ISDN Integrated Services Digital Network

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ISDNIntegrated Services Digital Network

• Presented by
• Paul Everson, Sanjay Kumar, Jonathan Lee
• Scott Seiderman,Tom Vu, Ricardo Umana

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ISDN

• Introduction
• How it works
• Issues
• Competitors
• Conclusion

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Introduction

• What is it?
• Telephone network turned all-digital end to end
• Uses existing copper wiring and switching
• Divides bandwidth avail into 3 channels
• Transmission speed 128 KBPS
• Available for more than a decade
• Approximately 92 of phones lines ISDN-capable,
  Computer Retail Week 2/15/99
• Widely Used in Europe

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How it Works

• Multi-channeled switched access using current
  telephone wire 2BD
• Voice and circuit-switched data on B-channels
• Packet switched data on B-channels
• Signal packet-switched data on D-channel

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• insert installation rates here

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Nationwide ISDN
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Uses of ISDN

• Videoconferencing
• LAN-to-LAN connections
• Point-of-sale systems
• Telecommuting
• Internet Access

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ISDN It Still Does NothingInnovations
Subscribers Dont Need
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Issues

• Deployment
• Lack of generally accepted ISDN standards
• Considerable variations from different RBOCs
• Lack of ISDN-compatible switching equipment
• Complex installation processes for users
• Not much faster than 56K modems
• Too little, too late

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Competition

• DSL
• Converts existing twisted-pair lines into high
  speed digital links
• 1.5 MBPS to 8 MBPS
• Virtually every residence business is already
  wired
• Reliable
• Broadband

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Competition

• DSL
• Disadvantages
• Ability of existing copper wires to support DSL
• Competing DSL standards may delay widespread
  deployment
• Restrictions of available current technology
• Routers ATM switches must be installed

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Competition

• Cable Modem
• Extremely fast- 10 MBPS to 27 MBPS
• Easy to install
• Too many users can slow down system
• Not available everywhere

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Competition

• Direct PC
• 400 KBPS speed
• Uses small, roof-mounted satellite analog PC
  modem
• System costs 299
• Not currently popular

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Comparison
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Industry Analysis
THREAT OF NEW ENTRANTS MCI WORLDCOM Utility
companies Small companies
LOW
SUPPLIERS POWER RBOCs GTE International
Telecom Hardware Suppliers
BUYERS POWER Business (Lg sm) Residential Gove
rnment Education
HIGH
RIVALRY AMONG COMPETITORS ISDN Industry
MED
LOW
THREAT OF SUBSTITUTES ADSL Direct PC Cable
Modem Telephone Modem
HIGH
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PACIFIC BELL ISDN - example

• Product
• ISDN Centrex
• ISDN for business
• ISDN for residential
• Price
• Tier Pricing
• Centrex
• Business
• Residential

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PACBELL (continued)

• Promotion
• little promotion performed
• website
• word of mouth
• Place (Distribution)
• own network

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Price Comparison
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Conclusion

• Not Robust Industry
• Incremental benefits from telephone modems not
  justifiable
• Other technology more optimal
• Deployment too late
• Poor marketing / little awareness

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Questions for ISDN

• Is it too little, too late?
• Should telecoms expand their efforts with ISDN?
• Which technology pose the greatest threat?
• What markets should ISDN be targeted?
• What pricing structure?