- 1 - PALISADES CONSULTING IP Telephony: Keeping New York Competitive in the Global Marketplace Eva Lerner-Lam President Palisades Consulting Group, Inc

- 1 -PALISADES CONSULTINGPALISADES CONSULTING

IP Telephony: Keeping New York Competitive

in the Global Marketplace

Eva Lerner-Lam

PresidentPalisades Consulting Group, Inc.

[email protected]

Rebuild New YorkMajor Infrastructure Conference

March 28, 2000


There’s a Revolution Going On…

• Telecommunications is the New Millennium’s “Industrial Revolution”


Silicon Alley in an Infrastructure “Do-Loop”?

• We’re leading the world in high tech development of the Internet

• BUT--are we falling behind in deploying the infrastructure for global competitiveness?


Leading the World in Development of Broadband Applications…

• Wireless Mobile-Commerce (“M-Commerce”)

• Internet Protocol (IP) Telephony

• Application Server Providers (ASP)

• Video Streaming

• Music Downloads

• Etc.


…but we can’t get on-line

• The “Last Mile” Problem is 1990’s history

• For now and beyond, it’s the “First Mile”


The “Last Mile” is now the “First Mile”

“Last Mile”“Last Mile”

THE INTERNETTHE INTERNET THE INTERNETTHE INTERNET

“First Mile”“First Mile”

Pre-2000Pre-2000 Post-2000Post-2000

UsersUsers UsersUsers


“Does it have a T1 line?”

• Growing disparity between “haves” and “have-nots”– Within our own society– Globally


The Irony

• We have the large-scale network infrastructure (early ones built by the Defense Department and new ones now built by the private telecom sector)

• We can’t seem to overcome the “Last Mile/First Mile” problem


What if…?

• We organized national consortia to collaborate in the design and building of functionalities for ubiquitous Internet access?


What if…

• The Consortia consisted of hospitals, schools, utilities companies, social services organizations, banks, financial institutions, transportation agencies; in short, all major infrastructure sectors?

• The Consortia offered training and certification in design, engineering, construction, operation and maintenance of the backbone and support networks?


What if…?

The Consortia provided a mechanism for the pooling of resources to overcome the “Last Mile/First Mile” problem?


Then New York would have…

• An infrastructure base for enabling, empowering and energizing e-commerce and e-administration using the Internet

• An organizational framework for business, government, academia and others to:– Define their respective needs– Determine the best approaches to meeting those

needs– Pool resources to implement strategies


Then, New York would be…

Globally competitive


And, what if we don’t?


Look at Who is…

• China Golden Bridge Network (CHINAGBN) is the National Public Economic Information and Communication Network (NEICN).

• It supplies the data communication and information services to government, enterprises and individuals.

• Golden Bridge Project is THE major information technology development project of China’s Ninth Five-year Plan.


China’s Golden Bridge Network

• State Council began the project in February 1996.

• Established four Internet backbone networks in China: Chinanet, CHINAGBN, CERnet and CASnet.

• CHINAGBN is the public data communication network, which is one of the two networks (CHINAGBN and Chinanet) allowed for commercial use.

• Using both satellite channels and terrestrial optic fibre lines, CHINAGBN covers all of China.


China’s Golden Bridge Network

• CHINAGBN has established 10 backbone nodes in the cities of Beijing, Shanghai, Guangzhou, Wuhan, Shenzhen, Qingdao, Shenyang, Dalian, Changchun, and Chongqing.

• There are hundreds of group users, enterprises and ISPs that have connected to CHINAGBN; they were instrumental in the development process of the Network.


China Unicom

• Owned and operated by the Ministry of Railways (the “country within a country”), Unicom is China Telecom’s only sanctioned competitor.

• Will invest nearly US$6 billion in communications construction in 2000, including US$3.6 billion in mobile communications, US$.5 billion in data communications, US$.8 billion in fixed communications, and US$.8 billion in wireless paging.


China Unicom

• Unicom is nearly finished building its 39k km fiber optic backbone; 470 metro nodes

• This year, the company plans to add • 5.16 million GSM lines• 11.3 million CDMA lines

• It will add 8.4 million new mobile phone users to reach a total of 13.63 million users


China Unicom

• Works closely with MOR units responsible for:– Health

– Education

– Housing

– Research

– Construction

– Utilities


China Telecom’s Internet Access and IP Telephony

• Started in Beijing Fall, 1999

• Now in Shanghai and at least a dozen other major metropolitan regions


China Telecom’s Internet Access

• Dial “169” for 56k modem access

• US$ 0.009/minute

• No ISP or additional monthly fee


China’s IP Telephony

• Domestic and International

• Pre-paid cards

• Instant hit


Major Differences

• Strong leadership at the national level for strengthening the use of the Internet for economic development

• “Last Mile” and “First Mile” being worked on at the same time

• Stakeholder Consortia at the local level: banks, financial institutions, schools, university research centers, government agencies, transportation system operators, hospitals, libraries, etc. etc.


Staying Competitive

• Our Achilles Heel: “Last Mile/First Mile” infrastructure between the User and the Internet

• Our technology is exploding; but our institutional/stakeholder support is lagging, even non-existent at the local and regional levels


Rebuild America: The Opportunity

• Create a “National Internet ‘Last Mile/First Mile’ Strategy”

• Take it down to the Regional, Metropolitan and local levels

• Let the users speak—and empower them to act


Rebuild America: Identify the suppliers

– Telephone

– Cable

– Utilities

– Wireless


Rebuild America: Organize the stakeholders

– Banks and financial institutions– Schools– Hospitals– Libraries– University and private research centers– Government agencies– Transportation agencies– Utilities– Other infrastructure sectors


One Model

B an ks

S ch oo ls

H osp ita ls

Tran sp orta tion

U tilit ies

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M E TR O A R E A 1

B an ks

S ch oo ls

H osp ita ls

Tran sp orta tion

U tilit ies

E tc .

M E TR O A R E A 2

B an ks

S ch oo ls

H osp ita ls

Tran sp orta tion

U tilit ies

E tc .

M E TR O A R E A 3

N ation a l In te rn e t A ccess C on sortiu m


Local Examples

• Blacksburg, VA: Building a “smart community” with Virginia Tech

• Concord, MA: Looking to joint ventures with cable, ISP’s and telephone company

• Falcon, CA: Forming partnerships with local Internet service providers to offer residents high-speed Net access.

• Palo Alto, CA: The "Last Mile" initiative to connect Palo Alto residents and businesses to the City's Fiber Ring information infrastructure.


SUMMARY

• We lead the world in technology and broadband applications, but we’re stymied by the “Last Mile/First Mile” obstacle

• Our global competitors are gaining on us at our “Achilles Heel”

• Let’s organize a national framework and implement a strategy for overcoming the “Last Mile/First Mile” problem so we can get on with the business of global competition.

Documents

- 1 - PALISADES CONSULTING IP Telephony: Keeping New York Competitive in the Global Marketplace Eva Lerner-Lam President Palisades Consulting Group, Inc