Copyright 1999 Federal News Service, Inc.
Federal News Service
JUNE 24, 1999, THURSDAY
SECTION: IN THE NEWS
LENGTH:
2505 words
HEADLINE: PREPARED STATEMENT OF
MR.
HOWARD A. LENOX
DIRECTOR, FEDERAL RELATIONS AND TECHNOLOGY ISSUES
SBC
TELECOMMUNICATIONS
REPRESENTING: USTA
BEFORE THE HOUSE
COMMERCE COMMITTEE
TELECOMMUNICATIONS, TRADE AND CONSUMER PROTECTION
SUBCOMMITTEE
BODY:
Mr. Chairman and Members of
the Subcommittee, it is an honor to appear before you today. I am Hal Lenox,
Director of Federal Relations for Technology Issues at SBC Telecommunications. I
have been asked to provide the Subcommittee with a brief overview of the
Internet, the technologies that make it up, and perhaps a prediction or two
concerning its future
Mr. Chairman, even defining the Internet can at times
be problematic. In preparation for our discussion today, I consulted Newton's
Telecom Dictionary for a succinct description that I could share with the
Committee. Newton's begins its definition with the following admonition:
"INTERNET: It is very hard to define the Internet in a way that is either
meaningful or easy to grasp." Mr. Newton then goes on to provide a definition
that spans 2/3 of a page. At the other extreme, the textbook Telecommunications
for Managers, by Stanford Rowe, a text I taught out of at San Diego State
University, provides the other end of the spectrum. Rowe offers this definition
in its totality: "An interconnected set of government, research, education, and
private networks." Both definitions are correct, yet neither is wholly useful
for our discussion today.
I would submit that a useful definition might be:
"INTERNET: A 'network of networks' linking various individuals and institutions
spanning business, education, and government, together globally through the use
of a common computer language". The operative elements of the definition
include: network, individuals and institutions, globally, and common language.
Background and History
With our working definition in hand, I'll begin
with a brief history of the Internet. In 1962, the Internet was "born" as an
outcome of recommendations from the Rand Corporation in a document entitled, "On
Distributed Communications Networks". The document detailed the construction of
a computer network featuring the absence of a single outage point. In other
words, Rand advocated the construction of a network with the theoretical ability
to survive a catastrophic event such as nuclear war. In 1969, the Department of
Defense commissioned ARPANet with four host computers, or nodes, and a limited
number of users made up primarily of scientific researchers.
From its
nascent stages in 1969 until today, the Internet has grown to become the
catalyst that - together with dramatic improvements in both computing power and
bandwidth potential - has become the enabler of our society's transition from a
service economy to a knowledge economy. How did an arcane computing network
built solely with the intent of conducting military research rise to its current
position of prominence and pervasiveness in our daily lives?
A number of
factors have contributed to the Internet's newfound utility and popularity: the
growth in both number and processing power of computers, privatization of the
Internet and the development of a simple user interface, the World Wide Web.
While I will confine the majority of my comments to the Web, it is the
concurrence of all three that have made the Internet the phenomenon it has
become.
The Internet today features over 42 million domains, or discreet
sites that one can visit on the Net, containing in excess of 830 million pages
of web content. To put things in perspective, it is useful to benchmark these
statistics against 1996, the year that the Telecommunication Act was signed. In
that year, the Internet contained an estimated 240,000 domains, and roughly 72
million web pages. Such growth can only be described as explosive. Nor is it
slowing. Inc. Magazine recently estimated that 17 new web pages appear on the
World Wide Web every second.
As the Internet has grown, so has the nature of
the data carried over it. In its early days, the content on the web was
primarily text- based, similar to our first personal computers. In fact, the PC
offers a valuable metaphor for the current geometric growth of data on the
Internet. I can still vividly recall the first IBM XT computers delivered to our
office. During their delivery and setup, it was not uncommon to hear the
refrain: "What will we ever do with 10 megs of hard drive?"! Today, that 10 meg
hard drive would barely be sufficient to house a simple movie trailer downloaded
from your favorite movie site on the Web. The real growth in PCs came when the
graphical user interface was developed, making computers approachable and easy
to use.
The same is true of the Internet. The development of the World Wide
Web and "browser" in 1993 had an identical effect; the growth rate in web sites
mentioned previously offers ample evidence. Whereas we once accessed text-based
interfaces with programs such as "FTP" and "Gopher" (the Internet equivalent of
using DOS), today we merely point and click on our browser.
What follows
that action is the ability to trade stocks, purchase books or even automobiles,
research an affliction suffered by a loved one, preview a CD or movie, or simply
chat with one's friends. Whatever the application, one thing is certain: our
desire for content and media rich transactions will drive the amount of
information transmitted even higher, making the need for speeds greater than
your modem currently supports all the more important.
The Structure of the
Internet
The architecture of the Net is hierarchical in nature, which is to
say that things "feed up" from the end user through a series of computer
networks connected to local and/or regional service providers until they reach
large transmission facilities commonly referred to as "backbones". One might
think of the structure as looking somewhat like a river system beginning with
small streams and tributaries making their way towards the main body of water.
Backbone Structure
Rowe defines "backbone network" as "the main network
in a particular network system." The circuits making up the backbone are large,
high capacity lines running both cross-country and around the globe, connecting
major cities along the way. These privately owned networks allow Internet
Service Providers (ISPs) to exchange data across networks. This exchanging of
Internet traffic is generally referred to as "peering". The hubs, or
intersections, at which this data is handed from provider to provider and
backbone to backbone is generally referred to as a Network Access Point, or NAP.
Following the privatization of the Internet by the NSF, a total of four NAPs
existed in the U.S. However, due to the explosive growth of the Net, additional
exchange points - both public and private - appeared. NAP clients may negotiate
their own agreements with other NAP clients for the exchange of Internet. These
agreements establish mutually acceptable rules by which the providers transact
exchanges. It is here that the peering takes place.
End User Access:
Narrowband
To reach the local provider, or ISP, the end user must have some
connection to that provider. A number of access methods are currently available
with a like number currently under development.
Switched Telephone
Network (analog modem): Bandwidth on the telephone network is generally limited
to the transmission of analog voice and modem-based data in the 0-4 kHz range.
Modem manufacturers are now producing 56K modems with 50K downstream capability
and 33K upstream. These speeds represent the upper limit for analog transmission
on a single pair of copper wires within the circuit-switched telephone network.
Switched Telephone Network (ISDN): The integrated services digital network
is both a set of digital transmission standards and a network infrastructure
that allows digital transmission over the existing telephone wiring. ISDN is
defined as "a network, evolved from the telephony network that provides
end-to-end digital connectivity to support a wide range of services including
voice and non-voice, to which users have a limited set of multiple-use user
interfaces." ISDN represented an attempt to increase both the bandwidth
availability and overall functionality of the legacy telephone network.
End
User Access: Broadband
Digital Subscriber Loop (xDSL): DSL is a suite of
technologies that provide high bandwidth over existing copper twisted pair local
loop cables. DSL employs a modem-like technology and is available in a number of
variations. ADSL service supports both voice and data services. The service
provides a substantial increase in speed over both analog (50 times) and ISDN
dial-up access methods. ADSL represents a true, open architecture,
high-bandwidth service that is "always on", allowing the user constant access to
information without logging on to the Net each time. Unlike the developing trend
in cable modems, the end-user is free to select from any Internet Service
Provider (ISP).
Cable Modems: Cable modems are devices that operate over the
CATV coaxial circuit. Cable modems operate like an analog modem providing the
modulation of the signal, as well as some routing functions. These devices
operate in a shared bandwidth, "ring" topology and offer theoretical speeds of
up to 4 MBps according to Forrester Research. Cable modems, too, are an "always
on" technology.
Other Access Methods: A number of wireless technologies,
both terrestrial and satellite are showing signs of promise as high speed
Internet access products. In addition, the electrical industry is currently
developing a product that utilizes electricity distribution facilities to
provide high-speed data access.
Internet Protocol
Internet Protocol, or
IP, serves as the enabler for data communications networks. It is the foundation
upon which diverse data networks communicate with one other and pass data
traffic between them.
One can think of IP packets as postcards and an IP
message as a novel. An IP communications session is the equivalent of sending
the novel through the network on postcards. The cards contain their own "to and
from" addresses as well as part of the novel's content. At the receiving post
office, the postcards are reassembled in the correct order so the novel can be
read. If some packets (postcards) don't make it to their destination, the
receiving post office asks the sending post office for a retransmission.
With the digitization of payloads - voice, data, video, etc. - and the
evolution of Wide Area Networking, Internet Protocol has emerged as the clear
winner for data communications. It simplifies management of the network; handles
any number of other protocols; is an open protocol and not proprietary; and
allows for scalability and therefore easier network growth.
Circuit Switched
vs. Packet Switched Networks
The advent of Internet Protocols, or IP,
transmission offers the opportunity to migrate from the legacy public switched
telephone network onto IP-based networks designed specifically for the
transmission of large data streams.
In a traditional voice, circuit switched
call, the call is first set up; calls are routed through traditional class 5
switches, the circuit or path is established and maintained through-out the
call; and at the end of the call it is taken down. This is called connection
oriented because a connection is set up and maintained for the duration of the
call. The call route is not available for any other traffic while the call is in
progress.
By contrast, an IP network routes IP packets over diverse and
changing routes on the network. The path packets take between two points
constantly varies based upon network conditions. As they receive them, each
router sends packets out to the other routers and the data eventually makes it
to its end point. The path is not pre-established, thus IP is referred to as
being "connectionless."
Convergence and the Need for Broadband
Deployment
Much has been written regarding the phenomenon of
convergence. Used in the telecommunications context, convergence may include
both services and architectures. As noted previously, legacy network
architectures featured payload-specific, service-discreet offerings to
end-users. Cable companies provided one-way, broadcast services while telephone
companies provided two-way, voice and data services. Today, different providers
from previously different industries offer services that cross traditional
industry lines.
As telecommunications networks and technologies evolve,
telecommunications carriers are constructing new, separate data networks based
upon IP, which will exist parallel to the "legacy" voice network. (It is
important to note that while these networks reside outside of the legacy
telephone networks, they may - as in the case of DSL - employ elements of the
Switched Telephone Network.) These networks will require the commitment of
significant amounts of capital, which currently is subject not only to market
risk, but also - in the case of the ILECs - significant regulatory uncertainty.
This regulatory risk represents a potent disincentive to the deployment of
broadband networks capable of supporting the nation's thirst for media-rich
(converged) payloads.
Potential Impediments to the Deployment of Broadband
Despite the promise of the Internet, a number of issues stand as impediments
to its fulfillment. Consider these observations:
* "The single most
significant barrier to the continued expansion of the digital economy is the
scarcity of digital broadband connectivity to home and offices." * "The local
loop, however, remains the biggest obstacle to network convergence. The lack of
bandwidth... restricts users from accessing broadband interactive content." *
"The best available date indicates that new broadband technologies are available
in just 10% of US counties..."
Conclusion
The late 19th Century saw the
emergence of the Industrial Revolution and the entrance of the manufacturing
economy. The 20th Century saw an information revolution and a corresponding
migration to a service- based economy. We stand now at the threshold of the 21st
Century, where we are about to see yet another structural change in our economy
as we move towards a knowledge economy. Fueled by a robust Internet, this new
economy offers the promise of opportunity for all Americans.
In their book,
The Virtual Corporation, William Davidow and Michael Malone observed:
"...
in the years to come, incremental differences in companies' abilities
to
acquire, distribute, store, analyze, and invoke actions based on information
will determine the winners and losers in the battle for customers." Davidow
and Malone's comments offer a succinct affirmation of why the rapid development
and deployment of broadband networks is critical as an issue of national policy.
The scale deployment of high-speed services, facilitated by the removal of
regulatory prohibitions, becomes a key enabler for the robust development of
applications having both economic and social value. Our children deserve no
less.
Mr. Chairman and Members of the Subcommittee, thank you for the
opportunity to appear today. I look forward to addressing any questions you may
have.
END
LOAD-DATE: June 26, 1999
