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Section 7-- Innovation
Pages 57-64

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From page 57...
... For this reason, the references to new technology and new developments cited below should be considered only as examples of things that are reasonably well understood and which may have some impact in the not too distant future. The incentive to innovate is usually economic, either directly or indirectly, whether it be to provide an existing service at lower cost or to provide a new service.
From page 58...
... As now understood, these latter systems will likely use digital modulation techniques and will tend to promote more widespread use of digital facilities in the network feeding into those systems. NEW DEVELOPMENTS New· Telephones" The Bell System has indicated that the next generation of telephon~s will use active electronic devices to improve transmission quality and to help overcome some of the" technical limitations of loop characteristics.
From page 59...
... The rate of innovation of data users will likely exceed that of the switched network with the largest and fastest-growing segment in the low and medium data rate areas. Digital TransmiSsion The telephone companies are now using large quantities of PCM carriers in their exchange trunking plant.
From page 60...
... Since such a switch looks essentially like another digital-transmission link, it would have no additional effect on the criteria for interconnection. In the local or exchange switching plant, the desire to go to solidstate electronic crosspoints'in the switching network has been thwarted somewhat because of the need'to pass the high voltages required for ringing the telephone.
From page 61...
... The use of this service will likely be primarily for computer-to-computer data transmission in load-leveling, national data banks, national network access for remote access users, etc. It will be desired to incorporate into computer communication hardware all automatic functions as opposed to manual functions most used today in voice-band data transmission.
From page 62...
... Several users, especially those in fast-moving fields like computer communications and those who have historically interconnected with the carriers' private lines, suggest that the rate of innovation in the DDD network will pose no problem to them • • Questions of Cost An important cost question from the suppliers point of view is the cost of a new connection arrangement for some new service or use he may want to offer. If he included the protection in his own design, he would be able to determine the total cost himself.
From page 63...
... The new integrated circuit version of the touch~tone generator does not produce the single tone since that feature was only incidental to the original design. SUMMARY OF ISSUES AND CONCLUSIONS The carriers have said that widespread interconnection will tend to impede innovation in the network, because, among other things, users will tend to op,pose changes by the carriers that make the users' equipment obsolete or require it to be modified.
From page 64...
... 2. The introduction of a certification program for direct interconnection will not significantly restrict carrier innovation if there is effective information exchange between-C;arriers, suppliers, and users.


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