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  1. How Does IP Work? June 8, 2004 David Young Internet & Technology Policy Development
  2. IP Phone IP Phone CPE Gateway Analog Phone POTS Analog Phone POTS Analog Phone PSTN Broadband Circuit Switched / TDM Circuit Switched / TDM Packet Switched Data Broadband Analog Phone PSTN POTS Types of VoIP Calls VoIP Gateway VoIP Gateway Internet IP to IP Includes PC-to-PC and Device-to-Device
  3. IP Phone IP Phone Internet CPE Gateway Analog Phone POTS Analog Phone VoIP Gateway VoIP Gateway POTS Analog Phone PSTN Broadband Circuit Switched / TDM Circuit Switched / TDM Packet Switched Data Broadband Analog Phone PSTN POTS Types of VoIP Calls Phone to IP & IP to Phone Includes PC-to-Phone and Device-to-Phone
  4. IP Phone IP Phone Internet CPE Gateway Analog Phone POTS Analog Phone VoIP Gateway VoIP Gateway POTS Analog Phone PSTN Broadband Circuit Switched / TDM Circuit Switched / TDM Packet Switched Data Broadband Analog Phone PSTN POTS Types of VoIP Calls Phone to Phone
  5. VoIP History Sustaining Technology Disruptive Technology (“The Innovator’s Dilemma”, Clayton Christensen 1997) 1995 Hobbyist Toy 1997 International Bypass 1999 <ul><li>Domestic Long Distance Bypass </li></ul><ul><ul><li>(Dialpad, Net2Phone, MSN, AIM, Yahoo) </li></ul></ul>2003 <ul><li>Local Service Alternative </li></ul><ul><ul><li>(Vonage, Packet8, CableTV, GoBeam) </li></ul></ul><ul><li>Breakthrough! </li></ul><ul><ul><li>(Higher fidelity voice, multimedia communications, 3G wireless integration, presence & availability, etc.) </li></ul></ul>200x
  6. Modes of Broadband Delivery “ Land Line” “ Wireless” Cable Modem DSL Fiber Power Line Fixed Wireless Satellite 3G Cellular Wireless LAN
  7. VoIP over Broadband http://www.cisco.com/warp/public/cc/pd/as/180/186/prodlit/at186_ds.htm Virtual Phone Company <ul><li>Scalable technology minimizes up front investment for new entrants </li></ul><ul><ul><li>Invest in softswitch & OSS </li></ul></ul><ul><ul><li>Customer may pay for adapter </li></ul></ul><ul><ul><li>Option to outsource media gateways </li></ul></ul>
  8. Many VoIP Providers Can Compete Over a Customer’s Broadband Connection Plug into broadband router (e.g.) with inexpensive adapter Assign or port number Emulate dialtone Provide full feature set + Traverse customer’s broadband connection Co-locate with CLEC partner for termination
  9. VoIP is already delivering calls between PCs and IP Phones: [email_address] 150.34.23.7 [email_address] 129.23.10.2 Directory Server IP Network IP Phone to PC Voice Call (IP to IP) SIP Proxy Server Hello! [email_address] Is at 129.23.10.2 4 Bob@AOL.com is at 129.23.10.2 3 Where is Bob@AOL.com? 2 5 Call Bob@AOL.com 1
  10. VoIP Callers can also interconnect with the PSTN: Signaling Gateway Media Gateway (175.1.3.5) Directory Server Clare PSTN IP Phone to PSTN Phone (IP to Phone) SIP Proxy Server Verizon.net Sally 150.34.23.7 Hello! Media Gateway Controller (175.1.1.1) SS7 EO Sally Calling Clare 1 Sally Calling Clare 4 Contact MGC at 175.1.1.1 3 Where is Clare? 2 8 7 7 Set up call to Clare From Media Gateway 5 8 8 Use Media Gateway to call Clare 6 6
  11. VoIP gives control to the end user: Call Manager Sally : 181.8.3.4 Call Manager Sally : 181.8.3.4 Sally : 150.34.23.7 Sally 181.8.3.4 181.8.3.4 150.34.23.7 Signaling Gateway Media Gateway Media Gateway Controller Application Server PSTN IP Network Sally changes office Sally logs into the Call Manager server which updates her profile with the new IP address Moves, Adds & Changes User B 2 1 Sally 150.34.23.7 12th Flr 5th Flr NY LA
  12. Technology Differences Create Policy Problems <ul><li>Traditional Telephone </li></ul><ul><li>Location </li></ul><ul><ul><li>Customers locations were known </li></ul></ul><ul><ul><li>Service providers had physical presence in town/state/country </li></ul></ul><ul><li>Mobility </li></ul><ul><ul><li>Customer’s locations were fixed and did not change </li></ul></ul><ul><li>One Service </li></ul><ul><ul><li>Network operator provided voice service </li></ul></ul><ul><ul><li>Voice was the primary service </li></ul></ul><ul><ul><li>Voice calls could easily be identified, tracked, measured & monitored </li></ul></ul><ul><li>VoIP </li></ul><ul><li>Location </li></ul><ul><ul><li>Service providers and end users can be located anywhere </li></ul></ul><ul><ul><li>Service providers do not need to know where their customers are physically located </li></ul></ul><ul><li>Mobility </li></ul><ul><ul><li>Customers can use their service from any broadband connection anywhere – home, office, hotel, Starbucks, etc… </li></ul></ul><ul><li>Convergence </li></ul><ul><ul><li>Broadband provider may be unaware of voice service </li></ul></ul><ul><ul><li>Voice is one of many services riding over the same broadband connection </li></ul></ul><ul><ul><li>Voice packets are indistinguishable from the rest (web, email, instant messaging, etc.) </li></ul></ul>
  13. Broadband Continues to Grow Rapidly Enabling Robust Application Growth Source: Smith Barney, “Cable MSOs Leaving A Lot of Food on the Table”, April 28, 2004
  14. Convergence has made old distinctions between services meaningless Music/Media TV & Radio Internet Service Telco Local Loop Content & Applications Satellite Wireless Voice /SMS Services POTS Phone IP Phone Television & Set Top Box Cell Phones Computers & Operating Systems PDAs End User Layer Wireline Voice Services Network Access & Connectivity Cable TV Networks VoIP Services
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