Vocie Over DSL For Internet

Voice over DSL
Convergence where it
counts.
Jeff Jenkins
Jetstream Communications
IEEE - Bay Area Chapter Meeting
June 9, 1999
What the analysts say:

"In my opinion, and not to be
melodramatic here, it is the most
important trend in the industry in the
past 10 years, the coming together of
voice and data networks"
--Jonathan Haller, principal analyst covering network
services for market researcher Current Analysis Inc.,
(Sterling, Va.).
Agenda
The True DSL Opportunity

CLEC Implications
ILEC Implications
Subscribers Benefits
Yesterdays DSL
Opportunity
Data
Rev./Year
$4.2B
Small
Business
7.4M
Internet
Access
61%
Home Office/
Res.
104M
25%
$4.7B
111.4M
31M
$8.9B
Total
Est.
Total
DSL is ideally suited for delivering data

services to this market...
Source: IDC
Today's DSL
Opportunity
Data
Rev./Year
$4.2B
Voice
Rev./Year
Small
Business
7.4M
Internet
Access
61%
Home Office/
Res.
104M
25%
$4.7B
$35B
111.4M
31M
$8.9B
$65B
Total
Est.
Total
$30B
and DSL is ideal for delivering Voice as well!

Source: IDC
Small Business: Voice vs.

Data
Average Annual Small Business
The typical small business
spent $6,645 on voice
services and $568 on data
in 1998
By 2002, data will
represent nearly 10% of
total landline
expenditures. 90% of
expenditures are on voice!
Landline Expenditure per Business

$10,000
$9,000
$8,000
$7,000
$6,000
Voice
Data
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Source: IDC, January 1999
1997 1998 1999 2000 2001 2002
DSL Access Network

PSTN
xDSL
Phone
System
LAN
DSL
Rtr.
Subscriber
Regional
Packet
Network
Class 5
Internet
DSLAM
ISP Facilities
ILEC
Wire Center
Regional
Switching Center
Voice over DSL

Voice Gateway
303
Phone
System
LAN IAD
Subscriber
xDSL
Regional
Packet
Network
PSTN
OC3
DS3/
Class 5
Internet
DSLAM
ISP Facilities
ILEC
Wire Center
Regional
Switching Center
Integrated Access Device

(IAD)
Multiplexes multiple telephone lines
and data onto single DSL circuit
(single copper pair)
Supplied by Jetstream, FlowPoint,
Efficient, Ramp, Netopia,...
Voice over DSL

Voice Gateway
303
Phone
System
LAN IAD
Subscriber
xDSL
Regional
Packet
Network
PSTN
OC3
DS3/
Class 5
Internet
DSLAM
ISP Facilities
ILEC
Wire Center
Regional
Switching Center
DSL Access Multiplexer

(DSLAM)
Multiplexes multiple subscribers
onto a single back-haul facility
Supplied by Nokia, Alcatel, Cisco,
Copper Mountain, Nortel,...
Voice over DSL

Voice Gateway
303
Phone
System
LAN IAD
Subscriber
xDSL
Regional
Packet
Network
PSTN
OC3
DS3/
Class 5
Internet
DSLAM
ISP Facilities
ILEC
Wire Center
Regional
Switching Center
Voice Gateway
(CPX-1000)
Integrates subscriber voice traffic
into Class 5 local switch
Supplied by
Voice over DSL

Voice Gateway
303
Phone
System
LAN IAD
Subscriber
xDSL
Regional
Packet
Network
PSTN
OC3
DS3/
Class 5
Internet
DSLAM
ISP Facilities
ILEC
Wire Center
Regional
Switching Center
A carrier can deliver up to 16 telephone lines

and data service over a single copper pair
VoDSL Advantages:
Dynamic Bandwidth Allocation

700
Average bandwidth available for data
Bandwidth (K)
600
500
400
300
200
100
0
7am
Average bandwidth used by telephony

8am
9am
8 lines serving 32 extensions at

P.01 over a 768kbps SDSL line
10am 11am 12pm
1pm
2pm
3pm
4pm
5pm
Dynamic Bandwidth
Available Bandwidth during Busy Hour
On a fully utilized 768 SDSL line...

80% of bandwidth avail. 50% of the time
50% of bandwidth avail. 90% of the time
The CLEC VoDSL

Opportunity
To extend the reach of their already
successful voice and data bundling
strategy to the next big markets...
Small Business, Home Office &

High-end Residential
The CLEC VoDSL

Opportunity
which is also a significantly

larger voice opportunity
Small Bus, HO and

High-end Residential
Large Business
$88B
Source: IDC
$34B
The Current CLEC

Opportunity
Run T1/T3s over Fiber,

WLL, or Leased from ILEC
Phone System
Router
PSTN
Voice Switch
Internet
Data Switch
Phone System
Router
Large/Mid-Size
Businesses
CLEC Regional
Switching Center
The Current CLEC

Opportunity

Phone System
Cost of current
TDM technology
only permits
profitable service
delivery to
subscribers with
14 or more
telephone lines
Router
PSTN
Voice Switch
Internet
Data Switch
Phone System
Router
Large/Mid-Size
Businesses
CLEC Regional
Switching Center
The Current CLEC

Opportunity

Phone System
95% of Small
Businesses and 99%
+ of Residences use
12 or fewer
telephone lines!
Router
PSTN
Voice Switch
Internet
Data Switch
Phone System
Router
Large/Mid-Size
Businesses
CLEC Regional
Switching Center
The CLEC Challenge

Finding a cost-effective access
network architecture that leverages
the last mile copper network
Phone
System
LAN
Phone
System
PSTN
LAN
Voice Switch
Internet
Phone
System
Data Switch
LAN
CLEC Regional
Switching Center
Phone
System
LAN
Small Businesses
& Residences
ILEC
Wire Center
Deploying a single multi-service

network that efficiently scales to
deliver both VOICE and DATA.
VoDSL Access Network

xDS
L
Phone
System
LAN
IAD
DS
-3
DSLAM
Phone
System
LAN
/O
C
IAD
303
Regional
Packet
Network
PSTN
Class 5
Internet
Phone
System
LAN
Voice Gateway
-3
ISP Facilities
IAD
Regional
Switching Center
Phone
System
LAN
DSLAM
IAD
Small Businesses
& Residences
ILEC
Wire Center
VoDSL Benefits to
CLECs
Successfully penetrate the small business,

home office and high-end residential markets
Solves the economic and operational challenges
Single network for voice and data - On Net

Single copper pair
Requires only a DSLAM in CO
Single back-haul facility
Solves the marketing challenges

Increases customer acquisition and retention through
bundled voice and data services
The ILEC VoDSL

Opportunity
Overcome Copper Exhaust Challenges
ILEC Copper Exhaust

Phone
System
Number of additional
lines increasing
LAN
PSTN
Voice
Switch
Phone
System
LAN
Small Businesses
& Residences
ILEC CO
ILEC Copper Exhaust

Phone
System
New copper-based
services - DSL
LAN
PSTN
Voice
Switch
Internet
Phone
System
LAN
Small Businesses
& Residences
DSLAM
Data
Switch
ILEC CO
ILEC Copper Exhaust

Phone
System
New copper-based
services - DSL
LAN
PSTN
Voice
Switch
Internet
Phone
System
LAN
Small Businesses
& Residences
DSLAM
Data
Switch
ILEC CO
ILEC Copper Exhaust

Where DSL is deployed...
Phone
System
LAN
IAD
Voice Gateway
PSTN
Voice
Switch
Internet
Phone
System
LAN
DSLAM
IAD
Small Businesses
& Residences
Data
Switch
ILEC CO
utilize VoDSL to
overcome exhaust
VoDSL Benefits to ILECs

Overcome copper exhaust
Generate additional voice and data revenue
Drive more lines through bundling
Faster return on DSL investment

Entrench customers before competition does
Subscriber Benefits
One-stop shopping for voice & data

Consolidated billing
Competitive, compelling service offerings
Bundled data if you switch dial-tone provider

Discounted telephone service
Bundled local and long distance
In Summary
DSL is not just for data anymore
Its about bundled services.

Data sells and voice pays. Not the other way around.
If in two years youre only in the voice business or only in
the data business, you should be nervous.
VoDSL is a Win-Win-Win
Carriers: Access to new markets and generate more $$$.

Subscribers: Receive compelling new services.
DSL equipment suppliers: DSL deployments increase.
xDSL Forecasts
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1998
1999
2000
2001
2002
Current adoption estimates based on customer willingness

to pay premium for faster data. An isolated data decision.
What if it were based on customers with at least a few
phone lines that could use higher speed data?
The Leader
in
Voice over DSL
Jeff Jenkins
(408) 399-1300
[email protected]
www.jetstream.com

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Voice over DSL

What the analysts say:

The True DSL Opportunity

DSL is ideally suited for delivering data

and DSL is ideal for delivering Voice as well!

Small Business: Voice vs.

Landline Expenditure per Business

Source: IDC, January 1999

1997 1998 1999 2000 2001 2002

DSL Access Network

Voice over DSL

Integrated Access Device

Voice over DSL

DSL Access Multiplexer

Voice over DSL

Voice over DSL

A carrier can deliver up to 16 telephone lines

Dynamic Bandwidth Allocation

Average bandwidth available for data

Average bandwidth used by telephony

8 lines serving 32 extensions at

10am 11am 12pm

On a fully utilized 768 SDSL line...

The CLEC VoDSL

Small Business, Home Office &

The CLEC VoDSL

which is also a significantly

Small Bus, HO and

The Current CLEC

Run T1/T3s over Fiber,

The Current CLEC

Run T1/T3s over Fiber,

The Current CLEC

Run T1/T3s over Fiber,

The CLEC Challenge

Deploying a single multi-service

VoDSL Access Network

Successfully penetrate the small business,

Solves the economic and operational challenges

Single network for voice and data - On Net

Solves the marketing challenges

The ILEC VoDSL

Overcome Copper Exhaust Challenges

ILEC Copper Exhaust

ILEC Copper Exhaust

ILEC Copper Exhaust

ILEC Copper Exhaust

VoDSL Benefits to ILECs

Faster return on DSL investment

One-stop shopping for voice & data

Bundled data if you switch dial-tone provider

Its about bundled services.

Carriers: Access to new markets and generate more $$$.

Current adoption estimates based on customer willingness

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