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The Digital Future Of The Telephone Network
A Study of Evolving Technology

By Lee Goeller

Originally published by Probe Research Inc. 1979. Reprinted by permission

Chapter 8
All Those Other Networks

Switching was invented to reduce the cost of transmission; it is less expensive to give everybody a pair to one central point than to give everybody a pair to everybody else. However, over the years, the cost of switching has increased while the cost of transmission facilities has tended to go down: automatic switching costs more than a manual switchboard, common control systems cost more than SXS, stored program systems cost more than electromechanical, etc. Thus one item of cost reduction in rendering telephone service is the elimination of switching. If a large business customer has a lot of traffic between two of his locations, direct tie lines, bypassing the public network, relieve the toll hierarchy and, in particular, the toll switches, of a lot of work. Thus tie lines save the telephone company money, and, assuming they are priced properly, they can make a profit, give the business user a chance to cut his costs, and reduce the capital required for switching in the public network.

When a customer has three or four locations, he may start building a network, switching tie lines through his switchboard. Dial tandem networks, implemented with extra SXS switches added as required on SXS PBXs, got a great shot in the arm with the coming of Telpak, a bulk tie line offering designed to make telco-provided facilities more economically desirable than private microwave. Many corporate networks sprang up, just for voice traffic. For larger customers, CCSA (Common Control Switching Arrangement) was developed later and used central office equipment for tie line switching. The passing of SXS and the high cost of CCSA have led to new Dimension PBX offerings (ETS, in this case electronic tandem switching and NOT electronic translator system as in No. 4 Crossbar) which will keep private voice networks viable. Indeed, tie line networks may increase.

The so-called Specialized Common Carriers are largely in the business of providing analog long-haul tie lines in competition with AT&T. Apparently the FCC authorized the SCCs to be sure that the expected "data explosion" would find enough trunks available; unfortunately, most of the SCCs have gone in with traditional analog microwave radio systems that seem to be used primarily for voice and, indeed, are sometimes reported by users to be unsatisfactory for high speed (9.6 kb/s) data. In any event, low cost trunks from SCCs are also encouraging private networks; these networks are as non-digital as the AT&T long-haul trunks, and for exactly the same reasons.

What, then, of data? Surely there is some out there, and it is being handled some way or other. What is actually happening is that modems and acoustic couplers are handling data on voice-frequency facilities. An elaborate hardware business has grown up providing multiplexers and concentrators to allow one voice frequency facility to handle a number of data streams simultaneously, and to allow a number of terminals, many of which may be idle at any given time, to have access to a somewhat smaller number of data channels. Small computers built into such equipment give it an incredible degree of flexibility and capability.

Thus data networks, using both private voice tie lines and the public switched network (as well as private switched voice networks), are in wide use and increasing rapidly. Switched data networks are a little harder to come by. Analog data trunks, particularly those at higher speeds, must be "equalized" to prevent transmission distortions (which do not affect voice communication appreciably) from making the signal unreadable at the far end. But connecting two arbitrarily selected data trunks back to back (as in voice switching) degrades the overall equalization. Thus store and forward techniques, culminating in "packet switching," have been developed.

In such systems, each equalized channel is fixed, and the message is transferred from one machine to another via the channel. The receiving machine then reads the "header," sees where the message is to go, queues it for the next hop, and pumps it out as soon as the required channel comes free. The queuing insures better utilization of the facilities, and the switching function is reduced to moving information around inside a computer and regenerating it on the outgoing channel.

If messages to be sent are very long, other messages may be delayed considerably. Thus packet switching breaks long messages up into shorter messages of uniform length and interleaves such packets in time. In a properly designed packet switching system, the delays normally associated with store and forward techniques are avoided and the user feels that he has a direct connection between, say, his terminal and a distant computer.

The need for data systems, particularly for smaller organizations that cannot take advantage of the savings that quantity can produce, has led to value-added networks. "Resale of service" has been forbidden in telephone tariffs for many years, along with rules forbidding the connection of "foreign attachments." But does a time-sharing computer service, where customers dial up ports on remote data concentrators serving remote computers, constitute "resale"? Apparently not any more. Several value-added networks have sprung up in the last few years, rendering a useful service that is likely to increase.

The point in all this is that many, many networks are springing up for electrical communication all over the United States. All of them represent, to some degree, a fragmentation of the overall system. This is neither good nor bad. It just seems to be happening; if services are required, there is no longer any need to deny them to customers because of arbitrary utility policy. But fragmentation is a result.

Within the Bell System, the "Transaction Network" uses the public switched network for low-density traffic, but uses standard data techniques for traffic at high densities. Designed for very short holding-time connections (credit card checks, etc.), the transaction network has traffic that can be greatly benefited by CCIS. A 10 second call set-up time isn't too bad for a 5 minute call, but for a 3 second call, it is preposterous. The transaction network would seem to be an ideal example of the sort of thing that could be incorporated directly into the public network if only that network, with its high-speed CCIS signaling, were end-to-end digital.

Bell's Digital Data Service (DDS) is still not switched. It constitutes a true digital network, using T-carrier in its digital form; only when customer access requires a voice loop to the nearest T terminal do modems appear. To get between major cities where T-carrier is not normally used. Data Under Voice (DUV) has been developed. DUV uses the radio carrier already present for analog long-haul voice trunks. It turns out that, in modulating the groups and supergroups of voice channels onto the radio signal, there is a portion of the spectrum that is too distorted to use for analog communications. It works fine for digital signals, however, and each radio beam can carry one equivalent of a T span-line (1.544 megabits per second). On fat routes there may be several radio beams, and 1.544 mb/s can be subdivided into a lot of 1.2 or 2.4 kb/s data streams. Thus for a very small incremental cost, large numbers of point-to-point low-speed data channels (and even some much higher speed channels) can be offered around the country. The interesting point here is that DUV cannot help but add to the profits earned by long-haul analog microwave carrier. Thus a true digital data system will do its part in delaying the development of a universal digital network.

It is unlikely, of course, that a universal digital network would (or even should) eliminate all other networks. However, the impact of fragmentation on customer costs and on frequency spectrum available for radio channels cannot be ignored.

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Copyright 2005 Lee Goeller. All Rights Reserved.