1. Track 4 Additional Topics

2. By Request… zyou asked for a few notes on these topics….

3. How to connect to Everyone Else zPurchase a link to another ISP in your region zBUY “transit” from them zwholesale / retail relationship zBUT yno control over price yno control over quality

4. How to connect to Everyone Else zLEASE your own circuit to another country zBecome a customer of a remote ISP zWhich country yUS Provider? yEU Provider? yRegional Provider? xPrice xQuality

5. How to connect to Everyone Else zWhat kind of circuit? ySatellite xslower xcheaper? xAvailable? yCable circuit xfaster xhigher lease cost xmay not be available

6. How to connect to Everyone Else zMultiProvider issues ydomestic exchange ydomestic settlement

7. Content Policy zA network is a collection of packet switches zPacket switches use packet headers not data payloads zPacket switches cannot enforce content policy

8. Content Policy zSite Filtering yBlock access to certain sites from the boundary of the network ylist maintenance ylist enforcement zYOU CAN MAKE IT LESS OBVIOUS BUT YOU CANNOT STOP IT

9. Content Policy zUse the right tool to enforce public policy zHuman policy problems typically require human solution, NOT network solutions zA packet switch cannot enforce policy if you want to have a productive and scaleable network

10. To Sell a Network zWhy do you want to sell? yFor capital gain? yMismatch with core business yMismatch with public positioning yCapital crisis

11. To Sell a Network zWhat are you selling? yLine Leases ? yRouters and servers? yLocations ? yStaff expertise ? yBusiness expertise ? yCustomers ? yFutures ?

12. To Buy a Network zWhy do you want to buy a network? yProfit opportunity yTo enter the market quickly yTo lever off existing related skills and services yTo purchase skills and market share

13. Communications Industry Trends zVoice is highly profitable zAllows high grade engineering for peak demand zVoice is highly predictable zVoice is easy to build and evidently profitable to operate

14. Communications Industry Trends zData used the margins of voice engineering zData was very very small scale zData was used by corporates for private networks zData was priced at voice pricing levels zData was was highly profitable

15. Communications Industry Trends zInternet entry yPublic network yHigh value add ylow entry cost to the market yover subscription of the IP transmission system yhigh growth in data demands

16. Communications Industry Trends zDeregulation of the communications industry ynew entrants competing yInitial competition in high profit voice xmobile telephony xinternational voice ycompetition for data transmission market yreduced voice market share for traditional telco

17. Communications Industry Trends zThe Internet crisis ydata is now about 70% of the transmission network xexponential growth ydata is now about 2% of the revenue to the traditional telco ylower margins yless money to expand the network ylimited available network for more IP-based activities

18. Communications Industry Trends zSo where is the Internet money?

19. Communications Industry Trends zreduce cost of transmission switching by combining all traffic into a single switch and transmission fabric yATM zBUT data does not use ATM efficiently yATM is expensive to use for data

20. Communications Industry Trends zThe Internet will drive a market for low margin dedicated communications plant zVoice bypass over the Internet will increase for a while - until voice prices come down zTelco copper plant operating margins will decrease - mobile will remain good business zWDM will further drive down transmission costs zunit data switching costs will come down

21. Communications Industry Trends zAre we willing to forego the telephone completely? yNo - ‘traditional’ voice has a viable future xcircuit switching WORKS for telephony xmobile telephony WORKS yBut ‘viable’ is not the same as ‘highly profitable’ zSO WHAT WILL HAPPEN? yVery uncertain!