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Home - Key
Questions - Fixed Communications: Section
2
Section 2: Questions regarding the drivers of
change in the network layer, Layer II
The activities, services and companies involved in the network layer of
the new telecoms industry, i.e. Layer II, are described in Industry Mapping
The network layer may be compared metaphorically to the capillaries,
veins and arteries that carry the necessary blood, oxygen and nutrients to all
parts of the body. This layer contains the networks that carry the bits (binary
digits) of information that are the lifeblood of digital information and
communications systems. These include network architectures such as:
- optical fibre
- mobile
- satellite
- radio access
- DSL
- cable TV
- LANs such as Ethernet.
The services provided by companies involved in the network layer include
ISDN, frame relay, ATM and leased circuits.
Companies involved in this layer include the incumbents such as
AT&T, BT, Deutsche Telekom, France Telecom and NTT, and the US regional
incumbents such as SBC and Bell Atlantic as well as new operators like
MCI WorldCom, Qwest, Level 3, Global Crossing, Viatel, COLT, Energis etc.
In this section questions are raised regarding the dynamics of change in
Layer II and the implications for the processes of shakeout and consolidation.
Question 9: Does the economics of the network
layer imply that this layer will be dominated by a handful of large global
operators?
Question 10: Will there be a massive
shakeout in the global telecoms industry? Who will be the winners and losers?
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