Future Applications of Voice Over IP – Challenges & Obstacles

Future Applications of Voice Over IP – Challenges & Obstacles

Joe Rinde4 September, 1997

Joe Rinde – Slide 2

Technology ImplicationsThe Future of Voice Over IP Is a New Way to

Communicate

The Future Is Not in Cheaper Voice

A Way to Communicate As Different From Telephone

As Telephone Was From Telegraph


All Or Nothing?Future Communications Will Use

Packet Switching

And Circuit Switching

Both Will Be Used to Deliver Integrated Services

Users Will Benefit by

Paying the Lowest Possible Price for ServicesReceiving the services they want


Single or Multiple Lines?

Should All Services be on a Single Line?

Sometimes

The Provision of Services

Independent of Network

In the Most Cost Effective Manner

In a Given the Situation

Sometimes That Means a Single Line

Sometimes It Means Multiple Lines


Classic View of Telecom

PSTN

Internet


New View of Telecom

Internet

Ethernet

PSTNPBX

IP

POTS


Vault

A Marriage of :

Packet Switching

And Circuit Switching

Under the Canopy of Intelligent ServicesTo Allow the Provision of Services Across

Whatever Network Is Appropriate at the Time

Users Should Not Be Concerned With Networks

Users Should Be Free to Focus on Services


CircuitSwitching Packet

Switching

Vault Components

IntelligentServices

UserProfiles

Gateways

Signaling Signaling


Applications

Command and Control

Fax

Voice

Collaborative Multi-Media


Cost SavingsConfused Comparisons

Price of PSTN vs. Cost of IP

Creates a Warped View of Relative Costs

Tariff Basis

By the Minute vs. By the Month

Regulatory Issues

Access Charges / Accounting Rate

These Discrepancies Will Normalize Over Time Eliminating the Arbitrage Opportunity


Voice Over IPPhone to Phone Internet Telephony

Not Economic Domestically on a Dial in Basis

Domestic Long Distance Is Already Low Priced

Internet Telephony Needs GatewaysWhich Are a Major Cost of the Service


Voice Over IP

Applicable Internationally Where Prices Are High

Based on the Recent WTO Agreement This Arbitrage Opportunity Will Diminish Over the Next 2 Years

Who Will Use International Voice Over IP?

Bandwidth Is Limited, So Delays Will Exist

Who Will Pay for Additional International Bandwidth

Consumers May Tolerate It, but Business Won’t

A Viable Alternative for Intracorporate Calling


Intracorporate Phone Calling

Uses Existing LAN and WAN Infrastructures

Can Interface to a Existing PBX

Callers Use Standard Hand Sets

Selection of PSTN or IP Made Dynamically by the PBX

Use of IP Is Transparent to the User

Hopefully


Intracorporate PC Calling

PCs on LANs Are Always On-Line

A Single Phone Call Adds 10 Kbps Half Duplex

Only 0.3% Of a T1

Very Low Incremental Cost

Add Calls to and From the PSTN via the PBX

Cable Modems or xDSL Technology May Bring This to the Home


Fax

Store and Forward Fax via the Internet

Real Time Fax via the Internet

Store and Forward Can Be Used As a Mail Box

Part of a Universal Mail Box

Can Be Used As Follow Me Service


Collaborative Multi-MediaCommunication As Different From Telephone

As Telephone Was From Telegraph


Applications

Road Warrior

Hotel Room With a Single Line

Voice Activated Web Page

Sales

Tech Support

Multi-Media Conferencing


Marriage of MediaVideo Phone Is Only the Start

Shared White Board Is Fundamental

Shared Applications --

Internet Conference

NetMeeting

Multi-Way Conferences

More Effective Meetings

More Frequent Meetings

More Usage of Communications


How To Transport VoiceThere Is No Single Answer

Circuit and Packet Switching Will Both Be Used

There Is No Reason Why a PC Can’t Coordinate a PSTN Call With Shared Applications Over the Internet

Nowhere Is It Written That Voice Must Pass Over the Internet

A PBX Can Decide How Phone Calls Will Be Routed

A PC Can Do the Same!


Usage

Ease of Use Will Lead to More UseImpromptu Meetings

No Advance Setup RequiredDrop in on a Colleague Across the Globe

Knock on His Virtual Door for a ChatCall in a Colleague at a Third Location to Consult

Today We Are Limited to a BuildingTo a Single Floor

We Will Have More Informal Meetings


Impact Of Voice Over IP

Absolute Usage Will Increase

Not Just a Shift of Usage

Circuit Switching Use Will Continue

Packet Switching is an Additional Capability

IP & Conventional Telephony Will Live In Harmony For Years To Come


The Future of Voice Over IPThis Is Not an Cheaper Voice Issue

Voice Over IP Will Be Sold on Feature Function

Facilitation of Collaborative Computing

Part of the PC Centric Workplace

Foster New, Not Replacement, Communication

Creates New Economic Opportunities For Those Who Exploit Its Potential


Rocks On the Road

DELAY

Need for Absolute Reliability

System Integration & Ease of Use

Costs

ROCKS


DELAYWho Will Tolerate It

One on One Calls

Conference Calls

Delay Sources — PCs, Gateways, Congestion

Digitizing Time

Less Time / More Packets

Not Practical in the Public Internet

Congestion Issues

Edges of the Public Internet

Well Managed Intranets


Reliability

Voice Is Mission Criticaland How!

It Is Bad Enough When You Computer Network Is Down

If Your Voice Network Goes Down You Might As Well Go Home

Who Will Take the Risk?

How to Minimize Transition Risk


Ease of Use

Voice Over IP Must Work From a Hand Set

Dialing Must Be Like It Is Today

The Same Is True of Fax

Remember the Impact of 1+ Dialing

Even Use Of 10XXX Is a Market Inhibitor

Multi-media MUST Be Easy to Use

Delay Is a Factor Here Too

Can’t Change How People WorkAt Least Not Quickly


CostsIs It Really Cheaper to Do Voice Over IP?

Yes

But Not by Much

Fundamental Switching Costs Are Very Close

Bandwidth Use Is Lower

But the Cost of Gateways Eats up Most of That

For an Incumbent Carrier There Is No Push for Immediate Conversion

For a New Carrier It May Be the Way to Go

But Watch Out for the Quality of Service


Generic Internet Considerations

QoS — RSVP

There is no NNI to signal requests bet. Networks

Billing Issue / Settlement

Can RSVP be supported in the public Internet?

Requires monitoring flows

4,000 flows per second


More Generic ConsiderationsSettlements — Speed & Distance

Cost Recovery

International Traffic

Server

Client

To Client

To Server


More Generic Considerations

Security & Privacy

Crypto Export

Addressing Through Gateways

White Pages

Documents

Future Applications of Voice Over IP – Challenges & Obstacles