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Voice Communication in Business Volume 1
Essays on telecommunications, 1969-1980

Chapter 4
Some Correspondence

During the next few years, I only wrote a few letters to the editor. Some of the editors resisted, but here I combine even the unpublished notes into a chapter for my hopefully enthusiastic public.

During our adventures with the RFP, Telephony published a special issue on modern PBXs. In several of the articles, the modern (Series 300) PBX features were extolled, pointing out how much extra money they could make for telcos renting such modern equipment. What was never made clear was that (a) modern PBXs were and are very expensive, (b) program controlled features can be added at very small incremental cost, and (c) the presence of many features, some of them novel, masks the high cost of the PBX and the absence of features formerly standard. The following letter appeared in Telephony for March 6, 1972.

***

After reading Telephony's special PABX issue (Dec. 6, 1971), I must agree with Mr. (author of "The silent revolution," p. 29) that "... the new generation equipment has been designed with the needs of the telephone operating company very much in mind." Unfortunately, however, the user obtains little benefit except the opportunity to pay more for questionable "... features that mean increased revenue" to the telephone company.

People in the telephone industry with their customers' interests at heart might well ask themselves this question when considering the new PBX equipment: Does this new PBX provide the user with the services and features he now obtains?

Chances are, the answer is "no." The user will still have to make extensive use of key systems, restrictors and other separate black boxes. Why? Because the telephone industry is notorious for subdividing itself into non-communicating segments such as "transmission," "switching" and "station apparatus" and, as far as I can tell, has never taken the trouble to get these separate groups to look together at PBX requirements from the user's viewpoint. It is small wonder that consultation hold, call waiting, abbreviated dialing and other features newly discovered by PBX designers are second-rate copies of features already supplied in more useful form in such station apparatus as key telephone systems. Further, key systems are still required, even with the most "modern" PBX, because a secretary must pick up her boss' line every now and then, consultation with non-PBX users is often necessary, etc. In larger systems where tandem switching is needed, it is fascinating to see the number of four-wire term sets required to make tie-lines, all four-wire facilities, conform to the two-wire Procrustean bed; and don't count the number of dial tones the innocent user may have to deal with.

Until designers start considering users' needs in addition to those of telephone companies, progress will continue to be marked by "tail fins" such as streamlined consoles, exotic hardware and other assorted bells and whistles of varying degrees of frivolity. Messrs. Dittberner and Rojahn's article ("Dramatic outlook for new PABX capabilities in coming decades," p. 60) offers some hope for the next generation of equipment, but the PBX customer can only wonder why the telephone industry never considered his existing needs before trying to think up something new.

***

While our efforts to find economy in interconnected equipment continued, RCA sent me to Washington to be on the FCC committee trying to figure' out how interconnect could be accomplished without causing "harms" to the public network. I had written RCA's response to the original National Academy of Sciences report on possible "harms;" it was described privately as perhaps not the longest but certainly the funniest.

In principle, I was representing the RCA Service Company, an interconnect vendor. However, RCA Corporate was a major telephone customer, RCA Alascom was an Independent Telephone Company, and Government and Commercial Systems wanted to make PBXs and CO switches for the interconnect and Independent telephone market. Defining overall company best interests posed something of a challenge.

The IEEE, which seldom concerns itself with business communications, ran an article on interconnect at the end of 1972. By now considering myself an authority on the subject, I took typewriter in hand to offer a few comments. Here is the result:

***

Mr. McKenzie's article, "PABX: the Epitome of 'Interconnection,"' in the December, 1972, Spectrum was most timely, particularly as a vehicle for demonstrating IEEE interest in business communication systems. This fascinating topic has too long been excluded from the main stream of electrical engineering, to say nothing of college curricula. However, in view of the stakes involved in the young interconnect business, one might have hoped for a little more than the telephone company party line (if you'll pardon the pun) and the iteration of the design philosophy of a small group of circuit engineers whose contact with the needs of the market place is, to put it kindly, remote.

To illustrate some of the different points of view in this controversial area, I'd like to discuss briefly why interconnect came into being in the first place; why many current PBX design principles, accepted almost completely on faith, are open to serious question; and how the barrier, the so-called Voice Connecting Arrangement (VCA), is little more than a rear-guard action to deter business users in their attempts to obtain the kind of communication services they need.

One has only to read Aesop's fable about the dog in the manger to understand the telephone industry's attitude toward interconnection with privately owned equipment. For many years they have simply refused to provide needed communication services themselves and have refused to allow anybody else to provide them either. Under the circumstances, the only remarkable thing about the Hush-a-phone and Carterfone decisions is that they were so long in coming. Other services and features which the telephone industry has either denied or has grudgingly agreed to provide in a suboptimal manner include automatic dialers, automatic answering systems, intelligent calling-range restriction from business phones and PBXs, traffic recording, cost allocation information for multi-department customers, answer supervision to PBXs from calls to the public network (See note 1, p.18), PBX entrance to the public network at tandem rather than local switches, 4-wire tie-line switching, and perhaps most important, direct inward dialing to PBX extensions (Note 2).

The right to interconnect one's own PBX or key telephone system is now established (but again grudgingly) as long as a VCA (Voice Connecting Arrangement) is used on each line at the interface. The VCA restriction may soon be lifted, but probably at the expense of cleverly rearranged tariffs to maintain a high cost to the interconnect customer. In any event, every effort will be made by the telephone industry to prevent interconnect suppliers from providing, or providing in a more satisfactory way, services which customers want and need but which do not fit in with preconceived visions of what the telephone company thinks they ought to have.

The myth about good telephone service being related to uniform engineering standards needs some amplification. While undoubtedly some standards do exist, the telephone industry has, so far, been unable to produce them in written form for inspection. Although this may be surprising to most engineers, it has long been obvious to communication managers for interstate enterprises. A major portion of a communication manager's time is spent in the frustration of endless hours of meetings and conferences with the telephone company in state A, trying to convince them of the theoretical possibility of doing something that is a standard service offering in state B. Perhaps one of the greatest advantages the interconnect industry has to offer is an overall concept of nationwide standards that do not evaporate at arbitrary political boundaries. Once the state regulatory commissions, primarily (and quite properly) concerned with residential telephone service, become aware of the business users' needs for standardization, it is likely that some encouragement may be offered the telephone industry to follow the example which the interconnect people, of necessity, must establish.

An advantage that the telephone industry will reap from interconnection is the opportunity to find out what business customers really need without huge expenditures on design and development efforts centered around unwanted products. For instance, Bell's relatively new (1967) 800A PBX has already been rated manufacture-discontinued, presumably because enough people have discovered the hard way some of its more serious design limitations; further, there has been something of a customer revolt against augmenting PBX automatic switching with consoles rather than cord-type switchboards. Although it may be a bitter pill for the telephone industry to swallow, customers may really know what they want and why; if given an opportunity, they may vote with their dollars in the best traditions of free enterprise, and expensive decisions from on high about what they ought to want can be eliminated. An added advantage of this approach is, of course, that the enormous problems of raising capital, described so feelingly and at such length in both the public and professional press by the telephone industry, will be greatly reduced; this, in turn, will allow scarce and hard-won capital to be devoted to improving the public network (sorely needed in most metropolitan areas) and providing better residential service.

Turning now to design principles, Mr. McKenzie states twice in the course of his article that Step-by-Step (SXS) systems do not have the ability to "back up," because they do not have the advantages of common control. This, in turn, makes it impossible to upgrade most existing PBXs to permit them to provide new features. This dogma has been preached for years; its only difficulty is its tenuous relation to fact. Most modern PBXs, whether of Bell, Independent, or Interconnect supply, do NOT use their common controls except in a peripheral way to provide the service features they advertise. In general, most of the features actually performed by PBXs are built into the trunk circuits which meet the wires to the local central office, or into other external equipment. Further, many modern SXS PBXs (such as the Automatic Electric 301 and 311) provide almost the full range of "series 300" features with SXS equipment. Indeed, with regard to station dial transfer, consultation hold and three-way conference, the 301 beats most common control systems hands down by making these features available on outgoing calls and tie-line calls in addition to incoming calls from the local central office. Tie-lines are, of course, a sore point in Bell's common control PBX designs. The No. 101 ESS will not deal with tie-lines to other PBXs in any reasonable manner, and one Bell company has bought several foreign-made crossbar systems to handle tie-line switching for 101 customers. The 101 is an all electronic, common control, stored program system; its "flexibility" is thus well illustrated. It should be clear from the above that common control is neither necessary nor sufficient to insure needed customer features.

Actually, most of the "features" needed by business customers are provided by key telephone systems. The ability to pick up more than one line, to hold one call while answering or making another, etc., are handled in a thoroughly satisfactory (although expensive) manner with multi-button telephone sets. Indeed, an analysis of the telephone bill of most medium and large business customers will show that the monthly expense for key equipment is greater than the cost for the PBX and the regular single-line phones combined. The "Series 300" features cost extra and must be taken on all telephones on the PBX regardless of need; because they do not replace the features provided by key equipment, the customer still has to incur extra expense to obtain what by now is "standard" service.

The ability to "back up" which can, with some justice, be attributed to certain kinds of common control, is primarily of interest in automatic alternate routing between very large switching machines in the public network. Its application to PBXs is questionable, and the assumption that desirable features can only be made available in this way shows the depth of misunderstanding that is rampant at the design level.

What can a common control do? Among other things, it frees the switches from direct control by the telephone instrument and allows designers much greater freedom to demonstrate their virtuosity in manipulating state-of-the art components. While this freedom is leading to some innovation beneficial to the user, particularly in the hands of designers for the interconnect market, too much is being dissipated in meaningless exercises in irrelevant hardware. Increased power consumption and floor-loading that exceeds the standards of modern office buildings are among the unfortunate results.

Freeing switches from subset control allows such innovations as Touch-tone calling to be introduced; indeed, SXS systems and certain portions of key telephone systems require the addition of expensive adaptors if they are to use Touch-tone type sets. Since replacement of the dial with a tone-signaling pad doubles the cost of the telephone instrument, use of this telephone tailfin permits expansion of the telephone rate-base; there are minor advantages in the reduced holding time of certain central office equipment, but this equipment now costs more because of the elaborate circuitry required to detect tone signaling. Tone signaling can, of course, go end-to-end, making direct communication with computers possible; I have been told that efforts are underway to inhibit this feature except for customers who pay extra.

Finally, we come to the Voice Connecting Arrangement, the toll-gate that extracts the telco tribute from the customer who connects his own telephone system to the public network. A brief study of the equipment usually supplied to implement the service offering designated CDH shows that what would ordinarily be a pair of wires for each CO trunk is expanded as if by magic at the customer's location to five pairs (Note 3). This five-to-one increase is effected by 8 transistors, 3 logic gates, 17 diodes, 7 relays, and a variety of resistors and capacitors. The only actual protection comes from a repeat coil (transformer to non-telephone types) and two varistors in the speech path. These components attenuate longitudinal induction, block possible crosses to foreign potentials, and limit excessive signal levels. They could do their job just as well in the PBX trunk circuit; unfortunately, the telephone industry seems to feel that only its technicians can properly maintain these completely passive non-adjustable circuit elements.

Transmission is, of course, somewhat degraded by the repeat coil and varistors; dial pulsing is degraded in passing through additional circuitry including a relay. In general, any circuit containing that many components must have some adverse effect on reliability, particularly when it is compared with a solid pair of wires; the fact that it is usually powered by an ac-to-dc converter, and drops any call in progress when a momentary power failure occurs, is another of its interesting attributes.

But the protection required against signals outside the voice band, incorrectly adjusted dials, data transmission (you aren't allowed to send data through this gadget), etc., etc., are provided by the words of the tariff, not the hardware. It is easy to understand why the telephone company insists on this device in every central office trunk from a customer-owned PBX; its relatively high per-trunk cost often makes the difference between savings and loss to the customer. The only block to understanding lies in taking seriously the telco "protection" rationale.

These, then, are some of the more interesting facets of interconnection at the beginning of 1973. Although there are many points of view, there is one point on which I'm sure all parties will agree: the telephone and interconnect industries are going to be in for some very lively times during the next few years.

Notes:

  1. Answer supervision, while important to all PBXs, is particularly vital in the hotel-motel business where call charges must be added to bills on a daily (or more frequent) basis. Answer supervision to operate hotel message registers was standard in SXS central offices; few common control offices offer this feature without extensive additional hardware.
     

  2. Direct Inward Dialing (DID) can only be obtained as part of the Centrex package. The other part, totally unrelated technically, is Identified Outward Dialing (IOD). Although IOD has been marketed in the past as a sometimes useful independent feature (QZ billing), users with WATS or tie-line networks find it a very expensive way to divert calls to more expensive facilities. (Centrex IOD does not, of course, work on tie-lines, WATS lines, FX lines, etc.). Under New Jersey tariffs, IOD is guaranteed neither to work nor to be accurate; nevertheless, the user must take IOD to get DID. DID could be implemented with negligible additional equipment at the PBX and the central office; IOD, however, when carried out automatically, requires extensive modifications and equipment additions at both locations. IOD only works on toll calls; I know one Centrex installation where the customer, in an effort to stop escalating toll charges, is renting an expensive restrictor circuit from the telephone company to prevent toll calls from being placed over IOD trunks. The telephone company seems to be happy in this imaginative inflation of its rate base.

    Until you've seen Centrex CO, however, "you ain't seen nothin' yet!" Wires to the central office which does the PBX switching increase by a factor of 10 and a very complex data link is needed for the customer's switchboard attendants. Since a console is provided, more switching equipment is needed than a cord-board would require, and the customer's flexibility is greatly reduced. One Centrex CO installation I know adds a plain extension phone for the attendant so that she can do some of the things that a console prevents. With Centrex CO, the customer saves some floor-space but, due to the requirements of key telephone systems, it is seldom as much as is advertised by the telco

    One of the principal advantages of Centrex CO is the way new CO equipment and buildings can be justified as a replacement for more satisfactory SXS equipment which has already been written off.
     

  3. Mr. McKenzie missed one pair, but not all are used at every installation.

***

Naturally, the IEEE declined to run my letter. However, because the issue seemed important to me, I used the FCC committee mailing list as a private citizen to send out the following:

***

Although the work of the Procedures and Enforcement Subcommittee has been completed, there are certain facets of the monopoly issue that might well be discussed at this time. While the "monopoly is evil" argument, in general, is not applicable to regulated public utilities, the monopoly of information (particularly with regard to telephone switching) that has fallen by default on the telephone industry is, in my opinion, harmful to the development of the art. No publicly available education, so far as I know, offers courses on telephone switch design or system planning; as a result, almost everyone working in the field, even when serving public utility commissions or the interconnect industry, has been trained by the telephone industry and is thus dependent on "basic principles" which may or may not be true. Since these "principles" do, in fact, rationalize and defend the equipment which forms much of the rate base of telephone utilities, independent evaluation of existing or future designs is difficult. As this letter will show, entering a dissenting opinion into the professional literature is almost impossible; fortunately, the profit-making trade press is more interested in giving "equal time." Perhaps a lesson can be learned from this.

For the past several years, I have been engaged in attempting to specify and buy customer-owned PBXs to serve large industrial complexes. After a careful study of the services and features actually paid for by the users in question, an associate and I sent out a Request for Proposal to see if suitable equipment was available. Our study showed several requirements that were somewhat surprising; feeling that the industry might be interested in these results, we prepared a technical paper with the hope of presenting it at the International Conference on Communications or the National Electronics Conference. The paper was rejected, as shown in Attachment A. Even though the IEEE turned us down, Communications News published the article about a year later in the February, 1972, issue. Many users and people in the interconnect industry have commented favorably; unfortunately, indexes of the professional literature do not include Communications News; young designers, carrying out a literature search, will never find this input from a real, live customer.

As a second example, the IEEE Spectrum published, in the December, 1972, issue, an article entitled "PABX, the Epitome of 'Interconnection.” This article is available in reprint form from the IEEE for $1.50, and should be studied carefully by the interconnect industry. The author, an authority on radio, did a fine job assembling and presenting information available to him; unfortunately, he was offered only the telephone company point of view. As an IEEE member of 25 years standing, a PE, and a telephone engineer, I wrote a letter to Spectrum suggesting some different points of view, particularly with regard to design philosophy. A copy of my letter is included as Attachment B. The IEEE acknowledged receipt of the letter, but after several weeks, when I called to check on it, I was informed that the letter has been "lost." I sent a second copy and, after several telephone conversations over a period of two or three months, received Attachment C rejecting my letter. Perhaps the overly-vivid writing style I chose to use was a factor in the rejection; but once again the "party line" has gone unchallenged.

Where does all this lead? It leads to everyone, including members of regulatory commissions and the interconnect industry, thinking one way—the way of the telephone company. The true nature of the situation concerning the interconnection of privately owned communications equipment is obscured and the interconnect industry is in danger of copying blindly telco designed equipment, even when that equipment is completely unsuitable for user needs.

As long as technical documentation is in the hands of the utilities, everyone involved can be conditioned to ignore the many interesting and productive alternatives which privately owned equipment can make possible. The interconnect industry, if it is to survive, must not only provide equipment to match telco performance, it must go beyond the limited interests of the ivory-tower telco designers to create equipment of such capability and scope that whole new approaches to business communications can be developed and utilized. If this is to be done, however, means must be found to insure public discussion of user needs and design philosophy. The present professional press does not seem to be a practical forum.

***

Attachment A was a letter from J. H. Weber of Bell Labs, for the IEEE Communication Technology Group, rejecting “Voice Communication in Business” (Chapter 3 in this volume) for presentation at a national IEEE meeting. The paper contained "many random thoughts which had not been organized toward developing a central thesis."

Attachment B was my Spectrum letter itself, and Attachment C was a rejection of that letter. The IEEE's reviewers (guess who they must have been) felt I had not covered certain problems in traffic and service, and that my remarks were more emotional than technical. Well, you can't win 'em all.

As the above interchange indicates, it is difficult to explain a technical problem to people whose knowledge of the subject matter tends to be limited. This suggests a need for education in business communication. Where there is a need, a response will sometimes appear. The following letter, written to a client a few years later, after I had gone into private practice, reviews a Master's program in Telecommunications at a major university. I hope, somehow, my objections have been noted and acted upon. Certainly, in recent years, other schools seem to be getting interested in somewhat more realistic material.

***

Thanks for letting me look over the Master's Program in Telecommunications. It was a most interesting experience.

In brief, I cannot imagine any way in which the proposed program would benefit a member of your telecommunications group. The course material and orientation seems to be based more on knowledge available to an average engineering school faculty than to any needs of the industry or the students. The approach is theoretical and (although a math prof would scoff) mathematical; there seems to be no practical information or even any theory which might facilitate the acquiring of a practical background on the job. In my opinion, you would be doing your fellow ICA members a service if you actively opposed continued sponsorship of this program.

To give you a few examples: Course 651 is called "Principles of Communication Systems." It covers modulation theory, information theory, noise theory, etc. None of this has anything at all to do with systems in the sense that a communication manager understands. He is not going to design a front-end for a microwave receiver—he wants to select circuits and terminals in such a way that he can move signals of a particular class from one point to another at minimum cost.

Or consider "Probability and Statistics for Engineers I." Here we hit sample spaces, moment generating functions, and other academic goodies. No mention is even made of queuing, or Poisson and Erlang tables. Apparently the student will learn to derive formulas that have been in use for 75 years, but he won't have any idea how to estimate operator work-load.

"Technology and Regulation" sounds more like an orientation to AT&T than a guide to reading and using tariffs effectively. "Computers and Communication" seems to be related only to data—doubtless covers ARPA in great detail. The several broadcasting courses seem totally out of place.

There are no courses on economic evaluation of proposals, traffic handling systems, preparation of programs for computer analysis of communication costs; the words "switching" and "key systems" do not, of course, appear. I can find no indication that specific equipment of any sort is discussed or analyzed.

To summarize, I find the entire program totally irrelevant to any form of corporate telecommunications that I have encountered over the last ten years. Further, I cannot imagine a context, in design, operation or management, in which this program might be of value. If you have any inside information on how it was developed, I'd be very much interested in knowing what was intended.

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