Home Latin America I 1997 Open for Business

Open for Business

by david.nunes
Nadeem SiddiquiIssue:Latin America I 1997
Article no.:9
Topic:Open for Business
Author:Nadeem Siddiqui
Title:Not available
Organisation:Ericsson Telecommunications Ltd, Sweden
PDF size:32KB

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Article abstract

Making the most of today’s telecommunications technology such as radio links means it is now possible to deliver business-quality connections that can avoid the prohibitive cost of laying cables in the conventional way. Ericsson’s AIRLINE technology can offer businesses across Latin America quality service in urban areas, delivering both conventional telephony and ISDN technology with one single leap.

Full Article

Without doubt, Latin America is one of the most exciting regions in the world today. As economies across the continent develop rapidly, South American countries are emerging as dynamic and forward-looking players in the global business market. Certainly, there are many opportunities waiting to be taken. Yet there are many challenges, too. And one of the most pressing of these is the need for improved telecommunications services. In major urban areas, in particular, this problem is acute – and represents a major constraint on business growth. While small businesses are flourishing, their potential is often stifled by the shortage of suitable business lines. In order to compete in the world’s markets today, even the smallest of businesses needs to take advantage of innovations such as Integrated Services Digital Network (ISDN). But if demand is rapidly outpacing supply, the inevitable result is irreparable damage to the economy. A worrying scenario indeed; fortunately, however, there is a solution. Thanks to the development of radio-based technology, it is now possible to deliver business-quality connections using radio links. The need for expensive and inconvenient road digging can be avoided, while the Customer can enjoy communication facilities every bit as good as the conventional technology. You may perhaps think that this sounds too good to be true. So where’s the catch? In this case, quite simply, there isn’t one. As companies around the world are already discovering, radio-based technology really can deliver high-quality business communications services at a surprisingly low cost. To see how this can be achieved, let’s look at the pioneer of this revolutionary-AIRLINE from Ericsson. AIRLINE was developed in association with Mercury Communications in the UK, specifically to help Mercury overcome the problem of rolling out business-quality connections. As the second largest player in the UK telecommunications market, Mercury is rapidly expanding and extending its network infrastructure. But while Mercury is committed to investing in its network, small business customers represented a difficult market to reach. Although there was certainly a need to offer enhanced services to business customers, the cost of laying cables in the conventional way was prohibitive. The volume of telecommunications traffic likely to be generated by a typical business customer would be too small to justify the capital expenditure. Ericsson, however, was able to propose an alternative solution. This would be a radio-based system using advanced technology to provide business users with higher bandwidth connections in urban areas, Mercury was very enthusiastic about the potential of the system, and became the first customer of what has now become AIRLINE. AIRLINE provides local loop connections which allow operators to connect new users economically to both Public Switched Telephone Network (PSTN) and ISDN services. Small customer terminals replace transmission by cable. As a result, the cost of provision is reduced substantially, with rollout costs being directly proportional to the number of new customers connected. AIRLINE is ideally suited to serving the needs of the typical small business customer today: it allows a mixture of services to be offered from a single point, multiplexed onto radio transmission facilities and groomed to the appropriate service node. PSTN, ISDN and Private Branch Exchange (PBX) connection, together with analogue and digital leased line services, can all be offered from a single AIRLINE node-which may be located on the customer’s premises. Where the delivery of both ISDN and PSTN services is required for residential and business subscribers, AIRLINE is a convenient and elegant solution. Both services can be offered over a single access network, which can be easily adapted to meet unpredictable changes in end-user demand. Because the system is digital in nature, full security can be maintained across the link to the customer. In addition, further levels of encryption are available as options. Clearly, then, services such as AIRLINE promise to open up a wealth of opportunities for businesses across Latin America. Network operators can now fulfil the pent-up demand for quality service in urban areas, delivering both conventional telephony and ISDN technology with one single leap. The problem of cost and resources need no longer be a restraint on network growth and expansion. Although such radio-based systems are still advancing in scope and sophistication, they already offer considerable potential. AIRLINE, for example, offers bandwidths of up to 2Mbits/s and can support up to 5,000 64Kbit/s subscriber’s channels on each cell. With one cell covering an area of up to 20km, it is clear that each new cell represents a considerable resource for the local business community. While the technology is clearly more than adequate for today’s needs, future proofing is also a very important issue. AIRLINE has been designed ready for migration to Frame Relay, allowing network operators to carry broadband multimedia. In the UK, AIRLINE has already proved itself in major customer trials, and is now being rolled out nationwide. With more and more customers in America and other regions worldwide also signing up with Ericsson, AIRLINE is poised to become one of the most significant telecommunication technologies in the world today. So from Mexico to Argentina, and from Chile to Brazil, entrepreneurs across Latin America can now look forward to making the most of today’s telecommunications technology. The provision of service need no longer be a barrier to the expansion of national networks – either physically or financially. Conclusion Certainly, as Latin America continues to advance and develop, the potential for new business growth and expansion is remarkable indeed. Thanks to technologies such as AIRLINE from Ericsson, every business can now seize the opportunity in a wide range of markets, and with smaller business playing a key role in driving modern economics, every country can now enjoy the possibility of greater economic prosperity. In a fast-changing world, the ability to respond and adapt is essential to business survival. With the help of radio-based local loop systems, South American countries can now realise their true potential.

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