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          Telecommunications
PHILIDS

                                                                  PHILIPS




                                          ransm fission
                                Radar
                                            ontrol
                                                     j
                                                         ystems
                                        Public Telephony


                               DataTelecommunications

                                        PrivateTelephony

                                         Mobile Radio

                                    Radio Communication

                                        Traffic Systems
Contents
An Introduction ...                      2-     7



Transmission                             8 - 25



Radar Control Systems                   26 - 35



Public Telephony                        36 - 49


Data Telecommunications                  50 - 65



Private Telephony                       ss -   77



Mobile Radio                             7s - 8s


Radio Communication                      so - ss

Traffic Systems                         100 -117



Principal Telecommunication Companies   1 is -11s


Colophon                                       120
                                                                                   Special Demands
An Introduction ...                                                                 Most of these areas, particularly tele-
                                                                                    communications equipment (but the
                                                                                    same applies to airport systems and
                                                                                    traffic control), make special demands
                                                                                    on the supplier. They can all be loosely
                                                                                    described as 'capital equipment'. Each
                                                                                    telephone exchange, for instance,
                                                                                   represents an enormous investment
                                                                                    for the customer. It must therefore be
                                                                                    designed and built to serve for decades.
                                                                                    This calls first for an extraordinarily high
                                                                                   level of reliability, but it must also have
                                                                                   another important quality. It must actively
                                                                                   resist obsolescence. Against a rapidly
                                                                                   moving technological background, such
Philips in Telecommunications                                                      equipment tends rather quickly to
                                                                                   become out-of-date. This calls for
Any description of the world-wide Philips organization inevitably begins with      research and design ability above the
size, with statistics. Around 400,000 employees in over 70 countries, a            average, and calls too for contributions
                                                                                   from other disciplines.
turnover of 17 billion dollars and so on. These figures are true of course,        Here Philips experience in computer
impressive naturally and a proper source of pride, but they are also               development has resulted in a generat-
misleading.                                                                        ion of processor-controlled exchanges
To most people, especially to the famous 'man in the street' Philips is known      that are for all practical purposes'future-
                                                                                   proof'. The addition of new features
for light bulbs, for shavers or television sets. Even informed and technical       (even those yet to be invented or de-
people, faced with this broadest of bases in commercial electronics, are           manded by the customer) is a simple
tempted to view the telecommunications sector as a sideline. At an annual          matter of modification to the 'software'.
turnover of 1V2 billion dollars it is a substantial sideline!
But the truth is, of course, considerably more complex.
                                                                                   Strength in
An Established Involvement                                                         Research
                                                                                   Over the years, the Philips approach to
 Telecommunications is not a new field for Philips. As long ago as 1918, a         all these fields has been characterized
factory, N.S.F., was set up in Hilversum in co-operation with the Dutch            by the strength that only a large mul-
                                                                                   tinationalorganization can deploy. Huge
government.                                                                        resources and background experience
 Over the next decades, this plant, under its eventual name Philips' Telecom-      are necessary to meet these demands.
municatie Industrie B.V. (PTI), played an important role in the development of     Take research, for instance.
broadcasting (Hilversum is still the centre of radio and TV in Holland), and the   The R and D budget of Philips annually
evolution of communications equipment in general. Involvement in telephone         approaches one billion dollars. Not all of
                                                                                   this budget is directly concerned with
equipment at both public and private exchange level began in the post-war          telecommunications, of course, but a
period, when Philips played a significant part in rebuilding Europe's ruined       significant amount of it is.
telephone network.
In the ;rears that followed, other new frontiers were pioneered by Philips.
Point-to-point transmission by micro-wave answered both the problems of
saturated airwaves in Europe and in long distance communications in
developing countries --more new techniques, more research. Airfield sys-
tems that combined communications, radar, lighting and signalling equipment
of hitherto unknown sophistication, were demanded --and supplied.
New disciplines, like weather forecasting on a world-wide scale, called for
increasing complex telex installations --they were developed. This was the
era of the growth of the computer and here too Philips were involved, both in
basic computer research and the application of processor control to
telephone and telegraphic switching. More recently, such techniques have
been applied with success to the younger science of traffic management.




2
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                                                                                               ---- --=
                                                                                              ~   I f 1 1 1 J~

                                                                                            ~t;~tf~~a
                                                                                   ~1 ~, ~~~ i ~tulr~l~~,




      What is more, the scale of cross-fer-
      tilization of ideas that is available in such
      a broadly-based international research
      effort, continually produces results for
      every division far beyond the potential
      available to independent commercial
      entities.




i     The Economy
      of Scale
      A good example of this was the basic
      work on ferrite materials resulting in
      present day ferroxcube technology.
      Original Philips research on these com-
      plex magneto-ceramic compounds pro-
      duced, among other things, materials
      that offered considerable advantages in
      the miniaturization of filters for transmis-
      sion equipment. The 'other things' were
      of course a much wider range of
I     applications throughout the group
      which included N deflection coils, core
      memories for computers and so on.
      Thus basic research, which only an
      international group can afford, leads to
      multiple applications within the group's
f     activities --truly the economy of scale.         2
a
    1. Two of the laboratories in                     2. Commercial Headquarters
       Hilversum                                         of PTI, Hilversum




                                                                                                                 3
 3



                                                                                     Development
                                                                                     in Depth
                                                                                     Besides this cross-disciplinary potential
                                                                                     there is another dimension to research
                                                                                     resources on this scale. An excellent
                                                                                     example of this is the development of the
                                                                                     reed-relay which forms a basic com-
                                                                                     ponent in many switching systems.
                                                                                     Not only was the concept developed and
                                                                                     perfected within the group, but the many
                                                                                     problems of quantity production of the
                                                                                     device were met and solved'in house'. A
                                                                                     hermetic glass seal protects the relay.
                                                                                     Later, in service, this makes the equip-
                                                                                     ment in which the relays are installed
                                                                                     relatively invulnerable to dust and
                                                                                     moisture. The process of sealing must
                                                                                     itself be carried out in conditions of
                                                                                     ultra-clinical cleaniness. The resulting
                                                                                     production line, which resembles a
                                                                                     surgical theatre, and the specially
                                                                                     trained personnel are evidence of a
                                                                                     special kind of development, in depth.
                                                                                     The relay itself, now produced in its
                                                                                     hundreds of thousands, is a simple
                                                                                     symbol of a complex and widely-spread
 s                                                                                   development potential.

3. PTI, Hoorn             4. The PTI factory at Hoorn,   5. EBX 8000 software test
   (manufacturing hall)      The Netherlands




     4
                                                            11 f[liftE' ' ._~,_,~~_
                                                                   mr




  Applied Research
  Each of the Product Divisions, supports
  its own applied research programmes
  where advanced technology is trans-
  lated into practical innovation.
  For PTI the achievements include the
  application of processor-control tech-
  niques to message/data/telex switch-
  ing systems, to telephone exchanges,
  public and private, to traffic control,
  transmission systems and on a smaller
  scale (using microprocessors) to radio
  communication equipment.


  Training -the                                                                                           ACustomerservice
  `Human Resource'                                   gl0iil' :
                                                                           t~t~~fun~in.~~ i ~E
                                                                          :...
                                                                                  ..~                     Since 1962 Philips have also offered
  Technically trained personnel can, and              s~, Ft.. _F8   '~                                   technical training as a customer service.
  should, be considered as a 'human                ,mgr. , ~;,. , tai            t;~~                     To begin with this was simple marketing
  resource'. In many of the developing                                                                    logic. The proper operation and con-
  countries it is a rare and precious one,                                                                tinued efficiency of the systems once
  indeed even in the Western world, the                                                                   installed, depend on the existence of
  rapid advance of technology has made                                                                    skilled and competent technicians to
  the training of technicians and service                                                                 supervise and maintain them.
  personnel an essential part of any                                                                      As the investment in, and complexity of
  industry.                                                                                               telecommunications technology increa-
  All over the world, the national com-                                                                   se, this service becomes more and more
  panies of the Philips group continuously                                                                vital. Formal school training cannot be
  run training schemes to ensure that the                                                                 expected to keep pace with continuous
  level of skill of their technical staff is                                                              leaps in technical innovation or indeed
  maintained and kept abreast of new                                                                      with the number of staff needed in the
  techniques.                                                                                             predictable future.

6. Philips Research Laboratories               7. Production of                     8. PTI, The Hague
   near Eindhoven                                 reed-relays                          (PRX production)




                                                                                                                                                  5
                                                                                                     to




 s


     Training at the                                   Training in the
     Centre of Things                                  Field
                                                      Many developing countries today are
                                                      making the great leap, introducing the         n
                                                      most sophisticated technology without
                                                      the gradual evolution through the more
     The increasing sophistication of tele-           elementary techniques. This raises a
     communications equipment over recent             different training problem, since the
     years has raised the standard even more          middle levels of technical skills are not
     and the PITTC (Philips' International            yet generally available and they often
     Telecommunications Training Centre)              have to be provided.
     was established in 1962 within easy              PITTC organizes courses in a number of
     reach of the factories and laboratories at       countries to fill this need. They are
     Hilversum, to provide advanced training          designed for trainees with secondary
     for both customer and Philips personnel.         education but little technical back-
     Here a permanent staff of instructors,           ground, and last up to 18 months. The
     working with the latest teaching equip-          courses cover general telecommunica-
     ment (augmented where necessary by               tions techniques and progress to more
     specialists from the various depart-             specialized training in telephony switch-
     ments of PTI) hold courses for interna-          ing ortransmission orradio communica-
     tional groups of trainees, future staff          tion. They are often organized in co-
     officials, planning officers and mainte-         operation with national Post and Tele-
     nance technicians.                               phone Authorities.
     On large projects, such as the advanced          Often nowadays, the larger 'turn-key'
     computer-controlled switching systems,           projects include, as part of the specifica-
     customer staff will also be involved at the      tion, extensive training for operators and
     assembly and installation stages.                maintenance technicians.                       tz


9. Training in the factory                         10. Printed wiring by means         11+14.                        12. Language laboratory
                                                       of computer regulated           Testing of printed circuits       lessons to overcome the
                                                       techniques                      under computer control            first telecommunication
                                                                                                                         hurdle




     6
                         ""~'~' ~                        A CInique Structure
                                                         It has become fashionable to criticize
                                                         multinational organizations. But, in truth,
                                                         it is their monolithic centralization which
                                                         causes the problems of inflexible reac-
                                                         tion to local conditions.
                                                         The Philips organization by its almost
                                                         organic growth over the years has to a
                                                         large extent avoided this pitfall. Philips
                                                         consists of 64 National Organizations,
                                                         51 of which have manufacturing facilities,
                                                         and several of which act as supply
                                                         centres for the rest of the Company.
                                                         National Organizations are themselves
                                                         responsible for commercial policies
                                                         each integrated into their own country's
                                                         economy. Product policy, on the other
                                                         hand, is determined by 14 World Product
                                                         Divisions which operate within the frame-
                                                         work of a group strategy established by
                                                         the Board of Management.
                                                         This unique structure results both in
                                                         strong national and international man-
                                                         agement infra-structures. These have
                                                         proven to be major assets, as com-
                                                         petition increases in world markets and
                                                         as the specialized needs of the develop-
                                                          ing countries evolve.
                                                          Each of the 64 National Organizations
                                                          can call upon many years of experience
                                                          in the economic and social environment
                                                          of the country concerned. This is com-
                                                          binedwith the world-wide strength of the
                                                          particular Product Division involved, and
                                                          supported by corporate resources and
                                                          skills which can efficiently relate the two.


to
                                                         Flexibility for the
                                                         Future

                                                         The Philips approach is thus one of great
                                                         flexibility. A 'National-Multinational' of-
                                                         fering both an intimate contact with the
                                                         market-place and the resources of an
                                                         international group. Specialist experi-
                                                         ence ineach product area, supported by
                                                         interdisciplinary research and develop-
                                                         mentfacilities. Aproven ability to design
                                                         a product, and also develop if necessary
                                                         specialist plant to produce it.
                                                         Training facilities on a world-wide scale
                                                         for production and service personnel
                                                         and for customers too.
                                                         Whatever the future holds in the field of
                                                         communications, it will certainly require
u                                                        this kind of flexibility.

13. PTI, Leeuwarden,   15. Production of channel and
    The Netherlands        group translating equipment




                                                                                                     7
8
Transmission
                                                                                      How hermetic is
Background                                                                            `Hermetic'?
                                                                                      An example of this occurs in the hermetic
                                                                                      encapsulation of integrated circuits. It is
                                                                                      commonly thought that, by definition, the
                                                                                      inside is closed for ever and safe from
                                                                                      moisture penetration. The closure can
                                                                                      be verified of course by helium leakage
                                                                                      tests. Recently, however, it was dis-
                                                                                      covered in the Philips laboratories that
                                                                                      the actual process of glass sealing can,
                                                                                      under certain circumstances, give rise to
                                                                                      small quantities of water vapour on the
                                                                                      inside of integrated circuits. As vapour it
                                                                                      does little harm but corrosion can start,
                                                                                      especially in delicate MOS/LSI circuits,
                                                                                      at the moment the temperature falls
                                                                                      below the inside'dewpoint'.
                                                                                      Philips is the first company in this field
                                                                                      with a standard dewpoint test (based on
                                                                                      a simple but effective capacity measure-
Reliability quantified                                                                ment)for all incoming integrated circuits.
                                                                                      A small point perhaps. All such meas-
                                                                                      ures are small in themselves, but their
                                                                                      cumulative effect on the MTBF and
How reliable is reliable? How can the buyer of transmission equipment justify         service life of the finished installation can
his choice in this intangible area? These are capital installations, purchased        be considerable.
at national level with considerable consultation, but the problem remains.
Most manufacturers offer a range of equipment which meets CCITT
specifications, and covers demands for weight, dimensions, compatibility and          PCM and Reliability
soon. Where, for the buyer, are the differences that influence the final choice?
One factor perhaps is ease of installation. Once installed we can claim and            With telephone networks everywhere
                                                                                       expanding in all dimensions, more tele-
prove that we have very reliable equipment and that it is designed for maximum         phones per square kilometer, more
life. Moreover, the systems, however long and complex, work from the very              circuit kilometers and more long dis-
first day. The Saudi Arabian backbone line (1400 kilometres of 12 MHz and              tance use (an effect of the growth of
60 MHz) is a case in point. And this is related to the factors which are perhaps      automatic dialling), problems of main-
most influential in the purchasing decision that of reliability and long life.        tenanceare likely to grow exponentially.
                                                                                       The trend towards the economy of PCM
These are not just salesman's words and phrases, they can be and are                  on low frequency cable and over short
quantified as MTBF (Mean Time Between Failures). Better still they can be             distances will not, sadly, add to the
calculated by the customer himself for comparison of existing equipment,              reliability of these circuits.
manufacturer by manufacturer.                                                         It is undeniable that PCM requires more
                                                                                      components (active and passive) to
Indeed some customers nowadays include strict MTBF requirements in their              perform the same functions as its FDM
specs for new equipment. This is welcome. In the transmission field Philips do        predecessor. Integration can help to
not have to demonstrate their strength in these two qualities.                        reduce failure rates and the trend in
                                                                                      electronics generally is towards greater
                                                                                      reliability, but the fact remains that many
                                                                                      more active components are required to
How is it achieved?                                                                   make 2 x 30 channels PCM multiplex
                                                                                      than to make an FDM supergroup.
                                                                                      Similarly a 12/18 MHz repeater (2700/
There is no secret. This kind of reliability is the product of strict manufacturing   3600 channels) contains only 14 tran-
procedures, careful testing, homologation of components, sub assemblies               sistors and diodes, but a 140 Mbit PCM
                                                                                      repeater (1920 channels), without in-
and units. This is of course a standard approach in the industry. Only the            tegration, would contain over 100 semi-
degree of care varies - an important distinction.                                     conductors. Thus the MTBF of typically
Philips can keep all component manufacture 'in house' -one of the                     1000 years for the 12 MHz repeater of
advantages of our Company. And one further difference: Philips maintain an            the 8TR 317 system would fall to around
                                                                                      100 years for such a repeater. Figures of
organized feedback of failure data, from the field, from all principle customers,     this level are unacceptable to Philips -
enabling potential failure mechanisms to be traced and remedied.                      and surely to most customers.




10
  Integration of circuits handling 140 Mbits
  is not a job for aback-street manufact-
  urer. Only the largest companies with
  access to the most modern production
  facilities can substantially increase
  MTBF on this type of equipment. The
  same principle holds for PCM and FDM
  channel links.
  An FDM channelbank has a demonstrat-
  ed MTBF of 350 years per channel end
  (including part of the group modulation
  equipment). The original Philips PCM
  system 8TR 602 reached a demon-
  strated value of around 150 years per
  channel end (calculated value 75 years).
  Though this was twice as good as the
  nearest competition it was not thought
  good enough. With widespread use of
  MSI and LSI circuits custom-built by
  Philips, the new equipment 8TR 623 has
  a calculated MTBF of 180 years and an
  expected MTBF in the region of 300--
  thusfinally equalling the state of the art in
  FDM.

1. Preparation of integrated                      2. Part of 600-channel
   circuits for evaluation and                       modulation bay, type 8TR 400
   defect analysis




                                                                                    11
Codec per Channel                                of 10



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