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Voice over IP discussion note

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  • 1. Voice over IP (VoIP) – background and regulatory aspects Olli Mattila Finnish Communications Regulatory Authority ( Chairman of the IRG FN WG / VoIP Subgroup) Background for discussions at ERG meeting 17.6.04
  • 2.
    • Technical concept of VoIP vs PSTN phone
    • Comments on market development / impact on PSTN
    • Comments on regulatory issuers
    • Ficora`s decision on VoIP service
    • IRG FN WG / VoIP subgroup
    Content
  • 3. Technical concept of VoIP vs PSTN
  • 4. Next Generation Networks (NGN) / IP-architecture approach All services and applications ( voice , data, video) Internet protocol (IP) All network technologies Services Transmission
  • 5. Voice is one service inside NGN-communication services Messaging Person-to-Person – Communication Services Content-on-demand Browsing Download Streaming Push Broadcast Peer-to-Peer Conversational
    • Voice call
    • Video call
            • Chat call
    • Multimedia call
    • e-Mail
    • SMS EMS
    • MMS
            • IM
  • 6. Concept of IP Communication
    • Protocols split transmitted data into packets, add necessary addressing information to the packets and transmit them and assemble again data in receiving end
  • 7. PSTN telephony vs VoIP
    • PSTN telephony VoIP
    • - Circuit switched - Packet switched
    • E.164 numbering - URL SIP names, E.164, IP addr,
    • Intelligent network / - Dumb network /
    • dumb terminal intelligent terminal
    • Charging bases - Charging bases
      • location, distance, min - more limited
    • Closed system - Open system
      • inherited security - security vital issue
    • Tech quality - Tech quality
      • standardised transmission - depend mainly on delays
      • characteristics and delay variations
  • 8. Co-existance of IP phone and PSTN phone Internet PSTN Gateway Today and long in the future publicly offered VoIP has to co-operate with PSTN (terminated, originated at PSTN) This reflect to questions, like - numering
  • 9.
    • Nature of VoIP service creates problems with several consumer protection issues, like
    • Location independence (”nomadicity”)
      • customer is able to register at any access point in any country
      • service provision can be controlled from any point world wide
    • Active terminals
      • requires electric power
    • Open network ( compared with closed PSTN network)
      • security questions
  • 10. Comments on market development / impact on PSTN
  • 11.
    • VoIP market trends
    • At present at its infancy, estimated in September 2003
      • less than 200 000 VoIP users world wide
      • less than 20 000 VoIP users in Europe
    • But expected to grow rapidly because
      • reduced capital and operating costs
      • voice services with a number of new features
      • new revenue opportunities for access providers through “triple play”,
    • that means voice, data and broadband internet
    • Growing number of broadband internet access will accelerate
    • the use of VoIP
    • Public VoIP service is at least on plan/ trial basis in most of EU countries
  • 12. Estimations of VoIP switch over varies 2006 -2015 PSTN IP based
    • Today 10 – 15 % of international voice traffic is based on VoIP
    • Optimistic estimations suggest that 50% of world`s telephone traffic will be based on VoIP by 2006. More pessimistic estimates refer to year 2015.
  • 13. Comments on regulatory issues
  • 14. Regulatory discussions have started
    • USA
    • FCC published a proposed rulemaking in March 2004
    • several state regulators are considering the issue. New York Public
    • Service Commission issued decision (in May 21) on Vonage´s VoiP
    • EU
    • Ficora made regulatory decision on TeliaSonera`s VoIP service
    • in October 2003
    • Several EU countries are establishing national working groups or about
    • to launch national consultations on the issue
    • EU Commission plans to put document on VoIP regulatory aspects
    • for public consultation
  • 15. Categories of VoIP services from regulators point of view
    • Outside of regulatory concern
      • Corporate internal use on business LAN/WAN
      • IP phone – IP phone, self provided
    • 2. In principle under regulation (end user services)
      • Carrier internal use
    • 3. Inside regulatory concern
      • IP phone to PSTN phone
      • PSTN phone to IP phone
      • IP phone – IP phone service provided by operator
  • 16.
    • Dimensions of regulatory issues on VoIP
    • a) Consumer protection
    • USO directive: PATS definition / obligations?
    • b) Market / competition control, for example
      • Relationship with relevant markets – substitute to
      • PSTN voice telephony?
      • Interconnection / termination - regulatory costing?
      • Retail prices – location / distance independent?
  • 17. Definitions in the USO Directive
    • Electronic communications service (ECS): A service normally provided for remuneration which consists wholly or mainly in the conveyance of signals on electronic communications networks …
    • Publicly available telephone service (PATS) : a service available to the public for originating and receiving national and international calls and access to emergency services through a number or numbers in a national or international telephone numbering plan …
  • 18. Basic regulatory questions Are VoIP (which of VoIP services) classified as publicly available telephone services (PATS) and thus regulations set for traditional telephone service apply ? If yes, can the obligations be obeyed ( due to technical restrictions) in practice ? Note: see as an example list of obligations set in the Ficora`s VoIP decision
  • 19.
    • Emergency arrangements do not fit calls over internet,
    • because the nature of internet
      • customer is able to register at any access point in any country
      • service provision can be controlled from any point world wide
      • Basic problems
      • problem with reach the emergency centre
      • problem with wrong or lack of caller`s location information
    Emergency calls
  • 20.
    • Quality classes defined by ETSI/TIPHON for
    • end to end quality
    • ITU has technically standardised 5 QoS classes. Two first are regarded acceptable for VoIP service
    • Current international VoIP is mainly based on “Best Effort”
    VoIP quality
    • Mainly affected by transmission delays,
    • delay variations, packet losses (and bandwith)
  • 21.
    • Legal interception
    • Difficult to administrate due to (international) location
    • independence of IP
    • VoIP also makes use of encryption more easy
    • ETSI is working on the issue concerning technical arrangement
    • Communication security
    • Network integrity /service availability (power failures, terminal closing due to spam and network overloading)
    • Communication confidentality
  • 22.
    • Numbering issues
    • VoIP numbers in national numbering plans
    • Is there reasons to aim specific number series for VoIp service ?
    • Is there need in future for common URL to identify for emergency services (for example SIP:SOS@ home-domain) ?
    • Universal service issues
    • review USO models including VoIP ?
    • Extra territorial issues ( services coming outside Europe)
    • influence of possible unsymmetric regulation ?
    • obligations for services coming outside of EU ?
  • 23. Ficora`s decision on Sonera`s VoIP service in Finland
  • 24. VoIP regulation in Finland
    • TeliaSonera’s VoIP Service (”Sonera Puhekaista”)
      • service is offered only to TeliaSonera’s broad band users
      • offered as a subsitute for PSTN connection
    • FICORA’s decision in October 2003
      • www. ficora . fi /englanti/ document / SoneraPuhekaista . pdf
      • TeliaSonera’s VoIP service was considered to be PATS because
        • the service is available to the public
        • the service is offered through a number in the Finnish numbering plan
        • users can originate and receive national and international calls and use emergency services
      • the service was also considered to be offered at a fixed location
  • 25.
    • TeliaSonera’s VoIP service has to comply with
    • the obligations set for PATS in the national regulation,
    • main obligations beeing (1):
    • ensure that users are able to make international calls
    • using access code 00
    • ensure that users are able to access the emergency call
    • number 112 and other special emergency number free of charge
    • on request of user , free of cost, arrange a categorised
    • barring service
    • free of charge provide itemized bills
    • ensure that user`s nme, address and telephone number is
    • collected and published in telephone directory
  • 26.
    • equip its communications network and communications service
    • with technical facilities that allows legal interception
    • service that recipient can see calling number (CLI)
    • ensure that its activities can continue under exceptional circumtances
    • ensure that network and service satisfies the quality requirement of the Act
    • follow provision of the Act on protection and Data Security in Telecommunications (for example regulation how to treat , store and use call data)
    TeliaSonera’s VoIP service has to comply with the obligations set for PATS in the national regulation, main obligations beeing (2):
  • 27. IRG / FN WG / VoIP subgroup
    • Just starting the work, first meeting on Monday June 21th
    • Co-operation with
      • Commission
      • IRG End User group
      • CEPT / ECC / TRIS group
      • ” / NNA – VoIP PT
    • Follow
      • National regulatory development in Europe
      • USA (and Japan) regulatory development
      • Work of other organisations (OECD, ECTA, etc)
      • Standardisation work (ETSI, IETF, etc)

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