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Standards Presentation

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

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