beyond simple Internet access -- and even beyond commodity
status?
The answer to this crucial question is appearing in the form of a new
generation of converged IP services that combine data, voice, and video
over the same high-speed pipe. Leveraging today's advanced IP-based DSL
equipment architectures, building-centric service providers can now offer
their tenant/subscribers a new generation of exciting subscriber services,
customized to their needs, all over the same DSL line that provides basic
Internet access. And they can do it extremely cost-effectively. These
services offer small and medium-sized businesses a valuable edge, greatly
enhancing their ability to communicate with colleagues, clients, and
partners. For DSL service providers, IP services represent a rich new
revenue source, as well as a vehicle for differentiating their service
offering from their competitors'. This last point is especially critical
for REITs, who will use broadband services primarily as a value-add to
attract and retain profitable business tenants.
New Converged Services
What are these new services? Thanks to the flexible nature of their
underlying IP architecture, broadband services can take a wide variety of
forms. Indeed, new IP services can be developed or customized rapidly to
meet the specific needs of a particular subscriber or tenant. The following
is just a sampling of some of the IP services now emerging to give
building-centric DSL providers the edge:
Voice Over DSL
If high-speed Internet access was the first "killer app" for
DSL, IP telephony seems destined to be the second. Providing voice service
over a tenant's broadband DSL line offers the potential for significant
monthly cost savings for subscribers (and an attractive, new revenue
source for service providers). And, because those services are delivered
over a managed IP network right in the building, subscribers will not
experience the kind of latency and quality of service (QoS) issues that
have plagued some early voice over IP (VoIP) efforts over the public
Internet. Probe Research predicts that IP-based networks will carry 18.5
percent of the world's voice traffic by the year 2002. For
building-centric service providers, today's IP-centric DSL solutions are
the logical choice for carrying voice traffic.
Virtual Private Networks (VPNs)
As companies become increasingly decentralized, they are turning to VPNs
to link together geographically distributed offices and workers. VPNs
offer all the cost advantages of communicating over public data networks
and the performance and security advantages of a private network. The new
generation of DSL solutions is ideal for VPNs: the bandwidth for high
performance; the sophisticated management capabilities to ensure robust
security; the flexibility to allow a variety of remote access
capabilities; and extremely cost-effective deployment and scaling.
DSL-based VPNs can also accommodate telecommuters, offering high-speed
access from home or the road.
IP Multicasting
IP multicasting is an emerging "push" technology that enables
DSL service providers to broadcast voice, video, and data over the
Internet or corporate intranets without depleting network resources. Based
on standards developed by the Internet Engineering Task Force (IETF), IP
multicasting enables service providers to broadcast news, radio, and
television feeds, stock updates, and voice or video conferences with
exceptional cost and bandwidth efficiency. IP multicasting opens the door
to a host of customized service offerings focused on the needs of
individual tenants.
Video Services
Delivering video over a cost-effective DSL pipe is one of the most
exciting of all converged IP services. Today's advanced IP-based DSL
architectures can bridge audio and video transmission without sacrificing
quality in either, so your corporate sales meeting doesn't end up looking like a
poorly-dubbed foreign movie. The possibilities for innovative IP video
services are nearly endless, but hot emerging applications include:
- Video conferencing (providing two-way, real-time video meetings and
group collaboration);
- Video streaming (for high-quality, one-way video, either real-time
or recorded);
- Distance learning (providing either one-way or two-way video
communication, with instant online access to learning resources during
a class or lecture);
- Telemedicine (bringing doctors and their patients together via
two-way video; and
- Video on demand (offering the ability to provide movies and other
recorded video content directly to subscribers, whenever they want
it).
Application Service Providers (ASPs)
The aggregation of business services has fueled the emergence of ASPs
providing access to applications, services, and resources residing on
external, commercial servers. ASPs offer a variety of advantages,
including freedom from costly site licenses and upgrades. In many cases,
ASP users can also store data on a secure, remote server. This advantage
is driving the emergence of ASPs dedicated to providing data back-up and
disaster recovery services. Creating a seamless link between users and
ASPs is critical to the success of this innovative concept. Today's
advanced DSL solutions provide the high-bandwidth, always-on connection
that make using ASP resources as easy and convenient as using a corporate
network. Partnering with ASPs, building-centric DSL service providers can
deliver to their business subscribers a total solution, with one provider
for all services -- including business applications. This offers
tremendous cost and convenience advantages to subscribers and powerful
differentiation and revenue potential for service providers.
A New Architecture
So why haven't we yet seen widespread deployment of these innovative
services? The answer lies primarily in the limitations of existing DSL
equipment architectures. Legacy DSL hardware -- called a DSLAM
(Digital Subscriber Line Multiplexer) -- was designed to do one thing:
provide high-speed access to the Internet. Going beyond this basic
capability meant deploying costly and complicated solutions to provide
bridging, switching, routing, and other functions required for delivering
converged services.
However, a new "smart" DSL architecture is emerging that is
specifically designed to enable the next generation of IP-based broadband
services. This new architecture integrates into a single Digital
Subscriber Line Access Router (DSLAR) the intelligence and functionality
to enable IP services: DSL access multiplexing; Layer 3 IP routing; Layer
2 switching; and virtual private networking. It also provides seamless
integration with Ethernet, ATM, and circuit-switched networks and support
for a wide range of next-generation protocols -- including RIP, RIP II,
OSPF, IP Multicast, VoDSL, and protocols for legacy network support. The
result is a DSL architecture that enables simpler and faster deployment of
the IP-based converged services. Cost is reduced throughout the lifecycle.
Service quality and reliability are improved. Bandwidth management and
allocation efficiency are increased. And a single, integrated unit means
less space is required in the already cramped building equipment closet.
Think Smart
As DSL continues to make inroads in office buildings, college campuses,
residential developments, and other MTU environments, the demand for more
sophisticated broadband services will only increase. In the next few
years, prospective tenants in a corporate office park may well have video
conferencing and VPN on their list of must-haves, along with a
conference room and janitorial service. Building-centric service providers
able to fulfill those demands will enjoy a captive subscriber base willing
to put all their broadband communications eggs in one, cost-effective
basket. To ensure they don't get left out, service providers must choose
the DSL architecture that lets them cost-effectively deploy these
next-generation services. Thinking smart -- thinking IP -- will be the key
to transforming DSL from a limited commodity to an unlimited competitive
advantage.
Kenneth Osowski is vice president of marketing for Interspeed,
Inc., a provider of integrated DSL access solutions focused on
the MTU and other building-centric DSL markets. |