1. Murali Aravamudan Head, Communication Software Research Department Bell Labs Innovations, Lucent Technologies 600 Mountain Ave, Rm# 2A-208 Murray Hill, NJ 07974 (908) 582-5499 mur@lucent.com

2. Why Internet Telephony? IP Economics –Crowe’s law (exponential cost reduction in transporting a bit per mile) coupled with Moore’s law New access arrangements (cable, xDSL) enable new (IP) devices New signaling services (not limited to Intelligent Network services such as call forwarding, reach me etc.) New media services (not limited to 3 KHz voice)

3. What can we do today? IP Phone to IP Phone –PC and other form factors (netmeeting, vocaltec, selsius etc.) IP Phone to PSTN Phone –CTI based IP Telephony hop off gateways PSTN Phone to IP/PSTN Phone (two stage dialing) –morphed RAS devices Seamless PSTN to PSTN Phone (SS7 integration) –SS7 trunk access and IP backbone (basis for NextGen telcos)

4. Issues Technical –standardization of Media Gateway Control Protocols (IPDC, SGCP etc.) –the (stillborn) H.323 gatekeeper –need guarantees? (delay, jitter etc.) –service creation environment in the NextGen Telco (it is not just open APIs, and protocols) Regulatory –unbundled copper for new access arrangements –cookie cutter process for becoming a NextGen Inter Exchange Carrier

5. What will happen in the next three years? Seamless PSTN to PSTN Phone (SS7 integration) –NextGen Telcos (IXCs) deploying fiber networks optimized for IP –Internet Telephony will hit mass market without the mass knowing it (VoIP is transparently used by Tandem arrangements in IXCs) –SS7 trunk access and IP backbone Inband advanced intelligent network services will be done using servers in the IP network instead of circuit adjuncts (read: slow death of Voice on ATM) Integrated access services for small/mid size business will increase demand for native IP phones/PBXs –IP Phones (that are affordable) will happen –new media services as part of telephony