Your SlideShare is downloading. ×
0
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Download the presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Download the presentation

1,478

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,478
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
41
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Consider a small enterprise with three branch offices and a small PBX or key system in each branch office. Assume 8 analoge telephone lines per office at a cost of $50 per month. Total LEC bill will be $1200 per month.
  • Now conside the same sitiuation, but the analog connections have been replaced with SIP trunks to a single PRI connection to the LEC. The monthly LEC bill could be reduced from $1200 per month to $300-$600 per month. A savings of $600-$900 per month! But it requires an investment in IADs and a VoIP to PSTN GW.
  • If the PBXs are replaced by IP PBXs the, the investment in IADs is removed – improving the business case.
  • DID Services
  • Transcript

    1. SIP Peering A Business Model For ISPs Jim Dalton 16 October 2007
    2. Environmental Scan <ul><li>Years of growth ahead for VoIP market. </li></ul><ul><ul><li>Consolidation with New Niches Emerging </li></ul></ul><ul><li>A lot of competition </li></ul><ul><ul><li>Telcos </li></ul></ul><ul><ul><li>Cable Company’s </li></ul></ul><ul><ul><li>New entrants: Skype, Ooma, Google, Gizmo </li></ul></ul><ul><li>Some disasters: SunRocket, </li></ul><ul><li>Plenty of profit opportunities and success stories: CBeyond, Covad, Packet8 </li></ul>
    3. Target Markets <ul><li>Individuals </li></ul><ul><ul><li>Anyone with broadband access </li></ul></ul><ul><ul><li>Tough to compete with Cable triple play </li></ul></ul><ul><li>Small Businesses (up to 250 employees) </li></ul><ul><ul><li>Unserved by Cable companies </li></ul></ul><ul><ul><li>Underserved by Telcos </li></ul></ul><ul><li>Large Businesses </li></ul><ul><ul><li>ISPs cannot compete against Telcos </li></ul></ul>
    4. General Strategy <ul><li>VoIP services must be a complement to existing services </li></ul><ul><li>Deploy services incrementally to limit risk </li></ul><ul><li>Use technical skills as a competitive advantage </li></ul><ul><li>Use Open Source platforms offer major cost advantage </li></ul><ul><li>Leverage existing sales and marketing channels </li></ul><ul><li>Be relentless about conserving cash </li></ul>
    5. Selling Proposition High Speed Internet Access Domain Services IP Addresses Network Configuration Managed Firewall Services VPN E-mail with Spam and Virus Protection File Backup & Sharing Fax to E-mail Web Hosting Connectivity Applications Data Voice IP Access to PSTN (outbound calls) Direct Inward Dial Services (DID or inbound calls) Long Distance Resale 800 Number Services Local Service (CLEC License) CALEA, CallerID, Voice Mail E911, LNP, Operator Services Hosted PBX Services
    6. IP Access to PSTN <ul><li>Target Market </li></ul><ul><ul><li>Special situations where IP access to PSTN has a major cost advantage. </li></ul></ul><ul><li>ISP provides the network plumbing to access traditional telco services. </li></ul>
    7. IP Access to PSTN <ul><li>Enterprise with three branch offices. </li></ul><ul><li>Eight phone lines (DS0s) per office </li></ul><ul><li>$50 per DS0/month </li></ul><ul><li>$1200/month </li></ul>LEC Local Exchange Carrier PBX PBX PBX
    8. IP Access to PSTN Intergrated Access Device (ISP Equipment ) VoIP - PSTN Gateway (ISP Equipment) Global PSTN Internet SIP Trunk PRI Trunk PRI Trunk = Primary Rate Interface (23 Voice Channels) $300 -$600 per month PBX PBX PBX IAD Cost = $800 - $3600 each Gateway Cost = $40 - $100 per voice port Local Telco Switch
    9. IP Access to PSTN IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk PRI Trunk PRI Trunk = Primary Rate Interface (23 Voice Channels) $300 -$600 per month Gateway Cost = $40 - $100 per voice port Local Telco Switch
    10. DID Services IP PBX VoIP - PSTN Gateway Local Telco Switch Global PSTN Internet SIP Trunk PRI Trunk
    11. Selling Proposition High Speed Internet Access Domain Services IP Addresses Network Configuration Managed Firewall Services VPN E-mail with Spam and Virus Protection File Backup & Sharing Fax to E-mail Web Hosting Connectivity Applications Data Voice IP Access to PSTN (outbound calls) Direct Inward Dial Services (DID or inbound calls) Long Distance Resale 800 Number Services Local Service (CLEC License) CALEA, CallerID, Voice Mail E911, LNP, Operator Services Hosted PBX Services
    12. Long Distance Resale IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk PRI Trunk LD Carrier Switch Internet Telephony Service Provider operates the VoIP to PSTN Gateway to resell Long Distance Services
    13. Long Distance Resale IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk LD Carrier <ul><li>Long Distance Service Provider operates the VoIP to PSTN Gateway </li></ul><ul><li>Similar to traditional switchless resale of LD Services </li></ul>
    14. Long Distance Resale IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk LD Carrier SIP Trunking to the LD Carrier Eliminates: - Cost of PRI ($200-$600/month, 23 channels) - Gateway Investment ($40-$100 per channel)
    15. Long Distance Resale IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk LD Carrier How does an ISP Control and Profit from VoIP when Customer can have SIP Trunks directly to the Carrier?
    16. Long Distance Resale IP PBX VoIP - PSTN Gateway Global PSTN Internet SIP Trunk LD Carrier Open Source VoIP platforms provide the technically savvy ISP with a cost advantage for SIP call control SIP Proxy
    17. Open Source VoIP Platforms <ul><li>Two types of SIP call control platforms </li></ul><ul><ul><li>SIP Proxy </li></ul></ul><ul><ul><ul><li>High scale, Hundreds of calls per second </li></ul></ul></ul><ul><ul><li>Back to Back User Agent (B2BUA) </li></ul></ul><ul><ul><ul><li>Less scale, more control </li></ul></ul></ul>
    18. SIP Proxy <ul><li>Forwards SIP messages from Source to Destination </li></ul><ul><li>Audio packets stream directly from the source to the destination </li></ul><ul><li>No IP masking between the Source and Destination </li></ul>IP PBX VoIP - PSTN Gateway Global PSTN Internet LD Carrier SIP Proxy Invite Invite Audio
    19. B2BUA <ul><li>Forwards SIP messages from Source to Destination </li></ul><ul><li>Audio packets stream through the B2BUA </li></ul><ul><li>IP addresses are masked between the Source and Destination </li></ul>IP PBX VoIP - PSTN Gateway Global PSTN Internet LD Carrier SIP B2BUA Invite Invite Audio
    20. Open Source VoIP Platforms <ul><li>SIP Proxies: </li></ul><ul><ul><li>SIP Express Router (SER) </li></ul></ul><ul><ul><li>OpenSER </li></ul></ul><ul><li>Back to Back User Agents (B2BUA) </li></ul><ul><ul><li>Asterisk: Popular PBX </li></ul></ul><ul><ul><li>FreeSwitch: Softswitch for Carriers </li></ul></ul><ul><ul><li>YATE: VoIP Softswitch </li></ul></ul>
    21. Example Deployment IP PBX VoIP - PSTN Gateway Global PSTN SIP Trunk LD Carrier Open SER Customer Authentication MySQL Call Detail Records Billing System Open SER
    22. LD Resale Business Case <ul><li>Investment and S, G & A: </li></ul><ul><ul><li>Server Hardware: $3k to $10k </li></ul></ul><ul><ul><li>Billing, taxes: Outsourced services limit risk </li></ul></ul><ul><ul><li>Systems Integration: 0.5 – 2 Man Years </li></ul></ul><ul><ul><li>Sales & Marketing: Can be low to existing customer base </li></ul></ul>Revenue PSTN Termination DID Services Cost of Sales 1.5 – 2.5 cents/minute <ul><ul><li>$1-$12 per month </li></ul></ul>0.7 - 1.6+ cents/minute $0.2 - $0.5 per month 0.3 - 1.2 cents/minute
    23. Marketing <ul><li>Selling to existing customers that already SIP enabled is no-brainer </li></ul><ul><ul><li>Don’t let other ITSP poach your customers </li></ul></ul><ul><li>Partner with IP-PBX resellers </li></ul><ul><ul><li>They need you! </li></ul></ul><ul><ul><li>You need them to provide fulfillment of products that enable SIP Peering </li></ul></ul><ul><ul><li>Growing number of Asterisk Resellers </li></ul></ul>
    24. Increasing your Gross Margin <ul><li>Least Cost Routing inter & intra-state calls will reduce your Cost of Sales by 50% </li></ul><ul><li>Use LERG analysis to optimize routing </li></ul>IP PBX Global PSTN SIP Trunk Call Detail Records Billing System Carrier1 Carrier2 Carrier3 Open SER Customer Authentication MySQL Open SER
    25. Increasing your Gross Margin <ul><li>SIP carriers also provide 800 number services </li></ul><ul><li>800 services are special case SIP DID calls </li></ul>IP PBX Global PSTN SIP Trunk Call Detail Records Billing System Carrier1 Carrier2 Carrier3 Open SER Customer Authentication MySQL Open SER
    26. Increasing your Gross Margin <ul><li>800 Number Services can be combined with Least Cost Routing to serve PSTN customers </li></ul>IP PBX Global PSTN SIP Trunk Call Detail Records Billing System Carrier1 Carrier2 Carrier3 PBX Open SER Customer Authentication MySQL Open SER
    27. Increasing your Gross Margin <ul><li>SIP infrastructure has the flexibility to provide innovative, high margin niche services: </li></ul><ul><ul><li>High volume calling for short promotion campaigns </li></ul></ul>Global PSTN Call Detail Records Billing System Carrier1 Carrier2 Carrier3 PBX Voice Promo Server Open SER Customer Authentication MySQL Open SER SIP Trunks
    28. What About Local Services? <ul><li>Local Telephone Services offer the highest margins </li></ul><ul><li>It can be done using Open Source. </li></ul><ul><li>But, Local Telephone Service is difficult: </li></ul><ul><ul><li>CLEC Regulatory Requirements </li></ul></ul><ul><ul><li>CALEA, E-911, Local Number Portability </li></ul></ul>
    29. What About Hosted PBX Services? <ul><li>Hosting a VoIP PBX is a lot like hosting a Web Server. </li></ul><ul><ul><li>A good fit for ISPs when reselling Local Telephone Service </li></ul></ul><ul><li>Hosting a VoIP PBX and providing Local Services with carrier requirements is an expensive challenge. </li></ul>
    30. Conclusion <ul><li>SIP trunking enables ISP to offer their customers new applications with low risk and low investment. </li></ul><ul><li>In-house technical skills and open source software offer an important cost advantage </li></ul><ul><li>Start small and grow incrementally </li></ul><ul><li>Partner with Sales Channels selling VoIP Apps </li></ul><ul><ul><li>VoIP PBXs </li></ul></ul><ul><ul><li>VXML and IVR applications </li></ul></ul>

    ×