1. Sami Aly 1 Packet Voice8 January 2002 Packet Voice Business & Technology Annapurna South

2. Sami Aly 2 Packet Voice8 January 2002 AHAs ! I was told to add this page ; so I did In the 70’s digital switching was an AHA In the 80’s ISDN was an AHA In the 90’s Internet was an AHA Is packet voice one of the AHA of the 2000’s –Why it took that long –Is it the technology or the business –What in it to make an AHA

3. Sami Aly 3 Packet Voice8 January 2002 The Talk What is Packet Voice Drivers Where $ can be made Business opportunities Barriers Technology behind Product Examples and Applications Where we are Conclusions

4. Sami Aly 4 Packet Voice8 January 2002 What is it.. ? Media (Transport & Switching) –Use packetized voice instead of regular 64kb/s PCM –Use packet data network instead of TDM circuit switched network –Use packet routing/switching (IP, ATM, MPLS,..) instead of circuit switching (DMS or 5ESS) Control (call control) –Control call setup within packet network –Guarantee QoS that is not naturally available –Use Internet-style distributed control engines {e.g. softswitch} instead of centralized vertically-integrated circuit switches –Use standard open protocol {SIP, MGCP,..} Applications (features) –Subscriber management, value-added, OAM&P –Create new value-added features leveraging packet nature

5. Sami Aly 5 Packet Voice8 January 2002 Packet Voice Network Architecture (vision) Access Packet Network Core Packet Network SS7 Feature Servers Signaling GW IP phone Premise Router Network Edge Gateway Call Agent (softswitch) Feature Servers Would it ever be that ; when,.. In the mean time... Would it ever be that ; when,.. In the mean time... Call Agent (softswitch) Enterprise Packet Network

6. Sami Aly 6 Packet Voice8 January 2002 Voice Network Architecture: Now and near future (PSTN/NGN) Access Network Core Packet Network PSTN Class 3/4 Class 5 SS7 Feature Servers Call Agent (softswitch) Signaling GW Trunk GW Call Signaling: MGCP, H.248 Bearer Management: MGCP, H.248 PBX/KTS Router T1 CAS ISDN PRI MGCP, H.248, SIP SIP phone GR-303 ISDN PRI Premise Gateway Network Edge Gateway One example Heterogeneous Network One example Heterogeneous Network IP-PBX

7. Sami Aly 7 Packet Voice8 January 2002 Puzz words VoIP: Voice over IP VoATM: Voice over ATM AAL2: ATM adaptation layer #2 used heavily for compressed voice transport SGW: Signaling gateway MGW: Media gateway TGW: Trunk gateway IAD: Integrated access device SS7: Signaling system #7 CodecG.711. G.726, G.729, G.723 NGN: Next Generation Network (packet voice network) Softswitch, call agent, call control »Did you have enough ????

8. Sami Aly 8 Packet Voice8 January 2002 Drivers for Packet voice Mainly 2 Big vendors for major circuit switching equipment in NA (monopoly) Circuit switches are vertically integrated & becoming too big ;expensive to maintain and to add features to Two networks: expensive to maintain & evolve Voice makes the $ Data takes the bandwidth Technology availability (or about) Voice market is still there and growing Packet voice promised: –Break down centralized architecture allowing competition –Bandwidth saving where it is expensive –Use of one unified network ; reducing cost –Leverage un-used capacity in existing packet data network –Lower cost technology –Offer newer features not easily available with circuit switching Competition Lower cost Revenue +

9. Sami Aly 9 Packet Voice8 January 2002 Where can $ be made Service Providers –Offer same service with a lower cost –Generating new revenue from new features Equipment vendor –Legacy equipment replacement –Mediation opportunities in the heterogeneous network –Development of new features Best where Packet voice has a generic advantage: –Where bandwidth is scarce –Network is growing & expensive –Operating cost is expensive  Core, Switching, Access, Enterprise

10. Sami Aly 10 Packet Voice8 January 2002 Business Opportunity Example 1 Toll Bypass Trunk gateway Opportunity: Lower cost alternative for expensive long distance telephony trunks. –Sell to long distance carrier for Class 4 (Tandem) Bypass in the Backbone network –More attractive for Overseas trunks –Relies on PSTN (Class5) for network access –Can offer low cost tie lines for Enterprise Private network using PBX (entry strategy !!)  create a short term opportunity –Pure cost reduction (bandwidth reduction) –Possible newer feature for additional revenue –Current alternative have been around & capital has been depreciated. –There may be a low quality perception for end users Core Packet Network PSTN Trunk GW Trunk GW Signaling GW Signaling GW Trunk GW Trunk GW SS7

11. Sami Aly 11 Packet Voice8 January 2002 Example 1 (cont.) Transport facilities are in existence gateway for PSTN-packet network interworking (for media & Signaling) –Technological issues »Speech coding & Silence suppression »Echo cancellation »Signaling interworking (IP to SS7) »ATM vs. IP

12. Sami Aly 12 Packet Voice8 January 2002 Business Opportunity Example 2 Softswitch “A Softswitch is software utilizing open standards which can perform distributed communications functions on an open computing platform.” Opportunity: A technology and a network architecture that enables entery into a BIG market that was a monopoly to offer a reduced cost, feature rich alternative to customers with low capital investment

13. Sami Aly 13 Packet Voice8 January 2002 Example 2 (cont.)

14. Sami Aly 14 Packet Voice8 January 2002 Business Opportunity Example 3 Packet in the Access (VoDSL) CLEC Packet Access market for SME end users CLEC lease unbundled loops to access SME from ILEC. End user need for multiple voice connection. Existing loop is practically the means for most most SME access. T1 is expensive and may be more than needed. Service provider opportunity: avoid leasing T1 from ILECs. Lease unbundled loop and a CoLo. Equipment vendor opportunity: IAD, GR303 gateway IAD Access Network Access Network GR303 gateway GR303 gateway PSTN PSTN DSLAMDSLAM

15. Sami Aly 15 Packet Voice8 January 2002 Business Opportunity Example 4 Packet in the Enterprise IP-PBX Enterprise or campus application Integrated voice & data & video QoS enabled network Voice is all packet Connection to PSTN Multi-site private network Usually very feature-rich PSTN

16. Sami Aly 16 Packet Voice8 January 2002 Business Opportunity Example 5 Packet in the Access (VoDSL) CLEC Packet Access market for SME end users CLEC lease unbundled loops to access SME from ILEC. End user need for voice & data. Existing loop is practically the means for most most SME access How many phone extensions & PC connections can we jam on one loop Service provider opportunity: Bundled voice & data package Equipment vendor opportunity: IAD, GR303 gateway IAD Access Network Access Network GR303 gateway GR303 gateway PSTN PSTN DSLAMDSLAM IP phone Same as #3 but with voice & Data

17. Sami Aly 17 Packet Voice8 January 2002 Business Opportunity Example 6 Voice features Telephone feature market was a monopoly for switch vendors only. Switches are vertically integrated and feature implementation was proprietary. Opportunity: By enabling NGN network architecture, feature development is opened for new entrant. Reproducing existing telephony features and creating new features are available. Required capital investment is not prohibitive. This opportunity is piggybacked on the network architecture being enabled. It is encouraged by the customer for enhance competitiveness.

18. Sami Aly 18 Packet Voice8 January 2002 Other Opportunities Opportunities enabled by new network architecture: –Voice gateways (Consumer market) –3 rd gen DSLAM (Carrier market) –IP/ SIP Phone Piggyback on other business initiatives Community of vendors Standard committees help

19. Sami Aly 19 Packet Voice8 January 2002 Network reliability (Bell heads vs. Net heads) –Availability (Fault tolerance, down time/yr, Redundancy) Scalability Voice quality –Reality, Perception Matching Legacy technology (PSTN) features –??? (911, wire taping,..), centrex features Lack of mature OAM&P Resistance from legacy product equipment vendor Interworking with Legacy PSTN Up-the-hill barriers

20. Sami Aly 20 Packet Voice8 January 2002 What new Technology Packetizing voice –Speech coding –Echo cancellation –Silence suppression –Voice quality measurements Packet network with high performance –Packet loss –Delay –Jitter Multi-media networks and Network equipments –QoS

21. Sami Aly 21 Packet Voice8 January 2002 Some techi Jargon Packet voice sent as compressed or uncompressed voice frames of few to 10’s msec long. Silence may not be sent. Quality degradation due to packet loss (few %), latency (>100msec noticeable) & jitter (>10msec eats away from latency) On the DSP Implement echo canceller since delay is high enough Implement jitter buffer Implement packet loss replacement On the Network Implement QoS Reserve bandwidth (circuit emulation !!)

22. Sami Aly 22 Packet Voice8 January 2002 Some techi Jargon Voice Packets Sent over a connection-oriented (ATM, APLS) or connectionless (IP, Ethernet) networks Voice over IP –RTP/UDP/IP  high overhead unless multiplex. Voice over ATM –AAL1 CBR (circuit emulation) –AAL2 RT-VBR : highly efficient With payload, send time stamp, sequence no., ID,.. Two ends negotiate resources (codec, SS,..) Voice packet are typically small 100 octets or so Signaling is similar to Q.931 (used in PSTN) Voice over DSL –Use DSL bandwidth to send multiple derived voice channels over DSL link –Typically voice integrated with data

23. Sami Aly 23 Packet Voice8 January 2002 Packet Voice in the Access MGW Access Network Access Network Packet IAD QoS Enabled Edge Switch QoS Enabled Edge Switch Voice Next Gen (packet) Network Data network PSTN PSTN Data CPE PSTN Gateway Media Gateway Data services Platform Call Agent MUXMUX TGW Multi Service provider Core Networks ISP E-commerce Internet CL5 switch End User Enterprise LOOPLOOP SGW CL3/4 switch GR303 ISDN PRI CAS TDM IAD

24. Sami Aly 24 Packet Voice8 January 2002 Packet voice Bit signaling Packet media Bit signaling Class 5 Packet voice MGCP signaling Soft switch TDM link TDM voice Bit signaling TDM link TDM link Packet IAD TDM IAD Or PBX Customer media Gateway IP (SIP) Phone Mediation IP IP Access Flavors and migration TDM IP ATM

25. Sami Aly 25 Packet Voice8 January 2002 IAD Telephone PBX analog voice ports (POTS / FXS / centrex) GR303, CAS to PSTN MGCP to NGN digital voice port CAS, ISDN PRI to PSTN MGCP to NGN 10/100BT ports Network uplink ATM-sDSL, Frame R-sDSL ATM-T1 & Ethernet Fax I DSX1 SIP Analog SIP Phone Router Media gateway is Similar Communicates with a softswitch Not with a GR303 gateway

26. Sami Aly 26 Packet Voice8 January 2002 Packet Voice Service Provider Market (Source: Dataquest, March 2000) Total WW Public Packetized Basic and Value-add Revenues ($ billion)

27. Sami Aly 27 Packet Voice8 January 2002 What is packet voice Unmatched Performer (U.P.) Obvious Updates to Technology (O.U.T.) Disruptive Upstart (D.U.) Disruptive Innovator (D.I.) Time Performance Legacy=PSTN UP OUT DI DU Disruptive ?

28. Sami Aly 28 Packet Voice8 January 2002 Commercial Phase Didn’t cross the casim Not yet into volume Packet Voice is disruptive To TDM circuit switching It is in Commercial Phase Didn’t cross the chasm yet Lots of $$ behind Don’t believe will ever eliminate TDM/PSTN It is a whole network evolution ; implemented in parts –Why it took that long –Is it the technology or the business –What in it to make an AHA