Strategic Inflection Points in the Telecom Industry

8/2/2019 Strategic Inflection Points in the Telecom Industry

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- I D E N T I F I C A T I O N O F S I P

- P A S T S I P

Strategic inflection points in

telephone industry


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Letter service

Message use to get delivered in written form Use to take long time to reach the respective address.


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Telegram services

A message delivered in written or printed form.

Telegram services were the only way to conveyinformation speedily over very long distances.

Telegrams were often used to confirm businessdealings and were commonly used to create bindinglegal documents for business dealings.

The western union company(United States of

America), General Post Office(GPO) in great Britain.


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Telegraph services(SIP)

The non-electric telegraph was invented by Claude Chappe in 1794.

This system was visual and used semaphore for communication. The optical telegraph was replaced by the electric telegraph.

Samuel Morse invented the electric telegraph in 1837.

Telegraph started in 1851, the same year Western Union beganbusiness.

Till 1877 all rapid long distance communications depends on telegraph


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TELE-FAX

FOUNDED IN 1843

1st usage of tele-fax : connected Paris and Lyon in 1865 11 years before the invention of telephones.

It was an improvement in producing and regulating electriccurrents and in electric printing and signal telegraphs.


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Telephone(landline) (SIP)

In 1871 Antonio Meucci filed for a patent for the telephone butthat was an acoustic one.

Invented by Alexander Graham Bell in 1876 Bell approached western union president William Orton with

the proposal of selling off the patent of telephone for

$100,000. Orton turned down the offer after under-estimating the importance of the potential of the telephone.

Graham established commercial telephone services in 1877. Simultaneous invention of microphone(transmitter), signal

amplifiers and speaker(receiver).

Characteristics of the telephone: Short distance (carry signal) 20 miles at most


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Telephone (improvements)

Year:1877

Financially backed by western union, Edison introduced the first carbonmicrophone that produce louder and clear signals. Hence Edisoncreated loud speaking receivers.

Year:1881

First long distance telephone service is introduced by Bell Telephone Co.Copper wire used to make long distance telephone calls.

Year:1882

F Van Ryssellberghe, a Belgium engineer invented anti-interferencechoke

Year:1885

AT&T leased phones to homes and offices to maintain ownershipand control over the technology and they continued till 1984.

Year:1915first coast to coast telephone call started


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Handheld mobile phones (SIP)

Cellular technology:

First mobile telephone call is made from a car on 1946 in USA.

Prior to 1973, cellular mobile phone technology was limited to

phones installed in cars and other vehicles. In the year 1973, Motorola manager Martin Cooper placed a

cellular phone call (in front of reporters) to Dr. Joel S. Engel,head of research at AT&T's Bell Labs. This began the era of thehandheld cellular mobile phone.

The world's first commercial automated cellular network waslaunched in Japan by NTT in 1979, initially in themetropolitan area of Tokyo. (the 1G generation)


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Handheld mobile phone

Digital technology:

In the 1990s, the 'second generation' mobile phone systems

emerged, primarily using the GSM standard. These differedfrom the previous generation by using digital instead ofanalog transmission.

era also saw the advent of prepaid mobile phone.

(the 2G generation )


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High speed IP data networks and mobile broadbandtechnology:

Growing demand of greater internet data speed led to the3G generation technology.

the use of packet switching rather than circuit switching fordata transmission


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Internet protocol technology:

elimination of circuit switching, instead employing an all-IP

network

The first two commercially available technologies billed as4G were theWiMAX standard (offered in the U.S.

by Sprint) and the LTE standard, first offered inScandinavia by TeliaSonera.


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Satellite mobile phone

Satellite technology:

Earth-orbiting satellites can cover remote areas out of reach of wirednetworks or where construction of a cellular network is uneconomic.

The Inmarsat satellite telephone system, originally developed in 1979for safety of life at sea, is now also useful for areas out of reach oflandline, conventional cellular, or marine VHF radio stations.

In 1998 the Iridium satellite system was set up, and although the initial

operating company went bankrupt due to high initial expenses, theservice is available today.

Cloud computing and social computing


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Technical aspect of the improvements in telephone system

The phones installed before 20th century used twisted copper wires whichwas known as the loaded system. The cost of installing the copper wires useto took up one fourth of the AT&Ts budget in the late 19th century. It use toabsorb large amount of electrical energy produced by the transmitter ,

which use to distort the original quality.

The radio telephone links created the first long distance service betweenEngland and US in 1927.

The third major improvement was coaxial cables in 1940s that reduced theinterference and increased the calling capacity for the telephone system.

In 1950, microwave stations were established that was based on radartechnology that could carry almost 20,000 phone conversations.

In 1970, the first fiber optics cable were developed that used laser lighttravelling through glass instead of electrons travelling through copper.

Telecommunication satellites for transcontinental service were thenintroduced.


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Telephone(pricing)

Initial pricing for leasing out to the household is $20 a year and that ofthe business unit is $40 a year. However it was too expensive for theworking class.

Then the multiplexing technology, that had been developed by westernunion for upgrading the telegraphing in the year 1913, indirectly helped

to upgrade the telephonic activities. Thus by the end of a century, 17calls can be handled simultaneously with one copper wire instead ofone call per copper wire. Hence the cost dropped.

In the present scenario, the only ones that can take advantage of digitaltransmission at this point are companies that can afford to pay for the

installation of expensive high-bandwidth phone lines and high speedswitching systems. Estimates for rewiring every household in the U.S.with fiber optic cables has been estimated at $100-325 billion.


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Strategic Inflection Points in the Telecom Industry

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