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Standards Presentation Standards Presentation Presentation Transcript

  • The VOIP Standard War: A Look at Home Internet Phones
      • Eric Parish and James Moynihan
  • Table of Contents
    • Telecom service started with the invention of the telephone by Alexander Graham Bell in 1876
    • Telecom service has not changed dramatically until just recently
    • A new standard VoIP, is taking over the market
    • Both standards have benefits and drawbacks
  • Plain Old Telephone Service (POTS)
    • Plain old telephone service – Bell to today
      • Analog telephone service
      • Copper twisted-pair wires
      • Based on original Bell telephone service
      • Connects home to central offices which are connected to other central offices and long-distance facilities
      • Battery backups at the phone company to allow service to continue even during power outages
  • POTS Continued
    • Allows emergency services (911) to locate calls geographically
    • Reasonably secure, direct connections
    • Allows for wiretaps
    • Only allows use of phone number at specific location
    • Mobile phones use this same standard
  • POTS Continued
    • Relatively expensive due to large infrastructure
    • Requires a separate wire for each connection
    • No smart network
    • Limited clarity (300 Hz to 3kHz)
    • No portability
    • Large infrastructure costs discourage competition
    • Government had to break up AT&T monopoly
  • What is VOIP?
    • Stands for “Voice over Internet Protocol”
      • Phone over Internet instead of analog land lines
    • Internet phone services are becoming a popular way to talk to people
    • Not constrained by distance
    • VOIP to VOIP calls are often free
    • 1996 Vocaltec created Internet phone software, considered the first home VOIP software
  • Problems with VOIP
    • needs reasonable quality internet connection
    • 911 problems
    • service typically lost during power outages
  • H.323
    • The first big VOIP standard
    • Often used in videoconferencing
    • Developed by the ITU-T (International Telecommunication Union - Telecommunication Standardization Sector
    • SIP is more often used for home VOIP client
  • SIP
    • Session Initiation Protocol
    • Quickly becoming the standard for VOIP traffic
    • Often used by instant messengers such as MSN, and many home VOIP companies
    • Allows SIP users to talk to other SIP users, regardless of service
    • Developed by the IETF (Internet Engineering Task Force)
  • Skype
    • Peer to Peer Internet phone service that lets you phone everyone on the network for free
    • Has pay services to connect to regular phones
      • SkypeOut allows you to call regular phones
        • $.021/min
      • SkypeIn allows you to receive regular phone calls
        • 30 euros for a year, 10 euros for 3 months
    • 54 million members
  • Skype - Features
    • Has conference calling
    • Calling regular phones
    • Stores Contacts
    • File transfer
    • Chat
    • Video calling
    • secure encryption
  • Skype - History
    • 2003 - Niklas Zennstrom and Janus Friis found the company. They previously founded Kazaa
    • August 29, 2003 - First public beta version released
    • June 27, 2004 - SkypeOut and version 1.0
    • October 18, 2005: eBay purchases Skype for $2.6 billion
    • January 19, 2006 - Skype 2.0
    • March 27, 2006: Six million users on line at one time.
  • Skype – Financial Data
    • 200 Employees
    • Revenue: 4.55B
    • 11,600 Employees
    • Last Trade: 40.14
  • Competition
    • SIP
      • SiPPhone
        • Large SIP network that offers communication with regular phone lines and google talk
        • Offers gizmo client which is very similar to skype
    • IM clients
      • Google Talk
      • MSN
      • Yahoo
      • AIM
  • Strategy
    • Preemption
      • Proprietary protocol
      • Network effect
      • Large Customer base
  • Conclusion
    • The VOIP market has yet to be standardized
    • Skype is the market leader of home VOIP
    • Skype will face competition from standards such as SIP