Dial-up ISDN: The Affordable Alternative to Leased Line Service

In the previous issue of Computing Japan, Associate Editor Robert Lemos summarized the status and current trends of Integrated Services Digital Network in Japan. (See
"ISDN: A Solution in Search of a Problem"; Sept./Oct., page 37.) This month, Forest Linton expands on the topic of using dial-up ISDN for cost-effective corporate communications.

by Forest Linton

Japan's telecommunications industry leaves a lot to be desired when compared with that of most other nations. High prices and long waits are not just a stereotype -- they're a reality. For example, a single 64K-bps leased line from NTT starts from ¥60,000 (depending on distance) per month. If you use that to connect to the Internet, you'll need to add another ¥200,000 or more per month for IP service. This is 50 times or more the cost of the same service for a user in the United States.

If there is one feather in Japan's telecom cap, though, it is ISDN (Integrated Services Digital Network). Japan boasts one of the most developed and standardized ISDN systems in the world -- and (unlike many nations) at prices comparable to regular analog telephone services. Because of this, ISDN connections are becoming popular in Japan as fast as, or perhaps even faster than, in the US.

Kervin Go of Elmic Systems cites Japan's single ISDN standard and high availability as primary reasons for its popularity. "ISDN (in Japan) is more advanced in terms of usage compared to the United States [and] ISDN is available in over 90% of Japan." Yokohama-based Elmic Systems manufacturers ISDN cards and drivers for Windows and DOS platforms, and the company is enjoying success thanks to the recent ISDN boom. Other foreign companies have recognized the growing demand as well, and are moving to capitalize on ISDN's popularity in Japan. For example, Ascend Communications, a leading ISDN router manufacturer in the US, established a Japanese branch early last year, and plans to form Ascend Japan within the next few months.

In some ways, the NTT stranglehold on telecommunications has been a benefit for potential users. Japan's single ISDN standard compares favorably to the several incompatible standards existent in the States. In addition, Japanese ISDN utilizes the full 64K bps available per channel, compared to just 56K in the US. Japanese ISDN truly is a superior product.

Connecting to the Internet

When combined with a dial-up router, ISDN's relatively low cost in Japan (use is the same price per minute as regular analog phones) makes it a viable alternative to expensive leased lines. The ISDN-plus-router solution offers pay-as-you-go pricing at access speeds of up to 128K bps, with minimal added capital or hardware requirements.

Several Japanese Internet providers have begun to offer specialized services catering to the small office market. Global OnLine Japan, PSI Japan, and Cyber Technologies, for example, all provide dial-up Internet connectivity for office LANs. Dial-up LAN services offer the best of both worlds: a high-speed digital connection at relatively inexpensive prices (relatively inexpensive for Japan, anyway). An ISDN router, such as Ascend's P50 (see the "A dial-up ISDN router simplifies connections" sidebar), can connect to a single computer or a hub and provide IP (Internet Protocol) to an entire local area network. Set-up and use is straightforward: your provider will assist you in applying for a domain name, locate your servers on- or off-site, and provide you with the news, e-mail, and Web services that you will need.

Connecting to a branch office

ISDN is also an excellent solution for connecting a branch office LAN to your headquarters' WAN, or for connecting several branch offices together. Dial-up ISDN really shines in situations where 24-hour communication is not essential.

For example, a branch could schedule its communications for several pre-set times per day -- say, once per hour. A gateway would then save up all e-mail and other files and, at the pre-arranged time, it would call headquarters, establish a connection, upload the stored files, download any files from headquarters addressed to the branch office, then disconnect. At the same time, files addressed to the general Internet could also be sent out.

With this type of set up, the overall connect time is relatively low. Since Japan's ISDN charges by the minute -- you only pay for the time you use, as with a normal analog line -- it is much more affordable than maintaining a 24-hour leased line between the branch and headquarters.

Of course, the size of your company and its usage patterns will determine the best solution. Heavy corporate users may find it more affordable or more practical to get a leased line. It pays to do a few rough calculations beforehand, though. Unless you are in an Internet-related business, you may be surprised how little you actually need to be connected.

Creating a mobile work force

An employee armed with a laptop and ISDN PC-card is a very effective mobile worker. Japan's ISDN infrastructure is highly developed, and ISDN connections are available in hotels, public phone booths, trade show centers, and train stations; hooking up can be a breeze. In cities from Okinawa to Hokkaido, the portable computer user can easily find a phone with an ISDN jack, and the 64K-bps speed allows for quick data transfer.

Some companies have already begun to "digitize" their sales force, and they are realizing the benefits almost immediately. Working at home is another trend that, perhaps surprisingly, is becoming increasingly popular in Japan. There has been a recent noticeable increase of SOHOs (small office, home office), which are already big in the States. ISDN provides an ideal communications solution for a SOHO, which typically is caught between the need for efficient, high-speed data transfer and the necessity to save money.

The affordable alternative

For small businesses in Japan, dial-up ISDN represents an opportunity: high-speed, quick connections at low cost. With a service like PSI Japan's LAN-ISDN, significant price-performance benefits can be achieved compared to traditional communications solutions.

Start-up costs can be relatively high, but over the long-term the convenience and cost-savings can be significant. If your office LAN needs a high speed, affordable data transfer solution, don't ignore the potential benefits of ISDN.ç

Hooking up to ISDN

An ISDN line is priced similarly to regular phone service. The NTT line charge of ¥72,000 applies, as well as a base monthly charge that differs depending on whether you are a company (¥3,630/
month times two lines) or individual (¥2,830/month times two lines). In addition, you will have to rent or buy a DSU (digital service unit; rental starts at ¥1,700 per month times two lines), but that, basically, is it.

If you use just one B channel, you pay the same per-minute charge as for analog service. On those occasions that you use both B channels, the price per minute will be double. (For additional information about ISDN and a pricing breakdown, see "ISDN: A Solution in Search of a Problem" in the September/October issue of Computing Japan.)

A dial-up ISDN router simplifies connections

To research this article, I set out to connect my Mac and LAN to an Internet provider via dial-up ISDN. Ascend's Japan office and Global OnLine Japan graciously donated their time and equipment to help with the test.

The Ascend Pipeline 50 is a flexible ISDN router designed to route data in a variety of configurations. It is a black box about the size of a modem; because of its small size, power users will find it works nicely with a laptop. The Japanese model is identical to the US version, with the exception of the ISDN hash codes (which are different than those used in the US).

Ascend is establishing quite a big presence in Japan, and it is one of the few big ISDN hardware companies localizing products for the small- and medium-size corporate market. Most local Internet providers support Ascend as well as other ISDN routers, but make sure to verify with your provider before planning your configuration.

The P50 connects to your computer or server via Ethernet, thus avoiding the need for a special ISDN board to be installed. Having an Ethernet connection allows you to take advantage of the speed of both ISDN B-channels for a full 128K bps connection. If you connect a server to the P50, you can then route data over your network. Setting up the P50 is a snap -- simply connect to it over a serial cable with a standard VT100 communications program.

When connecting to an Internet provider who supports ISDN services, you probably won't have to configure the router yourself. Global OnLine Japan sent me a configuration file, which I uploaded into the P50. (And, for actual paying customers, they will send an engineer to set everything up.) It was then a simple matter of configuring my Mac's TCP settings as specified, and selecting the Ethernet driver connected to the P50.

The P50 offers what Ascend calls "Bandwidth on Demand" -- it establishes and removes connections as needed. For example, when not in use, a connection will typically "time out," or disconnect, to save bandwidth and connection time. However, if the P50 detects activity, it will automatically redial. Since ISDN connections take only about one second to establish, this process happens transparently for the user or network; the connect speed is so fast that it always seems as if you are attached to a leased line. (If your IP address is set manually, you can even run a server over the ISDN line; however, it will only be visible on the Internet when you are
dialed in.)

When two P50s are talking to each other, Ascend's custom compression can boost throughput up to 512K bps. The P50 will also support two simultaneous connections to different locations (each using one B-channel). It offers packet filtering, support for PPP, and MPP Telnet remote management. The P50 is certified for use in 26 countries worldwide. In Japan, it retails for about ¥190,000. --FL

For more information:

Ascend Japan 03-5322-2850

Cyber Technologies 03-3226-0961

Elmic Systems 045-664-5171

Global OnLine Japan 03-5330-9380

PSI Japan 03-5478-7537