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The Evolution of VoIP-A look into how VoIP has proliferated into the global dominant platform it is today

The Evolution of VoIP-A look into how VoIP has proliferated into the global dominant platform it is today



This paper doesn’t dispute the fact that customers will continue to benefit significantly from VoIP as ...

This paper doesn’t dispute the fact that customers will continue to benefit significantly from VoIP as
quality of service has improved while costs have continued to come down considerably rather our
objective is to focus more on the viability of providers that encompass this sector of the market. We
aim to first describe how VoIP has proliferated into the global dominant platform it is today, the
infrastructure and definition of VoIP, VoIP’s classification schemes, the growth of technologies
leveraging the VoIP platform while disrupting traditional carriers business models, covering the topic of
VoIP security, explaining the different regulatory frameworks around the globe and finally concluding
with an opinion on the competitive landscape.



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    The Evolution of VoIP-A look into how VoIP has proliferated into the global dominant platform it is today The Evolution of VoIP-A look into how VoIP has proliferated into the global dominant platform it is today Document Transcript

    • Page |1 The Evolution of VoIPA look into how VoIP has proliferated into the global dominant platform it is today Submitted by Bradley Susser April 27, 2012
    • Page |2Table of ContentsSummary…..…................................................................................................................................3-4Introduction………………………………………………………………………………………………………………………………..4-7VoIP definition and Architecture …..............................................................................................8-11VoIP Classification Scheme…......................................................................................................11-12Growth of Technologies & Companies Leveraging the VoIP Platform......................................12-21Security Issues & Countermeasures…………………………………………………………………………………………21-24Global Regulatory Frameworks...................................................................................................24-27Conclusion….................................................................................................................................28-30References…................................................................................................................................31-34
    • Page |3 Summary The advent of the Internet has allowed many new technologies to leverage this medium,drive innovation and create a substantial revenue base for many organizations around the world.Nowhere is this more evident than in the telecommunications arena, in particular the area of Voice OverInternet Protocol (VoIP) which has changed the entire landscape of the industry in accelerating themigration over the last several years to VoIP services and in contrast has diminished the need for circuitswitched telephony providers as quality of service has improved considerably. The UK regulator,OFCOM, even anticipates that all voice traffic will shift over to IP technology [OFCOM (no date)]. VoIPhas not only allowed for organizations to thrive but has reduced costs not only for its providers butcustomers as well. Although these attributes are indisputable increasing competition among providershas forced many organizations to provide a diversification in their offerings by leap frogging off of VoIPin order to stay ahead of their advisories and remain viable businesses. This leads us to two opposingopinions on the outlook for many of the organizations within this realm. For example, InfoneticsResearch in its February 2012 report stated that global sales of telecom VoIP and IP MultimediaSubsystem (IMS) equipment jumped 15.8% in 4Q11 over 3Q11, to $690 million [Infonetics Research(Feb. 2012)]. Just one thing to note is that Infonetics labels IMS and VoIP separately but perceives themas being similar enough to depict them together. Moving further ahead the research firm indicated thatfor the full year, Latin America was the big standout, with a 34% increase in carrier VoIP and IMSequipment sales. Now here is the caveat. Infonetics for the full year saw the overall carrier VoIP and IMSmarket ending down 2.1% in 2011 over 2010 to $2.6 billion. In fact in March of 2012 Standard & Poor’ssaid it anticipates expansion in the cable VoIP sector to hit a wall and see an extensive fall off in monthsto come [O’Neill (March 2012)]. We are more apt to agree with the former opinions that provide a morepositive outlook and as you will be able to assess these downward numbers depicted in the priorsentences are just temporary and will increase significantly as the second leg of this evolutionary newmedium continues to mature due to rapid technological advancements, innovation and the integration
    • Page |4of emerging technologies that will add additional value by complimenting the VoIP sector as a whole.This paper doesn’t dispute the fact that customers will continue to benefit significantly from VoIP asquality of service has improved while costs have continued to come down considerably rather ourobjective is to focus more on the viability of providers that encompass this sector of the market. Weaim to first describe how VoIP has proliferated into the global dominant platform it is today, theinfrastructure and definition of VoIP, VoIP’s classification schemes, the growth of technologiesleveraging the VoIP platform while disrupting traditional carriers business models, covering the topic ofVoIP security, explaining the different regulatory frameworks around the globe and finally concludingwith an opinion on the competitive landscape.Introduction The telecommunications industry worldwide has gone through a number of transformationsover the years primarily due to government and regulatory policies and initiatives. Due to theconvergence and advancements in Information and communications technology (ICT) most sovereignsaround the globe have come to the realization that government owned and monopolistic telco’s are farless efficient than their privately run organizational counterparts. We would be remiss if we did notexplain how this broad based school of thought came into being and furthermore helped in fueling thegrowth in VoIP. Let’s take for example the telecommunications landscape of the United States in itshistorical context. AT&T which in the early 1900’s had a monopoly on the United Statestelecommunications infrastructure placing local carriers in a no win situation by forcing them to concedeto every demand at their bequest otherwise AT&T would disallow access to low cost carriers tointerconnect to its vast network [Nuechterlein & Weiser (2005)]. This is a case whereby the governmenthad to step in and give the perceived effect that in order to increase competition it would break upAT&T geographically into the baby bells. The bell companies would control different regions of thecountry keeping AT&T as a natural monopoly. This forced the baby bells to each stay within their owngeographical boundaries and anyone choosing to place a long distance call had to still interconnect first
    • Page |5with AT&T who would then reap the rewards due to its scale of economy. In other words without clearindication of bribery it was understood that AT&T could protect its monopoly status if they in turn didfavors for the government such as passing the costs of rural customers that were significantly higheronto other businesses or urban areas and in turn matching their own interests with the political goals ofregulators. In the early 1970’s the FCC adopted rules allowing competition into the telecommunicationsequipment market which inevitably caused a domino effect. What we mean is that now local carrierswere able to dramatically increase call volume, reduce prices because AT&T rates were through the roofand effectively build a rival network while earning large profits even with a small share of the totalcustomer base. This lead to the growth of firms like MCI who provided business oriented long distanceservice through microwave technology and the growth of access services such as high speed linksbetween local and long distance networks. At first AT&T tried to thwart competitive efforts by refusingaccess to its long distance lines or keeping those lines continuously busy forcing the government to stepin and mandate non-discriminatory interconnections. Finally in 1996 congress abolished the naturalmonopoly of AT&T by disallowing exclusive franchises, ordered all telecommunication’s carriers tointerconnect with any requesting carriers and declared all local and long distance markets open forcompetition. Contemporary technological convergence became more prevalent at the start of the1980’s and has expanded at a rapid rate ever since. In the telecommunications industry the first signs ofconvergence appeared through the introduction of digital switching. In the mid-1980s analog telephonesystems were transformed into fully digital networks. Since the devices on each end of the data streamdo not care what channel links them together, companies were no longer technologically confined totheir own markets. Online computer services, voice telephony and broadcasting were no longer servicesoffered on varying platforms but rather all these different media had now converged together into oneoperating platform. It is here the FCC believed these new ICTs did not have monopolistic tendenciesand furthermore would fuel competition while keeping costs at bay for the average citizen. In other countries such as Colombia they too have adopted many policies that coincide with the
    • Page |6United States which is why in February of 2012 Colombia won the award as the government with themost innovative telecommunication policies in the world [Ministerio de Tecnologías de la Información ylas Comunicaciones (Feb. 2012). It won the "Government Leadership Award 2012" for the Live DigitalPlan, at the Global Telecommunications Conference in Barcelona. The award was won based on clearprinciples that encourage private investment and healthy competition over the past year. Colombiawent from 2.2 million Internet connections to about 5 million in the last year and a half andimplemented measures that have allowed through public-private actions the massification ofthe Internet in such a way that broadband connections grew by 130% and computers in Colombia todayhave the lowest prices in the region. Clearly this is just one case but it is representative of many nationsthroughout the world and further affirmation that privatization, liberalization and increasinginvestments allow societies to access cutting edge technologies, increase telecommunicationsinfrastructure to supply network access and enhance electrical infrastructure to make the ICTs functionefficiently. Through this empirical research it is no wonder Infonetics stated that for FY2011, LatinAmerica was the big standout, with a 34% increase in carrier VoIP and IMS equipment. Contemporary policies also raise doubts about the efficiency of state owned telecommunicationentities as many once believed this could stifle competition. This has proved not to be the case whichcan be seen in the late 2011 financials of three Indian state owned telecommunications companies[Economic Times (Aug. 2011)]. In a release in late August of 2011 State-owned telecom companies –BSNL, MTNL and ITI – together incurred losses worth Rs 4,893 crore in 2009-10. The release goes on tosay BSNL had submitted a proposal to the Department of Telecom (DoT) seeking financial help tooperate commercially unviable services. It must be also said that although many sovereigns have takenan open market approach that unfortunately is not true of Africa as VoIP is still in its infancy stages.Dries Plasman of Voxbone, a market leader in providing worldwide geographical, toll-free and iNumtelephone numbers, told TMCnet, “First of all, the deregulation of the telecoms environment has yet tohappen in most of the African countries [Schmelkin (April 2012)]. These battles have started, however
    • Page |7because the incumbent operators are very powerful and protective of their territory the process ofderegulation is very lengthy.” Plasman also goes on to say “A second limiting factor is the network,” headded. “Wired networks are not as capilar as in other parts of the world. This limits the use of fixed VoIPas a substitute for classical PSTN landlines. It must be noted that Africa’s GDP growth is expected to be5.3 percent in 2012 and 5.6 percent in 2013 [Chuhan-Pole (Feb. 2012)] but that is mainly becausecommodities make up most of the continents revenues and the commodity markets could contract ifEurope debts crisis and China’s slowdown in growth continues to persist. Never the less, in order todiversify the economy it’s essential for Africa to take contemporary telecommunication initiatives suchas the ones prescribed by Colombia and the U.S. to provide access to all its citizens which shouldincrease job growth, enhance competition, lower costs and decrease information poverty. FurthermoreAfrica’s leadership should learn from the United States mistakes of the past and start making an effortto deregulate its telecommunications industry immediately. The content that encompasses the introductory paragraph shows that there is still an ampleamount of market share for telco providers to exploit and that state owned entities are not one of thereasons that would cause the VoIP market to hit a wall as they are inept at keeping up with privatecarriers. This also provides additional proof and perhaps is a good explanation of why most sovereignsaround the world have opened up their markets to private competitors. However in the precedingchapters to follow we will provide additional regulatory information on numerous government policiessuch as regulatory environments, deregulatory environments and those that impede competition.Furthermore you will also be presented with data that depicts the effect carriers like Skype have had onmore traditional providers which have been on a downward trend since the early part of the decadebacking up S&P’s claims that this medium may have in fact hit a wall in particular for incumbents. Thequestion we address is why pure play VoIP providers and new entrants are thriving and turning thetraditional telecommunications industry on its head while incumbents are faltering?
    • Page |8VoIP definition and Architecture Before moving ahead we should begin by first defining what the term VoIP actually signifies.VoIP is technology that concurrently carries voice information in digital form using packet switching thatleverages and moves over a corporate network based on the Internet protocol or the public Internet. Inother words a VoIP phone call transfers data from one computer system to another and dismantles avoice message into data packets that may run along disparate routes before being put back together attheir terminating destination [Curt M. White (2011)]. A gateway which is a processor next to the callspoint of termination places the packets in the appropriate order via digitization, codec(compression/decompression) and encapsulation and guides them to the recipient’s telephone numberor the IP address of the receiving computer. The quality and clarity of VoIP has improved significantlydue to the expansion of network bandwidth, voice compression and packet reassembly algorithmsimplemented in CODECs (coder/decoder, which converts analog voice into digital data and back again,and may also compress and decompress the data for more efficient transmission), prioritization of voiceover data transmission, header compression, intelligent routing and balancing of various compressionand transmission parameters [Herman Labs (2009)]. Remember, the problem with incumbenttechnology is that it needs to be supported by a large amount of bandwidth for each call, and it can onlysupport certain types of calls [Nokia (Oct. 2003)]. Furthermore, the hardware needed to run circuit-switched networks is extremely costly because voice and data services have to be transmitted overdisparate wires and in turn need separate hardware to accommodate the two types of traffic henceVoIP is becoming the dominant platform in this space. Now that you know the definition of VoIP we will extrapolate with the categorization ofsignaling protocols that encompass the VoIP platform. First off we will discuss what are known asSession Control Protocols accountable for the formation, maintenance and tearing down of call sessions
    • Page |9[Antoniou (June 2010)] They are also responsible for the intervention of session parameters such ascodecs, tones, bandwidth capabilities, etc.. Two of the most well-known protocols used with VoIP arethe H.323 standard and the Session Initiation Protocol (SIP). There are advantages and disadvantagesamong both protocols but Cisco believes incorporating them both on a single gateway is essential andthey also state another integral part of dual-protocol deployment is the ability for H.323 gatekeepersand SIP proxies to interwork and share routing capabilities [Cisco (2002)]. In helping to compare the twotechnologies we have acquired what we deem to be an adequate representation of some differencesbetween these two protocols. First we will begin with H.323 which was first deployed by ITU-T in 1996.H.323 was created to provide robustness and optimal interoperability for a wide range of applicationsencompassing multimedia communication over IP networks, including audio, video, and dataconferencing [Packetizer (2012)]. H.323 is limited to multimedia conferencing, so the complexity of thesystem is constrained accordingly, it has defined a number of features to handle failure of intermediatenetwork entities, it encodes messages in a compact binary format that is suitable for narrowband andbroadband connections, it extends with non-standard features in such a way as to avoid conflictsbetween vendors, it interfaces between the endpoint and gatekeeper for address resolution and it hasvarious authentication and encryption mechanisms. SIP introduced by The Internet Engineering Task Force in 1998, on the other hand many believewill become eventually the primary VoIP standard [Curt M. White (2011)]. SIP is designed to create,modify and terminate a voice session between two or more entities without any devices in the networkgetting involved however in practice other devices will be incorporated if special requirements withregards to network traffic are a necessity or the call must go through the PSTN. On the other hand somesay SIP has a few interoperability problems as there are no strict guidelines as to what functionality anygiven device must support especially as SIP became more complex focusing on voice communicationand then expanding to include video, application sharing, instant messaging, presence, etc. [Packetizer(2012)]. Furthermore SIP has not defined procedures for handling device failure, messages are encoded
    • P a g e | 10in ASCII text format unlike H.323 but sometimes messages get so large it can cause delays and packetloss however efforts have been made to binary encode SIP to alleviate this problem. While SIP has noaddress resolution protocol, per se, a SIP user agent may route its INVITE message through a proxy orredirect server in order to resolve addresses. Finally SIP as well does deploy authentication andencryption schemes. Contrary to Packetizer, according to Nokia complete deployments of H.323requires a lot of overhead whereas SIP is a much more streamlined protocol, created precisely for IPtelephony [Nokia (Oct. 2003)]. Smaller and more efficient than H.323, SIP takes advantage of existingprotocols to handle certain parts of the process. For example, Media Gateway Control Protocol (MGCP)is used by SIP to establish a gateway connecting to the PSTN system. Simply put a gateway is a networkfeature that supports conversion between the audio signals transported on telephone circuits and datapackets transmitted on the Internet or over other packet networks. IP Telephony architecture knownas Soft Switch is based on SIP which enables carriers to provide IP to IP services, PSTN to PSTN servicesand IP to PSTN services which are services we describe in greater detail in the next paragraph. Furtheraffirmation of Nokia’s assessment is described from Infonetics Research in April 2011 whereby the firmstated in a release that adoption of SIP trunking services (private switchboard VoIP that facilitates theconnection of a private branch exchange (PBX) to the Internet) was the primary driver forenterprise Session Border Control (SBC) sales which is a device used by VoIP networks supporting voiceand video connectivity (inclusive is providing security, call processing & traffic managementcapabilities)[Helmes (March 2006)] from the enterprise IP network to Service Provider SIP trunks,growing 220% worldwide in 2010 [Infonetics (April. 2011)] and in its latest 2012 report the researchfirm indicated SIP trunking service revenue jumped 128% in 2011 from the previous year, as businessesadopt SIP trunking [Infonetics (April. 2012)] . Whether you consider H.323 as more advantageous or SIPas the optimal protocol perhaps it makes sense to make use of both as each has their own positive andnegative attributes. Now that we addressed Session Control Protocols we will briefly describe the Media Control
    • P a g e | 11Protocols. Media Control Protocols are accountable for the formation and the destruction of mediaconnections. They are used to open and close media pin-holes on VoIP gateways and to processmessages coming from those gateways. The Media Gateways are the VoIP elements that transmit mediabetween the IP and PSTN networks. They are controlled by an entity that is called Media GatewayController. The latter uses a Media Control Protocol to control Media flows on the Gateway. The twomain Media Control Protocols are MGCP and Megaco (H.248).VoIP Classification Scheme Traditionally VoIP has been classified based on IP to IP services, PSTN to PSTN services and IP toPSTN services [Nuechterlein & Weiser (2005)]. IP to IP services is what’s known as peer-to-peer voicetelephony as both ends of a call must run on top of an IP (Internet Protocol) broadband platform. This isessentially makes use of computer to computer type applications. This was first developed by Jeff Pulverwho offered his pulver.com instant messaging service that informed members when other subscriberswere online and at what IP address a member can be reached. Pulver provided no transmissionfunctionality so subscribers had to use their own broadband and this service could not call ordinarytelephone numbers on a PSTN nor were they provided with their own phone numbers. These peer topeer applications can only link to other subscribers who have downloaded the software which maymake use of a central server for voice communication or do not require a central server at all. Anotherexample of one of the early IP to IP services is the original non public switched telephone network(PSTN) interconnected, version of Skype. PSTN to PSTN services which is known as phone to phone service from a caller’s vantage point isjust like any other long distance call placed over the PSTN except when the originating local carrier ofthe call hands off the call to a long distance provider it converts the original signal into an IP packet thatgets passed along to its IP backbone and on the terminating end of the call the packets are convertedback to its traditional format used by circuit switched networks and then the call gets passed back to
    • P a g e | 12receivers local carrier. Incumbents such as AT&T are progressively utilizing IP technologies into theirexisting networks to minimize costs or enhance service/product offerings. In fact numerous wirelessproviders use an incumbents IP backbone for its backhaul link from cell towers to their switches. Finally there is IP to PSTN services which require a subscriber to obtain a broadband connectionin order to place VoIP calls over this connection except in this scenario callers receive their owntelephone numbers and can connect with anyone who is served by any circuit switched network. Someexamples of IP to PSTN services are many of the cable companies, SIP and H.323-based services, VonageHoldings, Microsoft’s Skype Out (users by credit to make calls to other networks) and Skype In (user’sreceive a phone number for off-net calls, voicemail, SMS and its Wi-Fi access product Skype Access), SIPand H.323-based services, such as Empathy, Linphone, Ekiga and the Google Talk service. Skype and its other formidable competitors are becoming so complex with their diversified VoIPmodels that perhaps categorizing these services is negligible and is perhaps one of the reasons whygovernments have found it difficult in regulating the industry or perhaps it is unnecessary to do so. Itmust be said though that the FCC does have some compliance standards that VoIP providers mustadhere to. This is particularly true of those organizations that started out as a VoIP entity butbroadened their business models into the area of regulated telephony unbeknownst to them creatingstate and federal licensing problems.Growth of Technologies & Companies Leveraging the VoIP Platform In order to stay competitive in the VoIP arena many organizations over the years have offeredan array of services bundled together to allow consumers to pay a single monthly fee as opposed toseparate fees for each service offering. For example cable companies have been combining cablebroadcasting, Internet and VoIP services at a single monthly fee while trying to attract additionalcustomers and in turn these customers would receive these services at significant cost savings asopposed to purchasing each service separately. You may recall, in our opening summary we said S&P
    • P a g e | 13stated that VoIP could soon hit a wall but what we did not extrapolate on was that this would solelyencompass cable operators. The rating agency’s release exclaims “cable operators, which for years havebeen piling up revenue from VoIP phone service while their telco competitors have watched theirbottom line from landlines erode, may finally be in line to share the pain as economic pressure, risingprices and market saturation finally may be prompting consumers to hang up their landlines with cable,too. The culprit may not be the VoIP service, but the high-cost of pay-TV and the rising bill that has eventhe more stalwart consumers flinching. According to S&P 80 percent of U.S. households have a pay-TVservice and shell out about $135 a month for it. Consumers may be looking to unbundle services to keeptheir entertainment intact. “Perhaps cable companies were becoming too complacent with theirbusiness models as the release further goes on to say “The likelihood that cable’s residential boom timehas come to an end is that consumers are looking more to smartphones and other VoIP options.” Incontrast many pure-play VoIP providers have not been sitting idle but have continued to enhanceinnovation, leverage growing technologies to converge with their existing VoIP infrastructures anddiversify their offerings helping to fuel subscriber growth while increasing both top and bottom linenumbers. Analogous to the former sentence is just like in the areas of project management and ITSecurity Risk Assessment a VoIP carrier must have an ongoing analytic iterative process that never ends.Furthermore a growing number of new organizations are entering the VoIP market whichcould also significantly adversely impact cable operator’s earnings. According to Insight ResearchCorporation “A new crop of hosted service providers will offer PBX-like voice services at lowerReoccurring costs and with minimal site equipment expense [Insight Research (March 2012)].” The chartdepicted below shows how Skype is having a significant effect on VoIP traffic and why it has beenadversely impacting traditional carriers. In other words this company has turned traditional carriers ontheir heads by changing the dynamics of the entire telecommunications industry. Furthermore it hasrevitalized the industry and indirectly attracted a new crop of organizations to enter into the VoIP arena.As you can see in 2009, 12% of all international voice traffic was on Skype. In the graph below, we can
    • P a g e | 14see that this growth rate remains steady near 15% annually. 27% of all the world’s voice traffic was viaVoIP. However, the populations of developing countries remain some of the least connected in terms ofglobal traffic and hence that’s where the growth potential is enormous for those who differentiatethemselves from the competition. Just one thing to note according to Skype Journal more than 41.5million people were running Skype on April 23, 2012, an all-time high [Skype Journal (April 2012)].Where Did the Growth Go?: The Skype Effect Figure 1. TeleGeography A Division of PriMetrica, Inc So what do these new diversified models that pure VoIP player carriers and new marketentrants seem to be exploiting in the VoIP arena? Well rather than the traditional platforms like VoIPover PSTN, cable or DSL the convergence of mobile, Wi-Fi (VoWi-FI or VoWLAN), satellite, Voice 2.0applications (includes cloud telephony), soft phones (software that enables a computer to perform as atelephone via VoIP usually comes with a headset or a hand-held device, and using the numbers on thekeyboard to dial), embedded VoIP in online games, incorporated with SIP and H.323 based services arejust a few of the emerging services that are being utilized. In addition many upstart companies and even
    • P a g e | 15incumbent VoIP players have been globally focusing on penetrating market share not just on individualconsumers but the small, midsize and large business segments of the industry. Also you do not need tobe a capital intensive company with enormous resources to start your own VoIP business due to the factthat competitors no longer need to own a network and bringing facilities-based providers into directcompetition with service-based competitors has allowed easier barrier to entry. IPsmarx Technologies isone of several firms with numerous accolades that help entrepreneurs start their own VoIP companiesby providing essential solutions such as soft switch solutions, a SIP based calling card platform and amulti-tenant IP-PBX platform with integrated billing to create viable businesses [IPsmarx (May 2011)].Take for example the hosted service provider 8X8 which trades on the NASDAQ. The company has beenfocusing primarily on small to medium sized businesses, distributed enterprise organizations andgovernment agencies by developing and marketing telecommunications services for Internet protocol,or IP, telephony and video applications as well as web-based conferencing, unified communicationsservices (which bridges the gap between VoIP and other computer related communicationtechnologies), managed hosting and cloud-based computing services which prior to the cloud manybusinesses took an on premise hardware approach [ONeill (Jan. 2012)]. Infonetics reported demand forcloud-based services helped push hosted PBX and UC service revenue up 33% and seats up 44% in 2011which is clearly evident when looking at 8X8 and although residential consumers revenues still surpassbusinesses, that trend may not last as the business segment is growing about twice as fast [Infonetics(April. 2012)]. As of December 31, 2011, the Company had more than 27,600 business customers. Inoffering further proof of the company’s success through innovation and diversification in January of thisyear 8X8 reported revenue of $23.3 million in the third quarter of fiscal year 2012, a 31 percent increasefrom a year ago. It also topped analyst earnings estimates with a 73 percent Year over year increase to$2.6 million, or 4 cents per share. So let’s talk about these technologies that are allowing VoIP providers to differentiatethemselves from traditional carriers and in turn helping to significantly improve their balance sheets.
    • P a g e | 16We will begin with mobile VoIP which is a communication technology structure that the generalpublic uses to transmit and receive phone calls with the Internet connection on a mobile device. Thisvaries from standard cellular service as the call is not being placed through the voice network. Instead,the call is being transmitted over the network of a third party mobile VoIP service provider. Since thetransmission of the call is placed over the Internet as opposed to making use of an ordinary cellular plancosts are reduced significantly and in addition the user is not charged long distance carrier fees. Twomain methods of delivering VoIP to mobile devices is over-the-top (OTT), in which the voice calls travelover carrier-provided data networks and the other is via LTE (long-term evolution), a technology thatlets carriers themselves deliver voice calls over IP links to the handset. Prominent OTT providers includeSkype, fring, Line2, Nimbuzz, Rebtel, Truphone, Viber, Vopium and others [Infonetics (Oct. 2011)].Verizon Wireless will introduce native mobile VoIP over LTE in 2012. In February of 2011 In-Statforecasted that the transition of VOIP from fixed-line phones to more mobile phones will encouragespending in the space to rise to $6 billion by 2015 [Maisto (Feb. 2011)]. One of the main reasons for theanticipated numbers is that mobile VoIP is becoming more integrated with mobile applications and theconvergence of social networking apps. In-Stat stated Europe, the Middle East and Africa will account forthe largest portion of mobile VOIP revenues in 2014 at 39 percent, followed by Asia/Pacific at 32percent, and North America accounting for 21 percent. TechNavios reported in March of this yearMobile VoIP by 2014 could reach $5.3 billion in Europe, the Middle East and Africa and because carriersin those regions have high rates for mobile phone usage only a small portion of international voicetraffic originates via cell phones. However as the VoIP infrastructure continues to be built out, alongwith the integration and growing popularity of mobile apps the opportunities for market penetration inthese regions are tremendous [Technavio (March 2012)]. Furthermore mobile/smartphone phone salesand usage have soared over the last several years due to its multitude of features and ubiquitous naturetherefore as these devices converge with VoIP the revenue streams that can be generated could beastronomical to say the least.
    • P a g e | 17 Now you may ask yourself why someone would make use of the next medium we are about todiscuss, if most people already own their own mobile phones. Well, organizations are increasinglymerging employee cell phones with corporate telephony which leads us to Wi-Fi VoIP (VoWi-FI orVoWLAN). Wi-Fi VoIP makes use of the IEEE 802.11 set of standards connects calls from the voice-enabled wireless device to a WLAN access point via discrete data packets rather than an analog voicestream and then to a VoIP gateway or IP PBX [TechTarget (Aug. 2005)]. The call is transmitted to itsintended destination within the private network or out onto the Internet or PSTN. If an organization hasnumerous staff members with voice-enabled wireless devices cost can be reduced considerably bypermitting its users’ to generate calls inexpensively over an organizations VoIP Wi-Fi network andorganizational leaders are capable of having a more centralized command to control and monitor itsemployees data. These phones would also work of course in Wi-Fi hot spots. The next medium that is primarily used by people in remote regions of the world such as theMilitary, television reporter’s or private maritime operators and can be advantageous in particular todeveloping countries is Satellite VoIP which many also predict will one day provide interoperabilityamong satellite and mobile devices but for now if you have no other option it may be a viable solution.There are still some technical issues with regards to this technology especially due to the amount oftime the data transmits to the satellite and back to earth causing poor quality of service such as delaysknown as latency brought about by slow network links, drop calls (packet loss which occurs when thereis a large amount of traffic on the network) and sometimes degradation of voice quality caused bypacket loss or jitter (irregular packet flow such as packet delays arriving at the receivers location) [Oishi(2005)]. However firms like Cisco are making strides in this area and once portable devices becomeoptimally efficient this market could surpass all other devices that leverage the VoIP platform. Thesesatellite issues have been witnessed quite often when a news correspondent is located in a remoteregion of the world perhaps reporting in more recent times from a war zone such as Iraq orAfghanistan. A news anchor will often times communicate with the reporter who is only capable of
    • P a g e | 18conducting an interview via satellite phone due to their locality as there is no other efficient modes ofcommunication other than making use of satellite technology. In other words the area the newscorrespondents are reporting from lack any other type of appropriate telecommunication’sinfrastructure. The reporter usually has one option which is to talk via a satellite device where it isclearly evident from the vantage point of the television viewer, as he/she watches the anchor ontelevision ask the reporter a particular question that it takes the reporter around a quarter of asecond or more to respond to the anchor. Often when calls are connected via VoIP Satellite they havepackets per second constraints therefore Cisco’s IP multiplexing schemes combines multiple VoIPpackets from a single stream or multiple streams into a large packet, and then sends this large packetover the packets per second (pps)-constrained link to alleviate some of the problems talked about in theprior sentences [Cisco (2012)]. A demultiplexing process is then executed by another instance of thesame product on the other end of the pps-constrained line. This in turn increases overall throughputover the constrained link. Companies in this marketplace include Net2Phone and Vonage who havepartnered with large satellite companies such as the likes of Hughes Electronics and others. CurrentlyVoiP in remote areas of the United States make use of geostationary satellites that have sufficientbandwidth avoiding the problems described above. For example VSAT Systems out of Ohio offerssatellite VoIP service via a geo-stationary satellite for people who live in rural areas (VSAT Systems (NoDate). The customer’s computer is connected to your network, which in turn is connected to theInternet by VSAT Systems. The subscriber’s computer sends a request for a transfer of data - bothtransmit and receive. That request is transmitted from the end user computer, through their homenetwork, to the indoor satellite modem which has a port for the your indoor phone or the user canmake use of a softphone which modulates the signal and passes it to the VSAT dish stationed rightoutside ones residence. The VSAT dish converts this signal to an RF signal and sends it to a satellitelocated in the geostationary orbit (A circular orbit positioned approximately 22k miles above Earthsequator with the exact point in time and direction as the rotation of the Earth) at the speed of light. The
    • P a g e | 19satellite via low Earth orbit (LEO) satellites in the geo-stationary orbit retrieves this signal and transmitsit to one of the VSAT Systems teleports in Akron, Ohio. This illustrates the fact that although the packetsof information travel tremendous distances via the space segment, the packets hop fewer networks dueto the large reduction in the number of inter domain and intra domain routers giving an opportunity tominimize latency. The request then goes to VSAT Systems’ network operations center, which acquiresthe requested phone number from the web server, across the U.S. Internet backbone which is thendelivered to the receiving party. This is a simplified description of VoIP satellite however there arenumerous models being deployed through portable and stationary devices commercially and to theindividual consumers but they go beyond the scope of what we are trying to address in this paper. Ourpurpose was just to give you a taste of how satellite VoIP is evolving and its ability to provide VoIPcarriers with an additional revenue stream. Next we briefly discuss voice 2.0 applications. Web 2.0 applications by themselves which reallywere the foundation of voice 2.0 apps are second generation web tools as opposed to static web pagesthat allow for organizations and individuals to increase internet functionality through collaboration andinformation sharing such as making use of social networks, wikis, blogs, RSS, software mash-ups(software services allowing for people to mix and match content or software elements to formulatesomething new) and cloud computing. In the context of VoIP it is trends, technologies and applicationsused to bring IP telephony to the Web to create a new class of voice-enabled applications. In otherwords increasing cutting edge mash-ups integrated with this platform yield significant benefits both forindividuals and organizations alike. In the case of enterprises VoIP calling features are Web and serverbased applications frequently used in call centers for XML call control functions, such as call hold, calltransfer, conferencing and more [Lauricella, Michael (March 2008)] . Take for example firms that makeuse of customer relationship management applications for sales and marketing to track theircommunications with their clients as it makes logical sense to incorporate voice into the equationthrough integrated telephony features. Broadsofts BroadWorks VoIP platform used by many carriers in
    • P a g e | 20particular with CRMs offers such features as screen pops on inbound and outbound calls whereby thecustomer’s phone number is recognized through caller ID and the customer’s contact file opens on theoperator’s computer screen. CRM users can use click-to-dial calling from within CRM contacts for moreefficient dialing; firms can operate detailed reports on call usage by employees and track whichcustomers are calling in most commonly; all information is auto-logged with the associated contact,including notes taken by the user; and a call control function answers calls, places callers on hold ortransfers a caller to an administrator from within the CRM application. This is just one of many modelsthat can be used in voice 2.0 applications to increase an organizations return on investment (ROI).Furthermore from an individual’s perspective these applications allow individuals to send voice, data,video and instant messages via IP due to their ubiquitous nature. Also users will have a great deal moreof control over whom they communicate with, how and when as opposed to a central authority.Companies such as Skype and Google Talk are Voice 2.0 applications with proprietary protocols andExtensible Messaging and Presence Protocol (XMPP). Finally cloud computing has become an enormous asset to many organizations and therefore itit’s not surprising that it has now being utilized by VoIP carriers worldwide and is a crucial component tothose businesses as it has helped to garner considerable amounts of capital. Cloud offerings in the VoIParena also allow VoIP players to minimize costs by not owning and operating their own infrastructurewhile allowing them to pay more attention to innovation and maximizing one’s own revenues.Organizations in other industries also utilize cloud services to save money by not having to create theirinternal telecommunication networks that would require expensive adapters, server hardware, softwareand place additional stress on their own systems. From an individual standpoint people can use thecloud to place calls from their web browsers saving costs on added peripherals. In a press release issuedby Voxbone, a private global VoIP network provider founded in 2005 with offices in Brussels, Los AngelesMumbai and Singapore, on January 25, 2012 its CEO Rod Ullens stated “Were seeing indications ofaccelerated adoption of cloud communications services in a number of areas that lead us to project
    • P a g e | 21major demand in wholesale VoIP services. As the technological bridge between cloud communicationsnetworks and traditional PSTN and mobile networks, Voxbone should have a great 2012 [Voxbone (Jan.2012)]." Just to give you an indication of cloud computing in general Gartner Research stated WorldwideSaaS revenue driven primarily from cloud growth will jump 17.9 percent in 2012 to $14.4 billion, up from$12.3 billion in 2011, according to the analyst firm. The ramp up will continue through 2015, when SaaS-based revenue will reach $22.1 billion [McCarthy (March 2012)]. Now imagine what percentage of thosenumbers will fuel VoIP as providers such as Voxbone continue to offer services in the cloud. Thecompany overall saw its full year top line 2011 numbers grow 19 percent, while minutes of use on itsglobal network increased by 33 percent to 2.8 billion. It’s diversified VoIP offerings, innovation andmulti-cultural employee base has allowed Voxbone to penetrate market share from a multitude ofcountries around the globe. Currently the organization services 51 countries and plans to further exploitits market by adding an additional five to seven countries in Asia and South America to its network. Thisrelatively small company is also an excellent example of how the telecommunications landscape ischanging to make barriers of entry a lot easier for new participants to enter the VoIP realm whilenegatively impacting more traditional carriers.Security Issues & Countermeasures As technology industries and even organizations continue to proliferate so too does the inherentrisks associated with IT security. These are issues that need to be addressed on an ongoing basis inparticular in the area of VoIP. One could not dispute the fact that wirelines are susceptible to attacks butwhen you are linked to the data network and share a multitude of the same software/hardwareelements as well as infuse wireless (radio wave) technologies the number of vulnerabilities starts toincrease considerably therefore before implementing a VoIP network one should mitigate these risks byidentifying the various threats and vulnerabilities and further deploy the appropriate countermeasures.Attacks on VoIP systems such as Dеnіаl of Sеrvіcе (DoS), eаvеsdroppіng, pаckеt spoofіng, mаsquеrаdіng,
    • P a g e | 22VoIP spаm аnd phіshіng, buffer overflow attacks and toll frаud just to name a few are quite well knownas these exploits are propagated in similar fashion throughout the entire ICT spectrum. The purpose ofthis section is not to define each one of these exploits as many in the ICT community already are quitefamiliar with these threats but rather create awareness and offer information on how tocountermeasure these attacks which can adversely affect VoIP providers and customers alike. The thingthat one must be made aware of is that VoIP does secure its networks by making use of a securityprotocol suite known as IPsec (IP Security) which includes encryption, authentication, integrityvalidation and anti-replay to provide secure access to corporate private networks however IPsec and thecurrent range of corporate network edge Network Address and Port Translators (NAPTs) are notcompatible with the Next Gen services provided by VoIP architectures [Newport Networks (2006)].Having said that, although it is impossible to completely prevent an attack from happening it is essentialto initiate the appropriate steps to mitigate any potential risks and deploy mechanisms that are lackingsuch as that in IPsec’s protocol suite. We talked briefly in our VoIP definition and Architecture sectionthat H.323 and SIP protocols do offer security measures but to expand upon them further H.323 rеlіеson thе H.235 stаndаrd that аddrеssеs sеcurіty іssuеs іncludіng аuthеntіcаtіon, іntеgrіty, prіvаcy, аndnon-rеpudіаtіon as well as a sеcurе sockеt lаyеr (SSL) for trаnsport-lаyеr sеcurіty whereby SIP usеs еnd-to-еnd аnd hop-by-hop security mechanisms [B, Goode (Sept. 2002)]. Here are some additionalmeasures that should be taken to safeguard your VoIP network. First off, Cisco suggest isolate VLANs(which are an effective closed circle of computers that disallow any other computer access to itsfacilities) for voice and data which helps prioritize voice over data and also keeps traffic on the voicenetwork hidden from those linked to the data network; use monitoring tools and intrusion detectionsystems to identify break in attempts through traffic and log analysis [VoIP Lowdown (Dec. 2006)]; GaryMiliefsky, founder and CTO of NetClarity, suggests locking down IP and MAC addresses that permitaccess to the administrative interfaces of VoIP systems, and putting up another firewall in front of theSIP gateway; use multiple layers of encryption for call signaling and data packets that are sent out. The
    • P a g e | 23Secure Real Time Protocol (SRTP) which encrypts communication between endpoints and TransportLevel Security (TLS) which encrypts the whole call process are two encryption mechanisms that manyfind useful; set up multiple nodes, gateways, servers, power sources, call routers and form an alliancewith more than one provider to deal with potential network failures; formulate isolated firewalls so thattraffic crossing VLAN boundaries is restricted only to applicable protocols; update patches on a regularbasis; keep your IP PBXs in a domain separate from its other servers and restrict access; softphonеsare extremely vulnerable as they have full аccеss to system resources and vital system information sohackers can take аdvаntаgе of the prіvіlеgеs of the user therefore minimize the use of softphones;perform security audits on a cyclical basis; allow only devices and users who are authenticated andprivileged to acquire access to your network by limiting access to the Ethernet port; use IP phonevendors that offer digital certificate services to authenticate devices; protect gateways and the LANsbehind them with a blend of an SPI firewall, application layer gateways (ALG), network addresstranslation (NAT) tools and SIP support for VoIP soft clients; manage server traffic separately from VoIPsignaling and call traffic; sort SIP traffic by looking for abnormal packets and traffic patterns that appearirregular; the application layer is the easiest to infiltrate so analyze call setup requests at the applicationlayer and issue necessary security policies so that only those call setup requests that conform to themare accepted; Isolate voice traffic by blocking PC port access to the voice VLAN; use proxy servers toprocess data that comes in and goes out. Authentication and integrity are ensured when signalingmessages travel between user agents and SIP proxies by integrating SSL tunnels with SIP proxies; runonly applications that are necessary to provide and maintain VoIP services; configure applicationsagainst misuse by forming a list of granted caller destinations; affix endpoint security layers o keep outdevices that are not authorized on your LAN or WLAN; administrators should set up rigorous entrycriteria to inhibit access to devices that potentially pose as a danger; refrain from remote managementand audits but when necessary use Secure Shell (SSH) or IPsec (IP Security) for the purpose; and useIPsec tunneling rather than IPsec transport as they differ in encryption modes that support secure
    • P a g e | 24exchange of packets at the IP layer. The use of IPsec transport encrypts only the data while hiding thesource and destination IP addresses. This inhibits administrators from knowing who initiated the callwhen they examine traffic patterns. In affect by performing all the security countermeasuresincorporated in the prior sentences you will optimize your network making it more robust whileminimizing the potential of any attack to propagate. Remember attacks can cost an organization asignificant amount of money particularly do to downtime, it can ruin ones reputation making a viableorganization eventually insolvent and in addition there could be severe legal repercussions so it isessential to align best practices in the area of IT security with a VoIP platform.Global Regulatory Frameworks In this section we look at where VoIP is gaining ground and the increase in governments aroundthe world’s willingness to open its markets up to VoIP providers however we will not go into completedetails of what comprises of each countries regulatory framework but rather just provide a briefoverview of information on which regions and countries allow, tolerate or ban VoIP. In 2004, VoIP waslegalized in 46 countries mainly in Europe, North America and Asia. VoIP was also broadly permitted inanother 57 countries where there was no clear regulatory framework or licensing for VoIP [Biggs (Nov.2009)]. Among these two categories just over half of all countries permitted VoIP in 2004 and towardsthe second half of 2009, the proportion of countries where VoIP was allowed rose to two thirds with 92countries having legalized VoIP and 39 countries tolerating it. Meanwhile, the number of countrieswhere VoIP was banned shrank from 80 in 2004 to 49 in 2009, or about a quarter of all countries forwhich data exist. In our introductory paragraph we described Colombia as winning the award for themost innovative telecommunication policies around the world whereby the country went from 2.2million Internet connections to about 5 million in the last year and a half. Well it just so happens that thefastest growing regions for international VoIP traffic presented in an ITU 2009 white paper by economistPhillippa Biggs was Central America and South America. While the world has focused on China, Brazil
    • P a g e | 25and India on their improving economies and growing infrastructure they have failed to look at the regionand culture that could outstrip them all, that being Latin America and the entire Spanish speakingpopulation. One thing many people forget is that the Spanish language is second to one of the mostwidely spoken languages in the world so it is no surprise that VoIP traffic in Central America and SouthAmerica are surpassing other regions of the globe. Below is a chart provided by Telegeography onInternational VoIP traffic and as you will see Central America and South America have the largest trafficincrease out of all the regions that the chart comprises of. Although predated as the data reflectsthe years between 2005 and 2007 it does not deviate that considerably from today’s regional trends.Figure 2: Inbound International VoIP Traffic, Selected Regions, 2005-2007 Source: TeleGeography Inc. (2008). Many sovereigns differ in their definitions of VoIP which is one of the factors that determineswhat type of policies and regulations they choose to implement. We now take a closer look at some ofthe regions around the world and how VoIP is regulated. In Africa as of 2006, some 30 out of 42 African
    • P a g e | 26countries forbade the widespread use of VoIP by regulation or by law. By mid-2009, VoIP had beenlegalized in 13 Sub-Saharan African countries with four additional countries tolerating VoIP and 24outright banning it. The number of African countries where VoIP could be regarded as open to privateoperators had nearly doubled, rising to about 20 (including North African countries) but there is stillmuch work to be done in deregulating and providing an efficient VoIP infrastructure. There is howeveran unlicensed grey market for VoIP but many operators are not yet passing on the full cost savings fromVoIP to their subscribers and many of these grey market participants have had some African countriesfilter their services, confiscate their equipment and in some cases jail the owners of these services. AfterAfrica, Arab nations came in second as being narrow minded and the least liberalized when it comes toVoIP. By mid-2009 VoIP had been legalized in Algeria, Bahrain, Egypt, Palestine and Jordan with Qatar,Lebanon, Mauritania and Saudi Arabia just tolerating this platform. In contrast 12 countries were stillnot fully open to the use of VoIP with nine of them banning it completely. This data in total covered 22Arab economies. The Asia Pacific region is probably one of the most diversified parts of the world whenit comes to VoIP regulation especially as it comprises of a vast mixture of developed countries and thosethat are underdeveloped. Inclusive is the benefits of the digital economy not being justly shared, givingrise to a digital divide among this region of the world. By mid-2009, two-thirds of Asia Pacificgovernments allowed or tolerated VoIP. Eighteen countries had legalized the use of VoIP, with eighttolerating its use outside of their regulatory frameworks. In contrast 9 sovereigns preserved outrightbans on VoIP with another 4 markets remaining closed to the use of VoIP (China, Myanmar, Nepal andTonga). This data contains 39 countries that encompass the Asia Pacific region. In the Americas regionby 2009 VoIP had been legalized in many Latin American countries where in total three quarters of the35 economies that were incorporated in this data legalized or tolerated the platform. Licensing wasrequired for operators offering VoIP in Colombia, the Dominican Republic, Ecuador, Mexico, Peru andVenezuela, although those licensing restrictions were not enforced in many countries. VoIP forconsumer use remained officially illegal in Antigua and Barbuda, Costa Rica, Cuba, Paraguay, Guyana and
    • P a g e | 27Nicaragua but as we have described numerous times above this region of the world has experienced thelargest traffic increase out of all the regions and we believe there is considerable room for additionalgrowth. In the Caribbean many incumbents first resisted and fought their governments but eventuallymarket liberalization, the increase in mobile services and the market entry of competitors withsignificant capital and aggressive roll-out plans have changed the telecommunications landscape in thisregion allowing for easier barriers to entry. The last regions we will be discussing are Europe andCommonwealth of Independent States (CIS) which are all the former republics of Russia except theBaltic States. Most European countries have always accepted and liberalized VoIP although they dodiffer somewhat in their definitions and regulatory treatments. Only in Belarus does VoIP continue toremain opposed to in country traffic. All in all countries worldwide are beginning to take a more propositive stance towards VoIP as noted in the empirical data above therefore as market liberalizationcontinues on its path towards growth many VoIP providers will have an even greater chance to exploitthis arena with the growing ability to penetrate an increasing amount of market share. Below weprovide an additional Graph from ITU News that was distributed in September 2009 on worldwideregulation of VoIP from the periods 2004 to 2009Figure 3 — Worldwide regulation of VoIP (2004–2009)Note — “Closed” means countries where wholesale VoIP is permitted, but retail VoIP isbanned, as well as those countries where only the incumbent is licensed to provide VoIP.
    • P a g e | 28Source: IDATE From ITU News (September 2009)Conclusion The primary objective of this paper was to demonstrate how the entire competitive landscapeof the telecommunications industry has been turned upside down through the advent of VoIP and toprovide a brief description of its architecture. We believe that eventually there will be no need forcircuit-switched telephone networks and that VoIP will be the dominant platform just making use of IPto IP telephony. This is becoming more evident due to the growing number of sovereigns increasingwillingness to embrace VoIP as they are beginning to foresee the benefits this platform will yield inimproving their economies through increasing competition by allowing for new entrants easier barriersto entry particularly due to hosted VoIP services, improved innovation, greater efficiency and significantcost savings for carriers, firms in other areas of industry and consumers alike. As noted abovetraditional carriers are seeing a number of new VoIP providers eating into their profit margins becausethey have unified their communication technologies by incorporating and integrating voice 2.0applications, mobile technology, satellite technology and leveraging cloud computing whether it be forenterprise based customers or individual consumers to increasingly grow both top and bottom linenumbers. In contrast many of the more traditional carriers including the cable companies haveremained too complacent with their current business models over the last decade and not beingproactive enough in areas of innovation and diversification allowing VoIP pure players and new entrantsto erode many incumbents market shares while adversely affecting their bottom lines. It must be saidthat incumbents over the last couple of years have finally come to grips with the fact that their VoIPcounterparts are passing them by therefore they have been in more recent times taking the appropriateinitiatives to make use of their resources that enable them to acquire many VoIP technologies andorganizations. Furthermore we see at least half of the world’s population currently live in urban areas
    • P a g e | 29and that number should increase substantially in the years to come. Therefore VoIP providers canexploit emerging market economies as more countries continue to liberalize VoIP and focus onminimizing information poverty by putting in place policies and regulations that allow theunderprivileged and those in rural areas to access communication technologies (ICTs) such as affordableaccess to core information resources, continue to develop telecommunications infrastructure to supplynetwork access, optimize electrical infrastructure to make the ICTs function efficiently and maintain askilled workforce so that ICT infrastructure will keep all the technology working without any disruptions.In offering additional proof on the positive impact emerging economies can have on VoIP carriers, IHSiSupplis for example reported that in April of this year the developing regions of the world will be thebiggest source for new broadband activity in 2012 [Ratliff (April 2012)]. The release also goes on to sayBroadband telecommunication services in particular will increase most rapidly this year in the MEAregion, where subscribers are projected to grow by as much as 38 percent. Asia and Latin America willalso be strong areas with double-digit growth in 2012, compared to the single-digit expansion ratesforecast for the relatively saturated broadband markets of Europe and especially North America.Although some of the statistical data varies as to the MEA region and Latin America in their growthprospects they are minimal and one should just focus on the fact that both regions of the world willoffer vast opportunities for VoIP to continue to blossom in the many years to come. This allbeing said VoIP providers and new entrants must not fall into the trap of their predecessors bybecoming too complacent and egocentric but rather being proactive in continuing to always innovateand diversify their offerings on an ongoing basis as well as making sure that their networks remainrobust and secure by implementing best practices. Inclusive is providing the ability for consumers tooaccess emergency services and keeping abreast or up to date with the laws and regulations as theydiffer around the globe. For example the FCC has taken steps to require that providers of VoIP servicesthat use the PSTN including wireless networks, to originate and terminate calls meet enhanced 911obligations and are required to report network outages, so the commission can monitor and maintain a
    • P a g e | 30resilient service [Kerr (Feb. 2012). They have also required carriers to safeguard customer’s personalinformation or there can be severe legal repercussions. Some of these measures seem fair as they willincrease consumer confidence but the FCC and other regulators around the globe must take due care tonot implement to many regulatory obligations as it can stifle growth in an industry that has thrivedprimarily because there has not been excessive regulation in this area. Moving on, If a proactive modelis applied along with some of the aforementioned advantages talked about above in particularincreasing penetration into emerging markets as they continue to mature than certain VoIPorganizations will be well rewarded. Remember as markets mature they eventually reach a certainplateau only to make way for new innovations that will revitalize and capitalize an array of industriesaround the world. VoIP is doing just that!
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    • P a g e | 33Newport networks (2006). Title: “IPSEC IN VOIP NETWORKS”http://kambing.ui.ac.id/onnopurbo/library/library-ref-eng/ref-eng-3/physical/voip/91-IPSec-and-VoIP.pdfNokia (October 2003). Title: “Sip for Voip” published by Nokia.http://www.nokia.com/NOKIA_COM_1/About_Nokia/Press/White_Papers/pdf_files/whitepaper_sip_for_voip.pdfNuechterlein, Jonathan & Philip J Weiser (2005). Title: “Digital Crossroads” Americantelecommunications Policy in the Internet Age published by The MIT Press. ISBN 0-262-14091-8OFCOM (No Date). Title: “Regulation of VoIP Services” published by OFCOM. http://www.ofcom.org.uk/consult/condocs/voipregulation/voipregulation.pdfOishi, Tokuo (2005). Title: “VOIP AND SATELLITE SYSTEMS” published by NSG Datacom.http://www.nsgdata.com/solutions/application_briefs/NSGData_VoIP%20and%20Satellite_R1_052705.pdfO’Neill, Jim (January 19, 2012). Title: “8x8 tops earnings estimates, sees revenue grow 31%” publishedby Fierce Enterprise Communications. http://www.fierceenterprisecommunications.com/story/8x8-tops-earnings-estimates-sees-revenue-grow-31/2012-01-19O’Neill, Jim (March 28, 2012). Title: “High-growth segments kicking into gear in 2012 in carrier VoIP andIMS equipment market”. Published by Fierce Enterprise Communications.http://www.fierceenterprisecommunications.com/story/sp-warns-cable-voip-revenue-could-follow-telco-landline-biz/2012-03-28Packetizer (2012). Title: “ h.323 vs Sip” published by Packetizerhttp://www.packetizer.com/ipmc/h323_vs_sip/Ratcliff, Lee (April 16,2012). Title: “World’s Developing Regions to Provide Strongest Broadband Growth”published by isuppli Research http://www.isuppli.com/Home-and-Consumer-Electronics/MarketWatch/Pages/World%E2%80%99s-Developing-Regions-to-Provide-Strongest-Broadband-Growth.aspxSchmelkin , Carrie (April 5, 2012). Title: “With VoIP Adoption Lagging in Africa, PBX Provider Sonetel Setsout to Help” published by TMCnet. http://pbx.tmcnet.com/articles/284140-with-voip-adoption-lagging-africa-pbx-provider-sonetel.htmSkype Journal (April, 4, 2012). Title: Skype Topped 41.5 Million Concurrent Users Online Today”published by Skype Journal. http://skypejournal.com/blog/2012/04/23/skype-topped-41-5-million-concurrent-users-online-today-chart/Sutherland, Ed (March 28, 2005). Title: ”Enterprise VoIP Adoption? Gradual but Rapid, Say Experts”published by WI-FI PLANET. http://www.wi-fiplanet.com/voip/article.php/3493136.
    • P a g e | 34Technavio (March 7, 2012). Title: “Report: The Mobile VoIP Market in the EMEA Region to Reach US$5.3Billion By 2014” published by VoIP Monitor.http://www.voipmonitor.net/2012/03/07/Report+The+Mobile+VoIP+Market+In+The+EMEA+Region+To+Reach+US53+Billion+By+2014.aspxTechTarget (No Date). Title: “SIP trunking (Session Initiation Protocol trunking)”http://searchunifiedcommunications.techtarget.com/definition/SIP-trunkingTechtarget (August 2005). Title: “VoWLAN (Voice over WLAN)” published by TechTargethttp://searchmobilecomputing.techtarget.com/definition/VoWLANTeleography (2012). Graph: “Where Did the Growth Go?: The Skype Effect” published by TeleGeographyA Division of PriMetrica, Inc. http://www.telegeography.com/research-services/telegeography-report-database/index.htmlVoIP Lowdown (December 1, 2006). Title: “25 Ways to Secure your VoIP Network” published by m-indyahttp://www.m-indya.com/shownews.php?newsid=2576Voxbone (January 25, 2012). Title: “Voxbone Sees Continued VoIP Growth After Strong 2011”publishedby Voxbone http://www.voxbone.com/pressRelease.jsf?id=313VSAT Systems (No Date). Title: “How broadband satellite Internet works” published by VSAT Systemshttp://www.vsat-systems.com/satellite-internet/how-it-works.htmlWhite, Curt M. (2011). Title: “Data communications and computer networks” 6E pp 333-336