First Look?: Sprint makes noise about ION strategy and services

Despite Sprint's two tries at explaining the network evolution scheme it has hatched to extend integrated broadband services to local customers, several strategic and technological questions still remain unanswered.

The most recent attempt came at Internet World last week in Chicago, where several Sprint executives addressed the topic of the Integrated On-Demand Network plan the carrier announced last month (Telephony, June 8, page 8).

In a speech at the conference, Sprint CEO William Esrey promised to leave behind the "Broadway trappings" the carrier used in announcing ION and get down to the technological and strategic nitty-gritty. At most, though, Esrey defended skepticism and criticism about ION being mostly hype and about the lack of an Internet protocol (IP) backbone strategy.

"We have chosen [asynchronous transfer mode], which fully supports IP, so that we can offer public switched telephone voice quality now without losing the advantages offered by IP-based applications," Esrey said. "Sprint is fully, completely committed to IP." Sprint announced new IP security performance guarantees last week and plans to announce market trials of a consumer IP telephony service next month, Esrey added.

At a panel discussion at Internet World billed as an inside look at Sprint's plans, carrier representatives reiterated how different technology platforms will be leveraged and how services based on ION will be marketed and delivered to business and residential customers.

Again, however, few new details were divulged. The representatives said that Sprint will extend its network to the customer premises via multiple access technologies over unbundled lines from incumbent local exchange carriers or via wireless access methods.

"We're not forcing customers to revamp their existing premises configuration or invest in new equipment," said Mike Grubbs, director of enterprise solutions for Sprint Business.

In his speech, Esrey said Sprint could also use plant from cable TV operators as an access mode and characterized AT&T's planned acquisition of Tele-Communications Inc. as a hindrance to that strategy.

ION will support a range of services-such as frame relay, IP and ATM-so customers with multiple locations could ease into the network as necessary, Grubbs added. "It enables customers to transition to ION on a site-by-site basis," he said.

The Sprint representatives would not provide specifics on service costs because they said each customer will have a different package and that estimating average costs would be too complex.

"We're trying to come up with a pricing structure so that customers see a net decrease in their bills," said Fred Harris, director of network planning and design at Sprint.

Harris did speculate that the cost savings Sprint will realize from the operational efficiencies of ION would defray deployment costs.

"There are significant benefits to the operation of the network that decreases our costs, so the recovery period will be faster," he said.

The panelists also provided sketchy information about the technology behind the premises gear that will act as an endpoint for the services Sprint plans to offer.

"It's no different from the [network interface device] that sits in your home today," said Terri Morrow, assistant vice president of emerging markets for Sprint's Consumer Services Group. The customer hub will be different depending on access mode but that it is essentially an ATM concentrator, Grubbs added.

One critic of Sprint's plan characterized it as a necessary marketing spin because all of Sprint's local access strategies rely on tapping into the networks of potential competitors.

"They're trying to shore up their message," said Frank Dzubeck, president of Communications Network Architects. "They have not addressed the last-mile problem-they're still relying on someone else doing it for them."