ABSTRACT
This chapter investigates the costs a local exchange carrier (LEC) would incur to implement an Internet protocol (IP)-based local access network providing both voice and Internet access service. The architecture employs end-to-end IP technology over asymmetric digital subscriber lines (ADSL) in the local loop. A cost model of key network elements estimates the forward-looking cost of this integrated network. The cost of the proposed architecture is compared with the cost of a traditional network solution for voice and Internet access using the public switched telephone network (PSTN). In this baseline architecture, the PSTN is used for Internet access and Internet users are provided with an extra analog line for a voice-grade modem. Because multiple voice conversations can be carried over a single ADSL loop, the IP architecture dominates only where loop savings for multiline subscribers exceed the additional electronics costs of ADSL. A number of technical and policy issues regarding the deployment of the proposed network are also discussed in the last part of this chapter.
