1 voip peering and federations - the new paradigm session 2: innovation dynamics in the...
TRANSCRIPT
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VoIP Peering and Federations - the New Paradigm
Session 2: Innovation Dynamics in the Telecommunication/ICT Sector
Eli KatzFounder & CEO, XConnect
Co-Founder and Chairman, Internet Telephony Service Provider Association (ITSPA)
ITU : Future of Voice; Jan 2007
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Consumer VoBB Transition Underway• IP Communications Service Provider
• MSOs (UPC-Liberty, CableVision)• Telcos (AT&T, Sprint, BT, FT)• ISPs (Earthlink); MNOs (T-Mobile)• New Entrants (Vonage, SunRocket)• PC (Skype, MSN, Yahoo)
• Q4 2006• 30+ million 1st/2nd line users• 100+ million PC-based IM users, 15-
20% using VoIP• Over 900 VSPs in 40+ countries• <1% - 10% market penetration
• 2010• 200 million line replacement users• 200+ million PC-based VoIP users • 70+ million dual-mode handsets
supporting VoIP• 1000s of VSPs in 90+ Countries
• C. 35% penetration
Subscriber & ITSP Numbers
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010
Su
bsc
rib
ers
(mil
lio
ns)
020040060080010001200140016001800
ITS
Ps
Primary Line PC Mobile ITSPs
“It was the industry’s bread and butter for over a century. But the end is now in sight for traditional telephone service, which will soon be overtaken by VoIP calls in terms of usage, and displaced by broadband internet access as the core revenue-earning service offered over fixed line by telecoms firms. And if the traditional telephone is not quite dead yet, its business model certainly is: metered telephone alls whose cost depends on the length of the call and the distance covered are becoming an anachronism.” The Economist, Oct 14 2006
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Lost on the IP Islands ?
MSO VoIP provider 1
VoBB Provider 2
NGN / IMS
Enterprise VoBB Provider 1Enterprise X
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REQUIRES END TO END IP – IP TODAY “IP on-net” calls – within a single VoIP network (Island)
How do we Connect the Islands ?
Inevitability of VoIP Peering
• Advanced IP Services & Features• Video• Presence, Instant Messaging• Conference/N-way Calling• Wideband audio-codecs• Push-to-talk, Push-to-show• Fixed-Mobile Convergence
• Enhanced Security• End-to-end encryption
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Interconnection :- SMS Case Study
• Lessons– Interconnection of networks to support new services is inevitable– But that doesn’t stop large operators being short-sighted. – It’s early for many Tier 1 operators, but not all…
SMS/person/annum
In-Network Cross-Network Change-Year
UK 3 400 (2000) 1998
USA 4 300 (2004) 2003
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VoIP Peering: On-Net to the World• Cost Reduction
• Disintermediate the PSTN & associated costs
• Revenue Generation – new IP Services
• Enable Mass Market adoption of new IP Services
• Video, Wideband, IM/Presence, Encryption
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Building Blocks of Peering
Discovery / Location(ENUM Registry)
Signalling Interoperability
Policy, Trust & Security
Physical Transport
Which calls terminate to another VSP, and where should they be routed?
Standard IP Peering / Connectivity - Public, Private, Ethernet
How can signalling interoperability be ensured with different protocols, variants & implementations?
Who should calls be received from & on what basis? How to protect subscribers from abuse (SPIT, vishing)?
NAT traversal and codec incompatibilityMedia Handling
CommercialBased on policy and traffic profiles, should calls be settlement-based or settlement-free (Bill & Keep)?
VoIP Peering is more than IP Peering
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ENUM 2.0 – Bridge from PSTN# to IP
• ENUM 1.0• User/Public ENUM ( Limited Market Acceptance )
• ENUM 2.0 • Private / Operator ENUM ( Internal )
• Carrier ENUM ( Bi-Lateral Exchange )
• Federation ENUM ( Multi-Lateral Exchange )
• Infrastructure ENUM ( Non-Standard & Interim )
• Included in all NGN Standards• CableLabs, 3GPP, IMS, Speermint
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How to Peer: Bilateral or Federated
• Bilateral VoIP Peering
• For small # of direct Interconnects
• Non-scalable due to Trust, Signalling, Security, Commercial concerns
• IP Paradigm : Federation Model
• Scalable Direct Interconnection
• Neutral, Trusted Provider for• ENUM Registry, Security, Identity, Policy
• Signalling Interoperability
• New Commercial Paradigms
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A Neutral, Trusted Federation Provider• Protects Sensitive Data
• Eliminate need for open sharing of subscriber data between peers• Guard security of sensitive data
• Resolves the N2 Interoperability Problem• A single interoperability test to access to hundreds of peers• Insulate VSP from changes made by peers• Ensure highest level of feature-preservation on all calls
• Ensures Security• Protect VSP and its subscribers from SPIT, vishing or other threats• Management of the settlement-free relationship to avoid abuse
• Simplifies Contractual Issues• A single contract• Avoid billing and reconciliation nightmare
• Gives VSP Control• Ability to set peering policies
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Federations – Industry Perspective• Key Findings from Heavy Reading’s 8/13/06 report
"VOIP Peering & the Future of Telecom Network Interconnection"
• “A federated peering model will emerge as natural trading partners come together in peering communities or federations…”
• “We expect the industry to emerge… in a federated peering model with ENUM directories to support the community.”
• IETF (The Internet Standards Body) WG on SIP Peering
• “SPEERMINT Terminology” 8/11/06
• “a federation is a group of Service Providers which agree:
• To receive calls from each other via SIP
• On a set of administrative rules for such calls (settlement, abuse-handling, ...), and
• On specific rules for the technical details of the interconnection.”
• GSM Operators Association (GSMA)
• Development of “IPX”, a federation for interconnection and exchange of IP Communication services between IP Operators.
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Federations - A Tier One Perspective
• Recent conclusions of internal review by a world leading Service Provider• We must launch new services, e.g. video
• We cannot launch services successfully if only available in-network
• Scalable Cross-network Interconnection can only be multi-laterally (federation)
• We must involve mobile (3G) operators in addition to other large fixed operators
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Federation & ENUM Activity• MMS Routing in USA
• Neustar, Verisign
• Global VoIP Peering & ENUM Registry Providers• XConnect, Telcordia, Neustar, Verisign, Arbinet
• National Peering• Netherlands JCC ( October 2005) – full MSO Peering• CableLabs RFI ( October 2006 )• Multiple In-Country & Private Federations emerging
• GSMA• IPX & ENUM (in all its 9 flavours)
• National Local Number Portability - LNP• Changes in international markets - e.g UK
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Federation System Architecture
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XConnect – Background Info• World’s leading neutral provider of VoIP Peering & Federation services• History
• Established in 2005, a pioneer in the federated Enum & Peering services• 400 IP Communication SPs in >35 Countries, 180 Million TNs in Registry • Awarded world’s 1st (& Only) National VoIP Peering contract• Market Consolidator - IPeerX Inc. (USA) and e164.info (Europe)
• Industry Strengths • ENUM Registries, Signalling Inter-op, Private & Global Federations• IPR on ENUM Privacy & SPIT protection• Advisory Board includes leaders in IETF ENUM & SIP WGs.
• Awards• 2006 Frost & Sullivan Award for VoIP Peering Services
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ITU : Future of Voice, Jan 2007
Eli KatzFounder & CEO, XConnect
Co-Founder and Chairman, Internet Telephony Service Provider Association (ITSPA)