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  GOLDBOOK 2003
INTERNET SERVICES: Promises Dont Deliver
Superior technology is no guarantee of throughput—it must be backed by sound service level agreements
Wednesday, April 02, 2003
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Technology Options
Enterprises have several options to consider before they begin their search for an Internet service provider (ISP). The requirement and the extent of their dependence on the service will determine the options they can opt for. The requirement of an enterprise could be broadband or narrowband. For a majority of enterprise users, broadband is the most practical option. Once it has been decided that you need to go for broadband, you can further choose various options. This also primarily relates to the access media, which the enterprise can use to connect to the ISP’s nearest PoP. The right choice of access media is the most critical decision that an enterprise should make when subscribing to an ISP’s services, since that will decide the following:

  • Always-on connectivity
  • Uptime
  • Flexibility of bandwidth usage
  • Lead time for service installation
What is IP VPN...

Simply put, IP VPN is "an emulation of a private wide area network (WAN) facility using IP facilities, including the public Internet or private IP backbone." From this definition, it follows that an IP VPN could either be CPE-based or network-based. A VPN can be built on any of the layer-2 technologies, including Frame Relay; however, that would just be a VPN rather than an IP-based VPN. The primary advantages offered by IP VPN are based on two parameters—one, IP VPN is a connectionless service in contrast to the layer-2 ATM and Frame Relay services; and two, IP VPN is a ubiquitous (any-to-any) service in contrast to point-to-point inherent feature of the ATM/frame relay service.

Even though IP VPN can be both CPE-based and network-based, service providers have been keen on the adoption of network-based IP VPN by enterprises. (One reason could be that CPE-based IP VPN is unlikely to contribute much to their bottomline.)

Why MPLS? Because it sets up a specific path for a given sequence of packets, identified by a label in each packet, which saves the time needed for a router to look up the address to the next node. MPLS, being a multi-protocol, works with IP, ATM, and Frame Relay. In addition to moving traffic fast, MPLS makes it easier to manage a network for quality-of-service. MPLS traffic management ensures that business-critical applications ranging from real-time financial transactions, voice, and e-mail to normal Internet access are prioritized to maintain peak performance

n ISDN: ISDN provides digital service, typically in increments of 64 kbps. Its usage has increased with the increase in Internet usage. The advantage here is that one can access the Internet on one channel and make or receive voice calls on the other. This service is offered by some of the leading ISPs like BSNL and VSNL.

n Leased-Line: This is a cost-effective Internet access solution offered by a majority of ISPs. Corporates can receive high-speed Internet connectivity and pay for the bandwidth, according to the usage. It is considered to be a more reliable network, and corporates can get a leased line from basic service providers. Leased lines come in 64 kbps and also in 124 kbps, 256 kbps and 512 kbps. Leased lines are offered by some of the service providers like VSNL and BSNL.

n VPN: Service providers like BSNL, MTNL, and Sify are waking up to the potential of IP-VPNs to bring them new customers. For a 2 Mbps line, BSNL is charging 7.7 lakh while 256 kbps is being offered at 1.49 lakh. The minimum assured bandwidth that is being offered is 25 percent of VPN port subscribed. Though the adoption rates among enterprises have been slower than expected, but it is emerging as a potential option for the corporates. Service providers are expecting IP VPN to become a data connectivity medium of choice overtaking traditional networks like ATM and frame relay. The factors for the growing acceptance of IP VPN among the enterprises are its relatively lower costs and flexibility. IP VPN is far more flexible—operationally—than ATM or Frame Relay (FR).

Since IP VPN services can be delivered via the public Internet, a carrier can easily connect to an enterprise with its business partners anywhere across the globe. An enterprise’s global reach via frame relay or ATM is restricted to the locations that have been fitted into its original network design. What is more, the ATM and Frame Relay solutions are not easily scalable. An enterprise is stuck with a predetermined amount of bandwidth, which makes it difficult to quickly acquire more in order to cater to sharp and sudden increases in traffic flow.

n Digital Subscriber Line (DSL): DSL uses the existing phone line without requiring an additional line. It is a technology for bringing high-bandwidth applications like video-conferencing and video-on-demand to home and small businesses over ordinary copper telephone lines. Connection speeds in DSL typically range from 512 kbps to 1.544 Mbps downstream and around 128 kbps upstream. For accessing DSL services, one has to connect a DSL modem to the DSL line of the local area network (LAN). Once connected, DSL modem provides continuous connection to the Net. In order to get better DSL service, the end-user must be within a certain geographical distance from the telephone exchange, to avoid signal degradation.

VOICE&DATA Corporate Expectations Survey 2003

DishnetDSL is a prominent player in this segment. Bharti Telenet through its ZipNet brand has also made its entry recently.

There is nothing wrong with the technology as such but it has not been deployed widely.

Corporate Internet Telephony: New Cost Saver for Corporates

Though the closed user group VoIP has been in existence for a long time, the response of corporates has been halfhearted owing to the high cost of installation. With Internet telephony getting legalized and PC-to-PC calls within India and PC-to-phone and PC calls being allowed by the government, some ISPs have started offering corporate Internet telephony solutions. VSNL launched this service in December 2002 through its Tata Indicom brand and is reported to have received a good response from corporates. It is banking on its 1 Gbps international Internet bandwidth. It claims that the solution would result in saving of over 70 percent on your domestic and international PSTN calls besides the real-time experience similar to toll quality service.

The way it works is that you can dial through SIP-based handset to any SIP-based phone or PSTN phone abroad. This is specially a good option for multi-location corporates who can save substantially on interoffice telephone call charges/NLD call charges by subscribing to CUG (calling facility).

n Satellites: Satellites can be used for accessing the Internet one-way or two-way. To access the Internet, the corporate user has to put up a VSAT, which comprises an antenna and an adapter card, at the subscriber’s PC connected to the external outdoor antenna by a cable. The user sends the request by the normal telephone line and downloads through a satellite broadcast that is received by the VSAT and comes to the PC. In the two-way mode, both the request and the download happen through the satellite. This offers significant benefits to consumers, including an ‘always-on’ connection that saves time when dialing up to the Internet and eliminates the need for a second telephone line. It is provided by many operators like HECL, Bharti Broadband, HCL Comnet, and Comsat Max.

Survey Highlights
Internet Dial-up Service:
Top 5 Critical Factors
Rank Factors
1 Referrals
2 Brand name/Company Image
3 Company is part of Large group
4 Offers value for money Product/ services
5 Wide range of Product/services
 
Broadband Service:
Top 5 Critical Factors
Rank Factors
1 Referrals
2 Brand name/Company Image
3 Financial standing of the service provider
4 Wide range of Product/services
5 Ability to scale for future expansion

n Fixed Wireless—LMDS and MMDS: Local multipoint distribution system (LMDS) is a broadband wireless point-to-multipoint communication system operating above the speed of 20 GHz (depending on the country of licensing) that can be used to provide digital two-way voice, data, Internet, and video services. The technology provides a competitive opportunity to embedded wireline or wireless networks for providing high-speed data transmission. Multipoint microwave distribution system (MMDS) channels come in chunks of 6 MHz and run on both licensed and unlicensed channels. Each channel can reach transfer rates as high as 27 Mbps (over unlicensed channels) and 1 Gbps (over licensed channels). The problem with this access technology is that since it works on line-of-sight concept, it does not works well in the mountainous terrain but is suitable for rural areas where copper lines are unavailable. A typical set-up of an MMDS system is a wireless system consisting of head-end and reception equipment at every subscriber location. There are very few players in this segment.

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