Week 2

Question 1

Packet Switching

Answer 1

• think of it as ripping an envelope into pieces, sending the pieces down a chute, and reassembling the pieces at the other end
• more efficient

Question 2

If packet switching is so efficient, why bother with circuit switching?

Answer 2

Latency and Jitter

Mostly disruptive in a phone conversation

Question 3

Latency

Answer 3

Perceptible delays

Question 4

Jitter

Answer 4

Variability in delays

Question 5

Rate of return regulation

Answer 5

Telephone companies are allowed to charge rates that cover expenses and provide a reasonable return on their investment.

Question 6

What is the incentive with a price cap approach?

Answer 6

Incentive lies in cutting costs to increase profit margins

But that means we need quality requirements.

Question 7

Telecommunications Act of 96

Answer 7

Pro competition, de-regulatory

The rise of the internet renders it arbitrary

Main objectives

• eliminating economic barriers to entry in local telecoms markets
• eliminating regulatory barriers to entry in local telecoms markets
• universal return
• no wall between local and long distance

Question 8

Network Externality

Answer 8

Competing systems that are not connected systems appropriate value of customers through exclusion.