Jonathan Christensen GM Audio Video A Brief History of VoIP

A long time ago…….. 1996-2001

The Pioneers Vocaltec’s Internet Phone Gateways: Clarent, NetSpeak, Nuera, Vocaltec, Sonus… Cisco The Carriers: DeltaThree, ITXC, Level3 New breed of internet Codecs - wideband The use cases gel: End users: PC-PC “Ham radio” scenarios Carriers: site to site “tandem” trunking Some “mainstream” apps emerge NetMeeting (last updated in 1999 and still in action) 2 Stage dialing: 1 800 CALL-ATT

Vocaltec’s Internet Phone

Gateways: Clarent, NetSpeak, Nuera, Vocaltec, Sonus… Cisco

The Carriers: DeltaThree, ITXC, Level3

New breed of internet Codecs - wideband

The use cases gel:

End users: PC-PC “Ham radio” scenarios

Carriers: site to site “tandem” trunking

Some “mainstream” apps emerge

NetMeeting (last updated in 1999 and still in action)

2 Stage dialing: 1 800 CALL-ATT

Tandem Switch Tandem Switch TDM Class 5 Switch Class 5 Switch

VoIP Death of Distance Class 5 Switch TDM-IP Gateway Class 5 Switch TDM-IP Gateway

Tandem Trunking Bandwidth efficiency (more compression, statistical multiplexing) LEC - Avoid the expensive long haul lines Incumbent LD providers could avoid termination fees at the local off-ramp because the trunk is IP.. Its an unregulated “information service”.. Arbitrage, arbitrage, arbitrage Oh yeah.. And inferior service.. Sometimes offered under “alternative” brands..

Bandwidth efficiency (more compression, statistical multiplexing)

LEC - Avoid the expensive long haul lines

Incumbent LD providers could avoid termination fees at the local off-ramp because the trunk is IP..

Its an unregulated “information service”..

Arbitrage, arbitrage, arbitrage

Oh yeah.. And inferior service..

Sometimes offered under “alternative” brands..

Moving on.. 2001 Pulver, Vonage, and Consumer VoIP

Consumer VoIP Pulver’s early inspiration Min-X, the IP voice minute exchange Free World Dialup (one port gateway) Komodo and the first ATA Turns any perfectly good phone into an inferior IP handset Cisco acquires Komodo and validates the market Vonage is born… Voice over Broadband begins

Pulver’s early inspiration

Min-X, the IP voice minute exchange

Free World Dialup (one port gateway)

Komodo and the first ATA

Turns any perfectly good phone into an inferior IP handset

Cisco acquires Komodo and validates the market

Vonage is born…

Voice over Broadband begins

VoBB Changes the Players / Power Structure…. Independent Vonage sets the pace early (with lots of cash) Long distance players enter local service markets… The MSOs respond -- with more Buzzwords and TLAs: “ Triple Play” “NGN” “IMS” and the dreaded “Quadruple Play”

Independent Vonage sets the pace early (with lots of cash)

Long distance players enter local service markets…

The MSOs respond -- with more Buzzwords and TLAs:

“ Triple Play” “NGN” “IMS” and the dreaded “Quadruple Play”

What Do Consumers Get?

Great Savings? Really? And New Features?

Another Foot in the Grave… Beginning of the end? Incumbents match prices and features on TDM Land line telephony is cheap.. Still... Losing to mobile.. Commoditization is complete VoIP “export” networks are the biggest innovation Send your ATA to India.. Location independent (death of distance – again) Smashing the geocentric numbering plan Further deteriorating the old voice business

Beginning of the end?

Incumbents match prices and features on TDM

Land line telephony is cheap.. Still... Losing to mobile..

Commoditization is complete

VoIP “export” networks are the biggest innovation

Send your ATA to India..

Location independent (death of distance – again)

Smashing the geocentric numbering plan

Further deteriorating the old voice business

The Summer Revolution - 2003

IM (therefore IP) IM VoIP Video Visual Sharing Rich Communications

The Summer of Skype The stage was set.. The solution was 99% complete Robust IP audio stack Multimedia PCs Broadband penetration P2P file sharing networks running at internet scale NAT traversal techniques IM networks.. Skype simply closed the loop.. One application with the right formula Users loved it.. Industry was confounded.. By fall VoN there were 500K downloads

The stage was set.. The solution was 99% complete

Robust IP audio stack

Multimedia PCs

Broadband penetration

P2P file sharing networks running at internet scale

NAT traversal techniques

IM networks..

Skype simply closed the loop..

One application with the right formula

Users loved it.. Industry was confounded..

By fall VoN there were 500K downloads

276 Million Users Can’t Be Wrong Global appeal / reach Reliable PSTN interconnect Multitude of device options (PSP, N800, Cordless..) Profitable .. Enter the era of rich [PC based] Internet communications Multi-modal communications (original SIP vision) Real time video, Data, Presence, Text, Wideband Audio Smart endpoints, open platform… Application innovation..

Global appeal / reach

Reliable PSTN interconnect

Multitude of device options (PSP, N800, Cordless..)

Profitable ..

Enter the era of rich [PC based] Internet communications

Multi-modal communications (original SIP vision)

Real time video, Data, Presence, Text, Wideband Audio

Smart endpoints, open platform…

Application innovation..

What’s Next?

Sorting the Mobile Mess Mobility is the last anchor to the old way Fastest growth telecom service today Spectrum scarcity makes it a perfect walled garden The good old days again Closed networks.. Device lock-in.. Phone numbers with geographic bias.. Contracts.. YUCK !! Finally.. The Internet goes mobile First successful auction - 22 MHz of “700 band” spectrum “Open Platform” conditions apply A new game begins..

Mobility is the last anchor to the old way

Fastest growth telecom service today

Spectrum scarcity makes it a perfect walled garden

The good old days again

Closed networks.. Device lock-in.. Phone numbers with geographic bias.. Contracts.. YUCK !!

Finally.. The Internet goes mobile

First successful auction - 22 MHz of “700 band” spectrum

“Open Platform” conditions apply

A new game begins..

The next 10 years The Era of Rich Mobile Internet Communications Multi-modal communications (original SIP vision) Real time HD video, Data, Presence, Text, Wideband Audio Smart endpoints, open platform… Application innovation.. Fixed / Mobile Convergence – for real… Mash ups of web based communications Freedom with mobility… Natural segmentation of competencies Network infrastructure (pipes) Application innovation (developers)

The Era of Rich Mobile Internet Communications

Multi-modal communications (original SIP vision)

Real time HD video, Data, Presence, Text, Wideband Audio

Smart endpoints, open platform… Application innovation..

Fixed / Mobile Convergence – for real…

Mash ups of web based communications

Freedom with mobility…

Natural segmentation of competencies

Network infrastructure (pipes)

Application innovation (developers)

Questions?