Effects of tech on language

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Abstract


The effects of new technology on language was investigated. It was found that all technology has an effect on language, both positive and negative. Every field of technology that was investigated showed some effect on the way that language is used in and around it. The more that people got used to the technology, the more language was effected. The internet has weakened our ability to communicate with each other face to face. Cell phone use etiquette should be a priority to cell users. It is shown that society is becoming rude. The medical field has grown significantly, adding many new terms to language. Medical organizations have come up with ways of dealing with all this new technology.


Effects of Technology on Language


Technology has influenced our language in a myriad of ways. The introduction of


Online essay help on Effects of tech on language


communication satellites has ushered in a new era of near instant communication around


the globe. We now have the internet with its online chat forums, private chat, and Email.


Satellites have also facilitated cellular or wireless communication via devices such as


cellular telephones, pagers, or personal digital assistants.


The various elements of this technology have had both positive and negative


effects on our language and the way we communicate. In the following text our group


will briefly examine each of these elements and identify their impact on our language.


The "Galactic Network" concept originally conceived by J. C. R. Licklider of


MIT in 16, laid the foundation for what we now know as the internet. The internet has


existed in various forms since 165 when a TX- computer located at MIT was


connected via a low speed dial up connection to a Q- computer in California. The


internet has evolved from a system limited to use by researchers only, into a world wide


domain accessible by virtually anyone with the required linking device. Licklider's vision


of the internet has impacted 0th. Century communication and access to the written word


much like Guttenberg's invention of the printing press impacted people of the 15th.


Century.


The internet has ushered in the age of Email and online chat. Now, rather than


writing a letter to a friend or family member, we can create a single document and send it


to any number of friends and family members at once. In addition, we have the ability to


attach photos or other data. Unfortunately, since "a picture is worth a thousand words",


we no longer make the effort to describe what we can simply attach. As a result, our use


of expressive, descriptive language is becoming more and more limited. This technology


has also seen the rise of electronic slang or shorthand, particularly among participants in


online chat. A visit to an online chat room will reveal terms such as btw (by the way),


damhik (don't ask me how I know), eod (end of discussion), hhok (ha ha only kidding),


and plos (parents looking over shoulder). Considering that all the communication is input


via keyboard, terms such as these are certain time savers. Especially for the digitally


challenged among us. However, there is cause for concern as well. How long will it be


before we see these terms accepted in regular communication? Recently, we have


witnessed the acceptance of "nine eleven" as reference to the attack on the World Trade


Center. In contrast, we do not refer to the attack on Pearl Harbor as "twelve seven".


Cryptic terms are becoming more and more accepted. A simple search for internet


abbreviations for pen pals will yield a listing of one hundred eighty four examples of


such terms.


Another more troubling aspect of these abbreviations is the ability of the user to


prevent others such as parents or guardians from understanding what is being sent and


received. To the uninitiated, it may as well be a foreign language. Similar shorthand is


employed by users of mobile messaging, a feature of many cellular telephones. In this


instance, such shorthand seems appropriate given the limited method of input. Using a


numeric keypad to type out a message may appear fun or cool in television ads, but the


reality is far different for most users as it is actually cumbersome and time consuming.


Advancements in computing technology have resulted in personal computers


becoming economical and available to users worldwide. To date, in excess of one billion


personal computers have been sold since Intel's introduction of the microprocessor in


171. According to an Intel press release dated July 1, 00


Today PCs are in roughly 60 percent of U.S. households, followed by 4 percent


in Western Europe and 8 percent in Asia Pacific. At the end of last year, nearly


half a billion people around the world had access to the internet from their homes.


The computer age has spawned a wealth of new words and terms in addition to


new meanings for existing words. Many are in the form of acronyms such as BIOS (Basic


Input/Output system), others bring new meaning to old terms such as cold boot. Most people


living in a cold climate can relate to a cold boot as what one feels while getting dressed in winter.


However, thanks to the computer age, we now think of a cold boot as starting our computer after


it has been shut down for some time. The lexicon of computer related words and terms make


most novice or casual computer users feel as though they have entered a foreign country upon


entering a computer store. The ever helpful staff is most willing to impress you with their


knowledge by bombarding you with product information such as "this one has a .75 Gig


processor, 51 megs of Ram, and a 100 Gig hard drive". For many this only makes them feel


even less a part of today's computer age. However, there is hope. A web site (no not a spider's


hangout, but an electronic catalog of sorts located on the internet) called Bella Online


offers an informative dictionary of common computer terms. Expressed in layman's


terms, this offering is most helpful in understanding the geek speak of the computer sales


staff. This is a must read for any but the most computer literate, prior to purchasing a


computer.


In addition to technical terms related to computer performance as mentioned


above, the internet has fostered countless new words and phrases. Most of these are like a


secondary language, born of English, yet unique unto itself as geek speak.


Searchstorage.com offers the following


Geek speak often sounds like normal English that doesn't quite make sense


because familiar words have been given a new meaning. A port is no longer


where a ship docks, and a spool is no longer what thread comes on. And for that


matter, a thread is no longer a thin strand of cotton. And executing a program is


not the same thing as killing it.


To those in the know, technical terms and acronyms are often useful as an


expedient method of communication. The government and particularly the military have


used acronyms for many years. Many of which over time, have been assimilated into


everyday language. Most adults are familiar with ICBM, and when the occasion arises


will use this acronym in place of intercontinental ballistic missile. However, when this


acronym was first introduced, only a select few understood it's meaning. The same holds


true for most of the geek speak lexicon. It is quite likely that some of the geek speak will


find it's way into everyday use by the general populace. Unfortunately, until that time


most of us will be relegated to the unknowing masses, unable to speak or understand this


language. There is hope for us. The Tech Target Network offers an online, searchable


reference of internet acronyms and lingo. Terms such as "egosurfing" looking to see


how many places on the web your name appears, "hacktivism" the act of hacking, and


"googlewhack" searching the Google search engine with a two word or more search


argument that will produce exactly one result as indexed by Google. Examples of which


are maladroit wheezer, blithering clops, and comparative unicyclist. This web site offers


a listing of 07 unique terms. Visitors may click on any term to see the definition, and


may also enter a term in the search box to see the definition. Interested web surfers


should go to http//whatis.techtarget.com to access the listing and dictionary.


From this we can see that the impact of technology is multi-faceted. First we have


the wealth of new technical terms such as ram, cdrom, and megs, which are rapidly


becoming commonplace in everyday language. Second, there are the sub-culture terms


and Email/chat shorthand which are used not only as timesavers but as a means of hiding


from outsiders. Whether it is kids trying to keep their parents in the dark, or cyberpunks


and hackers trying to evade prosecution, use of technology driven terms is here to stay.


The benefits of technology on our language are significant. We now have the


ability to communicate both verbally and in print with others across the street and around


the world in real time. A wealth of information is virtually at one's fingertips via the


internet. However, there is a price we must pay for this technology in addition to the


obvious costs of hardware and services. Word processing programs today offer not only


document formatting, but spell checking, auto correct, punctuation and grammar


correction. Users no longer need to concern themselves with spelling or punctuation, as


long as they remember to have the computer do it for them. Even more troubling is the


increase in the number of form letter type inserts in Christmas cards, and the printed


envelopes or address labels. It seems that what was once a meaningful, thoughtful


expression has been reduced to an electronic bulk mailing Even worse are those who opt


for a generic Email message to all in lieu of a card or letter. Receiving a card that is


personally signed by the sender is becoming the exception rather than the rule.


Technology is robbing us of the ability to communicate effectively, on a personal


level. Staring at an Email message on a monitor, one cannot accurately discern the


sincerity of the sender. Just as the truly classic movies with excellent dialogue have been


replaced by mediocre dialogue, gratuitous sex, explosions and car chases, our language


itself is under attack by technological terms and acronyms. Just as nine eleven has


become accepted, it is quite possible we will soon be using terms the likes of ezine,


internesia, and webify.


Another term that has become common place because of technology is cell phone. Cell phone is term that comes from a group of transmitting towers arranged so that the towers overlap each other to create a cell of wave lengths for the phone to connect to. Each tower's own area is called a cell, and the phone is used in the area to place calls. Up until ten years ago cell phones were only for on the go business men. Today the use of cell phones has drastically changed the way that we communicate. When cell phones were first introduced, they had two major problems, they were the size of a VW beetle and they also relied on cellular wave towers to give a signal in the majority of locations and many areas didn't have cell towers. Since then phones have been made smaller, and towers appear everywhere. Cell phones have become a part of everyday life. Families use cell phones to keep in touch with each other. Mom and dad can keep tabs on the kids, and the kids can keep in touch with each other. Businesses use cell phones to stay on top of the competition. If the main office hears of a possible big deal, they can call the salesman in the field, and get him on it right away.


Cell phones have also made travel safer. A cell phone is almost a necessity when traveling anywhere. If the car breaks down, it is much easier and safer to call for a tow truck. Close to one hundred thousand emergency calls are made on cell phones everyday, but technology isn't sophisticated enough to track the location of the calls like the 11 system can (Vanzi 00, pg. ). When in an unfamiliar area, the cell phone can be used to contact AAA (Automobile Association of America) to get directions. No more stopping at the local gas station to get directions from a twenty five year old with a bad sense of humor sending the way ward traveler in the wrong direction.


There are 100 million cell phone subscribers in the United States (Schumacher 001, pg. 1). Many people have abandoned the home phone, for the cell phone. This means that the majority of phone calls are made on a cell phone. As most people have noted, cell phone conversations do not have much meaning. Most calls are just a quick "Hi" or "how are you"? There made simply because we are in the car or walking around the mall. Calls are made just because they can be made. Ease of access has made our conversations less and less meaningful. Instead of calling relatives once a week with new information, families contact each other frequently. Traveling in a car or walking through the mall is not a meaningful way to have a conversation with loved ones. Everyone around becomes part of the conversation. The person making the call usually has to raise their voice to drown out the sound of the people around them.


In this day and age of technology and personal communications there is a concern for the uncharacteristic change of language. Children as young as ten years old are given cell phones by there parents. The parents say that they give these phones to extend the reach of their parenting arm (Vanzi 00 pg. ). Children think that there parents give them the phones to show trust or a level of responsibility. Many of these phones are equipped with text messaging, a simple form of e-mail. Since the message is typed in over the key pad, the messages take a long time to prepare. The solution to the problem is shorthand.


The shorthand that people use in text messaging is turning up in school work and everyday life. As a teacher in the Philippines stated, "I have been reading student essays recently and noticed the frequent use of common text messaging in these essays. Terms such as, 4u, gthr, and yrs." (Vanzi, 00 pg.). These students also stated that they didn't see any negative effect on language. At such a young and impressionable age these children should be learning the proper form and spelling of language. Much of the population already has a difficulty with spelling. Shorthand use only makes this problem more evident.


It is almost impossible to go anywhere in public without seeing someone on a cell phone. Unfortunately the people having these conversations aren't shy about what they are saying. Most people have been interrupted by that annoying person with the cell phone. Classes in schools are distracted by ringing phones. Business meetings are constantly interrupted by cell phones. We are starting to become a society of rude people. Constantly having to answer the call waiting during the middle of a conversation is common place.


The cell phone companies try to sell these phones as personal communication devices. Are they, or are they just another road block in the way we communicate with each other? The first time that you meet someone, a new bud or possibly a new flame, the conversation turns to communicating with each other, "How do I get a hold of you?", is a popular question. It just used to be, What's your phone number? Imagine someone trying to use this pick-up line. What is your email, cell phone number, or what chat room do you frequent? Technology is a wonderful thing, but at what expense. When is enough technology enough. There are already people who have social anxiety. At what point does technology help to create a generation of people who can not communicate with each other. When we can no longer express ourselves with speech have we gone too far? In a recent conversation with a computer technician, the statement that struck me as interesting was, "I would much rather e-mail someone then talk to them on the phone." What a sad statement from someone who is in a position of influence on people.


Business people are always looking for ways to organize their lives. The invention of the PDA or the palm pilot has made instant personal organization possible. Once again these devices take some time to use. The message or note is put in with a small pen tapping on the letter that is to be input. Shorthand is used immensely. Unfortunately this shorthand has found its way into written communication. Too many people have lost the ability to communicate with each other without technology. It should not be surprising that teenagers have hard time answering the easiest questions about their lives, but put a kid on a computer, and he can talk all night.


Understanding and dealing with the rapidly increasing number of technology driven


terms and acronyms on an individual basis is no small task. However, when a specific sector of


society is faced with managing a proliferation of self-generated terms, it becomes a Herculean


task.


The advances of technology in the medical field have influenced our language in numerous ways. With advances in medical technology progressing at a rapid pace our language is impacted profoundly. With new drug treatments comes new terminology. With a more complete understanding of the human body come new procedures for treatment. With new information technology comes a whole new system of communication from the most simple diagnosis to the most complicated surgical procedure to the most complete follow-up care.


These technologies have differing elements that affect our language and the way that we communicate. The following text will examine these elements and identify how they have impacted our language.


Perhaps one of the language groups most impacted by medical technology is the field of "Medical Informatics". Medical Informatics comes with varying definitions depending on the background, viewpoint and preoccupation. According to Tolentino (1), the definition most encompassing for our discussion is,


"Medical informatics is a developing body of knowledge and a set of techniques concerning the organizational management of information in support of medical research, education, and patient care….Medical informatics combines medical science with several technologies and disciplines in the information and computer sciences and provides methodologies by which these can contribute to better use of the medical knowledge base and ultimately to better medical care." Association of American Medical Colleges, (186, p.1).


In short, Medical Informatics is a dynamic field in which medical and information technology is combined with our existing language to create new terminologies and languages that better serve our medical knowledge and treatment systems.


The sudden growth in medical informatics has had a far reaching affect on all portions of our health care system in America. With the introduction of computers into medicine we have seen an explosion of efficiencies that out-pace the cognitive ability of all but the most gifted human beings.


Medical informatics is a discipline which involves the coordination of various types of data. These include but are not limited to medical records, vocabularies, data coding classifications, data bases and analogue and digital imagery. As technology influenced medical language it became necessary to coordinate the technological language into a new system to better handle the onslaught of information. Over the last 1 years the national Library of Medicine has been working on this unique challenge. This work has resulted in an ongoing work categorized as The Unified Medical Language System. This project is an attempt by the medical industry to standardize language in order to create better and more accurate efficiencies while using the advantages that technology has to offer. The main components of this system work together when a chronological application of the information vocabulary allows a computer to recognize the relationships between the individual parts of data and formulate the type of result that the computer is programmed to achieve.


The Metathesaurus is the first main component. A metathesaurus is a database of information that is designed to connect the vocabularies of different systems into semantic types. Each of these semantic types form a semantic network that links the concepts to one another. This allows either a system or a human to create an information sources map that allows for efficient placement and retrieval of that information.


The United Medical Language System Metathesaurus is issued annually to subscribers who sign a licensing agreement. This agreement allows for respect of the intellectual property rights of the contributors to the metathesaurus. This in turn allows for broad participation in the medical field to advance the positive effects this technology on language.


The second main component is the Semantic Network. Each of the Metathesaurus terms is assigned a Semantic Type. This allows for the standardization of meaning so that relations existing between these concepts can be recognized by computers and formed into a network. This network allows the technology to apply the information in the most efficient manor.


The Information Sources Map is the third component. This organizes the information into a workable draft for the efficient storage and retrieval of that information.


The result of the first three components of the United Medical Language System is a Specialist Lexicon. Simply put this is a unique language that serves as a basis for the use of technology in all aspects of medicine. Without this specialized language, developed by and for the medical industry, the impact of technology on medicine would not be as powerful and sustained as it has been.


As a result of the exponential growth of technology in medicine over the last 1 years the 18 Metathesaurus contains 1,051,01 biomedical terms, 476,1 concepts and 40 source vocabularies. Clearly technology has a major impact on language.


There are many positive and negative impacts that medical technology has had on language. The most important positive impact is the afore-mentioned impact on efficiencies in patient care and records. Information is power and the ability to efficiently use that information is the key to advancing the quality of our medical care system. The language used in the medical arena can help to strengthen our use of its technology.


The most recent negative impact may be the introduction of Telemedicine. Telemedicine is the use of remote audio and visual technology to hold appointments for routine medical matters. In this situation efficiencies are greatly increased because the doctor can see many patients from a single location. This saves time for the doctor and ultimately the patient, however the personal contact between doctor and patient is lost and the relationship must rely more heavily on language to substitute for the lack of physical contact. In this situation technologies impact on language has made the language more important to the situation but less desirable to the patient.


Another negative impact that medical technology has had on language is the vocabulary of acronyms. Acronyms are the abbreviation of words in order that the words can be used more efficiently. This works both ways, while AMA can be an acronym for the American Medical Association; AMA also is used medically to mean Against Medical Advise. Without the proper Metathesaurus structure in place the information would be lost in translation.


In the world of medicine there is a multitude of technology that both influences and controls language. These vocabularies have their strengths and weaknesses based on their intended and actual uses within the field of medicine. It is our observation that the proliferation of technology has led to a wider use and development of language vocabularies that inevitably leads to their improvement in both meaning and efficiency. We must welcome medical technology and the nuances it brings to our language.


As our group has demonstrated, technology in these fields, has effected our language in numerous ways. While some forms of technology have been beneficial to our language, others have been quite detrimental. Whether a good influence or a bad influence, technology will always have an impact on our language. The way it affects our language is totally up to the people who use it. We all have a duty to ourselves and to our future generations to keep language pure and uncontrolled by the effects of the technology. On the other hand we all need to embrace new terms, and use them in the proper manner.


Understanding and dealing with the rapidly increasing number of technology driven terms and


acronyms on an individual basis is no small task. However, when a specific sector of society is


faced with managing a proliferation of self-generated terms, it becomes a Herculean task.


Please note that this sample paper on Effects of tech on language is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Effects of tech on language, we are here to assist you. Your persuasive essay on Effects of tech on language will be written from scratch, so you do not have to worry about its originality. Order your authentic assignment and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!


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The founder of this web site is Heather Corinna. She has been producing sexual education websites since 17. The copy right of this site is 17 but also notes that it is copy written in 00 as well, which leads me to assume that it has been updated recently. However, there is nothing proving that the site is updated on a regular basis. This site is very informational and covers very many topics; there is anywhere from twenty to thirty pages of information. I was unable to find any discrepancies but I did find some similarities. For example, in the politics and Disabilities section of the site, they state that "one common stereotype is that disabled people just aren't sexual". Our text also explains this by saying that "people with disabilities are often seen as sexless and child like" (p. 5). The scarleteen website also discusses that "the other common myth is that, if disabled people do have sexual feelings, then we must go around in a permanent state of frustration," (Politics and Disabilities). Our text book also explains this fact by saying that "some stereotype retarded people in the opposite direction as having stronger- than- normal sex drives and being incapable of controlling them". (p.7) I personally think that the sexYOUality and reproduction sections are the most relevant on the website. These sections help young people become familiar with their bodies in a tasteful way. This site uses the correct terms in a way that young people can understand and relate to. The sexYOUality section has illustrations and descriptions of all the male and female sex organs. It also contains tips on how to take care of your body and things you can do to become more familiar with it. In the reproduction section, it offers a quick and simple explanation about how babies are brought into the world. It also discusses pregnancy and how to avoid getting pregnant by listing the risks.


Heather Corinna is a writer, editor, photographer, artist, educator, and web publisher. She has been an early childhood educator at a Montessori school and ran an independent school or four years. She also graduated from Chicago's Academy for the Arts with honors, where she studied creative writing and music. She, I am assuming, is responsible for everything that is done with this site. There is also a literary agent by the name of Christopher Schelling, Ralph M. Vicinanza Ltd. The author has set up this site so that young adults and teenagers can be informed with the correct information instead of hearing it from friends or off the streets. Both the author and the literary agent can be contacted for verification on anything from the scarleteen web site. When I sent a message to the author, I got a reply in about 1 ours, which isn't too bad because that is by far the quickest anyone has ever replied to off a site. I also didn't find any biases on the site which is great because they talk about everything and there are no pre held assumptions on any topics. The site also advertises clothing, accessories and other hygiene products. However they have taken advantage of their clothing by printing sayings on their clothing such as; "No glove, No love". They also have a section that asks for donations due to the fact that they are a volunteer based site. All the money they make on the site goes to the site.


I find that this site is very appealing to the eye and the only flashing advertisement on this site is on the shopping section. It is sort of set up like a magazine with different sections and I assume that it is updated every once and a while. The colors used on each page of the site are subtle, yet vibrant and don't distract the viewer from the information. For example, there is a section that is called "Pink Slip" and they used the color pink in the background but kept the box with the information white for better clarity. The wall paper is plain colored with no drastic patterns or designs. They only use pictures or graphics that relate to the subject that is being discussed. I thought that the writing was informative and simplistic enough for young people to read and not get bored. I didn't stumble upon any spelling mistakes or errors, so this tells me this is a very upstanding site. I also couldn't find the web master although I'm sure there is one. The whole object of this site is to inform people of the accurate information on sexuality and the body. Whether you're young or old, this site can be viewed by anyone.


This site is in supreme condition; nothing is under construction. All the information is appropriate towards the purpose of this site. Some topics include teen pregnancy, parental information, and the female and male sex organs. This is a volunteered site which means that any money made off this site is directly used to keep up the site.


The main audiences for this site are teens and young adults. However, there are also sections that parents and even grandparents may want to peruse. I found this site very informative and easy to understand. It is mentally and visually appealing to me, which grabs my attention and lures me in. I also found that the scarleteen web site mimics most teen magazines which are very appealing to the younger generation. Overall, I give the site an A+ on content, accuracy, authority, quality, purpose and audience.


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I have to go to either camp green lake or jail. Why couldn't my family be rich so I could just go to jail. I heard camp green lake is a very bad place to go to. I think that camp green isn't as bad as jail but I guess I'm going to find out. I don't have a choice anyways. So I'm going to camp green lake and that's final.


Now I'm on the way on the bus, the only passanger. After nine long hours just to get to camp green lake, I finally got there. The bus driver said to be carful. I didn't really know what the bus driver meant by that. At that time my thirst was killing me. When I got off all there was, was dry and hard dirt. Around me was some run downed buildings and some tents. Out in the back was a cabin under to tall trees.


I stepped into this office. I was happy there was air-conditioning. At that time I was very hot. There was a man with a cowboy hat and was wearing sunglasses. I got more thirsty because that guy had a can of soda in his hand. I was sorta realieved when he pulled two sodas out. I thought he was going to give one to me. The man gave one to the bus driver and one to a guard.


The man approached me and told me his name was mr. Sir. When mr. Sir told me that I'm not in girl scouts anymore, I felt that this wasn't going to go well. Mr. Sir told me to take off my clothes. I felt uncomfortable when he said that. I was told to take my clothes off because I might have something hiding. After mr. Sir checked me out he gave me two sets of clothes and a towel. Afterwards he gave me white shoes, a hat, and a canteen. When I got the canteen I thought there was water but once again there wasn't.


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I left the office and went to go get dressed. The clothes smelled like soap to me. Mr. Sir said it would be smart if I wore one set to work and the other set for relaxation. He told me I were to do my laundry every three days. On that day my work clothes would be washed and the other set would be my work clothes.


I was told to dig one hole per day. Each hole was to be five feet deep and five feet across. My shovel was to be my measuring stick. I would be able to eat breakfast at 40 in the morning. If I ever found something interesting I was to report it to mr. Sir or any other counselor. When I finish digging the rest of the day is mine to do whatever. Mr. Sir afterwards explained to why there wasn't any guards, guard towers, fences, etc. He said if I were to run away he wouldn't stop me. I started to look at his gun. He said he wasn't goi ng to waste a bullet on me. He would shoot it at a yellow- spotted lizard. I was a little bit confused but then I told mr. Sir that I wasn;t going to run away. Then he said if I did there isn't no water until at least another 100 miles. Then mr. Sir asked me the question I was wating for. He asked me if I was thirsty, then I replied to him politely and said yes. Once again he didn't give me water. He said I better get used to it for the next eighteen months.


There were six large grey tents and each hada black letter on it. The were from letters A to F. The first five tents were for the campers. The counselors slept in the F tent. I was to sleep in the D tent.


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I. INTRODUCTION


In December 000, Airbus formally committed to develop and launch a super jumbo plane known as the A80 at a launch cost of $1 billion. Prior to and after Airbus' commitment, Boeing started and canceled several initiatives aimed at developing a "stretch jumbo" with capacity in between its existing jumbo (the 747) and Airbus' planned super jumbo.


In addition to making the super jumbo one of the largest product launch decisions in corporate history, this figure represented 6% of total industry revenues in 000 ($45.6 billion) and more than 70% of Airbus' total revenues in 000. The inherent risk associated with this major strategic commitment is magnified by the fact that Airbus must spend the entire amount before it delivers the first plane. History has shown that many firms including General Dynamics, and, more recently, Lockheed, have failed as a result of attempting such bet-the-company product development efforts. If, however, the launch effort does succeed, Airbus is expected to dislodge Boeing as the market leader in commercial aircraft after more than 50 years of market dominance by the latter.


This paper presents an analysis of this new product commitment and, more generally, of competition in very large aircraft (VLA is defined as planes capable of seating more than 400 passengers).


II. CASE BACKGROUND


In the early 10s, Airbus and Boeing independently began to study the feasibility of launching a super jumbo. Both agreed there was a growing need for a super jumbo because of increasing congestion at major hubs. Alternative solutions were seen as either infeasible, in the case of greater flight frequency, or ineffective, in the case of flights to secondary airports. Fairly quickly they realized that there was room in the market for only one competitor.


Finally, Boeing and Airbus agreed to collaborate on a joint feasibility study for a Very Large Capacity Transport (VLCT) plane that could hold from 550 to 800 passengers. When the collaboration began in January 1, they envisioned the plane would cost $10 to $15 billion to develop (with estimates ranging from $5 to $0 billion) and would sell for $150 to $00 million each. Their preliminary demand estimate was reported to be 500 planes over the next 0 years.


In July 15, however, the collaboration ended. Airbus realized that Boeing's participation in the joint effort may have been only to stall the market so that Airbus did not develop anything itself. The two firms also disagreed at a very fundamental level about industry evolution. Boeing maintained that increased fragmentation in the form of point-to-point travel would solve the problem of congestion at major airports. Airbus, on the other hand, believed that hub-to-hub travel would continue to grow.


With the collaboration over, both competitors returned to independent study of the super jumbo market. For its part, Boeing considered two updated and "stretched" versions of its popular 747 jumbo jet. In fact, Boeing never formally announced it was going to develop the stretch jumbo yet did, in January 17, announce it was canceling the development effort. A little more than two years later, however, Boeing reversed course once again and now said it was going to build a stretch jumbo at a cost of $4 billion. The 747X-Stretch was supposed to hold up to 50 passengers and, according to Boeing, would be available by 004, two years ahead of Airbus' A80.


Concurrently, Airbus forged ahead with development of a super jumbo jet and finalized plans in 1 to offer a family of very large aircraft. The first model, the A80-100, would seat 555 passengers and second passenger model, the A80-00, would seat 650 passengers in the three-class configuration and up to 0 in an all-economy version. Airbus also planned to build a freighter version, the A80-800F, capable of carrying up to 150 tons of cargo. In terms of pricing, the A80's list price is significantly higher than the 747's list price, $0 million vs. $185 million. Developing the first passenger model and the freighter version of the super jumbo is expected to cost $1 billion.


Between June 000, when the Airbus supervisory board gave approval to begin marketing the plane, and December 000, airlines placed orders for 50 super jumbos and bought options on another 4 planes. With these orders in hand, including a number from important 747 customers such as Singapore Airlines and Qantas Airlines, the Airbus board officially launched the new plane. According to its internal projections, Airbus forecast a need for more than 1,500 planes of this size over the next 0 years, expected to capture up to half the market. In addition, Airbus estimates it will break even with sales of 50 planes (on an accounting, but not cash flow basis) and they currently have 100 firm orders and extra 100 options.


On March th, 001, Boeing announced it was stopping the development of its stretch jumbo and would begin development of a new aircraft known as the sonic cruiser (7E7). This plane would fly faster (Mach 0.5 vs. Mach 0.80), higher, and more quietly than existing aircraft. It would also be significantly smaller than the stretch jumbo (00 passengers vs. 50 passengers), though it would cost more to develop ($ billion vs. $4 billion). The sonic cruiser is not only more consistent with Boeing's predictions regarding industry evolution towards greater point-to-point travel, but also adds a third dimension speed to the capacity/range product space.


III. FINANCIAL MODELS


A Base case Go to Heaven.


To help us assess the valuation impact of various strategic actions in this sequence of competitor interactions, we built financial models of Airbus's super jumbo development project. We begin our reviews of these models with a projection of Airbus's investments in and returns from the super jumbo over a 0-year horizon. The model uses inputs from Airbus as well as from equity research reports on Airbus and EADS by analysts at Lehman-Brothers (LB), an industry consulting and data tracking service. All the data taken from the case are summarized in Appendix 1.


Before getting into the details of the model, two limitations are worth noting. First, this investment is incredibly complex and we have, by necessity, vastly simplified inputs to create a more tractable model. Second, many of the inputs are informed estimates because Airbus has released few details other than expected investment costs. Critical details surrounding pricing, volume, and funding remain shrouded in secrecy.


The discussion here focuses on the key assumptions of the model and the principal results. A first important assumption is that we estimate project value as of year-end 001. We also take into consideration that Airbus has spent $700 million on the plane by December 000 (Airbus Briefing, 000). Finally, we calculate the value accruing from years 1 to 1 (001 to 01) and did not use any terminal value.


In the base case, which is reproduced in Appendix , we assume Airbus will sell 50 planes per year in steady state after an initial ramp-up period (1 aircraft the first year, approximately 5% of production capacity then 8 for the second year which is approximately 75%) for a total of 750 planes by 01. This number is slightly less than its stated goal of capturing half the projected market for super jumbos (1/ 1,550 planes = 775 planes). By way of comparison, most analysts are predicting that Airbus will sell from 515 planes to 665 planes in their base case scenarios. More interestingly, Airbus' assumption exceeds the average number of 747's Boeing has sold over the past 0 years (4 planes per year).


We also assume the realized price in 008 will be $5 million, which will produce an operating margin of 5%. Also, analysts tend to assume that Boeing, a monopolist with more than 1,000 planes of cumulative production, has operating margins of 15% to 0% on its jumbo the 747.


Using a discount rate of %, these inputs imply a positive NPV of $1.1 million, consequently the IRR of the project is 10.47% which is higher than the discount rate. With respect to the break even point, we reach an accounting break even point (basic method applied by Airbus) at 4 aircraft sold, different than 50 announced by Airbus. On the other hand, if we improve the formula by taking into account commercial discounts or prices evolution, then we find a break even at 77 AC reached in 014.


B Pessimistic case Go to Hell.


If we stop our assumptions at the end of the first study, then the problem is solved we just have to launch the AXX!


The difficulty comes from the fact that the debate offers different opinions among specialists (economics, accountings…). Some say that this project is viable; others will say that Airbus made a big mistake.


Though we can think that people from Airbus thought twice before taking this decision, we decided to change assumptions linked to the future. Indeed, in 001, nobody can really know what the next years will bring to this industry. Moreover, in 001, AXX was not called A80 yet the project was just at its beginning, the studies were not mature which involves that design, performances or even investments linked to the dedicated tooling were not definitely frozen. All the data given in the case (Appendix 1) could be modified…just to see if Airbus was not a bit optimistic.


In this second study, we have taken 4 main assumptions.


The first one is based on demand which decreases significantly in 011 and 017. This is done to simulate either economic crises, either a new Boeing (7XX?) that come on the market, either the effect of terrorism.


The second one is about commercial discounts that have to be applied. The first 00 aircrafts will be discounted at 5%, as suggested in the case text and afterwards, each A/C will be discounted at 10 %.


The third assumption is about production costs. In 001, the industrial process wasnt defined at all and the aircraft definition was not either. All difficulties met due to the large volume of this A/C, the flexibility of parts or the tolerances concerns involved costly solutions sometimes. The assumption of increasing the production cost is therefore realistic


The fourth one is about Tax rate, which is increase every year in the financial model. All the assumptions about this study are summarized in Appendix .


The conclusion about this study could be catastrophic… The NPV found after 0 years was so negative the forecasted period has to be increased with 10 years. And even on a period of 0 years, the NPV is still negative. The basic break even does not change a lot in the method used by Airbus, as we find 0. But as this method does not take into account the real price paid by customers, the second one is more realistic facing the NPV results, as it gives a break even at 161 A/C!!!!


Some will think that this case is really pessimistic, but at the beginning of 001, who could have thought about September the 11th?


Moreover, Boeing has enough experience and resources to make a new A/C if it decides its reliable. Economic crises unfortunately also exist.


What is the good way of thinking between these extreme studies?


To help us taking the best decision as possible, we need to study the main parameters that have an influence on NPV to know their effects.


IV IMPACT OF VARIABLE DATA


This section analyzes the impact of variable data such as pricing, sales forecasts, production cost, additional investments and tax rates.


We assume that only one data changes while others remain same.


A- The key factors.


A-1) Pricing


Pricing in very large aircraft are of additional interest because pricing pressures drive the theoretical predictions that the entrant will introduce the new product (the super jumbo, in this case) and that intermediate products will be unprofitable for the incumbent.


It is useful to begin this examination of pricing by noting several basic facts about it. First, both Boeing and Airbus post list prices for their entire product lines. Boeing, for example, shows a price range for each aircraft on its corporate web site, where the range depends on the specific configuration. Second, both companies announce nominal changes to their price lists annually. Third, planes sell at large discounts to list prices, ranging from 18 40% for Boeing and 16-7% for Airbus and 5 to 40% for the first firm A80 orders placed.


With that background, several indicators of pricing pressure in the very large aircraft segment can be cited. Let start with Airbus' A80 which has a list price of $18-$40 million in 000. Given the 17-1% discount typical for the largest Airbus planes, the realized prices should be around $178-$187 million assuming a list price of $5 million. As it turns out, however, the early sales have occurred at prices as low as $15-$140 million or, in other words, essentially at "steady state" cost. While some of the early launch customers like Qantas and Virgin reportedly paid approximately $150 million per plane.


For instance (base on the current financial model enclosed in Appendix 1), if we assume that Airbus applies an average discount of only 5% on all its sales, then, we must wait until 08 to find a positive NPV for a total number of 1100 aircraft.


A-) Sales Forecasts


A--1) Demand Forecasts


The forecast of the demand is a key factor for the success of the A80 project; however, the demand can be deeply influenced by several external factors such as new entrant in the super jumbo market (e.g. Boeing) economic crisis, increase of fuel cost or, as we have recently experienced the dramatic effect of terrorism. To simplify our study, we will focus on the effect of the new comer on the VLA market.


Because large aircraft take years to design and develop, require enormous up-front investment, and have useful lives of over 0 years (some people think that the 747, for example, will have a useful life of 50-plus years), Airbus and Boeing both generate long-term demand projections for their products. Airbus's Global Market Forecast (GMF) is based on annual demand for new aircraft on each of 10,000 passenger routes linking almost 000 airports. In contrast, Boeing's Current Market Outlook (CMO) forecasts economic growth in 1 regions around the world and then uses these assumptions about growth to forecast traffic flows in 51 intra- and inter-regional markets.


Although both had decreased their growth forecasts in response to the Asian financial crisis in the late 10s, they disagreed sharply, however, about demand for the VLA segment due to their divergent view on industry evolution Boeing towards greater fragmentation and Airbus towards greater capacity planes. Table 1 summarizes their evolving 0-year forecasts regarding the number of VLA deliveries. Its most striking feature is the fact that Airbus' market forecasts have consistently been more than three times larger than Boeing's forecasts. And while both companies' forecasts fell in the late 10s, primarily because of the Asian crisis, Airbus' latest forecasts are down only 15% from their 17 high, compared to nearly 0% for Boeing's.


Table 1


0-Year Forecasts of the Number of VLA Deliveries


(Passenger Jets 500 seats only)


Boeing


CMO


Forecast Airbus


GMF


Forecast


15 n/a 174


16 n/a n/a


17 460 144


18 405 1


1 65 108


000 0 15


Source Boeing Current Market Outlook (CMO) and Airbus Global Market Forecast (GMF), various years.


The magnitude of the discrepancy is surprising given Boeing and Airbus's collaborative efforts in the early and mid 10s, a process that must have involved detailed discussion of different market forecasting techniques. It provides a sense of some of the ambiguities inherent in coming up with long-run demand forecasts for such products. And the direction of discrepancy is interesting, too Boeing's forecasts are lower than Airbus's, not the other way around.


Although Boeing's more pessimistic forecasts may represent its best estimate of future demand, an alternative interpretation is that they fulfill a strategic purpose. One possible purpose, more likely to have been important before Airbus committed to develop the A80, might have been to discourage entry by downplaying super jumbo demand. Additionally, perhaps, Boeing wanted to reinforce its point of view by signaling to third parties- investment analysts, investors, governments, customers, suppliers and even employees- that Boeing is acting responsibly in not launching a very large aircraft. Symmetrically, Airbus might be expected to overstate demand to make the case that it is acting responsibly in launching. Such signals of "taking care" tend to be most important in high-ambiguity environments. As a result, the possibility of strategic manipulation of forecasts understatement by Boeing, overstatement by Airbus merits mention, even though the statistical power with which it can be tested on its own (as opposed to in conjunction with other pieces of evidence) is limited.


Once again, if we compare the average sales of Boeing 747 over the last 0 years (4 aircraft per year) and if we apply this figure to our financial model from 010 then, we need to wait more then 10 years to find a positive NPV.


The demand is therefore a key factor for this study because its influenced by hypothetic competition, economic crises, political events, prices, terrorism etc…


A--) Production Capacity Forecasts


The demand forecast being a key factor, we chose to base our study on the sales forecast. Indeed, if demand is higher than production capacity, then some customers wont be able to be delivered their aircraft. Demand forecasts were therefore a necessary factor, but not enough to take into account Airbus production capacity. As a result, all is summarized in sale forecasts factor.


A-) Production costs


The assumption of the financial model is that the operating margin is 5%. However, if we refer to the operating margin estimated by Boeing on the 747s which is 15 to 0% then it has a consequence on the Airbus projection. For example, with a 15% operating margin, we need an additional 10 years of full production capacity to get a positive NPV. Even with a 0% operating margin (consistent with Lehman-Brothers estimate) an extra 6 years of full production/demand (we assume that Airbus sells all the aircraft produced) is needed to make the project viable.


As the operating margin is a direct consequence of the Aircraft price (which is taken into account) and the production cost, we chose to study the effect on production cost (that remains the same whatever the A/C price is, whereas the operating margin changes).


A-4) Investment expenditure


Increasing the R&D investment from $11 billion to $1 billion, an additional years of full capacity (150 aircraft) will be required to get a positive NPV with a total number of aircraft about 150…


Therefore, the investment expenditure is also a key factor, all the more as in 001, as the aircraft was not fully defined yet, the precise investment could not be definitely known.


A-5) Tax rate


The taxes paid on OPBT have an influence an NPV. Within the next 0 years, what will be their evolution? To make a rough estimate, the tax rate was defined as a linear function increasing from 8% every year.


B Study Between hell and heaven.


B-1) Process


Those key factor being defined, a third study was achieved in 5 parts. These 5 parts (.1 to .5) are released in Appendix 4.


The purpose of this study is to determine radar graphs that indicate areas defining the Heaven area where NPV0.


As these key factors consist of many other parameters, they had to be simplified by taking their average value, expressed in percentage increase relative to a reference value.


Each study changes one of these 5 parameters so that it can represent a bad situation for the project. As a result, the NPV decreases and becomes negative. During the study, the other parameters are adjusted so that they remain at an acceptable value for the project, until the NPV equals 0 (or be as close as possible from 0).


As a result, we obtain the limit value between Hell (NPV0) and Heaven (NPV0).


The radar graph is a tool that enables to measure the influence of changed parameters on the other ones, by defining the validity area o the project.


In fact, there are thousands and thousands of combination possible to design what we want to forecast, and therefore, there are many different possible curves.


B-) Limit of the process


The 5 studies were just an approach of this, but many more should have been made to have a more precise approach of the possible events and their consequences (nevertheless, the Excel sheet enables all possible combinations).


Moreover, as the key factors were simplified, their precision is lower. For example, the average sales number of aircraft does not take into account the sales distribution among the years. Additional studies therefore need to be made to compensate this lack of precision.


To be more efficient, the graphs need to be built on the same scale (which is not the case in this study due to the page size, to ensure maximum legibility).


B-) The main results.


The figure results are given in appendix 4 for each case (.1 to .5).


- Study .1 Average AC sales not optimistic.


- Study . Average Prices reduction not optimistic


- Study . Average Investments increase not optimistic


- Study .4 Average Production cost increase not optimistic


- Study .5 Average Tax rate increase not optimistic.


The main comparison between those cases can be made on the graphs and tables in appendix 4.


To summarize, comparison between those studies is given in the next table


Study Worst factor (Improved) break even Break even year Years forecasted


.1 AC sales 8 014 0


. Prices reduction 417 015 1


. Investments increase 8 014 1


.4 Production costs increase 515 017 0


.5 Tax rate increase 0 014 0


V - CONCLUSION


As a result, a first glance on the key factors demonstrates that individual extreme evolution of one factor doesnt kill the project for the next 0 or 1 next years.


The break evens change from 8 to 515 depending on the assumptions, and is reached between 014 and 017. Additional studies would probably add more precision on this.


The only factor that really causes difficulties is the AC production costs (study .4) for which NPV can just be positive after 0 years forecasted and AC prices increase.


But this parameter is linked to Airbus, not to the market. Its Airbus turn to find the right production process and ensure the correct design of the aircraft to optimize production costs, or to deal the best prices with subcontractors.


A company such as Airbus trusts in the knowledge of entities such as Design office and production and therefore, as executive management is influenced by this opinion about these entities, he probably thinks that production costs will be quickly reduced, as done on previous aircrafts.


Most of these parameters will never reach so extreme values, and all the more not at the same time. Additional simulations would demonstrate that if or factors tend to be pessimistic in the 0 or 0 years, as they would not reach so bad values, we could have a positive NPV after or 4 years.


This does not mean the project is not risky! But we can just take the assumption now that if things go reasonably wrong in the world in the 0 or 0 next years, this should not kill Airbus if the decision is taken to launch the program, moreover if governments estimate Airbus should not disappear…


As a conclusion, we decide to launch AXX.


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DSL Technologies


DSL (Digital Subscriber Line or Digital Subscriber Loop. A technology that enables high-speed transmission of digital data over regular copper telephone lines. DSL works by using more of the capacity of the phone line. Voice and traditional modems work by modulating a signal in a limited range of frequencies (thousands of cycles); broadband sends a digital signal over a wide frequency (millions of cycles). The accelerated growth of content rich applications and online gaming, which demand high bandwidth, has changed the nature of information networks. High-speed communication is now an ordinary requirement throughout business, government, academic, and home office environments. Internet access, telecommuting, and remote LAN access are three of the clearly defined services that network access providers are offering now. These rapidly growing applications are placing a new level of demand on the telephone infrastructure. In particular, the local loop portion of the network (i.e., the local connection from the subscriber to the local central office) has become a challenge for telephone companies. Historically, this local loop facility has been provisioned with copper cabling which cannot easily support high bandwidth transmission. This environment is now being stressed by the demand for increasingly higher bandwidth capacities. Although this infrastructure could be replaced by a massive rollout of fiber technologies, the cost to do so would be insupportable in today's business models and, more importantly, the time to accomplish such a transition is unacceptable because the market demand exists today! Telephone companies are already faced with growing competition and unprecedented customer demands a new category of companies, Internet Service Providers (ISPs), has emerged in this market as providers of data services. Traditionally ISPs have used the telephone company infrastructure. However, thanks to deregulation, they now have direct access to the physical cable. xDSL has the ability to meet the customer demand for high bandwidth right now, at costs that make sense. xDSL is a group of emerging Digital Subscriber Line (DSL) modem technologies for supporting high-rate traffic transmission over POTS lines. X stands for asymmetric in ADSL, rate adaptive in RADSL, high-speed in HDSL, and very high speed in VDSL. xDSL delivers Broadband over Copper the best thing about xDSL technologies is their ability to transport large amounts of information across existing copper telephone lines. This is possible because xDSL modems leverage signal processing techniques that insert and extract more digital data onto analog lines. The key is modulation, a process in which one signal modifies the property of another. ADSL Development and Deployment Progress Of all the emerging xDSL technologies, ADSL is receiving the most attention because there is a standard (DMT) for it, and its capabilities provide NSPs with a competitive offering to cable modems. But there is increasing interest in symmetrical xDSL offerings such as HDSL and SDSL. As a local access service, ADSL's implementation has no critical drawbacks. It can be deployed as an overlay network where there is subscriber demand, eliminating the need for NSPs to risk building out their infrastructure unnecessarily in the hope that the technology will catch on. ADSL development and deployment is focused primarily in North America, followed by northern Europe and the Pacific Rim. In North America, US West, GTE, Ameritech, SBC, BellSouth, and Edmonton Tel (Canada) are the service providers leading the current wave of ADSL/xDSL deployment. Covad, Northpoint, and a handful of other CLECs are entering high-density metropolitan areas—typically offering a portfolio of xDSL offerings at different classes of service and price points, and competing with incumbent local exchange carriers. Chicago-based InterAccess was the first ISP to offer ADSL. Telia (Sweden), Telenor (Norway), British Telecom (UK), and Telfonica (Spain) are leading xDSL proponents in Europe. In the Pacific Rim, Telstra (Australia), Hong Kong Telecom, and Singtel (Singapore) are deploying xDSL for data and video applications. ADSL modems have been tested successfully by more than 40 telephone companies, and close to 50,000 lines have been installed in various technology trials and commercial deployments. Increasingly, alternative service providers such as enterprises, multi-tenant building owners, hospitality businesses (hotels and resorts), and office park developers are offering or considering offering ADSL to their users as private network operators. Applications In early 90's xDSL technologies were tested by some of the regional Bell operating companies in the United States, as well as several European telephone companies. At that time, the driving applications behind xDSL were video on demand (VOD) and interactive TV (ITV). Those applications were seen as potentially explosive sources of revenue growth for the residential market. In 1995, interest shifted toward the online world and more specifically the World Wide Web. The increasing demand for bandwidth with which to access the Web is one of the primary applications at which xDSL technologies are now targeted. However, xDSL technologies are also being looked at in conjunction with several other applications. These applications may produce a far greater revenue stream in near future compared to broadband Web access for residential market. Listed below are just a few examples of how xDSL technology can be utilized: Internet/Intranet Access Intranet access for organizations that are standardizing on a Web based, client server model is one of primary xDSL applications. An organization that has implemented an Intranet will require higher bandwidth afforded by xDSL in order to link their remote offices and telecommuters to the more demanding business oriented applications running on their private Web servers. LAN-to-LAN Connectivity xDSL technologies have the potential to prove far more effective in low cost, high throughput, LAN to LAN connectivity than ISDN or traditional leased lines. Frame Relay Access Since xDSL operates at the physical layer, it could emerge as the most cost effective method of carrying frame relay traffic from the service subscribers to the frame relay network. ATM Network Access As with frame relay the xDSL technologies can also be used to carry ATM cells to an ATM access device, where they are statistically multiplexed over an ATM backbone. XDSL Types Digital Subscriber Line, or DSL, is fundamentally another name for an ISDN-BRI channel operating at the Basic Rate Interface with two 64 kbps switched channels and one 16 kbps packet switching and signaling channel. This circuit can carry both voice and data in both directions at the same time. xDSL refers to those various arrangements in which advanced modulating techniques are imposed onto the local channel in order to derive higher throughput in one or both directions. The various types of xDSL are described in the following paragraphs. HDSL High-bit-rate Digital Subscriber Line (HDSL) derives its name from the high bandwidth that is transmitted in both directions over two copper loops. HDSL has proven to be a reliable and cost effective means for providing repeater-less T1 and E1 services over two twisted pair loops. This proven technology has already resulted in the deployment of over 300,000 HDSL equipped circuits throughout the local access infrastructure. HDSL transceivers can reliably transmit a 2.048 Mbps data signal over two non-loaded, 24 gauge (0.5mm), unconditioned twisted wire pair loops at a distance of up to 13 kft (4.2 km) without the need for repeaters. Eliminating the need for repeater equipment and removal of bridged taps significantly simplifies the labor and engineering effort to provision the service. This attribute eliminates the need to identify, modify, and verify a controlled environment, with power, secured access, and other factors needed to support repeater equipment. It also reduces the time, cost, and effort of isolating faults and taking corrective action when a failure does occur. Studies by some service providers have indicated that trouble shooting and replacing defective repeater equipment often costs significantly more than the cost of the equipment itself. These attributes translate into increased network up time and reduced engineering time; making possible T1 provisioning in a matter of days, as opposed to weeks. Faster service provisioning and greater up time leads to increased customer satisfaction and increased service revenues. To provision a 12 kft (3.6 km) local loop with traditional T1 transmission equipment requires two transceivers and two repeaters. To provision the same loop with HDSL, requires only two HDSL transceivers, one at each end of a line. S-HDSL/SDSL Single-pair or Symmetric High-bit-rate Digital Subscriber Line (S-HDSL/SDSL) operate on a single copper pair as opposed to the traditional two pair HDSL described above. S-HDSL/SDSL allows easy implementation of applications that require symmetric data rates on a single local loop while maintaining the existing POTS on the same loop. Because only one pair is needed in this arrangement, the capacity of the entire local loop infrastructure is greatly magnified. With this capability, local providers can extract the maximum value from their existing plant, or deploy new capacities both more quickly and at a lower capital expenditure. This allows for rapid and cost effective deployment of intermediate data rate services. Potential uses for this technology include fractional T1 with a particular advantage in 768 kbps systems, Home Office, LAN Access, Distance Learning, Internet Access, and Campus or Large Facility LAN to LAN connectivity. Since S-HDSL/SDSL can be implemented with and without POTS and at multiple data rates, it can have different capacity and reach limitations. This allows for easy, cost effective implementation of such services as remote cell site support of PCs, remote LAN access, distance education and training, digital imaging, or any other service which requires a larger amount of bandwidth. ADSL Probably the most common xDSL type is Asymmetric Digital Subscriber, which takes its name from the comparatively high bandwidth in one direction, with low bandwidth in the opposite direction. ADSL uses a single phone line for transmission. Many service providers have also come to recognize its potential to support a range of data applications. Additionally, ADSL's ability to operate at speeds of up to 6 Mbps positions it to support real time broadcast services and pre-recorded interactive video services; and to have multiple video and data activities underway simultaneously. ADSL supports applications with asymmetric traffic demands such as: • Web Surfing, • File Downloads, • Distance Learning. RADSL Rate Adaptive Digital Subscriber Line (RADSL) is a simple extension of ADSL used to encompass and support a wide variety of data rates depending on the line's transmission characteristics. This is advantageous in situations in which there is a lower bandwidth demand and in situations in which the line quality is less than needed for full bandwidth implementations. VDSL Very High-bit-rate Digital Subscriber Line (VDSL) provides very high bandwidth asymmetrically (up to 52 Mbps in one direction and 2 Mbps in the other) to businesses and residences with broadband access requirements over a Fiber-To-The-Curb (FTTC) network. Within the FTTC architecture, VDSL will address the last section of copper cabling to the subscriber premises. Typical distance and implementation of VDSL is 1 km @ 26 Mbps. Unfortunately, this type of xDSL is not very common because of lack of FTTC networks available today. xDSL Technology (how it works) XDSL signals are designed to maximize the rate of transmission of digital signals through non loaded twisted pairs, making use of bandwidths that can be greater than 1MHz, much greater than the 3000Hz or so allocated for voice transmission. There are several types of xDSL signal in commercial use today. Each signal type is implemented in circuitry with accompanying software, called a transceiver. The transceiver design includes the encoding or modulation scheme along with decoding or demodulation applied to convert serial binary data streams into a form suitable for transmission through twisted wire pairs. The transceivers may also employ various signal processing, equalization, amplification, and shaping techniques to adapt transmission for physical attenuation and phase distortions experienced by signals transmitted through twisted wire pairs. The transceiver software and circuitry may also use coding techniques to detect and correct noise that is present on a twisted wire pair. A variety of signal processing techniques have been developed over the past10 years to increase the bit rate of digital transmission through telephone loop twisted pairs. The following sections will describe these technologies. 2B1Q The DSL acronym was first used as shorthand to refer to the line code designed to support basic rate integrated services digital network (ISDN) transmission through twisted wire pair loops. The ISDN basic rate signal is required to carry an information payload of 144kbps, consisting of two "B" channels of 64kbps each and one packet data or "D" channel of 16kbps added for framing, error detection, and other overhead functions. The ISDN line of "U" interface operates at a raw data rate of 160kbps. In the mid 1980's the T1 committee in the United States created a standard U interface using a four-level line code referred to as 2B1Q for two binary bits per symbol carried by a quaternary symbol design. 2B1Q line code was designed to support ISDN transmission through loops of 18000ft or less, meeting voltage pulses of +/- 875V and +/- 2.625V. The symbol rate is 80000 baud and the energy spectrum used by ISDN peaks at 40000Hz. The ISDN signal is transmitted in full duplex mode, bi-directional on the same pair of wires. In order to accomplish this, transceivers must contain a hybrid function to separate the two directions of transmission. To help the receiver differentiate between far-end transmission and reflections of near-end transmission from irregularities in the twisted pair transmission line due to wire gauge changes and bridged taps, echo cancellation techniques are used. The range of operation of ISDN is dictated by both attenuation and self near-end cross talk (NEXT) from adjacent 2B1Q ISDN signals. The 2B1Q line code is sometimes referred to as a base band signal because it uses energy in frequencies down to zero, overlapping with the voice frequency band. In order to carry voice through a DSL, the voice signal is digitized using PCM techniques and carried in one of the B channels. In ISDN applications the D channel is reserved for data packets that are primarily used for call processing. In carrying simultaneous voice and data the ISDN basic rate line carries a maximum of 64kbps of data. In the absence of voice, both B channels may be bonded together to increase the data capacity to 128kbps. Both ends of an ISDN connection must use the same bonding protocol. ISDN connections are made by dialed access though a local digital switch that also terminates voice lines. QAM Quadrature Amplitude Modulation (QAM) utilizes amplitude and phase modulation to transmit multiple bits per baud. Unmodulated signal exhibits only two possible states allowing us only to transmit a zero or a one. With QAM, it is possible to transmit many more bits per state, as there are many more states. This scheme utilizes a signal that can be synthesized by summing amplitude modulated cosine and sine waves. These two components, being 90 deg out of phase, are called quadrature, hence the name Quadrature Amplitude Modulation. By combining amplitude and phase modulation of a carrier signal, we can increase the number of states and thereby transmit more bits per every state change. CAP Carrierless amplitude and phase (CAP) modulation technique is closely related to QAM in that amplitude and phase are used to represent the binary signal. The difference between CAP and QAM lies in the state representation of the constellation pattern. CAP does not use a carrier signal to represent the phase and amplitude changes. Rather, two waveforms are used to encode the bits. The encoder replaces a stream of digital data with a complex equation that symbolizes a point on the constellation diagram. Thus, for a 32-CAP, there would be 32 possible locations on the diagram, all of which can be represented as a vector consisting of real and imaginary coordinates. Consequently, 32-CAP would result in 32 distinct equations of the type, each one representing five bits of data. CAP modulation is very suitable for use with ADSL. DMT The spectrum from 0 to 4 kHz, voice band, is designated for plain old telephone services (POTS). Downstream (ATU-C to ATU-R), the spectrum from 26 kHz to 1.1 MHz is further divided into 249 discrete channels. Upstream (ATU-R to ATU-C), the spectrum above the POTS band consists of 25 channels between 26 kHz and 138 kHz. Echo canceling between the downstream and upstream signals permits reuse of these sub-channels. With the exception of carriers used for timing, each carrier is capable of carrying data. However, only those carriers with sufficient signal to noise ratio (SNR) are allocated payload for transmission. Each transmitting carrier is allotted a bit count and transmits power, based on the characteristics of the sub-channel. This results in an optimized data transfer rate for the current line conditions. DMT allocates bits and transmission power away from the induced noise. The advantages of this process are an optimized data rate and less interference with other services existing in the same sheath, due to the symmetrical nature of induced crosstalk. The DMT technique exhibits a high degree of spectral compatibility based on power spectral density, rather than absolute transmit power. DMT has a substantial advantage over single carrier modulation systems in the presence of impulse noise. DMT spreads impulses over a large number of bits, averaging peaks. Only if the average exceeds the margin does DMT produce an error -- single carrier systems will error every time a peak exceeds the margin. DWMT Discrete wavelet multitone (DWMT) technology increases the usable capacity of telephone wires and coaxial cable, allowing telephone companies and cable operators to deliver two-way broadband telecommunications services over their existing networks. DWMT uses Multicarrier Modulation. A multicarrier system uses a transmission band efficiently by dividing it into hundreds of sub channels that are totally independent and spectrally isolated. In practice, implementations of multicarrier systems use orthogonal digital transformations on blocks of data, a process called subchannelization, in an attempt to achieve the frequency partitioning shown in the figure below. By keeping the signal sub channel power contained in a narrow bandwidth, each sub channel occupies only a small fraction of the total transmission band and overlaps only with immediately adjacent sub channels. When a signal is transmitted over a long copper loop (e.g. several miles), the higher frequency components of the signal attenuate significantly more (tens of dB) than the lower frequency components. Narrowband interferers from AM or amateur radio signals also affect the transmission by destroying the signal in parts of the band. Multicarrier technology, called Discrete Wavelet Multitone (DWMT), provides sub channel isolation that is superior to DMT. DWMT uses an advanced digital wavelet transform instead of the Fourier transform used in DMT. Echo Cancellation The T1.413 standard for ADSL defines two categories of modems: frequency division multiplex (FDM) modems (Category I) and echo cancellation modems (Category II). FDM systems allocate separate frequency bands for upstream and downstream transmissions. Echo canceled systems send upstream and downstream signal over the same frequencies. Since the attenuation of a signal over a copper line increases with frequency, it is desirable to transmit data using a frequency band that is as low as possible. In an ADSL system, the lowest attenuated frequencies begin right after the POTS band. In FDM system, the lower frequency band is used for upstream transmission while the downstream transmissions are allocated to the higher attenuated frequencies. Some xDSL transceivers use echo cancellation (similar to the echo cancellation utilized in the standard V.34 28.8kbps duplex modem) to exploit the lower attenuated frequencies and increase its downstream performance. By utilizing the lower frequencies for both upstream and downstream performance, the transceiver can deliver higher downstream performance, particularly on the longer loops where the higher frequencies become severely attenuated. In an effort to promote interoperability between FDM and EC systems, the echo-canceled transceivers can be configured to operate in an FDM mode in order to communicate with a category I (FDM) modem. Conclusion the twisted pair wires between the telephone central office and end users of telecommunication services has a great deal more information capacity than used for the regular voice services. Several base band and pass band transmission systems collectively referred to as xDSL, have been developed over the last ten years that enable up to several megabits per second of data to be carried over the regular telephone twisted pair line. The xDSL family of technologies provides a wide variety of line driving schemes to accomplish and satisfy different market needs over today's infrastructure. xDSL has application in both the corporate and residential environments as well as flexibility to meet the market challenges. Since xDSL operates at the physical layer of OSI seven layers standard, it can be used in conjunction with ATM and Frame Relay technology. The most promising of the xDSL technologies for integrated Internet access, intranet access, remote LAN access, video-on-demand, and lifeline POTS applications in the near term is ADSL or R-ADSL (a rate-adaptive version of ADSL). During the past year, ADSL has concluded trials by more than 40 network service providers throughout the world, primarily in North America and northern Europe. Service introduction began in 1997, but ADSL service is still being rolled out in many areas. In the meantime, xDSL technologies and standards will continue to evolve, as will user demand for these emerging services relative to other local access service alternatives. The ability to utilize the existing telephone copper wire infrastructure as well as interoperability with ATM and Frame Relay technology, position xDSL as the most promising of the broadband access technology options for both residential and business users.


Bibliography


Bibliography: 1. Marlis Humphrey and John Freeman, "How XDSL Supports Broadband Services to the Home", IEEE Network., vol. 11, no. 1, Jan-Feb 1997, p. 14-23. 2. George T. Hawley, "Systems Considerations for the use of XDSL Technology for Data Access", IEEE Communication, vol. 35, no. 3, Mar 1997, p. 56-60. 3. Bhumip Khasnabish, "Broadband to the Home (BTTH): Architectures, Access Methods, and the Appetite for it", IEEE Communication, vol. 35, no. 3, Mar 1997, p. 58-69 4. ADSL Forum website , www.adsl.com 5. Analog Devices website, www.analog.com 6. Kimo website, www.kimo.com 7. Westell website, www.westell.com 8. www.encyclopediatech.com.


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