Similarly intelligent networks will grow, the intell igence and functionality being moved closer and closer to the customer. The trend in economics of networks will have a significant impact on customers as well as providers. So long as tariffs remain high, private networks will continue to grow.
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If, however, tariffs fall closer to costs, we will see increased demand for public network services. The trends in customer needs, technology and regulation are combining to create an entirely new kind of network, with new Foreword controls and competitive forces to govern its operation.
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The characteristics of this network are fairly clear already. First, in wideband access electronics will migrate much closer to the customer in the coming months and years, driven not only by technology but more importantly by demands for service responsiveness and lower operating costs.
In many cases a fibre will terminate in the basement of the business building.
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Almost all large businesses and many medium and small locations will have direct access to a fibre based connection. In addition, because fibre systems can easily transport tens of megabits of information, the network will be positioned to transmit at much higher speeds with marginal cost increases, as service demand arises. Coupled with pan-European wireless networks, the economics of fibre access, for both narrowband and wideband, will shift dramatically, obsoleting today's tariff structures.
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