1. Next Generation Switching Solutions Explored
Brad Miller
NexTone, Vice President of Business Development

2. Who is NexTone? NexTone provides Session Controller technology
that enables carriers to
control, route and manage real time IP traffic (Voice and Video)
in a way that is
secure, seamless and enabled for QoS

3. Softswitch Architecture
SIP Softswitch
Network
Softswitch MG
PSTN MG
TDM MG
TDM
H.323 Network
PSTN Orig/Term
TDM
Enterprise
Architecture results in VoIP islands
TDM is used to normalize traffic signaling and media: easy to implement, but cumbersome to operate and expensive
Adequate voice centric solution
How will Carriers implement future real time services?

4. Economics for NextGen Solutions
Multi-switch TDM networks:
Most calls typically traverse 4-6 TDM ports per call
VoIP Tandem solutions:
Offers a reduction to 2 ports
1 Ingress port and 1 egress port, plus call control
VoIP Interconnects:
Carrier may achieve less than 2 ports per call
Ingress or Egress Media Gateway port, but not both where the call interconnects VoIP with a 3rd party customer or supplier
Some calls stay all IP
Maximize CAPEX reductions

5. Economic Comparison Scenario TDM Ports/Call Cost/TDM Port Cost/Call
Savings
TDM 4
$150
$600
Softswitch 2
$190
$380
37%
Softswitch-SC 1
$240
60%
SC-SC
$100
83%

6. VoIP Obstacles to Overcome
Using VoIP interconnects creates some challenges
TDM is an implicit firewall and normalizes VoIP traffic.
Security
How do calls traverse existing firewalls and NATs?
Interoperability
How do calls go off-net?
How can SIP applications be leveraged?
What are the pain points?

7. VoIP Security Carriers concerns with VoIP peering
Desire to hide network topology from partners
Need to secure their voice infrastructure from traditional internet security threats
Firewall implementations are a barrier to real-time services for the enterprise
Security policies prevent promiscuous and ad hoc connectivity
Lack protocol awareness for H.323 and SIP
Firewall traversal needed to reach the corporate IP PBX
IP Centrex requires Multiple NAT traversals to reach SOHO users

8. VoIP Incompatibilities
Applications are SIP based while network infrastructure and IP PBXs continue to be H.323 dominated
90% of VoIP Networks are H.323 while 90% of VoIP Apps are SIP
Prevents enterprises from leveraging SIP apps from Carriers
Standards are subject to vendor interpretation
Problem areas: message formats, message order, timing
Other problem areas arise because of endpoint limitations
Codec mismatch
Mismatch of DTMF transport methods
T.38 fax

9. Session Controllers to the Rescue
AKA Border Controller or Session Border Controller
Rapidly emerging networking technology that provides layer 5 routing and control to manage real-time traffic flows in IP networks
Technology addresses issues of:
Session routing
Network security
Call admission control
Signaling interoperability
Service quality

10. Session Controller Architecture
ASP
SIP Softswitch
Network
Core Session Controller
ESC
Softswitch
PSTN
Carrier Peering
ESC
Edge Session Controller
ESC
H.323 Network
PSTN Orig/Term
Broadband
Enterprise Peering
Broadband NAT Traversal

11. NextGen Evolution
Session Controllers and softswitch technology are synergistic and must co-exist to bridge between the PSTN and emerging IP based networks
The solution blueprint for all real-time services:
Core Session Controllers for routing of sessions
Softswitch and Edge Session Controller technologies at the edge for traffic adaptation
VoIP carriers have rapidly adopted Session Controllers while TDM carriers are slowly migrating to VoIP technologies driven by cost containment strategies (e.g. limit or delay CAPEX for large TDM switches)

12. Session Controllers Core Session Controller (CSC):
Deployed in the network core; used for signaling only
Programmable route engine
Centralized CDR collection
Call Admission Control on a network basis
Edge Session Controller (ESC):
Deployed at the network edge to manage interconnects (both media and signaling)
NAT and Media Routing for network security
Signaling Interoperability and interworking (abstraction layer)
Call Admission Control on a local basis
Media processing for specialized applications such as transcoding

13. Session Controller Applications
Carrier-Carrier Peering
International Voice Wholesale
Carrier-Enterprise Peering
IP PBX Trunking bundled with long distance
Broadband NAT Traversal
Consumer based applications
IP Centrex or Hosted PBX

14. Carrier Network Evolution
Carrier Applications 4
Value Add Applications
ASP 2
International Gateway
Class 4
Class 5
ESC IP
CSC IP
ESC 1
Migration to Softswitch
SS/MG 3
Enterprise Trunking
Class 5
Enterprise VoIP
Enterprise TDM
Class 4

15. VoIP Peering Drivers Lowering the Cost of Interconnects
Lower CAPEX and OPEX cost per interconnect
Increased port capacity on existing gateways and switch ports
VoIP-to-VoIP requires ZERO switch or MG ports
Expand Service Reach with H.323 and SIP
H.323 continues to be used for trunking applications
SIP Interconnects are here and growing
3rd party SIP applications and devices (Calling Card, IP PBX/Centrex, 800, etc.)
Extend network seamlessly towards other services
Sell retail (enterprise) customers voice VPNs, Int’l LD, etc.
Using the same platform

16. VoIP Proof Point #1: ITXC
ITXC Carries Record Voice Call Volumes for Holidays
“In past years, our carrier customers used ITXC to complete their subscribers’ calls because our VoIP technology allowed us to provide them high quality at low prices. Usually, the only VoIP involved was within our network. Now carriers also choose ITXC for interconnection because they themselves are deploying VoIP equipment in their own networks or even at their subscribers’ premises. Our technology allows these carriers to connect their VoIP networks to ours at much less cost than a legacy PSTN interconnect and with much greater flexibility.” said Tom Evslin, Chairman and CEO, ITXC Corporation. In the fourth quarter of 2003, over one third of ITXC's traffic was originated or terminated through a direct VoIP interconnect between ITXC.net® and the network of another carrier. ITXC has VoIP interconnects with over 140 carriers or service providers in 60 countries and supports VoIP traffic exchange with a wide variety of network equipment vendor platforms based on either Session Initiation Protocol (SIP) or H.323 call control protocol.
Source: ITXC Press Release dated January 6, 2004 (

17. VoIP Proof Point #2
iBasis Posts Record VoIP Call Volume During New Year's Day
“In addition to setting an overall record for traffic, we are experiencing a record volume of traffic that enters or exits the iBasis Network as IP traffic,” said Ofer Gneezy, president and CEO of iBasis. “Major carriers have been deploying VoIP infrastructure to support both retail services and direct VoIP carrier interconnects. At the same time, new service providers are delivering VoIP services directly to residential and business consumers. Both can realize significant cost efficiencies by establishing direct VoIP interconnections with our proven global VoIP infrastructure.”
“More than 70% of iBasis traffic either originates or terminates through our direct VoIP interconnects with service providers. Direct VoIP interconnects require significantly less capital expense in the iBasis network than legacy TDM interconnects. In addition, we are enabling our customers to more fully benefit from the efficiencies of VoIP and the public Internet for global telecommunications.”
Source: iBasis Press Release dated January 7, 2004 (

18. NextGen Apps Carriers Deploying - Enterprise Services
Hosted PBX
CSC serves as a route engine between IP platforms and service based CAC
TDM Termination
SS7
Media GW
PBX Tieline
SS7
CSC
Carrier Backbone
IP PBX
TDM
ESC
ESC performs local CAC, signaling adaptation (e.g. H.323/SIP), NAT and Media Firewalling
Legacy PBX
PBX Tieline

19. NextGen Switching Solution Summary
Session Controllers and softswitch technology are synergistic and must co-exist to bridge between the PSTN and emerging IP based networks
The economics of VoIP peering is driving adoption by IP based Carriers, such as ITXC and iBasis, while Carriers with large investments in TDM infrastructure must first “IP enable” their networks
Session Controller architecture provides the foundation for value-added IP applications in addition to a more cost-effective way to implement basic voice services

20. Thank You for Participating
Questions?
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