TELECOMMUNICATIONS

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Telecommunications

The cost of bandwidth in Africa poses a barrier to the continent’s effective participation in international trade and the knowledge economy, while limiting local markets and education. Without adequate bandwidth Africa runs the risk of being left behind in the global race. The Shuttleworth Foundation is, therefore, actively investing in a project portfolio that will contribute towards solving bandwidth limitations in the African context.

High speed, affordable bandwidth is a vital component of growth in business, education and in attracting international investment. Without sufficient affordable bandwidth being available, international companies who rely on Internet communications for the daily running of their line-of-business systems are unable to enter local markets and educational institutions are limited in terms of their global participation in the knowledge economy.

As a country, South Africa ranks 23rd in global telecommunications development and houses 39 percent of the total telecommunications infrastructure installed in Africa.

National operator Telkom holds a traditional monopoly on the South African market, although it is now challenged by a competitor for the first time in its history, in the form of South Africa’s second network operator. The second operator began rolling out services in 2007, but is yet to make a substantial change to the local market in terms of bandwidth availability and the reduction of costs.

South Africa also represents the fastest growing region in terms of GSM usage with three cellular operators in the region. These providers also offer bandwidth services, but are hindered at the backend by their reliance on Telkom for transmission. Nonetheless, South Africa already offers some of the most affordable mobile broadband offerings in the world – but these are still limited to those who can afford them and are intended for personal use.

According to a study released in 2002, under 3 million South Africans had access to the Internet at the end of 2001 out of a total population of around 45 million. This number is now estimated to have grown to 5.1 million users in 2007 with a population of just under 50 million.

In addressing local bandwidth challenges the Shuttleworth Foundation invests in projects across three levels of penetration; community, educational and research projects with the objective of engaging in policy dialog and informing regulatory change while advocating an open telecommunications market.

South Africa’s telecommunications

It should come as no surprise that the country that invented touchtone dialling offers world-class telecommunications.

Telecommunications is one of the fastest growing sectors of South Africa’s economy, reflecting the rapid growth of mobile telephony in the country. The communications sector, together with transport and storage, accounts for almost 10% of gross domestic product (GDP).

With a network that is 99.9% digital and includes the latest in fixed-line, wireless and satellite communication, the country has the most developed telecoms network in Africa.

The fixed-line monopoly of Telkom, a listed company in which the government is the largest shareholder, expired with the licensing of Neotel as South Africa’s second national operator. Neotel is licensed to provide the entire range of telecoms services with the exception of full mobility.

South Africa’s mobile boom

South Africa is the fourth-fastest growing mobile communications market in the world. The country’s three cellular network operators – Vodacom, MTN and Cell C – provide telephony to over 39-million subscribers or nearly 80% of the population.

The introduction of number portability as well as the arrival in 2006 of Virgin Mobile, a virtual network service provider that operates in partnership with Cell C, has helped enhance competition.

South African mobile companies are making inroads into Africa and the Middle East, with MTN leading with over 20 operations in these emerging markets.

At home, some of the world’s leading telecommunication brands – including Siemens, Alcatel, SBC Communications, Telecom Malaysia and Vodafone – have made significant investments in the local industry.

Bandwidth access and costs

Wider access to broadband, ADSL and 3G access has boosted internet connectivity, with the number of South African internet browsers increasing by 121% in two years, from 1.8-million in May 2005 to 3.8-million in May 2007, according to research firm Nielsen/NetRatings.

Bandwidth, however, remains relatively limited and expensive in South Africa, hampering the rate of economic growth. But the government has committed to increasing accessibility and bringing down costs.

To this end, the Cabinet approved laws early in 2008 to enable the formation of Infraco, a new state-owned company that will provide broadband capacity through fibre-optic cables to other telecoms operators in the country.

Infraco’s role will complement that of state-owned signals provider Sentech, which provides internet connectivity – focusing on the public sector – through wireless systems rather than fibre-optic cables.

Meanwhile, major cities such as Cape Town, Durban, Johannesburg and Pretoria have launched public-private initiatives to build their own broadband networks in order to provide residents with cheaper voice and data services.

And in September 2007, mobile company MTN announced that it would partner with other operators to build a 5 000-kilometre fibre-optic network across the country’s major centres to meet the increasing demand for bandwidth from its customers.

Major projects are also under way to lay submarine fibre-optic cables along both the east and west coasts of Africa to boost the continent’s connection with the rest of the world.

Article last updated: October 2008

SAinfo reporter. Sources:

• Standard Bank: Economic Profile: South Africa
• Telkom
• Cell C
• MTN
• Neotel
• Business Day
• Business Report
• ITWeb

Sample Diagrams

There are more than 224 explanatory diagrams in this book

Private Branch Exchange (PBX) System

This diagram shows a private branch exchange (PBX) system. This diagram shows a PBX with telephone sets, voice mail system, and trunk connections to PSTN. The PBX switch calls between telephone sets and also provides them switched access to the PSTN. The voice mail depends on the PBX to switch all calls needing access to it along with the appropriate information to process the call.

Digital Subscriber Line (DSL) System

This figure shows a basic DSL system. This diagram shows that the key to DSL technologies is a more efficient use of the 1 MHz of bandwidth available on a single pair of copper telephone lines. A DSL system consists of compatible modems on each end of the local loop. For some systems, the DSL system allows for multiple types of transmission on a single copper pair. This includes analog or ISDN telephone (e.g., POTS) and digital communications (ADSL or VDSL). This diagram shows that there are basic trade offs for DSL systems. Generally, the longer the distance of the copper line, the lower the data rate. Distances of less than 1,000 feet can achieve data rates of over 50 Mbps.

IP Centrex System

This figure shows a basic IP Centrex system that allows a local exchange company (LEC) in New York City to provide Centrex services to a company in Los Angeles. In this diagram, the LEC in New York City uses a class 5 switch to provide for plain old telephone (POTS) and Centrex services to their local customers. The Centrex software is installed in the switch and existing Centrex customers in the local area continue to connect their telephone stations directly to the Class 5 switch. To provide Centrex services to new customers located outside the geographic area, the LEC has installed a network gateway in New York that can communicate with the customer gateway in Los Angeles. Because the network gateway converts all the necessary signaling commands to control and communicate with the customer gateway, the class 5 switch does not care if the customer gateway is in Los Angeles or Tokyo. It simply provides the Centrex services as the users request.

Table of Contents

Introduction to Telecommunications

Key Changes in Telecommunications History
Key Telecommunications Services
Billing and Customer Care (BCC)
Application Service Providers (ASPs)
Basic Communications Systems
End User Equipment
Network Access Lines
- Interconnection Networks
Network Control
Networks
Local Exchange Carriers (LEC)
Private Telephone Systems
Inter-Exchange Carriers (IXC)
IP Telephony System
IP Television System
Data Networks
Wireless Networks
- Cellular and PCS
- Paging
- Wireless Data
- Wireless Broadband
- Broadcast
Regulation
Telecommunications Applications & Services

Voice Communication
- Voice Quality
- Voice Privacy
Data Communication
- Circuit Switched Data
- Packet Switched Data
- Public Data Networks (Internet)
Video Communication
- Analog Video
- Digital Video
Distribution Service (DS)
- Broadcast Transmission
- Multicast Transmission
- Unicast Transmission
- PointtoPoint (PTP)
Bearer Services (BS)
- Constant Bit Rate (CBR)
- Variable Bit Rate (VBR)
- Available Bit Rate (ABR)
- Unspecified Bit Rate (UBR)
- Committed Information Rate (CIR)
Teleservices
- Custom Calling Features
- Voice Mail (VM)
- Central Exchange (Centrex)
- Call Center
- Operator Services
- Information Services
Supplementary Services
Basic Communication Technologies

Signal Types
- Analog
- Digital
Modulation

- Amplitude Modulation (AM)
- Frequency Modulation (FM)
- Phase Modulation (PM)
- Combined types of Modulation
Channel Multiplexing
- Frequency Division Multiplexing (FDM)
- Time Division Multiplexing (TDM)
- Code Division Multiplexing (CDM)
- Digital Speech Interpolation (DSI)
Communication Systems
- Simplex
- Half Duplex
- Full Duplex (FDX)
- Time Division Duplex (TDD)
Analog Signal Processing
- Signal Filtering
- Signal Amplification
- Signal Shaping
Digital Signal Processing
- Digitization of an Analog Signal
- Digital Signal Regeneration
- Data Compression
- Error Detection and Error Correction
- Echo Cancellation
- Digital Signal Processor (DSP)
Control Message Signaling
- InBand Signaling
- OutofBand Signaling
Switching Systems
- Crossbar
- Time Slot Interchange (TSI)
- Packet Switches
Protocols
Network Control
- Common Channel Signaling (CCS)
Security
- Authentication
- Authorization
- Information Privacy
Introduction to Public Switched Telephone Networks (PSTNs)

Overview
- Local Loop
- Switching Systems
- Transmission Systems
- Numbering Plan
- Call Processing
Technologies
- Public Telephone System Interconnection
- Common Channel Signaling (SS7)
- SS7 and Internet Protocol (IP) Signaling Systems
- Advanced Intelligent Networks (AIN)
- Packetized Voice
- Fiber Distribution Networks
- Softswitches
Systems
- Plain Old Telephone Service (POTS)
- Integrated Digital Services Network (ISDN)
- Digital Subscriber Line (DSL)
- Digital Loop Carrier (DLC)
- Passive Optical Network (PON)
Services
- Voice
- Centrex
- Leased Lines
- Digital Subscriber Line (DSL)
Private Telephone Networks

- Telephone Stations
- Interconnections (Wiring)
- Switching Systems
- System Topology
- Numbering Plans
Market Growth
- Key Telephony System (KTS) Market
- Hosted PBX (IP Centrex) Market
- Private Branch Exchange (PBX) Market
- Computer Telephony Market
- Internet Protocol PBX (IPBX) Market
Systems
- Key Telephone System (KTS)
- Private Branch Exchange (PBX)
- Hosted PBX Systems
- Computer Telephony Integration (CTI)
- Internet Protocol PBX (IP PBX or IPBX)
- Wireless Private Branch Exchange (WPBX)
Call Processing Features
- Distinctive Ringing
- Call Hold
- Call Forwarding
- Selective Call Forwarding
- Selective Call Acceptance
- Conference Call
- Call Pickup
- Call Transfer
- Call Waiting (CW)
- Calling Line Identification (CLI)
- Hunting
- Voice Dialing
- Night Service
- Automatic Callback
- Automated Attendant System
- Automatic Call Distribution (ACD)
- Fax on Demand (FOD)
- Interactive Voice Response (IVR)
- Voice Mail (VM)
- Videoconferencing
- Web Conferencing
- Call Centers
Data Networks

- Data Terminals
- Network Interface Card (NIC)
- Network Wiring
- Network Distribution and Routing
- Network Access Control
- Protocols
- Network Management
Overview
- Personal Area Networks (PAN)
- Premises Distribution Networks (PDN)
- Local Area Networks (LANs)
- Metropolitan Area Networks (MAN’s)
- Wide Area Networks (WAN’s)
- Wireless Data Networks
Data Network Components
- Data Modems
- Digital Service Unit (DSU)/Channel Service Unit (CSU)
- Hub
- Bridge
- Routers (Packet Switches)
- Firewall
- Gateways
Data Communications Systems
- Ethernet
- Token Ring
- Fiber Distributed Data Interface (FDDI)
- Passive Optical Networks (PONs)
- Asynchronous Transfer Mode (ATM)
- Frame Relay
- Internet
Services
- Circuit Switched Data Service
- Packet Data Service
- Virtual Private Networks (VPN’s)
- Internet Service Provider (ISP)
- Unicast Service
- Multicast Service
- Broadcast Service
- Constant Bit Rate (CBR)
- Available Bit Rate (ABR)
- Unspecified Bit Rate (UBR)
IP Telephony

- Converting Voice to Data
- Sending Packets
- Converting Packets to Telephone Service
- Managing the Connections
IP Telephony System Protocols
- H.323 Packet Based Media Communication System
- Session Initiated Protocol (SIP)
- Media Gateway Control Protocol (MGCP)
IP Telephony System Types
- Internet Telephone Service Providers (ITSP)
- IP Centrex
- Internet Protocol Private Branch Exchange (IPBX)
Basic IP Telephony Communication Services
- Voice Service
- Mobility Management (via Registration)
- Call Hold
- Call Forwarding
- Click To Dial
IP Telephony Communication Servers
IP Television

Viewing IP Television Channels
- Multimedia Computer
- Analog Television Adapters (ATVA)
- IP Television (IP Television)
- Mobile Video
Control over IP Television Services
- Instant Activation
- Real Time Accounting and Billing
- Channel Selection
New Television Features and Services br> Anywhere Television Service
- Global Television Channels
- Personal Media Channels (PMC)
- Addressable Advertising
- Television on Demand (ToD)
How IPTV and Internet Television Systems Work
- Media Digitization
- Digital Media Compression
- Converting Packets to Television Service
- Managing the Television Connections
- Multiple IP Televisions per Home
- Digital Rights Management (DRM)
IP Television Systems
- Managed IP Television Systems
- Internet Television Service Providers (ITVSPs)
- Private IP Television Systems
IP Television Quality, Security, and Reliability
- Audio Quality
- Video Quality
- Reliability
- Industry Standards
IP Television Market
Internet Television Service Provider Costs
- Content Licensing
- Data Transfer Cost
- Subscriber Management
- Sales and Marketing
- Media Management Systems
- Software Licensing
Wireless Systems

Radio Frequency (RF)
- Licensing
- Unlicensed Frequency Bands
- Frequency Allocation
- RF Channels and Bandwidth
Overview
- Radios
- Radio Towers and Transmitter Equipment
- Switching Facilities
- Interconnection to Other Networks
- Customer Databases
- System Security
Market Growth
- Mobile Telephone Service
- Mobile Data Networks
- Wireless Broadband
Systems
- Mobile Telephone Systems (MTS)
- Broadcast Radio
- Broadcast Television
- Mobile Data Networks (MDN)
- Land Mobile Radio (LMR)
- Aircraft Telephones
- Satellite
- Wireless PBX (WPBX)
- Residential Cordless
- Wireless Personal Area Network (WPAN)
- Wireless Local Area Network (WLAN)
- Wireless Cable
- Wireless Local Loop (WLL)
- Worldwide Interoperability for Microwave Access (WiMax)
Services
- Mobile Voice
- Paging
- Wireless Data
- Broadcast Radio
- Broadcast Television
Telecom Billing

Introduction to Billing – Types of Services
- Standard Billing Process
- Real Time Billing
- Multilingual Support
- Multiple Currencies
- Inter-carrier Settlements
Billing Process
- Event Sources and Tracking
- Mediation Devices
- Call Detail Records (CDRs)
Major Billing Functions
- FrontEnd: Call Processing
- Back End: Cycle Billing
- Clearinghouse
- Invoices
- Management Reporting
- Invoicing
- Processing Payments
- Posting to the Financial System
Customer Relationship Management (CRM)
- Account Activation
- Account Management
Billing System Costs
- Hardware and Software
- Invoice Processing (Batching)
- Bill Printing and Mailing
- Call Center
- Collections
Billing Standards
- Exchange Message Record (EMR)
- Automatic Message Accounting (AMA)
- Carrier Interexchange Billing Exchange Record (CIBER)
- Transferred Accounting Process (TAP)
- Network Data Management – Usage (NDMU)
- Interim Standard 124 (IS124)
The Future of Billing and Customer Care
- Applications Service Providers (ASPs)
- Local Number Portability (LNP)
- Customer Self-Care

Regards

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