Understanding Telecom Services
They can be broadly classified into the following categories:
Voice
Video
Data or broadband
1. Voice
Voice is the oldest and most commonly provided service. It is provided by wireline, wireless, cable and satellite companies. The voice service provided to consumers can be classified into the following categories:
Wireline Voice - provided by wireline-based service providers
Wireless Voice - provided by cellular and satellite-based service providers
Voice over IP (VoIP) - provided by wireline and cable-based service providers using IP technology
2. Video
Video/TV service involves the communication of video/TV signals from one central location to many subscribers. Video services these days are provided by wireline, wireless, cable and satellite providers. The video service provided to consumers can be classified into the following categories:
IPTV - provided by wireline-based service providers
Cable TV - provided by cable-based service providers
Satellite TV - provided by satellite-based services
Mobile TV - provided by cellular-based service providers
3. Data
Data services refers to the communication of information between machines like PC, laptop, cell phone or PDA. Data services are also provided by wireline, wireless, cable and satellite companies. The data service provided to consumers can be classified into the following categories:
DSL - broadband (over 128 Kbps) provided by wireline-based service providers.
Dial-up (less than 56 Kbps) - provided by wireline-based service providers.
Cable broadband - broadband (over 128 Kbps) provided by cable-based service providers.
Satellite broadband - broadband (over 128 Kbps) provided by satellite-based service providers.
Applications
In addition to basic services like voice, broadband or cable TV, service providers also supply applications that run on top of services. These applications provide additional functionality and enhance user experience.
Typical examples of applications are:
Voice mail
Caller ID
Call waiting
SMS/MMS
Games (e.g., Sudoku, Chess) over mobile and TV
In the industry today, the term "service" is widely used to include applications. The way to differentiate is that an application cannot run by itself, whereas a service can. For example, call waiting is not available on its own, it is available only as part of a voice service.
4. Service Providers
Organizations responsible for providing telecommunication services (voice, video and data) are called service providers. They form the largest sector in the telecommunications industry and account for more than 77% of overall industry turnover.
The market place is filled with a variety of service providers. They can be broadly classified based on the transport mechanism used to provide the services:
Wireline carriers (using wires)
Wireless carriers (using radio waves)
Cable company (using hybrid fiber-coaxial cables)
Satellite communication (using satellites)
Types of Service Providers
For years, due to regulatory restrictions and technology limitations, service providers provided only one type of service to one type of customer. For example, a wireline service provider only provided voice service to residential consumers.
However, things have dramatically changed in the last decade and regulatory authorities no longer restrict companies to serve just one segment (residential or enterprises) or provide just one type of service (voice or video).
In addition, IP technology allows a service provider to provide any type of service using the same infrastructure. For example, earlier a wireline provider could only provide voice service to residential customers. However, now due to new technology and changes in regulation, a wireline service provider is allowed to provide broadband and TV services as well.
Similarly, wireless, cable and satellite service providers are now providing all three services (voice, video and data). It will not be long before there will be no differentiation between wireline, wireless, cable, and satellite service providers. Each will be capable of providing all the communication and entertainment services required by consumers.
Wireline Carriers
Wireline carriers mainly provide telephone and broadband service via wires that connect customers' premises to central offices maintained by telecommunication companies. The wireline carriers were the first telecommunication service providers and have been in business ever since the invention of the telephone.
For years, they primarily provided voice communication services using analog technology over copper wires. Today, the copper wires are being replaced by high capacity optic fiber, and packet based digital technology is replacing analog technology. These two new breakthroughs make efficient use of resources and provide endless possibilities for new services.
Packet communication makes it possible to transmit all types of communication signals over the same channel, thereby considerably reducing costs and the price of services.
On the enterprise side, the market for wireline-based data connections continues to show steady growth. Wireline service providers provide broadband, MPLS, MAN and WAN based on IP, and data networks like LAN, voice PBX, IP-based services like IP Centrex, ATM and Frame relay. In addition, they provide managed services like network security, VPNs, data centers and Web server farms.
The network built by the world's wireline carriers is referred to as the public service telephone network (PSTN). PSTN connects central offices around the world using many switches interconnected by coaxial or fiber cables. PSTN is still mostly analog, but many parts of it are being converted to digital, especially the connections between central offices.
Wireless Carriers
Wireless operators, many of whom are subsidiaries of wireline carriers, transmit voice, graphics, data, and provide Internet access over a network of radio towers. The signals are transmitted to and from the end-user device (e.g., mobile phone, pager) through the nearest antenna. The antennas are in turn connected to a central office through a wireline network.
The biggest advantage of wireless communication is that the infrastructure required to start business can be installed very quickly, even over hostile terrain or a heavily populated area. Wireless devices are popular with customers who need to communicate as they travel, residents of areas with an inadequate wireline service, and those who simply desire the convenience of communicating on the move. Increasing numbers of consumers are choosing to replace their home landlines with wireless phones.
Wireless carriers are primarily divided into two main categories:
GSM-based service providers
CDMA-based service providers
GSM and CDMA are two competing technologies. GSM is an open source technology started in Europe with around 73% of worldwide market share, while CDMA is a proprietary technology led by Qualcomm in the United States. Each of these technologies has many more sub-technologies to provide voice and data services.
by: Edwin Huertas
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