VoIP_Telecom 03_Shah.ppt


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  • VoIP_Telecom 03_Shah.ppt

    1. 1. VoIP: Challenges and Opportunities Dr. Rajiv R. Shah Vice President Research & Network Strategy Plano, Texas Telecom 03
    2. 2. Agenda <ul><li>VoIP </li></ul><ul><ul><li>What is VoIP </li></ul></ul><ul><li>Network and Service Models for VoIP </li></ul><ul><ul><li>Standards Issues with regard to VoIP </li></ul></ul><ul><li>Market Drivers for VoIP </li></ul><ul><ul><li>VoIP and NGN </li></ul></ul><ul><li>Regulatory Issues with regard to VoIP </li></ul><ul><ul><li>Vonage Ruling </li></ul></ul><ul><li>Outlook </li></ul>
    3. 3. What is VoIP? <ul><li>Technical Answer: </li></ul><ul><li>“ The ability to make phone calls over IP-based data network” </li></ul><ul><li>Commercial Answer: </li></ul><ul><li>” The multi-billion revenue opportunity for the 21st century” </li></ul><ul><li>VoIP > IP Telephony </li></ul><ul><ul><li>Typically “IP Telephony” indicates using IP terminals </li></ul></ul><ul><ul><li>Most VoIP is between normal telephones </li></ul></ul><ul><li>VoIP < “Voice over Packet” </li></ul><ul><ul><li>Includes Voice over Frame Relay, ATM </li></ul></ul>
    4. 4. What is VoIP, Specifically? <ul><li>Is It. . . </li></ul><ul><li>A Technology or Set of Technologies? </li></ul><ul><ul><li>E.g., G.723, RTP, SIP, VXML </li></ul></ul><ul><li>An Application? </li></ul><ul><ul><li>Transmission of voice as applied over IP technology </li></ul></ul><ul><li>A Service? </li></ul><ul><ul><li>Internet telephony, international bypass </li></ul></ul><ul><li>A Network? </li></ul><ul><ul><li>Next generation signaling and multimedia connectivity </li></ul></ul>“ VoIP” is a buzz-word and acronym that has all these meanings depending on the context.
    5. 5. Circuit Switching Served Voice Well For 100 Years! <ul><li>Transmission circuits and switch path assigned during call setup for the duration of the call </li></ul><ul><li>Call is blocked if not enough network resources available </li></ul><ul><li>Essentially one class of service: 3.5 kHz, 64 kb/s </li></ul><ul><li>Poorly matched for bursty data transmission </li></ul>User - A User - B Loop Trunk Group Central Office - A Central Office - B Signal System 7 Data link Signal Transfer Point Transit Office Class 5 Switching System Connection Through Switching Fabric Class 4 Switching System
    6. 6. Packet Switching Well-Matched for Data Transmission <ul><ul><li>Great fit for bursty data transmission </li></ul></ul><ul><ul><li>Packets sent at full rate of transmission facility </li></ul></ul><ul><ul><li>Supports variable information transfer rates </li></ul></ul><ul><ul><li>Resources not consumed when nothing to send </li></ul></ul><ul><ul><li>Potential to eliminate call setup phase </li></ul></ul><ul><li>But … </li></ul><ul><ul><li>Transmission capacity used for header </li></ul></ul><ul><ul><li>Buffering introduces varying delays </li></ul></ul>Header Packet Payload Input Buffer Output Buffer Hdr. Trans Hdr. Trans Routing Fabric
    7. 7. VoIP - Basics <ul><li>Signaling Path </li></ul><ul><ul><li>Peer-to-peer </li></ul></ul><ul><ul><li>Or client/server </li></ul></ul><ul><ul><li>SIP, H.323, or H.248 </li></ul></ul><ul><ul><li>… /UDP/IP or TCP/IP </li></ul></ul><ul><li>Bearer Path </li></ul><ul><ul><li>IP-end to IP-end </li></ul></ul><ul><ul><li>Encoded voice </li></ul></ul><ul><ul><li>Packetized </li></ul></ul><ul><ul><li>Real Time Protocol (RTP) </li></ul></ul><ul><ul><li>RTP/UDP/IP </li></ul></ul><ul><li>Control Path </li></ul><ul><ul><li>Statistics on performance of bearer “channel” </li></ul></ul><ul><ul><li>RTP Control Protocol (RTCP) </li></ul></ul><ul><ul><li>RTCP/UDP/IP </li></ul></ul>Application Server VoIP Endpoint (terminal or gateway) IP Analog Voice Analog Voice Call Server
    8. 8. Packet Voice Over IP <ul><li>Migration from VoFR and VoATM to the Use of VoIP by Multi-Site Enterprises </li></ul><ul><li>IP PBX </li></ul><ul><ul><li>Emergence of IP PBX based on a softswitch model </li></ul></ul><ul><ul><ul><li>Use of H.323 initially and more recently SIP </li></ul></ul></ul><ul><ul><li>Use of a converged LAN Ethernet infrastructure to deploy telephony and data services </li></ul></ul><ul><ul><ul><li>Single wiring infrastructure based on fast Ethernet </li></ul></ul></ul><ul><ul><ul><li>Common data infrastructure and single operational group </li></ul></ul></ul><ul><ul><li>Intrasite and Intersite </li></ul></ul><ul><li>Voice Over the Internet </li></ul><ul><ul><li>VoIP clients (NetMeeting and Messenger on PCs) and VoIP Gateways enabled voice calls over the public Internet </li></ul></ul><ul><ul><li>Kazaa founders have recently launched a peer-to-peer service (Skype) </li></ul></ul>
    9. 9. PSTN versus VoIP Network Costs <ul><li>Network costs (transmission and switching costs) contribute only 10-15% of overall cost of a voice call terminated by an ILEC or a PTT , and 20-30% of overall costs for calls not terminated by a ILEC or a PTT. </li></ul><ul><li>Of the network costs, switching costs range between 50% of network costs for domestic calls to 15% of network costs for international calls, transmission costs contributing the rest. </li></ul><ul><li>Negligible savings in transmission costs through the use of VoIP: lower bandwidth for VoIP offset by need for over-provisioning bandwidth to ensure quality. </li></ul><ul><li>TDM Switch costs in traditional PSTN replaced by cost of Router plus cost of Gateway [GW] plus cost of Gateway Controller [GWC] plus cost of new OSS/NMS/Billing /Provisioning. </li></ul>No network cost savings, and very likely a cost penalty , in the initial years, in going from PSTN voice to VoIP for public networks.
    10. 10. PSTN versus VoIP Redundant routes through network Redundancy within each network element How Reliability Achieved In separate gateway controllers Mostly integrated in switching system Call Processing Intelligence ATM, FR, native IP in access; ATM native IP in core TDM in access, edge, core Transport SIP, H.323 DTMF, SS7 Signaling Variable 8 – 32 kb/s 64 kb/s Bandwidth per call Gateways, gateway controllers, routers Class 4, Class 5 switching systems Network Elements No Yes Network Resource Reserved at Call Setup No Yes QoS Guarantees Packet switching TDM circuit switching Underlying Technology VoIP Today’s PSTN
    11. 11. Circuit-Switched and Packet-Based Telephony Compared <ul><li>Circuit-Switched Transport </li></ul><ul><ul><li>Limited M2E Delay </li></ul></ul><ul><ul><ul><li>Propagation </li></ul></ul></ul><ul><ul><ul><li>Switching </li></ul></ul></ul><ul><ul><li>Practically NO Distortion </li></ul></ul><ul><ul><li>64 kbit/s are reserved for the duration of the call </li></ul></ul><ul><li>Packet-Based Transport </li></ul><ul><ul><li>More M2E Delay </li></ul></ul><ul><ul><ul><li>Packetization </li></ul></ul></ul><ul><ul><ul><li>Serialization </li></ul></ul></ul><ul><ul><ul><li>Queuing </li></ul></ul></ul><ul><ul><ul><li>Propagation </li></ul></ul></ul><ul><ul><ul><li>Dejittering </li></ul></ul></ul><ul><ul><ul><li>… </li></ul></ul></ul><ul><ul><li>More Distortion </li></ul></ul><ul><ul><ul><li>Codec compression </li></ul></ul></ul><ul><ul><ul><li>Packet loss </li></ul></ul></ul><ul><ul><li>Less Resources Needed </li></ul></ul><ul><ul><ul><li>Compression can be used </li></ul></ul></ul><ul><ul><ul><li>Silence suppression can be exploited </li></ul></ul></ul><ul><ul><ul><li>Additional flexibility </li></ul></ul></ul>
    12. 12. VoIP Network and Service Model VoIP Network #2 VoIP Network #1 Trunk Gateway Call Server Application Server Business IP PBX Access Gateway GW Home Home Home Home Access Border Gateway Border Gateway Call Server Application Server PSTN/ ISDN
    13. 13. Some Example Service Models <ul><li>CALEA </li></ul><ul><li>E911 </li></ul><ul><li>Toll Bypass </li></ul><ul><li>Computer* to Computer* Over the Internet </li></ul><ul><li>Computer* to PSTN Phone </li></ul><ul><li>Computer* to POTS Phone Over IP </li></ul><ul><li>POTS Phone to POTS Phone Over IP </li></ul>*IP End Terminal, either Computer with software client or IP Phone
    14. 14. Market Drivers - Cost and Revenue <ul><li>Cost </li></ul><ul><ul><li>Avoidance of regulated fees </li></ul></ul><ul><ul><ul><li>International and national </li></ul></ul></ul><ul><ul><li>Avoidance of carrier charges </li></ul></ul><ul><ul><ul><li>International and national </li></ul></ul></ul><ul><ul><li>End of life issues for older circuit switch technologies </li></ul></ul><ul><ul><ul><li>High cost of maintenance </li></ul></ul></ul><ul><ul><ul><li>Lack of spares </li></ul></ul></ul><ul><ul><li>Efficiencies </li></ul></ul><ul><ul><ul><li>Single network based on IP techniques </li></ul></ul></ul><ul><ul><ul><li>Both operational and capital </li></ul></ul></ul><ul><li>Revenue </li></ul><ul><ul><li>Beyond simple voice services </li></ul></ul><ul><ul><li>Bundling as a means to reduce churn </li></ul></ul><ul><ul><li>Integrated services </li></ul></ul><ul><ul><ul><li>Telephony, IM, email, integrated directories (“buddy lists”) </li></ul></ul></ul><ul><ul><li>Enhanced services </li></ul></ul><ul><ul><ul><li>Videotelephony, unified messaging, presence, mobility, IP Centrex </li></ul></ul></ul>
    15. 15. VoIP and NGN - Why Not Yet? <ul><li>There Have Been a Number of Hurdles in Both the Carriers Networks and Enterprises </li></ul><ul><li>Network </li></ul><ul><ul><li>Lack of capital </li></ul></ul><ul><ul><li>Competitive environment </li></ul></ul><ul><ul><ul><li>Reduction in number of lines of the ILECs (cable, CLECs, wireless) </li></ul></ul></ul><ul><ul><ul><li>Less need for new infrastructure </li></ul></ul></ul><ul><ul><li>Border gateways </li></ul></ul><ul><ul><li>CALEA </li></ul></ul><ul><li>Enterprise </li></ul><ul><ul><li>Existing TDM cheaper than new VoIP </li></ul></ul><ul><ul><li>New build environments provide a more compelling business case than complete replacement of existing infrastructure </li></ul></ul><ul><ul><ul><li>Hybrid models are more favoured </li></ul></ul></ul><ul><ul><li>Future operational savings versus immediate capital expenditure </li></ul></ul>
    16. 16. VoIP and NGN - What Next? <ul><li>Why Will Carriers Move to NGN and VoIP Networks? </li></ul><ul><ul><li>Toll and tandem bypass remains a key cost driver </li></ul></ul><ul><ul><ul><li>Incumbent local carriers, interexchange carriers and wireless carriers alike </li></ul></ul></ul><ul><ul><li>Competitive providers utilize the Internet to provide Voice service </li></ul></ul><ul><ul><li>Enterprises are continue migrating towards IP PBX </li></ul></ul><ul><ul><ul><li>NGN for interworking and IP Centrex as the network service </li></ul></ul></ul><ul><ul><li>End users begin to actually use native VoIP services </li></ul></ul><ul><li>Why will end-users move to VoIP? </li></ul><ul><ul><li>Because they can…(and cost) </li></ul></ul><ul><ul><li>VoIP client bundled with most Instant Messenger clients </li></ul></ul><ul><ul><li>Broadband Access breaks major quality hurdles </li></ul></ul>Greater deployment of broadband access in all forms will lead to a greater use of VoIP services.
    17. 17. Regulatory Issues <ul><li>1998 Report to Congress - Impact on Universal Service (USF) </li></ul><ul><li>Intercarrier Compensation - Access and International Settlements </li></ul><ul><ul><li>Access and Settlement Chagres </li></ul></ul><ul><li>Law Enforcement - CALEA and Encryption </li></ul><ul><li>Jurisdiction - Borderless Nature of IP versus Traditional State Regulation of Intrastate Services </li></ul><ul><li>Pending AT&T and Pulver Petitions </li></ul><ul><li>E-911 </li></ul><ul><li>Network Separation Requirements on ILECs </li></ul><ul><li>Numbering Issues - The Role of ENUM and LNP and the NANP </li></ul>Regulation impacts demand for, and development of, VoIP products, services and networks.
    18. 18. Outlook: VoIP is a Reality <ul><li>Technology Reality </li></ul><ul><ul><li>The technology exists </li></ul></ul><ul><li>Commercial Reality In the Enterprise Markets </li></ul><ul><ul><li>IP PBX </li></ul></ul><ul><ul><li>VoIP Call Center </li></ul></ul><ul><li>Commercial Potential - Carrier Markets Maturing </li></ul><ul><ul><li>IP Centrex, serious RFP activity </li></ul></ul><ul><li>Over 1.2 M VoIP Business Users, About 12% of Business Lines (WSJ 10/10/03) </li></ul><ul><li>VoIP Carriers: Vonage, FWD, Net2Phone, Voicepulse, Skype, and a Few Others, in Addition to AT&T, MCI and Others </li></ul><ul><li>Successful Broadband Deployment Policy Will Accelerate VoIP </li></ul><ul><li>Industry Needs Clarity on VoIP !! </li></ul>
    19. 19. Fixed & Mobile Services: Challenges and Opportunities Telecom 03
    20. 20. Communications Networks: The Three Planes Applications & Services Generate Revenue & Value Reduce Opex Increase Capex Efficiency Reduce Opex Increase Capex Efficiency Networking & Connectivity Metro & Edge Access Premise Core Video Presence Messaging Voice Interactive Video Storage Networks Mobile Security Enablement & Management Policy Mgmt. Call Control Session Mgmt. AAA
    21. 21. The Three Planes: Defined <ul><li>The infrastructure can be abstracted into three planes </li></ul><ul><ul><li>Application & Services Plane </li></ul></ul><ul><ul><ul><li>Core of value proposition of service providers to end-users (OSI>L4) </li></ul></ul></ul><ul><ul><li>Enablement & Management Plane (“the invisible work force”) </li></ul></ul><ul><ul><ul><li>Provide various back-end services, common to various end-user services (e.g. payment, content security, content delivery, SIP connectivity , charging, E2E QoS assurance …) </li></ul></ul></ul><ul><ul><ul><li>This function is provided by network service provider & access provider </li></ul></ul></ul><ul><ul><li>Networking & Connectivity Plane: telecommunications infrastructure networks </li></ul></ul><ul><ul><ul><li>Network infrastructure provided by network service provider and network access provider (L0 to L3 of the OSI stack) </li></ul></ul></ul><ul><ul><ul><li>Includes end-user premise network in the enterprise and in the home </li></ul></ul></ul>App. Service providers Network Access providers Network Service providers Broadband end-user
    22. 22. Applications - One Network View Video Mgmt. Network based contact-centers Application Server Video Conferencing Unified Messaging Multi-Media Conferencing Instant Messaging IP-Centrex Text-to-speech, speech recognition
    23. 23. Same Set of Services Across Fixed & Mobile, Home & Business: Voice, IM, Rich Presence………. Mobile/Wireless Worker Enterprise SOHO/ Remote Worker ICE John James@    James James@    John: Chance to look at the doc? Sean: Yes. John: Chance to look at the doc? Sean: Yes. Sean Location info Voice QOS Bandwidth Capability Security Interactive Presence Interactive Communication Environment Enablers: SIP, Web Services, SOAP, J2EE, .net, VXML Fixed Wireline/WiFi Fixed Wireline/WiFi Cellular or PCS WAN /WiFi Sean@    Application - Sean John@    Application - John John@    Sean@  
    24. 24. VoIP: Challenges and Opportunities Backup Telecom 03
    25. 25. Regulatory Issues: Vonage Ruling, 10/07/03: 1 <ul><li>In ruling from the bench late Tuesday,October 7, 2003, Minneapolis, Minnesota, Federal Judge Michael J. Davis permanently barred Minnesota from applying traditional telephone rules to Vonage , a pioneer in technology that lets consumers bypass the traditional phone network by making voice calls over a broadband connection. </li></ul><ul><ul><li>Tuesday's ruling for now frees Vonage to sell its Internet phone service in Minnesota without obtaining a telephone operator's license or paying fees to support 911 services. More importantly, the order is the first to address the authority of a state to oversee so-called voice over Internet Protocol (VoIP) providers, and could thus impact efforts by other states to regulate VoIP providers. </li></ul></ul>
    26. 26. Regulatory Issues: Vonage Ruling, 10/07/03: 2 <ul><li>State regulators had threatened to stall VoIP's growth by forcing providers to follow the same rules as do traditional phone companies. As a result, the Minnesota suit was being closely watched by VoIP industry executives, consumers and traditional phone companies. </li></ul><ul><li>Vonage filed suit against Minnesota's Public Utilities Commission (PUC) after the agency in August became the first in the United States to claim authority over VoIP. Since Minnesota's order, Wisconsin and California have asserted authority over VoIP providers, and other states say they are reviewing their policies. </li></ul><ul><li>Six VoIP companies have until Oct. 22nd to get a California telephone license or face disciplinary action. &quot;This ruling is a significant victory for Vonage and (VoIP) technology,&quot; Vonage said in a statement. ” The ruling could also have a significant impact on other states across the country, including California.&quot; </li></ul>
    27. 27. Regulatory Issues: Vonage Ruling, 10/07/03: 3 <ul><li>A California PUC representative indicated on Tuesday that the state would continue its own efforts to regulate VoIP providers. &quot;While the Minnesota (PUC's) decision was something we took notice of, our decision was based on California law,&quot; the representative said. A Minnesota PUC representative did not return calls seeking comment late Tuesday. </li></ul><ul><li>In addition to the state suit, at least two petitions have been filed with the Federal Communications Commission seeking to exempt VoIP and related services from traditional phone regulations, although the agency has yet to rule on those filings. </li></ul>
    28. 28. Regulatory Issues: Vonage Ruling, 10/07/03: 4 <ul><li>Among other things, the state rules reflect a time when all voice calls created a dedicated, end-to-end channel between two speakers and relied on geographic hints such as a telephone number area code, to do so. As a result, geography now plays a central role in current telephone regulations. But on the Internet, geography doesn't exist. The only address that matters is the Internet Protocol (IP) address that devices needs to go online using any broadband connection anywhere in the world. </li></ul><ul><li>&quot;On the Net, you are dialing a person, not a location,&quot; VoIP service Free World Dialup founder Jeff Pulver said. That creates a quandary for states trying to make even the most basic decisions about a VoIP service, for example, what constitutes a long-distance call. Under the current telephone rules, regulators could just track what telephone network switches the calls bounced between. But using VoIP, calls travel in anonymous data packets, leaving regulators in the dark about which of the trillions of bits on the Internet at any time are actually voice calls. </li></ul>
    29. 29. Regulatory Issues: Vonage Ruling, 10/07/03: 5 <ul><li>Voice over IP (VoIP) is a rapidly growing and, at present, largely unregulated part of the telecom services market. However, VoIP occupies a prominent place on the 2004 FCC agenda. After its start as a low-quality, niche technology, it appears that VoIP is becoming ready for prime time. While there are only about 100,000 VoIP subscribers on services such as Vonage and Free World Dialup, it has been estimated that between 1% and 5% of interstate voice traffic is carried as VoIP. Further, MCI announced at Supercomm 2003 that it would move 100% of its voice traffic to a core IP network by 2005. </li></ul><ul><li>AT&T also believes that it's time for a new rulebook for VoIP, a company representative said before Tuesday's ruling. Among the biggest users of Internet telephony in its network, the carrier is now asking the FCC to exempt these calls from its rules. &quot;We're making investments in VoIP technology to allow phone-to-phone communications,&quot; the representative said. &quot;Before we spend the money it takes to get the technology up and running, we want to understand what the rules are.&quot; </li></ul>
    30. 30. www.alcatel.com