VOIP Service

Presentation to P.R Internet SocietySeptember 29, 2005

Julio FondeurDirector – Product DevelopmentPuerto Rico Telephone

Agenda

•History•Market Trend•Technology•Regulatory Issues

3

EarlyAdopters

Opportunist AdvancedServices

1995-1997 2000-2004 2005+Infrastructure

1998-1999

Voice over ...Interoperability,

Scalability

Limited Scope,Toll Arbitrage

AdvancedService

Deployment

InfrastructureSales

VoIP Market Evolution

The VoIP History

Voice over Packet started in late 1980’s

Service providers emerged to offer inexpensive international calling services to migrating ethnic populations that are separated across continents.

Agenda

•History

•Market Trend•Technology•Regulatory Issues

5

VoIP Market Trend

Residential VoIP Market: Residential Access Line Loss by Major Carriers (North America),2003-2005

Main threat: Wireless substitution

Who’s eating the Telco cake?

6

Who’s eating the Telco cake?

VoIP Market Trend

Residential VoIP Market: Summary of Broadband Penetration in the U.S. (North America), 2004

1 Million Lines

7

An unstoppable market force

VoIP Market Trend

8

The IP-closed market…VNO VoIP Providers

Internet

Router

Router

Router

IP IP

The PCThe PC--based (IM) Consumer based (IM) Consumer PlayersPlayersUses software to allow realUses software to allow real--time voice time voice conversations with other PCs.conversations with other PCs.Examples:Examples:

Microsoft Messenger, AOL Messenger, Yahoo Microsoft Messenger, AOL Messenger, Yahoo Messenger, Net2Phone, Messenger, Net2Phone, eStaraeStara, etc., etc.

AOLAOL

MicrosoftMicrosoft

Yahoo!Yahoo!

9

Plug into broadband router (e.g.) with

inexpensive adapter

Assign or port numberEmulate dialtone

Provide full feature set +

Traverse customer’s broadband connection

Co-locate with CLEC partner for termination

The U.S. ITSP Farm today

Voicewing CallVantage

VNO VoIP Full Providers or ITSP

10

Who’s eating the Telco cake?

VoIP Market Trend

11

Private Net or Internet

Router

Router

Router

IP IP

IP PhoneIP Phone

CPE that looks like a regular phone, CPE that looks like a regular phone, but is actually a computer with a LAN but is actually a computer with a LAN connection built in. Most common in connection built in. Most common in business environments (IP PBXs).business environments (IP PBXs).

Examples:Examples:Cisco, Nortel, Cisco, Nortel, PingTelPingTel, , AvayaAvaya, etc., etc.

The Enterprise discovered a new way to save money and boost productivityThe Enterprise already hooked to Internet discovered a new production-booster tool: the converged network.

VoIP Market Trend

Who’s eating the Telco cake?

Agenda

•History•Market Trend

•Technology•Regulatory Issues

13

The PSTN Telephony:

ILEC/CLEC

IXCSW

IXC

To other ILEC/CLEC

ILEC/CLEC

C.O.

•PCM: Voice converted to digital for transmission and switching •64 kbps (DS0) is the fundamental building block

DS1 (T1) carries 24 DS0s in 1.544 MbpsDS3 (T3) carries 28 T1s in ~45 MbpsOC1 carries 3 T3s on ~150 Mbps

Required functions:

•Call Switching

•Processing

•Signaling

14

Then came the Internet…And the PC could also talk

Internet

Router

Router

Router

•PC Software•The early adopters:-Netmeeting-Vocaltec

IP

IP

IP

IP

15

• Internet telephony refers to telecommunications service (voice, fax, voice-messaging) carried over the Internet and/or any private/public packetizednetwork instead of the PSTN.

• It uses specific IP-based protocols to allow terminal interaction• It present an enormous engineering challenge• The Internet was not created to transport voice

Time For Definitions: What is VOIP?

Internet

Router

Router

16

Packet Backbone: IP

IP

www.dmaxpr.com

Connectionless packet delivery

Service not guaranteed

17

Packet Backbone: IP Protocols

Network Interface

Internet (IP)

Transport

Application

TCP/IP Protocol Suite

Internet

18

The Voice Challenge in IP Protocol:Here are just some of the

requirements that the IP protocolhad to meet:

• It had to connect equipment from different vendors

• It had to run over different types of media (e.g. twisted pair or coaxial) and data links (e.g. Ethernet or Token Ring)

• It had to allow new networks to be added to the larger Internet without disrupting service

• It had to run on a variety of systems, from mainframes to PCs

• It had to transport data packets reliably.

19

Sensitivity of applications to delay and loss of data (from ITU Rec. G.1010, End User Multimedia QoS)

The Challenge of Transmitting Voice over a Best Effort Network

Voice is non-tolerant to delay and Packet Loss

20

Common network applications categorized as non–real-time (left) versus realtime (right) as well as those mediating a human interaction (lower) versus those between machines (upper).

Voice

Voice is real-time human interaction

21

Packet Backbone: IP Protocols

Network Interface

Internet (IP)

Transport

Application

TCP/IP Protocol Suite

UDP TCP

H.323 RTP RTCP

Increased Reliability

Real-time Communication

RTP: gives each packet a sequence number and time stamp so that it can be reassembled in the correct order at the receiving end.

RTCP: Real-time Transport Control Protocol monitors the QoS and provides feedback on the quality of the information being sent so changes can be made. RTCP is the companion protocol to RTP.

22

VoIP Mediastream

IP Voice Processing

Sample & Digitize de Voicestream

Compress the 1’s and 0’s

Codec

Convert to Packets

IP NetworkSwitch & Route

Re-assemble Mediastream

De-compress

Codec

Convert to Analog Signal

10110011

23

VoIP Architecture

IP Voice Processing

Sample & Digitize de Voicestream

Compress the 1’s and 0’s

Codec

Convert to Packets

IP NetworkSwitch & Route

Re-assemble Mediastream

De-compress

Codec

Convert to Analog Signal

10110011

Gateway

VoIP Interface

GW Logic

Trunk Interface

PSTN Legacy PBX

Softswitch•Call setup•Billing•Security/Admin•Call Routing•Number Conversion

Agent

24

Architectures & Protocols

Mixed Architectures & Mixed ProtocolsMixed Architectures & Mixed Protocols

PSTN

Call ServerSS7

PSTN GatewayPSTN Gateway SIP or H.323 NetworkSIP or H.323 Network

VAccess

Gateway

SCP

MGCP/H.248

V

SIPH.323

IMT

PRI

RTPSIP / H.323

GKGK

V

PSTN

Call Server

3 Elements of Service:1. The Call Server2. The PSTN Gateway3. The User Agents:

1. PC Client2. IP Phone3. Phone Adapter

25

Architectures & Protocols

Basic H.323 Call

Gatekeeper A Gatekeeper B

RRQ/RCF

ARQ

RRQ/RCF

LRQ

IP Network

Phone AGateway A Gateway B

H.225 (Q.931) SetupH.225 (Q.931) Alert and Connect

H.245 LRQ/LCFRTP

ACFLCF

VV VV

ARQ

ACF

Phone B

H.235H.235

TCP UDPUDP

IPIP

RTCP RAS

Audio orVideoControl Control

H.225

(Q.931)

H.225

(Q.931)

Call Control Data

T.120H.245 PayloadHeaderG.7xx H.26xH.26x

RTP

Audio Video

H.235H.235

TCP UDPUDP

IPIP

RTCP RAS

Audio orVideoControl Control

H.225

(Q.931)

H.225

(Q.931)

Call Control Data

T.120H.245 PayloadHeaderG.7xx H.26xH.26x

RTP

Audio Video

Admission Request

Open Logical Channel

Admission Confirm

26

Architectures & Protocols

SIP Servers/ServicesSIP Servers/Services

SIP User Agents

Registrar RedirectLocation Database

SIP Proxy

SIP Servers/Services

REGISTER“Here I am”

INVITE“I want to talk to another UA

Proxied INVITE“I’ll handle it

for you”

“Where is this name/phone#?”

3xx Redirection

“They moved, try this

address”

SIP User Agents SIP-GW

SIP Components

1. SIP User Agent Clients (UACs)

2. SIP Location Server – track which IP address a client is currently using

3. SIP Proxy Servers – forwards requests to other servers on behalf of SIP clients

Redirect Servers – communicates the target address of the called party to the calling party.

The SIP protocol defines a set of basic messages to signal events:

SIP Messages

1. Invite – to join a session/call

2. Ack – to accept this invitation

3. Options – determine the capabilities of a server

4. Register – Register with a server

5. Cancel – cancels a previously issued request

6. Bye – to end a call

http://www.ietf.org

27

VoIP Standards

T-38T-38T-38Fax – relay transport

Provided by call agentProvided by endpoints or call control

Provided by endpoints or call control

Supplemental Services

Signaling or RFC 2833 (media)RFC 2833 (media) or INFO (signaling)

H.245 (signaling) or RFC 2833 (media)

DTMF – relay transport

YesYesYesMultimedia Capable

MGCP – UDPMegaco/H.248 - Both

TCP or UDPTransmission Control Protocol (TCP) or User Datagram Protocol

Signaling Transport

Media GatewayUser AgentGateway, TerminalEndpoints

Call Agent/Media Gateway ControllerProxy/Redirect ServerGatekeeperCall Control

MGCP 1.0, MEGACO, H.248RFC2543-bis07H.323v4Current Version

CentralizedDistributedDistributedArchitecture

MGCP/MEGACO-IETF; H.248-ITUIETFITUStandards Body

MGCP/H.248/MEGACOSIPH.323

28

Optimal Network:PSTN 64Kbs Channel

Quality of Service (QoS) refers to a set of technologies (protocols and other mechanisms) that enable the network administrator to manage network behavior by avoiding or relieving congestion, expediting time sensitive packets, limiting access to congested links.

QoS mechanisms allow us to manage network performance (for example, bandwidth, delay, jitter, loss rate, and response time) to maintain stable, predictable network behavior.

Voice Quality

<= 3%Packet Loss<= 1%Packet Loss

<= 75 msecJitter delay<= 40 msecJitter delay

<= 150 msecLatency-One way<= 100 msecLatency-One way

Minimum Network SettingsOptimum Network Settings

Clarity Cut

Carrot

– codec – packet size– queuing priority - end-to-end delay– jitter (delay variation) – capacity/loading- packet loss – congestion

29

GWcore

Routercore

Router

POIP Packet Core

Transport Network

Codec Voice/data Packet size

AccessLink Speed Propagation Delay

Network Jitter

Jitter BufferSource Jitter

Queuing Delay

Voice/data loading Transmission Delay

Processing/switchingDelay

Transcoding

Packet Loss

Non-controllable parameters used in Intrinsic calculation

Configurable characteristics used in

Margin Allocation

Intrinsic vs. controllable parameters(DSL access network example)

TDMV2IMG

DSLCPE

CoreRouter

V2IMGGWDSL

CPEDSLCPE

VoIP Engineering Challenge

ITU Rec. G.107: R = Ro - Is - Id - Ie +A

Transmission RateS/N

Tx Distort

Echo & DelayCoding Advantage

30

Codecs

3.27108G.729a (CS-ACELP)

3.613 to 516G.728

3.85132G.726

3.65305.3 or 6.3G.723.1

4.10.7564G.711 (PCM)

4.5Linear (no compression)

4.81128Wideband

MOSDelay (ms)

Method Bit rate (kbps)

Compression

Source: Cisco

CS-ACELP (ITU G.729)(Conjugate-Structure Algebraic Linear-Predictive)

CS-ACELP (ITU G.729)(Conjugate-Structure Algebraic Linear-Predictive)

8 KBPS Voice

DSP SpeechCompression

64 KBPSVoice

Trade-off:BW vs. delay

Or:Cost vs. Quality

31

ITU E-Model output for delay and codec

Impact of Delay

50

60

70

80

90

100

0 100 200 300 400 500One-way Delay (ms)

R

G.711G.729G.723.1

Very satisfactory

User Satisfaction

Satisfactory

Some usersdissatisfiedMany usersdissatisfiedExceptionallimiting case

Effect of delay on transmission rating for three codecs

Codecs

32

Packet TreatmentNetwork Edge

Policing

Scheduling

MarkingDSCP

Shaping

Filtering based on:Source/Destination IP Address, TCP/UDP Port, Protocol ID

Policing Drop- Does the flow conform to policy?

MarkingMark DS Code Point (DSCP) based on network policy

Congestion Management Drop PrecedenceCongestion Avoidance: WRED

ShapingDelay on congestion- Improves efficiency of link speed

SchedulingEnsures queues get serviced according to priorities

DIFFSERV Prioritization

RSVP/MPLS

TOS

33

Packet TreatmentNetwork Core

Shaping

Scheduling

Policing

MarkingDSCP

Shaping

Scheduling

Filtering based on:DS Code Point (DSCP)

Congestion Management Drop PrecedenceCongestion Avoidance: WRED

ShapingImproves efficiency of link speed

SchedulingEnsures queues get serviced according to priorities

DIFFSERV Prioritization

34

Security

VoIP Security Foibles:

Phisers can spoof the caller ID information on VoIPphones to display the name of a legitimate institution

Phising

VoIP represents a better option for spammers than PSTN, because a single message can be sent to thousands of recipients simultaneously, and the phone call is free

Spam

Because of SIP requirement for devices to register a transient IP address with the user’s permanent address, it allows for unauthorized registration that can lead to hijacking resources.

Registration attacks

VoIP particularly vulnerable because of its sensitivity to packet loss or delay

Denial-of-Service (DoS) attacks

Possibility increases due to many nodes in the network vs. PSTN, where intruders must tap a line or penetrate a switch

Eavesdropping

Source: Borderware Technologies

35

Border Control in the Public Network

Voice over Broadband

Enterprise3rd Party VoIPCarrier

Carrier-to-Enterprise Interconnect

Consumer Interconnect

Carrier-to-CarrierPeering

3

21

Border Control Delivers:• Call Admission Control• QOS Management & Mapping• Protocol Interworking

Border Control Delivers:• NAT/Firewall Traversal• Multilevel Security• Topology Hiding• DOS Attacks Prevention

Border Control Delivers:• NAT and FW Traversal• Multilevel Security• SLA monitoring & reporting

Agenda

•History•Market Trend•Technology

•Regulatory Issues

37

You still need to call the “old” PSTNThe VoIP service providers found the opportunity to offer cheap telephony service by leveraging the “free” Internet

VoIP Gateway is the ITSP Point of PresenceThe ITSP needs PSTN numbers (NXX) to connect. The ILEC or CLEC will provide.

38

IP Phone

IP Phone

Internet

CPEGateway

AnalogPhone

POTS

AnalogPhone

VoIPGateway

VoIPGateway

POTS

AnalogPhone

PSTN

Broadband

Circuit Switched / TDM Circuit Switched / TDMPacket Switched Data

Broadband

AnalogPhone

PSTN

POTSPhonePhoneto to

PhonePhonePhonePhone

to to PhonePhone

Types of VoIP Calls

39

IP Phone

IP Phone

CPEGateway

AnalogPhone

POTS

AnalogPhone

POTS

AnalogPhone

PSTN

Broadband

Circuit Switched / TDM Circuit Switched / TDMPacket Switched Data

Broadband

AnalogPhone

PSTN

POTS

Types of VoIP Calls

VoIPGateway

VoIPGateway

Internet

IPIPtotoIPIP

Includes PC-to-PC and Device-to-Device

IPIPtotoIPIP

Includes PC-to-PC and Device-to-Device

IPIPtotoIPIP

Includes PC-to-PC and Device-to-DeviceTypes of VoIP Calls

Issues:- Interoperability- ENUM- Use of SBC

40

IP Phone

IP Phone

Internet

CPEGateway

AnalogPhone

POTS

AnalogPhone

VoIPGateway

VoIPGateway

POTS

AnalogPhone

PSTN

Broadband

Circuit Switched / TDM Circuit Switched / TDMPacket Switched Data

Broadband

AnalogPhone

PSTN

POTS

Phone to IP &Phone to IP &IP to PhoneIP to PhoneIncludes PC-to-Phoneand Device-to-Phone

Phone to IP &Phone to IP &IP to PhoneIP to PhoneIncludes PC-to-Phoneand Device-to-Phone

Phone to IP &Phone to IP &IP to PhoneIP to PhoneIncludes PC-to-Phoneand Device-to-Phone

Phone to IP &Phone to IP &IP to PhoneIP to PhoneIncludes PC-to-Phoneand Device-to-Phone

Types of VoIP Calls

41

• Jurisdiction: Interstate. FCC Exclusive, Vonage ruling 11/09/04

• Regulation: Non for IP-IP (Pulver ruling 3/03). Pending IP-PSTN.

• Intercarrier compensation: Pending

• Lawful Intercept/CALEA: Ruled.

• 911: Ruled

• Universal Service Fund: Pending

Key Regulatory Policy Issues

• Providers of IP-enabled services should pay the appropriate charges whenever they use the PSTN to originate or terminate calls

• The cost of the PSTN should be borne equitably among those that use it in similar ways

Intercarrier Compensation for VOIP Traffic

42

• PRTLD started offering VOIP• Several Consumer & Business Plans

• PRTLD’s VOIP offer includes calls that originate or terminate on the PSTN.

• First to market with integrated telephony & IM features

• VOIP customers must have broadband connection (Initially available to DSL subscribers only)

Overview of PRTLD’s VOIP Service

43

VOIP Network Configuration

VoIPoDSL Architecture

LEC CO SwitchPSTN Voice Internet

PRT ATM

ATM Switch

T1

PRTLDGWY

DSLAMATM

Home

PRT DSL

DSLGateway

PhoneMAX

Soft PC Client

PRTLD VoIP Residential Line

(PhoneMAX)

RMS

WiFi

2nd VirtualLine

POTS

IP Phone

LEC (PRT)

ISP

Access Charges PRTLD Call Server

44

• Liberty Cable “Voice Link”• Position VoIP as POTS replacement, not 2nd line• Net2Phone service alliance• Termination & NXX from Centennial• No E911 compliance, USF payment• Law Enforcement compliance unknown

• Adelphia Puerto Rico• Announced plan to launch in 2005

• Centennial• ITSP Interconnection Provider

• Vonage• Packet 8• AT&T• ISPs?

PR Competitive Landscape

45

VoIP detach the service from its media providing

service portability/mobility creating a new service

paradigm based on content, not connectivity

Since IP is virtual…

Then, a Revolution is coming

46

The Current & Future Technology View of Telecomm Services

•• Phone Phone

•• DSLDSL•• CableCable

Media-Centric: The regulated media is the service

Media-Independent Services

• Packet layer (IP) decouples services from media– Supports convergence– Optimized for interactivity– Enables services integration– Similar service bundles over

dissimilar media

Discrete Model

Integrated Model

Technology changes will re-shape business model

Integrated Platforms

Integrated Products

Integrated Experience

47

Entertainment

Com

mun

icat

ions

Wireline

Wireless

IP

Providing Access to Valued ContentAnytime….Anywhere…Any Device

Any Content Anywhere Industry Services Vision

48

Q & A