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

Chapter 18
The Digital Future of the Telephone Network

Of the best of the IEEE yearly meetings is ICC, or the International Conference on Communications. It usually takes place in June, and I try to go when I can to find out what various friends and acquaintances who still have to work for a living are doing. The digital issue was in full flower at ICC 77, and I dispatched the following comment to Communications News where it was published in August, 1977.

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Sir:

ICC '77 was a great success, particularly for sessions with the words "digital" or "telecommunications" in their titles. When the two were combined, people stood four or five deep at the doors, hoping to hear a word or two, or get a glimpse of a VU-Graph.

Under the circumstances, I conducted a very small informal poll to see how many of these interested communications engineers were aware that digital switching via the number 4 ESS will confront analog trunks (long-haul carrier) for many years, while digital trunks (T carrier) will continue to confront analog switches such as Number 1 ESS until the turn of the century, if not longer. Few had noticed this anomaly, and most were genuinely startled when I pointed it out.

To go one step further, most of the independent telephone manufacturers are going ahead with plans for digital class 5 switches with compatible remote concentrators, PBXs, and station carrier. The Bell System, without discernible plans for digital Class 5 or PBX switching, however, is stressing the maintenance of existing transmission standards. In particular, 0 loss through digital Class 5 offices is expected, with 3 dB loss in toll connecting digital trunks, and conventional VNL in analog trunks.

Since digital Class 5 offices are four-wire by nature and must include hybrids and gain, stability problems may result, particularly on local-local connections. It would seem much more logical to put the 3 dB loss on the line side, using it to mask return loss variations in the outside plant. Although this would add 6 dB loss to local-local connections, identical to that experienced in all-digital toll connections, the improved stability, uniformity, and simplicity would benefit everyone.

Maintaining existing transmission standards, often based on step-by-step technology that is now almost completely removed from the toll plant, is hard to understand on any terms. The "outgoing switch to outgoing switch" measurement technique was meaningful only when selectors, manual operator positions, and test positions all competed at the input to trunk circuits for access to a distant office.

In such two-wire step-by-step systems, the 0 transmission level point (TLP) at the outgoing local selector, or the —2 TLP at the outgoing toll selector, made sense. In crossbar and reed-switch ESS offices, where operators and test people access trunks via the switching matrix itself, it makes no sense at all. Just what sense it will ever make in digital trunk switching (when there is not only no trunk circuit but also no channel bank and no access to any circuit on an individual basis and no physical location of a TLP) beats the heck out of me. It doesn't even make sense in four-wire analog switching, although questionable economic arguments (crosspoints are supposed to be vastly more expensive than hybrids and rebalancing for return loss whenever a frame is added) have held four-wire switches to a minimum.

It seems very likely that these standards are due in part to the fragmentation within the telephone industry—local does not speak to toll, switching does not speak to transmission, and nobody speaks to station equipment; on the operating level, local companies and AT&T Long Lines apparently communicate by smoke signals, if at all, as anybody who has tried to buy a tie-trunk that crosses state lines knows.

Under the circumstances, let us hope that the independent manufacturers will explore some of the transmission possibilities more fully rather than follow blindly the AT&T standards which appear to have the result, if not the intent, of rationalizing the Bell investment in the now obsolete non-digital Numbers 1 and 2 ESS and the non-digital Dimension PBXs. Although it may be true that "the system is the solution" as we are told so often, it just might be that the system is the problem when it comes to implementing an all-digital network.

***

The above letter just scratched the surface. I found myself digging into the matter, and the more I looked, the more interesting the subject became. A friend encouraged me to do a "research report" for Probe, a small company that had just published "The Future of AT&T," a very expensive book that took AT&T to task for some of its real and imagined shortcomings. Because I rather admire AT&T, even if I don't always agree with its varied and often conflicting policies (as the reader may have noticed), I was reluctant. However, the subject was too detailed and technical for Business Communications Review, and I had too much time invested to throw it away. So Probe published my collected musings in the Fall of 1978 as "The Digital Future of the Telephone Network, a Study in Evolving Technology." The report sold quite well, all over the world. Several people called me to tell me they had read it.

Probe has graciously permitted us to reprint the executive overview here. Hopefully, a small percentage of readers will immediately order the full report from Probe and help make me solvent for the next month or so.

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Overview

Over the past hundred years, the telephone industry has grown from modest beginnings to one of the most complex technological achievements mankind has ever produced. However, because of its size and complexity, transmission, signaling and switching have developed more or less independently of each other, and each has gone out of its way to make the others think it is still the way it used to be when earlier generations of hardware froze interface designs. The coming of digital electronics, developed largely by the computer industry, has today made almost all of the traditional approaches to communications obsolete.

Analog transmission principles, developed to a very high degree, require elaborate means to adjust levels of signals at different points in switching and transmission systems. Complex administration and maintenance procedures have been developed to implement the analog transmission plan and, as a result, many improvements and simplifications which digital techniques could make possible will be difficult to realize.

Although analog transmission advances came principally on long-distance trunks between central offices, switching developed primarily to serve local customers. Because of the simplifications required on a per-customer-line basis between the telephone set and the central office, local switching and transmission systems evolved as "2-wire" facilities; that is, they used one transmission path for signals going in both directions. This has led to systems using copper wire and certain kinds of switching equipment on a scale so vast that replacement with any other approach, no matter how desirable, will be both difficult and costly.

The evolution of switching and signaling shows how these systems developed, and how they have dictated the nature of future system development. However, the continuing growth of long-distance traffic and the driving impact of computer electronics is forcing a change in spite of the huge inertia that is obviously present.

An idealized system, taking advantage of modern techniques from within and without the telephone industry, is suggested in this study to show how both voice and non-voice traffic might be served in the future. The network proposed by AT&T is then analyzed to show what it can and cannot do. Finally, the transmission requirements imposed on digital central office switches of non-Bell manufacture are discussed to show how they may be a significant factor in holding overall digital development to that which can be accomplished through Bell non-digital local central office switches.

The continued growth of data and other non-voice communications may well increase the fragmentation of the overall telephone network. A possible solution, taking advantage of the concentration of non-voice communication needs at present in large business customer systems, is outlined in this study: PBXs, at least in the larger sizes, should be homed directly, via digital trunks, on No. 4 ESS, the Bell System's new digital toll switching system. This can facilitate the implementation of digital communications where they are needed, and permit the non-digital central offices presently used throughout the Bell companies to serve out their useful lives handling the predominantly analog traffic of residential customers.

***

The Probe report had just come out when the IEEE ran a large symposium on the digital future at Vail, Colorado. For a person who had left circuit and system design to work directly with system users and their problems, the meeting was like something out of Alice in Wonderland. What follows is my trip report to my readers (both of them) in Business Communications Review.

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The great integrated digital whoop-de-doo

In September 1978, I visited Vail, Colorado, where the discussions of some 300 telephone engineers regarding "Progress toward an Integrated Digital Network" more than compensated for the lack of natural snow that early in the season. There were six sessions, plus a keynote address on Sunday evening. By Wednesday noon when the busses carted us off on the two hour ride to the Denver airport, everyone who attended felt that he knew more about progress in digital telephony than he really wanted to know. And, unfortunately, the progress was considerably less than many of us had been expecting.

Not that there weren't some surprises. GTE Automatic Electric used the conference to announce its new line of digital central office equipment, ranging from a 96-line station carrier system to a 100,000 line CO. Following the approach used in the GTD PBXs, these several systems use the same plug-in cards and design philosophy, greatly simplifying the inventory, maintenance, training and management requirements encountered by local telephone administrations.

However, most of the discussion was about progress that had been planned and described over the past several years. Sessions were organized to give planners a chance to talk first, then manufacturers, and finally operating telephone companies. This process permitted the same field trials and installations to serve triple duty, amplifying somewhat the appearance of the progress reported. The number of trials and installations is impressive, however, and shows that the independent telephone industry has finally found a worthy successor to Step-by-Step switching. To be completely accurate, switching alone is not the right word. The entire local plant is being replaced with switches, remote switching units, and station carrier. The only real drawback in all this is the lack of compatibility from one manufacturer to another, forcing an operating company, once a vendor has been selected, to stick with that vendor forever.

From the standpoint of the business communicator, the meeting was a disappointment. To most of us, an "integrated digital network" implies one in which voice and non-voice services are integrated into one structure, one system which is, indeed, the solution. The professionals in the communications industry, however, see things quite differently. To them, digital techniques are simply a cost effective way of handling voice, and some expressed considerable displeasure at the very idea that those of us who work in business communications should even question their approach. One notable PBX designer, who should be right in the forefront of the battle to move data on T-carrier bit streams within and among PBXs, expressed shock at the consideration of such ideas.

Needless to say, customers of communication services were not represented on the program. Representatives of one major automobile manufacturer were present, however, and expressed privately to me some encouragement for my questions from the floor on behalf of user needs, particularly in the digital area.

Perhaps the most interesting presentation, running counter to the anti-data attitudes of most, came from Western Union. I was surprised to learn that WU has an extensive network of T-carrier (digital) transmission systems in most major cities, and can move digital information on a digital medium in an efficient manner. WU described their approach as working "from the bottom up," as opposed to the "top down" approach in the public telephone network from digital No. 4 ESS machines to analog local switches.

Central office loss

To me, the major technical question at the conference dealt with attenuation of the signal through a local (Class 5) switching system. Bell Labs and AT&T are firmly convinced that this loss should be limited to half a dB. It may be a coincidence, but loss through an analog (obsolete) switching system such as Nos. 1, 2, or 3 ESS, like that through Step-by-Step and No. 5 Crossbar, just happens to be about half a dB (measured at 1,000 Hz). For calls between or among several local switches, 3 dB is permitted in the loss plan for the future all-digital system, and 6 dB will be the loss on all toll calls. AT&T seems quite determined to impose these standards on the independent telephone industry, even though local calls do not, of course, enter or affect Bell's long distance network.

The problem here is that digital PBXs and local central offices are of necessity 4-wire machines but must meet two-wire facilities, such as lines to local telephones or PBX extensions, on a 2-wire basis. If "impedances are not matched" at the hybrid coils which constitute the 2/4-wire interface, echo and, ultimately, singing can result if there is amplification in the speech path. Traditional hybrids insert 3 dB of loss at each end of the connection; this loss must be recovered with amplification. Electronic hybrids contain their own amplification. With either type of hardware, reducing net loss to less than 0.5 dB poses serious stability problems.

In toll transmission where amplification has been available for decades in carrier systems (which are, of course, 4-wire facilities), the echo problem has been solved by inserting "via net loss" in all intertoll trunks and via net loss plus 2 dB in all toll connecting trunks. In this way, any toll connection contains a total of via net loss plus 4 dB from one local office to the other—a minimum amount shown by years of human factors experiments to be required to hold echo to tolerable levels. Via net loss increases with the round trip signal transit time; echo which becomes more and more troublesome as this transit time increases is, thus, attenuated proportionately. Fortunately for all, if echo is controlled, singing also is usually prevented. In traditional transmission systems, transmission facilities are adjusted to provide standard gain. Via net loss and the 2 dB additional at each end of the connection are added by resistive attenuator pads.

In digital systems, it is currently the vogue to use "digital" pads instead of resistive attenuators to change levels. These pads are read-only memories that take in the digital coding of an analog signal at one level and return another code at a different level. It's a great idea and a brilliant application of the new technology, but unfortunately it has one little problem: if a data signal is inserted into the digital bit stream directly (bypassing the A/D converters), the digital pads convert it to garbage. To transmit digital data through the future digital network, it will be necessary to inform the system not only about the desired destination, but also about the nature of the transmitted signal. And transmitting voice as well as data over the same channel (as, for instance, for coordination) will become very difficult. This, of course, did not bother the design engineers in Vail.

In fairness to Bell System thinking, their attitude is based on the cost of managing the overall network. Bell people feel that, if loss can be permitted anywhere, it should be left for the outside plant cables to customer locations; a dB of loss there is worth billions compared to a dB of loss in the central office. That is, CO loss should be reduced to permit higher losses in the cables for minimum overall cost.

This is all very well; it is certainly the conventional wisdom. But any rational specification would give the desired loss between speaker's mouth and listener's ear and let the designers divide the loss up to best suit their technology and their customers' geography. In particular, the Bell loss-level plan ignores the distributed switching approach that is basic to the digital CO concept. With all digital switches presently being described, remote concentrators and station carrier will take the switch to the customer, reducing the length of analog signal path to produce attenuation. Echo and stability requirements in the future all-digital network will demand 6 dB of loss on all toll connections, but the Bell System is decreeing that such loss will not be present in local connections. In addition to creating potential stability problems on local connections, this policy means that all local calls will be 6 dB louder than all toll calls, a noticeable difference that will become more and more annoying as the ratio of toll to local calling continues to climb.

The REA, which finances small telephone systems in rural areas, pointed out that specifications for their borrowers permit 2 dB central office loss on local calls. Both the REA speaker and others described how remote concentrators and station carrier, by eliminating long loops, are improving transmission in spite of the 2 dB loss in the CO, and are reducing outside plant costs at the same time.

What has all this to do with the business customer? Just this. A PBX is, in many ways, exactly like a remote concentrator and, in a digital context, it can connect directly to a digital switch via a T-carrier line. This saves cable, of course, but it also maintains digital integrity for non-voice services over a larger area. It could be a major step toward allowing PBXs (with the proper line cards) to send data directly (without modems) within the entire area served by the switch on which such PBXs home. Assuming such COs will home, via digital trunks, on the digital No. 4 ESS, an even wider area of digital integrity becomes possible. Imagine sending a page of printed or typed material in less than three seconds, and some of the possibilities are seen to be intriguing to say the least.

To show how firmly the Bell 0-loss is fixed in the minds of the faithful, one floor question from a Bell man actually asked if the cost comparison between traditional cables and electronics had considered use of finer gauge wire rather than remote concentrators; it appears that the existing plant should be pulled out and replaced, not with modern technology, but with cables containing less copper. Since the main cost in outside plant is in the labor of putting the stuff up in the first place and administering all the cross connections and junction boxes, etc., once the cables are in operation, the very suggestion that electronics on existing cables is more expensive than putting up new fine gauge wire is absurd. That this kind of thinking is limiting the future integrated digital network should be evident.

Handling data

This brings us to the frequently expressed attitudes of telephone people concerning data. They repeated over and over again the litany that data requirements are "not well defined" and thus should presumably be excluded from planning in the "integrated" digital network of the future. (Picturephone development, of course, continues, since it seems to fill a well-defined need in the minds of some.)

It is possible and even likely that Bell's proposed Advanced Communications Service (ACS) will be able to handle data quite well for the next 50 years or so while the analog (obsolete) ESS machines are being depreciated. And Bell Labs people went out of their way to explain to me that they can, indeed, do just about anything with electrical communication if only somebody could define the problem. They even hinted darkly about great developments in progress. But maintaining digital integrity to the PBX and, even better, to the user telephone, does not seem to agree with their party line.

There were a lot of other topics covered. Digital microwave, digital satellites and fiber optics appear to be coming along very rapidly, for instance. And considerable effort is being applied to the problems of depreciation and the related regulatory problems in a rapidly changing technology. But the business customer, whose toll calls during the day generate the profit that makes the entire telephone industry possible, is getting the short end of the stick. If AT&T has its way, we'll have POTS forever, using transistors and, maybe, a few integrated circuits, but definitely reed relays which are, by some magic at Western Electric, far less expensive than electronic devices.

Common channel signaling

There will be a few new features, of course. Common Channel Interoffice Signaling (CCIS) is supposed to speed up calling (except to (a) the local central offices on each end of a connection and (b) to the PBXs served by such offices). Further, CCIS is supposed to make possible automatic call-back on a nationwide basis (except for connections to lines in hunt groups where automatic call-back doesn't or shouldn't work). Obviously, CCIS will have to get to the local COs and then to the PBXs before it can do all this, even if it can find a line in a PBX that is not in a hunt group.

But of course CCIS appears to be on the edge of obsolescence. Canada is not going to use the AT&T version (which has a relatively low-speed, 2 Kbps, channel). They are going directly to CCITT No. 7 or something quite similar, and will use a 64 Kbps channel in a T-carrier line to provide much greater capability. It is possible that the United States can ultimately end up as an analog island surrounded by a digital world.

Obsolete systems

Let me make one final point. During the discussions of depreciation, several speakers and participants from the floor noted how rapidly PBXs are becoming obsolete, and how they provide special problems in depreciation and regulation. An example was given concerning a hospital which, just four years ago, had installed a modern PBX with "all the modern features." To the lament of the speaker, this PBX was now obsolete.

I contend that this example shows more clearly than anything else at the entire meeting why the digital future will be slow in arriving. Systems are designed primarily to permit the designers to demonstrate their virtuosity in manipulating modern components. Consideration or even knowledge of user requirements is secondary if it exists at all. This is shown very clearly in PBX and Centrex design where the majority of telephone planners and designers seriously believed that "Series 300 features" could replace key telephone operations; that users would be glad to memorize 15 or 20 "feature codes" to make the system perform preposterous feats dreamed up in ivory towers; and that automatic message accounting was one thing that could safely be left off a PBX to make design easy and keep costs down.

The older PBXs are obsolete, but they were not made obsolete by new technology. They were obsolete before they ever came off the drawing boards. This is readily demonstrated by the way it is easier to displace a five year old PBX as a 20 year old Step-by-Step system. I contend that, if telephone equipment were designed on the basis of user needs in the first place, it would not become "obsolete" when somebody introduces a new "feature." A properly designed PBX could only become obsolete when new technology reduced costs so much that scrapping the old PBX imposed no financial hardship since the new equipment would save money over retaining the old. Obsolescence by correcting dumb designs is a luxury that even the United States, the richest country in history, can ill afford.

Conclusion

Well, maybe things are different internal to the telephone network. Maybe the customer doesn't need to know how signals are carried from here to there. Maybe it is none of his business. Maybe, as many telephone designers think, he is too dumb to understand the problem or to appreciate the solution. But somehow, I don't think so. Although telephone users in general, and business customers in particular, may not know all the technical details, they have some pretty clear ideas about what they want to do, and they will be very quick to think up new ways to utilize modern technology if it can reach them at the right price.

An integrated voice/non-voice network, preferably extending to the subsets, (at least in PBXs), would seem to be the way to go. That we are not about to go that way was made abundantly clear at Vail. But let's hang in there. The game isn't over. And remember, it's your game. If you don't let people know what you want, you will never get it. I, for one, do not think your data needs are as "undefined" as the telephone industry says. And you have a lot of opportunities now to "vote with your bucks." Carterfone proved once and for all that somebody else could not be prevented by law from providing a useful service that the utilities did not choose to offer. But in the case of the integrated digital network, it would be highly desirable if somehow the needs of the users could be integrated into the evolving telco design.

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For those who want to read the official meeting report, see the IEEE Communications Society Magazine for November, 1978 (Vol. 16, No. 6), where Amos Joel speaks for the group as a whole. For another minority report, my good friend Ray Kraus can be depended upon. His feelings, as usual, are diametrically opposed to mine, and can be found in some detail in Telephone Engineer & Management, June 1, 1979, page 93.

As a final shot, it should be noted that the regulators have a lot to say about how the telephone network should be operated. Their background for making such decisions is limited but, as we have seen, some of the best technical minds in the world have come up with some very strange things.

All this is brought out very well in a debate conducted by the IEEE between Walter Hinchman, former head of the FCC Common Carrier Bureau and J. R. Pierce, retired from Bell Labs: see the IEEE Spectrum, Dec., 1979. I couldn't help but respond and, for once, the IEEE published my letter in the May, 1980, issue. Naturally, they left out the technical parts that their membership wouldn't have understood, but what remained covered the ground.

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The "debate" between Walter Hinchman and John Pierce on the future of the telephone industry would be funny if it weren't so sad. Mr. Hinchman mouths the standard platitudes of the many FCC petitioners who feel that they have a God-given right to exploit the communication customer because competition, per se, must be subsidized no matter how much it costs or how badly it degrades service. Mr. Pierce, on the other hand, follows the telephone party line by insisting that the utility is doing such a great job that it should be allowed to continue doing whatever if feels like in the future, independent of customer needs. Like the blind men with the elephant, both are presenting views that can most charitably be described as half-truths.

It should be noted that Mr. Hinchman's friends have saddled the country with several analog "specialized" common carriers to handle the data explosion which, presumably, will be digital. Because experienced customers often prefer to stay with Bell after trying their circuits in private data networks, the specialized common carriers are now selling most of their circuits as ordinary voice tie-trunks or as part of competitive cut-rate voice networks operating in a cream-skimming context.

Mr. Hinchman's statement that "Most of these networks interconnect satisfactorily with the local exchange networks..." is obviously equivalent to a testimonial for the healthful properties of tobacco based on knowing a three-pack-a-day smoker who does not yet have cancer. And so far, Mr. Hinchman's suspicion that innovation may develop among the specialized common carriers has proved to be unfounded (four-wire switching and automatic message accounting can hardly be considered innovative, even though AT&T refused for years to offer them in any useful manner).

As for Mr. Pierce's friends, their major fault is their desire to concentrate development efforts on residential telephone service, which is already pretty good, at the expense of business communication which is, in a word, awful. AT&T's resistance to facsimile and data transmission is a matter of record, its unwillingness to permit foreign devices to be connected to its sacred network or to allow resale of service is legendary, and its fragmentation of the telephone industry along political boundaries is a matter of despair among communication managers of interstate businesses. If AT&T were as responsive to business customer needs as Mr. Pierce says, Carterfone could never have happened.

Note, too, that Mr. Pierce's hopes for an all digital network in the future will be dashed by the long continuing existence of Nos. 1, 2 and 3 ESS, the Dimension PBX, various subscriber concentrator and carrier systems, TSPS and other current Bell Labs marvels which are, alas, not digital in any respect (although they are computer controlled). On the other hand, a completely digital toll network, based on the addition of long-haul fiber optics to existing short-haul T Carrier and No. 4 ESS systems, will doubtless be blocked by Mr. Hinchmans' friends to protect the investment of the specialized common carriers with their analog microwave and satellite systems.

It seems clear that Mr. Hinchman knows little about the management of communication systems, and Mr. Pierce knows even less about how business communication managers experience the Bell System. With two such knowledgeable gentlemen arguing the highly partisan positions of competitive vendor groups before legislators and regulators more interested in doctrinal purity than effectiveness or cost of telecommunication services, the plight of the customer can hardly be viewed with optimism.

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Again, I got to play prophet, but I can't take credit for it. I did a seminar on the Digital Future with Probe in New York in January, 1980, and the very next day, AT&T announced its intention to run a fiber optics transmission system from Boston to Washington, stringing together on a digital thread a series of digital No. 4 ESS beads. And almost immediately, an analog "specialized" common carrier intervened. But my letter wasn't printed until May, long after my predictions were old hat.

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