Next Generation IP-Next Generation IP-TelephonyTelephony

Petri HeleniusDirector, Product Development

pete@kpnqwest.fi

http://silver.kpnqwest.fi/SMI-VoIP.ppt

Why IP?Why IP?•Only single network to manage

– Cost savings• Management• Monitoring• Change flexibility

•Runs over a variety of transports– ATM– Frame relay– PPP (over Sonet/xDSL/…)– 802.11 WLAN– Ethernet– Etc...

Why IP?Why IP?

•Public standards–Internet success–Volume of equipment sold–Application expandability

• video• whiteboard

ChallengesChallenges•Reliability

–Achieved by both clustering servers and duplicating infrastructure

–At the end of the day, VoIP can be engineered more reliable than PSTN telephony

•Ease of use–Migration and learning issues addressed by retaining the familiar interface (desktop phone) while adding functionality to both the device and software on the desktop

Challenges IIChallenges II•Perceived voice quality

–Due to the digital nature of VoIP, quality, when riding on a well engineered network is superior to mobile telephony, very close to PSTN

–Public Internet not there yet, don´t confuse VoIP with Internet telephony (although they will converge)

•Scalability–Systems must deliver scalability to thousands of subscribers on a single system

Challenges IIIChallenges III

•Price–TODAY: equipment cost comparable to old-world

–20% annual price erosion–Operational cost lower

•Change management–Install IP telephony with all new installations

–Comprehensive integration tools just becoming available

Short history of IP-telephonyShort history of IP-telephony•1997: Toll bypass

–Gateway - Gateway–Target market: International–Benefit: cost savings–Still available today

•1998: Complementing traditional telephony–Gateway - Phone, Gateway - Gateway–Target market: branch offices, teleworkers

–Benefits: flexibility, low entry cost, manageability

Short history IIShort history II•1999: From integration to migration

–Advanced reliability and flexibility–Target market: all–Benefits: comprehensive selection of applications, flexibility, manageability, cost savings

•2000: Service provider tools and equipment–Enables providing hosted enterprise-class telephony solutions

–No need to dedicate equipment or servers on per-customer basis

Why now?Why now?•Pieces of the puzzle are all available

– local LAN (power and CoS enabled switches)–CoS/QoS functionality in routers across the board

–CoS/QoS functionality in backbone–redundant, scalable and manageable servers–high density PSTN gateways– IP enabled applications–commoditization of IP bandwidth

• (will probably never happen with PSTN)

IP Telephony MarketIP Telephony Market

Source: Frost and Sullivan 1999

Market OpportunityMarket Opportunity

B US$

0

10

20

30

40

50

60

70

1996 1997 1998 1999 2000 2001 2002

Data Networking Market Voice Over IP Market

Voice Applications Market

Opportunity

Packet Voice VelocityPacket Voice VelocityPacket Voice VelocityPacket Voice Velocity

Mass DeploymentMass Deployment

Enterprise Packet Enterprise Packet Voice ApplicationsVoice Applications

Toll BypassToll Bypass

Through the Chasm

The Real ReasonThe Real Reason

•Voice over IP takes telephone communications to the Internet innovation rate

KPNQwest

CoS enabled

IP network

IPIP telephony network telephony network

IP-telephony server farm

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IP-telephony service farm(IVR, ACD, Conferencing, etc.)

Service provider based telephony Service provider based telephony routingrouting

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Signaling/accounting/route server

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Expanding towards publicExpanding towards public IPIP telephony network telephony network

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New Age – New RulesNew Age – New Rules

•Voice is not the only service : IP telephony means multimedia services

•VoIP will be the first service to be deployed as an IP real-time communications service, but other will follow –videophone–videoconferencing–collaborative working, ...

New Rules IINew Rules II• IP Telephony will allow new ways to

communicate– “Surf and phone”– “Click and phone-communicate”

• IP Telephony is a technology facilitating introduction of new sophisticated services

– Benefit from an ever-wider base of existing applications (IP-software development)

– Benefit from the universal IP addressing scheme– Benefit from IP security mechanisms

• end-to-end secure telephony

Immediate futureImmediate future•Full service provider based telephony

–only terminals(phones) and maybe a fax-gateway box on site

–rapid deployment–instant moves and changes–low TCO

•Various terminals–softphones–IP desktop phones–mobile integration

Benefits of Service Provider BasedBenefits of Service Provider BasedIP-telephonyIP-telephony

•No capital investment into PSTN gateway equipment

•No capital investment into server equipment•Least cost routing done by service provider

–preferences can be set by the customer•Up and downscaling robust (within minutes)

–mergers–subsidiary selloff–functional reorganization–physical site changes

Considerations for IP Telephony RFPConsiderations for IP Telephony RFP•How the QoS/CoS is done in the network?•Local tail redundancy options•Cost of upgrading the local tail•Server redundancy•Service redundancy (availability %)•on-net tariffs•off-net tariffs to your usual destinations•statistics / detail records

•total cost of a seat

Next stepsNext steps

•Full communications integration–voice–video (desktop + room-based)–collaboration–online presentations–mobile

•All of the above combined FINALLY enable a virtual workplace

Q&A!Q&A!

Petri Heleniuspete@kpnqwest.fi

http://silver.kpnqwest.fi/SMI-VoIP.ppt