Business Data Communications

Standards and Laws

What are Standards?

Documented agreements Technical specifications or other precise

criteria to be used consistently as rules, guidelines, or definitions of characteristics

Ensure that materials, products, processes and services are “fit for their purpose”

Why Are Standards Important to Telecommunications?

Attracts firms to produce products while…

Promoting interoperability of components.

Consumers may select components made by different vendors.

Having many vendors keeps prices down for consumers.

Greatly simplifies the process of creating components and creating networks, which reduces costs throughout the value chain.

Worldwide standards promote the creation of worldwide communications systems.

Standard setting process promotes intelligent discussion of problems and possible solutions.

Who Sets Standards?

International Organization for Standardization (ISO) A.k.a. L’organisation Internationale de

Normalisation “ISO” does not stand for anything, BTW. A worldwide federation of national standards

bodies from 130 countries, one from each country

HQ in Geneva, Switzerland

Who Sets Standards?

International Telecommunications Union (ITU-T) Formerly the Comité Consultif International

Télégraphique et Téléphonique (CCITT) In 1993, the CCITT became part of the (ITU-T)

but it’s still widely known as the CCITT HQ in Geneva, Switzerland

Who Sets Standards?

American National Standards Institute (ANSI) Private, nonprofit membership organization of

nearly 1400 companies, government agencies, institutions, and organizations

Also a member of the ISO HQ in New York City, satellite office in

Washington, D.C.

Who Sets Standards?

Institute of Electrical and Electronics Engineers (IEEE) An international non-profit technical professional

association of more than 330,000 individual members in 150 countries

Produces 30 percent of the world's published literature in electrical engineering, computers and control technology

Holds annually more than 300 major conferences Has more than 800 active standards with 700 under

development.

Who Sets Standards?

Electronics Industries Alliance (EIA) Represents the entire spectrum of US companies involved

in the design and manufacture of electronic components, parts, systems and equipment.

Seven industry sectors/groups

Access to domestic and foreign marketing data

Lots of perqs for member companies

Lobbies Congress and government agencies.

Who Sets Standards?

Internet Engineering Task Force (IETF) A large open international community of

network designers, operators, vendors, and researchers. Open to any interested individual.

Considers the evolution of the Internet architecture and the smooth operation of the Internet.

Meets thrice/year but working groups collaborate via e-mail.

De Facto Standards A condition existing within a particular

industrial sector when the large majority of products or services conform to the same standards.

Results from consensus agreements reached between all economic players in that industrial sector - suppliers, users, and often governments.

Examples: IBM PC, TCP/IP, Ethernet

Major USA Laws and Rulings

Back in “the day”, we had one nationwide telephone company—AT&T. Granted a monopoly, in effect, for promising to be a

common carrier and providing universal access. Other countries had government monopolies (PTTs) which

offered huge opportunities for patronage. There were always small, independent local phone

companies scattered about and there still are. For example, CT Communications a.k.a. “The Concord

Telephone Company”

Major USA Laws and Rulings

Modified Final Judgement (1982) Divested ATT of the 22 Bell Operating Companies,

which grouped into 7 Regional Bell Operating Companies (RBOCs) -- the “Baby Bells” RBOCs regulated by state public service commissions RBOCs cannot enter LD market or e-publishing RBOCs given equal rates for access to LD system RBOCs given the Yellow Pages

ATT allowed to enter any unregulated market and to keep Western Electric and Bell Labs

Competition (Sprint, MCI) and falling rates for long distance!

This is How the RBOCs Started

GOLDMAN: DATACOMM FIG.01-05

US West Northwestern Bell Mountain Bell Pacific Northwest Bell

Pacific Telesis Group Pacific Telephone Nevada Bell

Southwestern Bell Southwestern Bell Telephone

Ameritech Illinois Bell Indiana Bell Michigan Bell Ohio Bell Wisconsin Bell

Bell South Southern Bell Southeastern Bell

Bell Atlantic Bell of PA Diamond State Telephone New Jersey Bell Chesapeake & Potomac Bell Co's

NYNEX New England Telephone New York Telephone

Major USA Laws and Rulings

Telecommunications Act of 1996 - a huge change for LD, local phone service providers, TV, radio, and cable industries. Deregulated long-distance pricing and allowed LDCs to enter

market for local phone service RBOCs can enter LD market and e-publishing under certain

condition Prevents some telecomm mergers V-chip Cable companies can enter local phone market once cable

rates are deregulated but cannot enter the “direct TV” market and much more...

Summary

Standards promote interoperability of components.

Standards serve both vendors and consumers by increasing the options available to both parties.

Standards may be official, de facto, or both.

Telecommunications standards are set by several organizations.

Government policies have a tremendous impact on the development of the telecomm industry.