INST Committee Report

APPENDIX 1
GLOSSARY OF SELECTED TELECOMMUNICATIONS
INDUSTRY TERMS1

2.5G Wireless

2.5G wireless is associated with such mobile data technologies as short message service (SMS), wireless application protocol (WAP), and general packet-switched radio service (GPRS). These technologies allow “always on” access to e-mail and other Web-based services from mobile handsets at access speeds slightly faster than those provided by narrowband technologies.

3G (Third Generation) Wireless

The next generation of wireless communications that will eventually provide data at rates similar to cable and ADSL, and that will be based upon a common worldwide standard for broadband mobile communications.  Analogue cellular and digital PCS are considered to be the first and second generations of wireless telecommunications.

ADSL (Asymmetric Digital Subscriber Line)

Technology that employs standard twisted-pair copper telephone wire to transmit and receive information at high speeds. It is termed “asymmetric” because data move in one direction faster than in the other, i.e., the download speed is faster than the upload speed.

Bandwidth

The amount of data that can be transferred over a connection per unit time (usually measured in bits per second, kilobits per second or megabits per second). The greater the bandwidth, the more data can travel through the channel.

Broadband

A connection to the Internet that works at high speeds because of its greater bandwidth. The National Broadband Task Force defined broadband as a high-capacity, two-way link between an end user and access network suppliers capable of supporting full-motion, interactive video applications. At the time of its report, it concluded that based on today’s technology and applications, a minimum two-way, or symmetrical, transmission speed of 1.5 Mbps per individual user is required to meet this standard.

Broadcasting Distribution Undertaking (BDU)

An undertaking for the reception of broadcasting and the retransmission thereof by radio waves or other means of telecommunication to more than one permanent or temporary residence or dwelling unit or to another such undertaking. Examples of BDUs include cable companies, direct-to-home (DTH) satellite service providers and multipoint distribution systems (MDS).

Cable Modem

A device installed in the home that allows the subscriber to connect to the Internet at high speeds using a local cable television line.

Cellular Service

A type of wireless communication that uses many base stations to divide a service area into multiple “cells.” Cellular calls are transferred from base station to base station as a user travels from cell to cell.

Coaxial Cable

A type of cable that can carry large amounts of bandwidth over long distances. The cable is composed of a copper wire surrounded by insulation, which is itself surrounded by a grounded shield of braided wire (thus minimizing electrical and radio frequency interference). Cable television and cable modem service both use this cable.

Central Office (CO)

An office where subscriber home and business lines are connected to a local loop. The central office has switching equipment that can switch calls locally or to long-distance carrier phone offices.

Co-location

An arrangement that provides access to the ILEC’s central office space for the purpose of interconnecting telecommunications carriers.

CLEC (Competitive Local Exchange Carrier)

A company that has registered with the CRTC to provide local exchange services in competition with the incumbent telephone companies. The CLEC either provides its own network and switching or resells the local telephone company’s phone service.

Dark Fibre

Optical fibre infrastructure that is in place but is not connected to in-service transmission equipment. Information is transmitted over optical fibre using light pulses — which is why unused fibre is dark.

DSL (Digital Subscriber Line)

Technology that employs standard twisted-pair copper telephone wire to transmit and receive information at high speeds (see also ADSL).

Essential Facility

According to the CTRC, a facility, function, process or service that meets three criteria: it is monopoly controlled; a CLEC requires it as an input to provide services; and a CLEC cannot duplicate it economically or technically. Facilities that meet this definition are subject to mandatory unbundling and mandated pricing. ILECs must also treat the tariffed rates for these facilities as costs in applying the imputation test.

Exchange

The basic unit for the administration and provision of telephone service by an ILEC, which normally encompasses a city, town or village and adjacent areas. Within an exchange and to other exchanges that have extended area service or similar services with that exchange, all subscribers in Canada may place an unlimited number of calls of any duration to all other subscribers without incurring long distance toll charges.

Explicit and Implicit Subsidy

Local residential rates have traditionally been set below cost. The resulting shortfall has been funded by profits (i.e., contribution) from other services. The toll contribution is an explicit charge on long distance services and service providers. Implicit subsidies represent the internal flow of profits from certain local services, such as optional and some business services.

Facilities-based Provider

A company that provides a service on a facilities-based basis. The same company may also be a resale-based provider of other services: a company may therefore be described as a facilities-based provider only with regard to a given service.

Facilities-based Service

A distinct telecommunications service provided by a supplier using physical telecommunications facilities owned by the same supplier.

Fibre Optics

Refers to the medium and the technology associated with the transmission of information as light impulses along a glass or plastic wire or fibre. Fibre optic networks are broadband communications systems that are far less subject to electromagnetic interference than are networks based on copper wires.

GSM (Global System for Mobile Communication)

Globally accepted standard for digital cellular communication. The system is deployed widely across Europe and around the world, especially at the 900, 1800, and, in Canada, 1900 MHz frequency bands.

ILEC (Incumbent Local Exchange Carrier)

A company that, prior to the introduction of local competition, provided monopoly local telephone service.

Imputation Test

A test adopted by the CRTC to detect anti-competitive targeted pricing strategies. This test ensures that all telephone company services are priced to recover all causal costs including contribution and network access charges.

Internet Protocol (IP)

The Internet Protocol is the method by which data are sent from one computer to another on the Internet. Data travel over an IP-based network in the form of packets; each IP packet includes both a header (indicating source, destination and other information about the data) and the message data. Each host (computer) on the Internet has at least one IP address that uniquely identifies it from all other computers on the Internet.

Internet Telephony

Communications (e.g., voice and fax) that are transported via the Internet, rather than over the public switched telephone network (see also Voice Over Internet Protocol).

LEC (Local Exchange Carrier)

Either an ILEC or a CLEC.

Lit Fibre

Optical fibre cable attached to in-service transmission equipment.

Local Loops

A term used to describe the copper wire that connects a business or residence to the telephone company’s central office and the public switched telephone network.

PCS (Personal Communications Service)

A wireless telephone service that operates in a similar way to cellular telephone service, but which generally uses completely digital technology for transmission and reception. In Canada and the United States, PCS spectrum has been allocated for use by public systems at the 1900 MHz frequency range.

Point-of-Presence (POP)

A point-of-presence is an access point to the Internet. Each POP has a unique Internet Protocol address.

Programming Undertaking

An undertaking for the transmission of programs, either directly by radio waves or other means of telecommunication or indirectly through a distribution undertaking, for reception by the public by means of broadcasting receiving apparatus.

PSTN (Public Switched Telephone Network)

Refers to the worldwide dial-up telephone network made up of switching technology and transmission media that is used to communicate voice, other audio, video and data signals.

Router

A physical device that joins multiple networks together. On the Internet, a router is a device or software that determines the next network point to which a packet (unit of data) should be forwarded to reach its destination.

Satellite Link

A microwave link that uses a satellite to receive, amplify and retransmit signals to another location.

T-1

Digital carrier system that supports 24 standard voice channels.

Unbundled Local Loops

Local loops that are controlled by an ILEC, but for which access is provided to other telecommunications service providers if the loops are considered to be an essential facility. This access is usually provided in return for fixed and/or recurring compensation.

Unbundling

The policy of requiring ILECs to make available individual essential facilities on a tariffed basis.

Voice over Internet Protocol (VoIP)

A form of Internet telephony. In an Internet telephone call, the analogue voice signal is converted to digital format and the signal is compressed into Internet protocol (IP) packets for transmission over the Internet (thus avoiding the tolls of the public switched telephone network); the process is reversed at the receiving end.

Wireless

Any broadcast or transmission that can be received through microwave or radio frequencies without the use of a cable connection for reception.

Wireline

A system that uses wires or cables instead of air-borne radio frequencies to transmit signals.