From telecom@eecs.nwu.edu Sat Jan 12 11:40:51 1991 Received: from hub.eecs.nwu.edu by gaak.LCS.MIT.EDU via TCP with SMTP id AA09069; Sat, 12 Jan 91 11:40:45 EST Resent-Message-Id: <9101121640.AA09069@gaak.LCS.MIT.EDU> Received: from tellab5 by delta.nucsrl.uucp id aa26454; 2 Jan 91 1:11 CST Received: by tellab5.CHI.IL.US (smail2.5) id AA07570; 2 Jan 91 00:54:48 CST (Wed) Received: from scocan.UUCP by uunet.uu.net (5.61/1.14) with UUCP id AA10418; Wed, 2 Jan 91 01:11:44 -0500 Received: from dmntor by scocan.scocan.sco.COM id aa01765; Wed, 2 Jan 91 0:46:55 EST Received: by dmntor.UUCP (smail2.5) id AA28575; 1 Jan 91 19:24:43 EST (Tue) Received: by contact.uucp (smail3.1.18.1 #18.5 alpha) id ; Tue, 1 Jan 91 18:42 EST Message-Id: From: woody Subject: Telsat Canada Report Winter 1990-1 To: telecom%nucsrl.uucp@eecs.nwu.edu Date: Tue, 1 Jan 91 18:42:26 EST X-Mailer: ELM [version 2.3 PL2] Resent-Date: Sat, 12 Jan 91 10:41:30 CST Resent-From: telecom@eecs.nwu.edu Resent-To: ptownson@gaak.LCS.MIT.EDU Status: R [moderator: this is of some length, but there is some info about satellite ISDN, satellite telecom uses, etc in this latest Telsat Canada Report. Please decide whether to archive, special-issue or vape it.] The following is from Telsat Canada's most recent newsletter. This is presumably public relations material, and the issue itself carries no statement of copyright. ---- issue begins here ---- Telsat Report Vol 5 No 3 Telesat Canada, Satellite Communications Newsletter Winter 1990 Inside: * Finning Switches to Anikom 510 * NOVA Uses Satellite for Remote Sites * Telesat's Satellite ISDN Trial * Satellite Communications and the GST * Telesat Marks Fifth Year in Market * A Fresh Look For Telesat Enterprises Finning Switches to Telesat's Anikom 510 By: Darren Kelly Telesat Vancouver Sales Vancouver-based Finning Ltd has switched to Telesat Canada's Anikom 510 service to handle its voice and data requirements. Early in 1990 Finning, the world's larges distributor of Caterpillar equipment, including backhoes, tractors, and heavy mining equipment joined the Telesat Canada customer list with the addition of an Anikom 510 network to link some of its major centres. The decision was made for a number of reasons. "Our first requirement was to provide a reliable, high-quality broadband network between our headquarters in Vancouver and our operations in Whitehorse and Edmonton," says Andrena Mungham, Finning's Communications Network Administrator. "We also wanted to construct a network that would provide us with diversity in our network routing. Our selection of Telesat's Anikom 510 service allowed us to achieve this by making two of our company's broadband circuits satellite links." Finning currently operates a 448 kb/s Anikom 510 circuit between Vancouver and Edmonton which has been multiplexed to produce 13 voice circuits at 32 kb/s, and one data circuit at 19.2 kb/s. In addition, Finning has also installed a 128 kb/s link between Vancouver and Whitehorse, which provides the company with four voice circuits at 24 kb/s, and one 19.2 kb/s data channel. "The cost of this network was significantly less than the rates offered by the terrestrial carriers, even after the recent rate reductions by Telecom Canada." says Andrena. "We now know what our costs will be through the life of the contract, and the ability to upgrade our circuits is offered at an affordable price." Finning wanted to be able to offer its users route diversity. Through a combination of circuits linking other Finning locations, Andrena has developed two completely different paths should a portion of her network fail, or a disaster occur. The company has also joined the communications network operated by Caterpillar in the United States through the addition of a VSAT antenna. This network provides Finning with ordering capabilities, updates, and other information from the Caterpillar head office. In the future, Finning hopes to expand its use of satellite technology, and is actively considering the purchase of a satellite transportable. This would allow the company to set up a remote operation at any of its customer locations in the arctic, or the Northwest. Also on the horizon is the purchase of mobile services through Telesat Mobile Inc. "Since the installation of the network on May 24, we have experienced virtually no downtime," says Andrena. "Any problems that we have had have been addressed by Telesat people very quickly through the Vancouver and Edmonton Operations offices. And the Telesat sales and service personnel have been very professional and attentive in dealing with our business requirements." NOVA Connects Remote Sites Via Satellite Alberta-based NOVA Corporation is using satellite communications to connect some of its remote pipeline meter stations and construction sites with its regional offices. Operating out of its head office in Calgary, Alberta, NOVA builds and operates high-pressure gas pipelines, and refines and markets oil and gas products. With pipelines across Alberta, and construction sites in remote regions of the province, NOVA uses a complex communications network which includes cable, radio, and satellite components. As NOVA continues to move into more remote areas, this network must constantly change and adapt to the company's needs. The major considerations when establishing communications for each site are cost and delivery schedules, and it was with these in mind that NOVA first approached Telesat in 1989. "We needed to establish a point-to-point link between one of our remote terminal units at MacKay River and our regional host computer in Vegerville," says George Wade, Design Engineer, Alberta Gas Transmission Division, NOVA. "These units take several on-site readings, including temperature, pressure, flow, and a number of alarm functions. We have placed them at critical points along our pipelines, and we needed to establish one at MacKay River quickly and within a restrictive budget. Telesat was able to meet our critical in-service dates, and the cost of installation was accurate enough to allow us to predict the costs of construction to establish the site." Wade explains that each remote terminal along the pipeline relays readings to a regional host computer, which in turn relays the information to a main Vax host in Edmonton. In the past, these sites were mostly connected by terrestrial networks, but NOVA is pleased with the satellite link and is now considering the possibility of using satellite to connect five more sites in the province. "We're pleased with the way the link has been operating," says Wade. "There have been no outages and no major problems. Our main concerns when selecting a network medium are reliability, cost, and in-service dates. Satellite addresses all these concerns." NOVA's Alberta Gas Transmission Division is now developing a communications network consisting of two segments. The first will be a high-capacity core network involving head offices and regional centres covered by Edmonton, Calgary, Ardrie, Vegerville, Edson and Brooks. An engineering study is currently being conducted to look at different ways of connecting approximately 800 sites across the province. Approximately 300 of those sites have already been established, and the remaining 500 include remote locations where satellite will be considered. "We're trying to get a handle on our own communications network," says Wade, "and satellite is one way that we can do that. The technology is also ideal for disaster recovery applications and as a back-up to existing networks. A few years ago the cost of satellite was somewhat prohibitive, but we've found that that has changed, and we can no longer rule out satellite when planning for the future." Telesat Conducts ISDN Trial Telesat has successfully conducted a comprehensive satellite ISDN (Integrated Services Digital Network) trial, demonstrating that satellite customers can enjoy the benefits of ISDN services today. Beginning in August, and conducted in association with Northern Telecom and Modular Telephone Interface (MTI) Ottawa Inc., the trial was the first to use D-channel signalling protocols over satellite. The primary objective was to prove the technical viability and evaluate the performance of enhanced voice, data, and image ISDN services delivered by satellite, and dispel the perception that ISDN is incompatible with satellite systems. The highlight of the trial was a public demonstration of satellite ISDN held in November. To conduct the demonstration, Telesat established an ISDN network between its head office in Ottawa and its Toronto teleport. A satellite link provided direct Primary Rate Interface (PRI) between two Northern Telecom Meridian SL-1 ISDN nodes. The PRI carries 23 information-bearing B-channels and one signalling D-channel. Northern Telecom supplied the hardware and software to upgrade the Meridian SL1s to handle ISDN functions, and MTI installed the upgrades at each site. "We made very thorough tests on all aspects of ISDN involving D-channel signalling protocols, and various voice, data, and integrated applications," says Hossein Ghandeharian, Network and Applications Development Manager, Telesat. "All the applications we tested confirmed the compatibility of satellite communications with ISDN." "We gave special attention to the possible impacts of inherent satellite delay on ISDN protocols," adds Suhong Pak, Senior Planning Engineer, Telesat. "The results indicate excellent performance of all ISDN functions tested, and confirm that Northern Telecom's ISDN implementation is not affected by satellite delay." Telesat's test results show that excellent voice quality is provided over the satellite ISDN link using Northern Telecom's M2000 series digital telephone sets, without the need for satellite echo cancellers. Echo cancellors, however, would be needed if analog telephone sets were used. Voice features tested include Calling Line Identification (CLID), Network Call Party Name Display, Network Ringn Again, and Network Call Redirection and Forwarding. Data applications tested include Group IV Facsimile from Ricoh Canada, screen sharing, and multi-media desktop conferencing applications of Group TeleConferencing System from Groupware TeleCommunications Software. Also tested during the trial were compressed videoconferencing from PictureTel, and wideband audio from Corporate Computer Systems. "The results show that private ISDNs can easily be established over satellite by directly linking ISDN PBXs," says Ghandeharian. "Satellite services customers can benefit today from the high quality and convenience of dial-up voice, data and videoconferencing offered by ISDN technology." In an extended trial effort, Telesat is developing the means by which to offer bandwidtth efficiency and other service enhancements in addition to the features currently available with ISDN. As a result, Telesat will be ready to offer enhanced ISDN in association with its Anikom 500 and Anikom TS services. Based on international telecommunications standards, ISDN forms the basis for a multi-purpose, universally accessible, end-to-end digital network. It is expected to meet user communications needs more flexibly and efficiently by providing integrated access to a great variety of services via a limited number of standard user/network interfaces. The D-channel, with its sophisticated, message-oriented signalling protocols, plays a key role in control and management of ISDN's multi-purpose functions. --------------- Satellite ISDN Demonstation (approximation of diagram) _____ \ (_____) <-----------------------------> --| Ottawa Telesat HQ Anik C2 / (Ku-band) | Primary Rate ISDN +----> Group IV Fax | (23B+D) | | +----> ISDN Voice Features V | * CLID/NCPND Toronto Teleport | * NRAG \_I_/ ______ | * Netw. Call Redist/Fwd A -------- |______| --------------+ +----> Compressed Wideband Audio (7.5 kHz) Meridian SL-1 | +----> Screen Sharing Desktop Conferencing | +----> Videoconferencing --------------- Satellite Communications and the GST By: Roshan Hanief Manager, Goods and Services Tax, Telesat It is a virtual certainty that the Goods and Services Tax (GST) will become a reality on January 1, 1991. [note: since the Telesat Report went to press, GST is now in effect] The imposition of the GST will mark the end of the 13.5 per cent manufacturing sales tax, also known as the federal sales tax (FST). The telecommunications sales tax (TST) of 11 per cent will also be eliminated. In the short run, the repeal of the FST will have only a slight impact on Telesat's pricings. In the long run, when existing equipment is replaced with new FST-free equipment, Telesat foresees lower prices. The repeal of the TST, however, will have a significant and immediate impact of lower prices for our customers who are currently paying TST. To understand this a little better, let's first look at how the GST will work. How It Works The GST is a consumption tax of seven per cent. Goods and services are collectively defined as "supplies". A supply can be taxable, exempt or zero-rated. Most supplies are taxable. Unlike provincial sales taxes whioch are collected only once from the final consumer, the GST is imposed and colelcted at every stage of the production chain. By means of a credit mechanism, however, the GST imposed at intermediate production stages is either creditable or refundable. The effect is that the final consumer is the one who bears the burden of the tax. A key feature of the credit mechanism allows registrants to claim an input tax credit (ITC). Most businesses can register for this credit. An ITC is a credit for the GST paid by registrants on supplies used in the intermediary stages of production of a commercial activity. Registered businesses in a reporting period will subtract the GST paid on their purchases from the GST collectible from their sales, and remit the difference to Revenue Canada. If the GST paid is greater than the GST collectible, a refund will be requested. Non registrants are not allowed to claim input tax credits. Despite the repeal of the federal sales tax Telesat's costs will increase marginally. There are two reasons for this. First, because of the time cost of money resulting from the difference in timewhen the GST is paid on purchases and when the GST is collected from sales. Secondly, to reflect the costs for designing, implementing and administering an accounting system to accomodate the GST. Since most of Telesat's customers qualify as registrants for ITC, the GST paid to Telesat by them is creditable. The assumption is that their costs will likewise increase only marginally. As proposed in the new GST bill, telecommunications services in respect to a terminal or earth station situated in Canada are taxable. However, Telesat's current emphasis on an integrated network covering Canada and the continental U.S. envisages terminals situated in Canada, the continental U.S., and outer space. At first glance it may seem that only telecommunication services utilizing terminals in Canada are subject to GST, and because a spacecraft is in fact outside of Canada, it would seem that space segment telecommunications services are not taxable. At this stage, this has not been made clear, and may not necessarily be true. In addition, the Bill proposes that export sales would not be subject to the GST. With reference to telecommunications services, it is difficult to know what part, if any, is exported. For example, a non-resident may commission a service originating in Calgary, going through Toronto and terminating in Houston. Is this a taxable service? If it is, the purchaser - in this case a non-resident - has no avenue to have the tax refunded. Yet, had the purchaser been a GST registrant, the tax would have been creditable. To resolve these apparent inequities and clarify other issues related to satellite communications, Telesat has approached Revenue Canada for discussion and clarification, and will keep its customers informed, as it receives more details. Telesat Marks Fifth Year In Business Communications Market By: Eldon Thompson President and CEO Telesat This fall Telesat marks five years of selling end-to-end services in the business telecommunications market. When we emerged as a direct service provider in 1985, we embarked on an intensive program of new service development, sales and marketing activity, and the development of a national network and customer service infrastructure. The results, by any measure, have been impressive. Over the last five years, we have introduced a comprehensive portfolio of communications services which have proven themselves to our customers in performance, price, and strategic value. We have added more than 250 business customers to our telecommunication services base, and we have established a national presence in the marketplace. We now have teleports and other earth station facilities coast-to-coast, providing private business network and telco-interconnected services throughout Canada. Also, reciprocal cross-border agreements with most U.S. satellite carriers and teleport operators extend our services into the U.S.. What can our customers expect over the next five years? Using our established Canada and U.S. infrastructures, we can now offer services to a much broader range of customers, particularly small and mid-size companies, through shared use of earth station facilities. The introduction of our new Anikom TS service at the most recent CBTA (Canadian Business Telecommunications Alliance) trade show was our first major step in this direction. With Anikom TS, we can provide service to a new generation of customers who may never have a satellite dish on their premises and will, nevertheless, have access to the performance and cost saving benefits of satellite networking. As we begin to add Bandwidth-On-Demand features to our services, we will give customers on-demand access to satellite networking when and where they need it. In addition to greater cost reduction through bandwidth management and shared facility networks, customers can expect to see a new generation of value-added information services provided either through business video or more traditional computer databases. VSAT architecture, in particular, lends itself to business video and common database access. As VSAT usage increases across North America the market base will exist for suppliers to provide services such as financial information, Human Resource training modules, and other computer database or business television services. With our two new Anik E satellites scheduled for launch next March and September, the next five years will see the introduction of new satellite technologies. Mobile satellite communications is one of those new technologies. This service has tremendous application in wide-roaming air, land and marine transportation, and also for remote sensing, oil and gas exploration, mining and forestry operations. Telesat is also engaged in the development of low-orbit sateliite communications systems, a technology which will usher in the age of truly worldwide, personal communications. In every technology advancement, the human element is an essential component. At Telesat, as we have advanced into the telecommunications market, we have kept our focus clearly on providing high-quality services to our customers. Whatever the product, service or technology development, Telesat remains committed to providing excellence in telecommunications services throughout Canada, and ensuring that our customers receive the very best in value. A Fresh Look For Telesat Enterprises Telesat Canada Communications Inc (TCCI) has changes its name to Telesat Enterprises. The wholly-owned subsidiary began operation in 1986 with the mandate of creating profitable businesses in areas that Telesat Canada may not enter as a regulated telecommunications carrier. Telesat Enterprises is built around an entrepreneurial spirit which is reflected in its staff and its business units. The new logo adapts the Telesat logo with an encircling orbit, symbolizing the satellite technology that is the common element among its various business units. These businesses include: Teleport Development; IMPAX-STS, a business television service provider; Satellite Information Services; MediaSat, an in-store point-of-purchase radio joint venture with Telemedia; Digital Video Services, a video production company using digital computer technology for image creation and storage; and a minority interest in Canadian Satellite Learning Services, a broker of programming for use in education and training. ____________ _Telesat_Report_ is published by the Business Planning Division of Telesat. Telesat believes the information contained in this publication to be accurate as of the date of publication. Some information is subject to change without notice. Telesat is not responsible for any inadvertent errors. All correspondence should be addressed to: Joe Aragona Editor Telesat Report Telesat 1601 Telesat Court Gloucester, Ontario K1B 5P4 Tel. (613) 748.0123 Toll Free: 1-800-267-1870 Fax: (613) 748.8712 ENVOY: ANIK