Faced with the multifaceted challenges of increased service needs, fiber exhaust, and layered bandwidth management, service providers need options to provide an economical solution. One way to alleviate fiber exhaust is to lay more fiber, and, for those networks where the cost of laying new fiber is minimal, this will prove the most economical solution. However, laying new fiber will not necessarily enable the service provider to provide new services or utilize the bandwidth management capability of a unifying optical layer.
A second choice is to increase the bit rate using time division multiplexing (TDM), where TDM increases the capacity of a fiber by slicing time into smaller intervals so that more bits (data) can be transmitted per second (see Figure 2). Traditionally, this has been the industry method of choice (DS1, DS2, DS3, etc.). However, when service providers use this approach exclusively, they must make the leap to the higher bit rate in one jump, having purchased more capacity than they initially need. Based on the SONET hierarchy, the next incremental step from 10 Gbps TDM is 40 Gbpsa quantum leap that many believe will not be possible for TDM technology in the near future. This method has also been used with transport networks that are based on either the synchronous optical network (SONET) standard for North America or the synchronous digital network (SDH) standard for international networks.

Figure 2. Increased Network CapacityTDM
The telecommunications industry adopted the SONET or SDH standard to provide a standard synchronous optical hierarchy with sufficient flexibility to accommodate current and future digital signals. SONET or SDH accomplishes this by defining standard rates and formats and optical interfaces. For example, multiple electrical and optical signals are brought into a SONET terminal where they are terminated and multiplexed electrically before becoming part of the payload of an STS1, the building block frame structure of the SONET hierarchy. The STS1 payloads are then multiplexed to be sent out on the single fiber at a single rate: OC3 to OC12 to OC48 and eventually to OC192. SDH has a similar structure with STMn building block resulting in signal rates of STS1 through STM64.
SONET and SDH, two closely related standards, provided the foundation to transform the transport networks as we know them today. They govern interface parameters; rates, formats, and multiplexing methods; and operations, administration, maintenance, and provisioning (OAM&P) for high-speed transmission of bits of information in flashing laser-light streams. A synchronous mode of transmission means that the laser signals flowing through a fiber-optic system have been synchronized to an external clock. The resulting benefit is that data streams transmitting voice, data, and images through the fiber system flow in a steady, regulated manner so that each stream of light can readily be identified and easily extracted for delivery or routing.


