CURRENT ISSUES IN TELECOMMUNICATIONS

This article is, of necessity, somewhat technical. But, it should give the building owner or manager a conceptual understanding of the subject and still provide enough information for the systems people to further develop these concepts to meet the specific requirements of the property.

BACKGROUND

Telecommunications no longer means telephones. There are many areas of technology that must be considered when dealing with this subject. To properly attack cost reduction, service improvements and revenue enhancements all areas must be included:

• Voice,
  
• Data,
  
• Video,
  
• Imaging.
  

With this background in mind, we will attempt to provide you with a concise view of both business drivers to be considered and actions that business managers should be taking to operate efficiently and also prepare for the future.

THE FUTURE

We talk about the future first, because every decision should include consideration of the future service, cost and operations implications.

UNIVERSAL MESSAGING

This capability will link a users to all of his communication systems from any device he uses. The smart networks will know where he is an deliver accordingly. See the separate article on Universal Messaging.


SERVICES & INFRASTRUCTURE

Within ten years it will be common, if not standard for all voice, data and video services to be provided to offices, guest rooms and public areas over a single network. Every outlet, including the hotel guest rooms, will be connected to a 25 to 100 megabit unified network. 'Controllers' at the end points (like offices & individual guest rooms) will separate the signals for:

• Telephone,
  
• Television,
  
• Internet,
  
• LAN services,
  
• In-room HVAC controls,
  
• Video Security & Access (cameras at every guestroom door),
  
• Environmental control,
  
• Voice controlled access to building & support/guest services.
  

The pace of technology change will force building owners, office managers, hotels and hotel management companies to embark on a continuing evaluation of the benefits associated providing or enhancing these services.

There are five incentives for providing these services:

1. Reducing cost of operation through automation,
   
2. Reducing investments in multiple systems and networks,
   
3. Adding revenues through sales of services to guest and outside vendors.
   
4. Justification for 'Selected' higher room or floor rental rates.
   
5. Duplicating services that the guest enjoys in his home.
   

Most hotels and many businesses can not now provide these services due to antiquated and/or limited wiring to the guest room. As a result, hotels should seize any and all opportunities to include upgrades to wiring to the guest rooms and public areas. The change should install at least two, four-pair category 5 cables from each guest room to a 'local' distribution point. From those distribution points fiber will be run to the central distribution point where all voice, data and video services will be connected and interconnected. Until network services are installed this same cable can be used to provide standard telephone service over the current copper backbone. If you have outlets on each side of the guest room, one of the cables must directly terminate in each outlet without any breaks, cuts or splices. The lines can be bridged in the hall where both of them terminate.

TELEPHONE COMPANY SERVICES ARE ALSO CHANGING.

Both long distance and local service capabilities are rapidly changing.

Many of the larger population centers now have multiple choices for local service including AT&T, MCI, MFS and others.

At the same time, the local operating companies like BellSouth, US West and the other 'baby bells' are moving into the long distance arena.

As a result many hotels can now chose a single carrier for both local and long distance service. Within the next year or two, that carrier will also be able to supply cable TV and other video services.

This combining of network services will allow a business to reduce its operating costs in two ways. The new local service providers are offering services at 5 to 30% below that of the established carrier. Second, using a single set of trunks for all services allows the hotel to reduce the number of trunks required.

Moreover, the ATM Forum has approved new standards that will allow telephone systems to use this transmission method to connect to the telephone network. Nortel, with its Passport switch is already using this type connection to integrate telephone calls within customer data networks, Additionally, The ATM protocol is prevalent in the long distance carrier backbones, and, using this type of connection for telephone services in the future (6 - 18 months) will vastly improve connection times and service quality. It will also allow the telephone system to directly provide high speed data network services.

Voice over IP (VOIP) is being introduced by many vendors. The migration to this technology will reduce usage costs from their $.04 - .06 per minute to $.03 - .04 per minute for dedicated and switched services respectively.

SUMMARY

To take advantage of these wire and wireless based services there are critical steps that you must take:

1. Develop a wiring plan with a focus on having a central distribution point. Then take every possible opportunity to upgrade wiring to match that plan.
   
2. Evaluate 'new' services that you can provide to guests and undertake trials to test the acceptable methods of service provisioning and cost recovery.
   
3. Select new telephone and other communications systems carefully to assure that they will be capable of utilizing the new communications methods as they evolve.
   
4. Try using a new local service provider to reduce costs and improve service. Do not be the first in your area to make the change, but, do not wait too long either