TCS - Southwestern Bell to Maintain Modems for ISPs?

Southwestern Bell to Maintain Modems for ISPs?

by Josh McCormick
Tulsa Computer Society
From the February 1997 issue of the I/O Port Newsletter
Copyright 1997 by Josh McCormick. All rights reserved.

The following article is posted on http://www.galstar.com, and Josh McCormick posted a message in the OK.GENERAL Usenet News Group soliciting additional input on this subject. Since the article provides information about items which might significantly affect Internet Users in Oklahoma, I am reprinting it here, with permission, so that our readers who may not follow traffic on OK.GENERAL will be aware of this information.

This article is intended to inform the user about major changes going on between the relationship of local Internet Service Providers and Southwestern Bell. While praises are given, flaws are pointed out, and tough questions are asked, the author is neutral on the issue at this time. The purpose of this article is to inform, and to provoke thought.

The large numbers of users going online is starting to put a burden on the Public Switched Telephone Network (PSTN). Faced with the costs of upgrading their networks to handle the increased traffic, Telephone Companies (telcos) are looking for alternative solutions.

SouthWestern Bell (SWB) found a solution in the Internet Thruway, created by Northern Telecom (Nortel). The Internet Thruway is a combination of three Nortel products: the AccessNode Data Direct, the Rapport Dialup Switch and the Magellan Passport. Here's what the system does.

When a user places a call to an Internet Service Provider's (ISP) data number, and the Internet Thruway takes the call before it reaches the PSTN (the standard network used to handle voice telephone calls). The Thruway answers the call with its own modem, and feeds the data from the data call to and from the provider using Frame Relay.

What that means is that the telephone company will maintain a large modem bank which will answer calls on behalf of the ISP, and transfer characters to and from the ISP using dedicated data lines. Meaning, it will no longer be necessary (in fact, the telco does not wish) for ISP's to maintain their own modem bank. The Internet Thruway service will be available in the Tulsa and Oklahoma City dialing areas.

To use the service, an ISP must pay approximately $35 per line they wish to receive calls on, and they must specify for each line if they want to to handle ISDN or if they want it to handle standard modem traffic. In addition, they must pay for a frame-relay connection to carry the data of the telephone calls back and forth to the telco. A five year contract on a T1 connection costs $695 to install, and $400 a month. SWB has estimated that T1 connect (1.544 megabits/second) will handle 180 simultaneous customers.

An ISP can purchase as many T1 connects as they wish, or they can buy a T3 circuit on a five year contract for a $739 installation fee and $3,200 per month. A T3 circuit is estimated to be capable of handling 5,040 simultaneous customers.

In many cases, the ISP will need to purchase a device called a CSU/DSU to handle whatever circuit they purchase. A ballpark figure for each T1 CSU/DSU is around $1,300. A T3 CSU/DSU is much more expensive, but I am not personally familiar with the price. (Reader input welcome.) Some ISPs many need an additional router to plug the CSU/DSU into, or to speak the same protocol the telephone company will be using, known as Layer 2 Forwarding.

In Oklahoma, there are currently two types of ISP. The first type, which we will call the "Standard ISPs", purchase business lines (often data conditioned) from the telephone company (or ISDN lines) and hook modems into them. Those modems are, in turn, connected to a terminal server which connects them to the network.

The second type of ISPs, which we will call the "Digital ISPs", purchase T1 PRI lines from the telephone company which handle 23 simultaneous calls, which hook into a device called an access concentrator which has modem and ISDN units built in. The majority of Oklahoma ISPs fall into the Standard category.

The Standard ISPs will see a significant cost reduction with the new service. As well, their connection quality will improve, and they will be able to offer ISDN and (when Southwestern Bell makes it available through their service) 56k modem connections.

The Digital ISPs will see no cost reduction, and in some cases a significant loss due to the investment in modern hardware. The connection quality will be unchanged, implementation of 56k technology may be delayed, and they will now have to allocate lines to two different pools for ISDN and modem users when it was not an issue with their digital hardware (with 100 phone lines, an access concentrator can handle 100 ISDN calls, or 100 modem calls, or any combination in between).

Approximately twelve months later, SWB will be adding additional services to the Thruway, including an extra flat-rate cost for an ISP to serve smaller SWB cities. For users, a cheap second data-line option will be made available that will only call Thruway numbers.

In addition, the Thruway will automatically support the upcoming ASDL connection (also scheduled to be around twelve months away), that allows users to download at 3+ megabits/second (which providers not using the Thruway will have to pay to upgrade their equipment). But Thruway ISPs will have to pay to significantly increase the size of their frame relay connection to Southwestern Bell in order to handle the load.

Another advantage of the Thruway is that an ISP can add or remove lines by simply placing an order with the telco (which will charge approximately $20 per order). To a small ISP, the sometimes prohibitive cost of investing in new hardware is removed, and they are placed on a more equal level with established providers.

Here are the hard-hitting questions.

Public discussion on ok.general is encouraged:

Why or why not will an ISP choose to use the Thruway?

Since Southwestern Bell will be offering Internet access in the near future, and almost certainly by using the Thruway, is there a conflict of interest?

If all ISP's use the Thruway, will the implementation of new technologies, such as 56k modems, be delayed or offered immediately when it is availble? If there are competiting technologies, which standard will they support?

What is the result on ISPs outside the Tulsa and Oklahoma City dialing areas?

How will this affect prices if all ISPs will be sharing nearly the same costs?

Will SWB need to turn units off from time to time for regular maintenance?

In the case of a major hardware failure, how many customers will be affected?

Is Southwestern Bell doing this to benefit themselves, the user, or the ISP?

Will ISPs that do not adopt the Thruway be presured by SWB?

What will an ISP gain by using the Thruway?

What will an ISP lose by using the Thruway?

Is the Thruway a benefit to users? In the short term, or the long term?

Feedback is appreciated.

This may affect you, so what do you think?

For more information on the Internet Thruway, visit: