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Voice over IP (VoIP) Effects on Telecom Industry Zahid Irfan

What I am going to talk about n Communication Networks n Internet n Birth & Development of VoIP n Effects of VoIP on Telecom Industry n Telecom Industrys Response n Conclusions and Recommendations

Internets Birth Source :

Internets Explosion … 1999 Source :

What drives the Internet n The Internets backbone.. The protocols –Token Ring –User Datagram Protocol (UDP) –Internet Control Message Protocol (ICMP) –Transmission Control Protocol/ Internet Protocol (TCP/IP)

Why not USE the NET… n The motivation –The high rates of telephone calls from Israel to USA. ($2.5/min) n The solution –Transmission of Voice signals over the net n Emergence of Voice over IP

Voice over IP n n Voice over IP (VoIP) – –Conversion of voice signal to stream of packets and using the Network line to transmit to destination and then reconvert it to voice signals

Data and Telephone Network Source :

VoIP Network Source: IP Network PSTN Media GW Call Agent Application Servers Source of Value Added Services Signaling GW Address Re-solver ENUM Clients

Applications of VoIP n Internet aware devices n VoIP/PSTN hybrid gateways n Interoffice trunking over corporate intranet n Remote access n Voice calls from Mobile PCs and mobile phones

Benefits n Cost Reduction n Simplification –same network (easy maintenance) –optimization of bandwidth –Fault tolerance n Advanced Applications –video conferencing –white-boarding and shared screens

Quality of Service (QoS) n Sharing of available capacity n Latency of transmission n Authentication and Encryption(Secure Telephony n Reliability of Transport

Growth of VoIP n Estimates of various sources $500 m to $18.7b in (106% growth) -IDC $270 m to $12.6 b in Ovum 30% of international phone traffic will be carried over data lines in 2002 against 0.2% in Probe $4b to $23b in Kagoor Souce:

Telecom Industry Losses Source:

Telecom Strikes Back n PTCL signs contract with M/s ABS Corporation (min. profit $36 annually) n AT&T-Yahoo consortium acquires 37% of Net2Phone shares n Indian Government to lift ban on VoIP in 2002

VoIP without Enhanced Service Provider Status Source : Merrill Lynch Corporation

Future Developments n Text to voice conversion n Voice to text conversion n Voice response systems n Replacement of Mobile system with IP- based systems

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