voice over internet protocol: policy implications and market
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© 2004 AT&T, All Rights Reserved.
The world’s networking company SM
Voice over Internet Protocol:Policy Implications and Market
Realities
Phoenix Center 2004 Annual U.S. Telecoms Symposium AgendaDecember 16, 2004Dave Belanger, Chief Scientist & Vice President, Research, AT&T Labs
© 2004 AT&T, All Rights Reserved.
VoIP: A Data Application on an IP Network
Internet Protocol (IP) separates applications from the network:
• Voice is not longer restricted to telephone networks
• Voice becomes another IP data application
Satellite, Wireless, Cable, Phone, Electric Networks
WWWE-mail
DomainName Service
SIP..SMTPPOP3.. DNS.. HTTP
IP
TCP…UDP...RTP…
(InternetProtocol)
Packet Routed Data
Public Phone Network
IP/Internet Applications
Circuit Switched Voice
Voice
Ph
ysic
al Layer
Ph
ysic
al Layer
Ap
plicati
on
Layer
Ap
plicati
on
Layer
Log
ical Layer
Log
ical Layer
Enhanced/Information
Services
TraditionalTelecomServices
H.323..
Video
© 2004 AT&T, All Rights Reserved.
The Industry is Making Major Investment: To IP Networks Supporting Real-time Applications like VoIP
BX9000 BX9000
BX9000
Frame
Relay Network
Gobal IP
Network
ATM
Network
From:
Legacy Networks
To:
Common IP/MPLS Backbone
Frame/ATM/Voice/IP-VPN
MSE
MSE
The Internet
Route Servers
MPLS Core
Route Servers
4ESS
5ESS
5ESS
Voice
Network
Frame/ATM/Voice/IP-VPN
Private Line
Network
MPLS: MultiProtocol Label Switching
© 2004 AT&T, All Rights Reserved.
Investment in All Parts of the Network is Essential to Enable Real time IP Applications
$0
$10
$20
$30
$40
$50
$60
$70
Billions of Dollars of Equipment Expenditure
CORE Carrier andEnterprise Backbones(DW DM, Routers,Switches - optical, W AN,& converged)
ACCESS (CPE,Concentrators, DW DMMetro, Firewall, VPN,W ireless LAN, EthernetSwitches)
END POINT EnterpriseCPE (IP PBXs & phones)
Source: Based on data from Prudential Securities
Note: Software, network integration, consulting and product support expenditures are expected to match and eventually surpass total equipment expenditures per year.
Data/Communication Networks Worldwide Equipment Investment Estimate
© 2004 AT&T, All Rights Reserved.
Rate arbitrage: TDM origination and termination
with IP transport in the WAN
Intra-company calls and faxes on converged network
Emergence of native IP origination environments
Separate Networks
Common, Global IP Network
Web-based call centers/web callback with IP Enablement
New network-based IP features and services
Converging Local, LD and data
IP enablement of call center features on a converged network
Network Convergence
Business Priorities Drive VoIP Adoption
© 2004 AT&T, All Rights Reserved.
VoIP: A “Killer” IP Application
WHAT THE FUTURE HOLDS:• Presence (Instant Messenger, Follow
me)• One Number / “Follow Me” Services• Click-to-Talk Interactive Call Centers• Universal Messaging• Virtual Meetings / Collaboration (like
NetMeeting)• Real time language translation• IP Centrex in a Box• Multi-Point Videoconferencing• Desktop Multimedia• Push to Talk Cellular• Voice Chat
An Information Service that Delivers Voice Communications and Enables Voice Convergence with Other Data
Applications and Devices
© 2004 AT&T, All Rights Reserved.
VoIP Technical Challenges
1. Network Characteristics
2. Quality of Service
3. Interoperability at the application level (SIP)
4. Security
5. Wireless
6. Global Standards
7. Power and Reliability
© 2004 AT&T, All Rights Reserved.
R Factor for VoIP
R=a-b1*delay-b2*(delay-b3)*H-c1-c2*log(1+c3*loss)
where
loss = packet loss percentage for the call
delay = one-way end-to-end delay in milliseconds
The terms "R-score" and "R-factor" are used to relate latency and loss to MOS scores for speech.
© 2004 AT&T, All Rights Reserved.
Ba
nd
wid
th
2 Way
Bufferability
1 Way
Tele-phony
Games
Inter-activeVideo
ThinClient
WebBrows-ing
Inst Msg
B-castTV
(Video)File Transfers
Bandwidth Isn’t Everything
VoD
© 2004 AT&T, All Rights Reserved.
SIP Basics
• Session Initiation Protocol (SIP) is a protocol for allowing users to join a “session” for the purposes of exchanging media
• Session Initiation• Session Modification• Session Termination
• SIP definition is governed by the Internet Engineering Task Force (IETF)
• Core of SIP defined in RFC 3261 which supersedes RFC 2543• SIP is based on “IP Model”
• Transport and Application Signaling are separate• Intelligence and state resides in end device (the phone)
• SIP is an application signaling protocol• Can use either TCP or UDP as underlying transport protocol
• RTP is media protocol• Defines how the media itself (e.g. encoded voice or video) is transported• Uses UDP
• Very Important: Media path ≠ Signaling Path
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VoIP is Caught in the Middle
All we want to do is deliver
VoIP!
Telecom ServicesRegulation
Computer ApplicationNon-Regulation
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VoIP Challenges
Economic Challenges
• Intercarrier Compensation
• Universal Service Fund
• Taxes and fees
Technical Challenges
• Network Characteristics
• Quality of Service
• Interoperability at the application level (SIP)
• Security
• Wireless
• Global Standards
• Power and Reliability
Social Policy Challenges
• Numbering• 911• Law
Enforcement Access
• Accessibility for the disabled
• Consumer protection
• Privacy• Consumer
choice
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Example: Numbering
Numbering Resources (E.164 numbers): who can get them, and how can they be used
• Most users still want numbers, not SIP addresses!
• Potential barrier to market entry and innovation
• Location independence/nomadic considerations
• Geographic v. non-geographic ranges
• Scarcity concerns and strategies
• ENUM • IETF originally developed
ENUM as method for end users to provide mapping from E.164 numbers to Internet resources
Built on top of DNS Public ENUM is based on end-user opt-in;
customer controls Tier 2 name server and records
• With network transformation, carrier or infrastructure ENUM becomes more attractive
Supports IP interconnection Does not require end user opt-in or IP-
enabled end user Carrier controls Tier 2 name server and
records
© 2004 AT&T, All Rights Reserved.
FCCClassification
“CALEA”
Telecom Rewrite
Intercarrier
Comp
Numbering
USF
Proceedings:UK. Singapore,EU, Germany
Taxes and Fees
EmergencyServices (911)
Domestic/Int’l
JurisdictionConsumer Protection
End User Choice of VoIP
Provider
VoIP Policy Initiatives Continue to Pop Up
© 2004 AT&T, All Rights Reserved.