Home - Key Questions - Fixed Communications: Section 2

Key Questions: Fixed Communications

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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Go to Key Questions: Section 3-8: Fixed Communications

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