The  first service introduced in the PSTN with the help of network databases in 1980  was calling card service; soon after that, a series of value-added services for  businesses called inward wide area telecommunications  service (INWATS) were introduced. When the U.S. Federal  Communications Commission (FCC) approved a tariff for expanded 800 service in  1982, the Bell system was ready to support it with many new features due to the  distributed nature of the implementation. For example, a customer dialing an 800  number of a corporation could be connected to a particular office depending on  the time of day or day of week. As the development of such features progressed,  it became clear that in many cases it would be more efficient to decide how to  route a customer’s call after prompting the customer with a message that  provided several options, and instructions on how to select them by pushing dial  buttons on the customer’s telephone. For the purpose of customer interaction,  new devices that could maintain both the circuit connections to customers (in  order to play announcements and collect digits) and connections to the SS No. 7  network (to receive instructions and report results to the databases) were  invented and deployed. The network database ceased to be just a database—its  role was not simply to return responses to the switch queries but also to  instruct the switches and other devices as to how to proceed with the call.  Computers previously employed only for storing the databases were programmed  with the so-called service logic, which  consisted of scripts describing the service. This was the historical point at  which the service logic started to migrate from the switches.
After the 1984 court decree broke up the Bell System, the newly  created Regional Bell Operating Companies (RBOCs) ordered their R&D arm,  Bell Communications Research, to develop a general architecture and specific  requirements for central, network-based support of services. An urgent need for  such an architecture was dictated by the necessity of buying the equipment from  multiple vendors. This development resulted in two business tasks that Bellcore was to tackle  while developing the new architecture: (1) The result had to be  equipment-independent and (2) as many service functional capabilities as  possible were to move out of the switches (to make them cheaper). The tasks were  to be accomplished by developing the requirements and getting the vendors to  agree to them. As Bellcore researchers and engineers were developing the new  architecture, they promoted it under the name of Intelligent Network. The main result of the  Bellcore work was a set of specifications called Advanced Intelligent Network (AIN), which went  through several releases.
AT&T, meanwhile, continued to develop its existing  architecture, and its manufacturing arm, AT&T Network Systems, built  products for the AT&T network and RBOCs. Only the latter market, however,  required adherence to the AIN specifications. In the second half of the 1980s,  similar developments took place around the world—in Europe, Japan, and  Australia. In 1989, a standards project was initiated in ITU to develop  recommendations for the interfaces and protocols in support of Intelligent Network (IN).   
To conclude the historical review of IN, we give you some numbers:  Today, in the United States, at least half of all interexchange carrier voice  calls are IN supported. This generates on the order of $20 billion in revenue  for IXCs. LECs use IN to implement local number  portability (LNP), calling name and message delivery, flexible call  waiting, 800 service carrier selection, and a variety of other services (Kozik  et al., 1998). The IN technology also blends wireless networks and the PSTN, is being used strategically in  the PSTN-Internet convergence.
We are ready now to formulate a general definition of IN: IN is an  architectural concept for the real-time execution of network services and  customer applications. The architecture is based on two main principles: network  independence and service independence. Network  independence means that the IN function is separated from the basic  switching functions as well as the means of interconnection of the switches and  other network components. Service  independence means that the IN is to support a wide variety of  services by using common building blocks.
The IN execution environment includes the switches, computers, and  specialized devices, which, at the minimum, can communicate with the telephone  user by playing announcements and recognizing dial tones. (More sophisticated  versions of such devices can also convert text to voice and even vice versa,  send and receive faxes, and bridge teleconferences). All these components are  interconnected by means of a data communications network. The network can be as  small as the local area network (LAN), in  which case the computers and devices serve one switch (typically a PBX), or it  can span most switches in an IXC or LEC. In the latter case, the data network is  SS No. 7, and usually the term IN means this  particular network-wide arrangement. [In the case of a single switch, the  technology is called computer-telephony  integration (CTI).]
The overall IN architecture also includes the so-called service creation and service management systems used to program the  services and distribute these programs and other data necessary for their  execution among the involved entities.
Figure 1 depicts the network-wide IN execution environment. We will need to introduce  more jargon now. The service logic is executed by a service control point (SCP), which is queried—using  the SS No. 7 transaction mechanism—by the switches. The switches issue such  queries when their internal logic detects triggers (such as a telephone number that cannot be  translated locally, a need to authorize a call, an event on the line—such as  called party being busy, etc.). The SCP typically responds to the queries, but  it can also start services (such as wake-up call) on its own by issuing an  instruction to a switch to start a call.  
As we noted before, to support certain service features (such as  800 number translation), the SCP may need to employ special devices (in order to  play announcements and collect digits or establish a conference bridge). This  job is performed by the intelligent  peripheral (IP). The IP is connected to the telephone network via a  line or trunk, which enables it to communicate with a human via a voice circuit.  The IP may be also connected to the SS No. 7 network, which allows it to receive  instructions from the SCP and respond to them. (Alternatively, the SCP  instructions can be relayed to the IP through the switch to which it is  connected.) As SCPs have become executors of services (rather than just the  databases they used to be), the function of the databases has been moved to  devices called service data points  (SDPs).
Finally, there is another device, called a service node (SN), which is a hybrid of the IP, the  SCP, and a rather small switch. Similar to the SCP, the SN is a general-purpose  computer, but unlike the SCP it is equipped with exotic devices such as  switching fabric and other things typically associated with an IP. The SN  connects to the network via the ISDN access mechanism, and it runs its own  service logic, which is typically engaged when a switch routes a call to it. An  example of its typical use is in voice-mail service. When a switch detects that  the called party is busy, it forwards the call to the SN, which plays the  announcement, interacts with the caller, stores voice messages and reads them  back, and so on. The protocols used for the switch-to-SCP, SCP-to-SDP, and  SCP-to-IP communications are known as Intelligent  Network Application Part (INAP), which is the umbrella name. INAP,   has evolved from the CCS switch-to-database transaction interactions; it is  presently based on the Transaction  Capabilities (TC) protocol of Signalling System No. 7.  
Because the SCP and SN are general-purpose computers, they can be easily  connected to the Internet and thus engage the Internet endpoints in the PSTN  services. This observation was made as early as 1995, and it has already had  far-reaching consequences, as will be seen in the material that follows.

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