Download Voice over Internet Protocol: Policy Implications and Market Realities

Voice over Internet Protocol:
Policy Implications and Market
Realities
Phoenix Center 2004 Annual U.S. Telecoms Symposium Agenda
December 16, 2004
Dave Belanger, Chief Scientist & Vice President, Research,
AT&T Labs
The world’s networking company
© 2004 AT&T, All Rights Reserved.
SM
VoIP: A Data Application on an IP Network
Enhanced/
Information
Services
SMTP
SIP.. H.323.. POP3.. DNS.. HTTP
TCP…UDP...RTP…
IP
Traditional
Telecom
Services
(Internet
Protocol)
Circuit Switched Voice
Packet Routed Data
Public Phone Network
Satellite, Wireless, Cable,
Phone, Electric Networks
© 2004 AT&T, All Rights Reserved.
Logical Layer
Voice
Physical Layer
Internet Protocol (IP)
separates applications from
the network:
• Voice is not longer
restricted to telephone
networks
• Voice becomes
another IP data
application
Domain
Name Service
Video
WWW
E-mail
Application Layer
IP/Internet Applications
The Industry is Making Major Investment: To IP Networks
Supporting Real-time Applications like VoIP
From:
Legacy Networks
To:
Common IP/MPLS Backbone
Voice
Network
The Internet
5ESS
4ESS
5ESS
Frame
Relay Network
Frame/ATM/Voice/IP-VPN
Route Servers
BX9000
BX9000
BX9000
Private Line
Network
Route Servers
MSE
MPLS Core
ATM
MSE
Network
Frame/ATM/Voice/IP-VPN
Gobal IP
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
Data/Communication Networks
Worldwide Equipment Investment Estimate
$70
CORE Carrier and
Enterprise Backbones
(DWDM, Routers,
Switches - optical, WAN,
& converged)
ACCESS (CPE,
Concentrators, DWDM
Metro, Firewall, VPN,
Wireless LAN, Ethernet
Switches)
END POINT Enterprise
CPE (IP PBXs & phones)
$60
$50
Billions of
Dollars of $40
Equipment $30
Expenditure $20
$10
$0
2
E)
E)
E)
E)
E)
0
(
(
(
(
(
20
03 004 005 006 007
0
2
2
2
2
2
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.
© 2004 AT&T, All Rights Reserved.
Business Priorities Drive VoIP Adoption
 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
 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
Common, Global IP Network
Separate
Networks
Network
Convergence
© 2004 AT&T, All Rights Reserved.
VoIP: A “Killer” IP Application
An Information Service that Delivers Voice Communications
and Enables Voice Convergence with Other Data
Applications and Devices
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
© 2004 AT&T, All Rights Reserved.
VoIP Technical Challenges
1.
2.
3.
4.
5.
6.
7.
Network Characteristics
Quality of Service
Interoperability at the application level (SIP)
Security
Wireless
Global Standards
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.
Bandwidth Isn’t Everything
Inst Msg
Bandwidth
(Video)
File Transfers
Bcast
TV
Interactive
Video
Email
Bufferability
Telephony
VoD
Thin
Client
Games
Web
Browsing
© 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
© 2004 AT&T, All Rights Reserved.
VoIP is Caught in the Middle
All we want to do
is deliver VoIP!
Telecom Services
Regulation
© 2004 AT&T, All Rights Reserved.
Computer Application
Non-Regulation
VoIP Challenges
•
•
•
•
•
•
•
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
© 2004 AT&T, All Rights Reserved.
Economic
Challenges
• Intercarrier
Compensation
• Universal Service
Fund
• Taxes and fees
Example: Numbering
Numbering Resources (E.164
numbers): who can get them,
and how can they be used
• ENUM
• 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
© 2004 AT&T, All Rights Reserved.
• 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 IPenabled end user
 Carrier controls Tier 2 name server and
records
VoIP Policy Initiatives Continue to Pop Up
Numberin
g
End User
Choice of VoIP
Provider
Taxes and
Fees
Proceedings:
UK. Singapore,
EU, Germany
Intercarrie
r
Comp
FCC
Classification
USF
Emergency
Services (911)
“CALEA
”
Domestic/Int
’l
Jurisdiction
Consumer
Protection
© 2004 AT&T, All Rights Reserved.
Telecom
Rewrite
© 2004 AT&T, All Rights Reserved.