Satellite Network Stops Paying Off for Edward Jones

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February 5, 2007 (Computerworld) -- AT&T Inc. last week announced a five-year, $54 million contract to develop an IP network supporting voice, video and data traffic for Edward D. Jones & Co.’s 10,000 branch offices. The project will provide the St. Louis-based financial services firm with a virtual private network based on Multiprotocol Label Switching technology. In an interview with Computerworld, Edward Jones CIO Vinny Ferrari discussed the new Global Branch Network, which will replace a satellite network that the company has used since the 1980s. Excerpts follow:

Why are you moving to the new network?

We’ve outgrown our satellite technology, and it’s important for us to have a new conduit because we really need to provide the best tools to our financial advisers. AT&T’s terrestrial lines enable us to do that. Satellite communications were limited in terms of bandwidth.

How is the project working out? We have 10,000 branch offices, with one financial adviser per office. Already, using land lines has dramatically improved response times, so the network will not only allow more applications but [also] help them run faster. The response time on Web-based interactions is down by 75%.

Currently, we have 4,000 offices converted. We started with AT&T about six months ago, and the due date for the conversion of all 10,000 offices is July 31. We’re pleased with AT&T that it has met an aggressive time schedule.

What do you plan to do in terms of converging your network traffic? Our goal is to converge data, voice and video into one network. Previously, we moved video over satellite and then to TV monitors from the satellite. Through these new lines to the desktop, we can converge [everything]. Satellite is really great for streaming video but not for two-way data communications, such as Internet traffic.

Were you getting many complaints from your users about the satellite network? We have an anonymous electronic suggestion box, and our financial advisers and branch office administrators gave us constant feedback. It was dramatic stuff, yes. There was recognition across the firm that a change was needed. And now they’re giving us great feedback on the new network.

So how did the satellite network come about in the first place? It was the right decision going to satellite back in 1988, and it’s the right decision coming off satellite in 2006 and 2007. It was very reliable, with two uplinks — in Tempe, Ariz., and St. Louis. About 80% of the time, the uplinks came from Tempe, where there is usually beautiful weather. With bad weather, you’d have interference. But the main thing now is that satellite is not great for the scale of the Internet.

Will this result in any cost savings compared to your satellite costs? Moving from satellite to terrestrial will be more expensive. But new, more sophisticated tools will be delivered, and the new network plays a critical role in their delivery. The cost is well worth it.

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