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Discover SIP Trunking:Changing the Landscape of Telecom

Joe Merrill – Vice President of Business DevelopmentSean Rivers – Channel Director – VOIP Sales Engineering Bandwidth.com

February 26, 2008

t 2Points of Today’s Discussion

1 2 3Business Application Practical Approaches

• SIP versus TDM: Simple, Scale, Save

• How does SIP improve my communications?

• Who is the ideal SIP candidate?

• Does SIP save $?

• Best Practices

• Monitoring

• SIP Providers

Overview of SIP

• What is a SIP trunk?

• How does it work?

t 3What is SIP?

• Session Initiation Protocol (SIP)– IP Version of the SS7 Network– Sets up and tears down sessions – Voice is one of the types of sessions– Text-based

• Transport-Independent– Power of the Internet– UDP, TCP, SCTP

• Enables disparate systems and applications to interoperate in a standard method

– Flexibility

• Services delivered over SIP– Presence, IM, Video

t 4What is a SIP trunk?

• What is a SIP Trunk? – SIP Trunks are virtual voice channels (or paths) which deliver media (voice,

video, IM) over an IP network to a designated end point– SIP Trunks can be thought of as a virtual line or concurrent call path

• SIP Trunks are delivered over an IP connection– Tier One Carrier or Voice Optimized Recommended– UDP

• A SIP Trunk may be over subscribed (more numbers then trunks)– G.711 – 17 calls over T1– G.729a – 45 calls over T1

• SIP Trunking can be provided as a one-way or two-way lines– DIDs can be local or toll-free

t 5How is a SIP Trunk delivered?

SIP

t 6Phone Numbers & SIP

•Dialing Services– Inbound

– Local Outbound

– Domestic & International LD

– 800 Inbound

•Features– E-911

– 411 & Operator Assisted Dialing

– Caller ID Name & Location

– White Page Listing

•Audio CODECs– G.711 – 17 calls over T1

– G.729a – 45 calls over T1

t 7Section 2:

Business Application

1 2 3Save ScaleSimplify

t 8Benefits of SIP Trunking vs. TDM - Simplify, Save, and Scale

SimplifyBusiness Challenge: Traditional Solution: SIP Solution:

Network Solutions Multiple programs, “specials”, sales reps

One Solution, One Point of Contact

Telco Administration Must manage multiple vendors to deploy POTS, PRI, T1 in multiple markets

Network Management TDM and IP networks, multiple providers & solutions

One Provider, One Bill

One Network, No finger-pointing

t 9National Footprint: Simplify & Scale

Serving over 300 Markets representing over 80% of the U.S. Population…..

t 10Benefits of SIP Trunking over TDM - Simplify, Save, and Scale

$aveBusiness Challenge: Traditional Solution: SIP Solution:

Cost containmentMultiple circuits for voice and data

High Long Distance Rates

Voice and data services over a single circuit

Low LD Rates; 1.9 cents/min

Right-size telecom PRIs 23 channel minimum often forces locations to buy more capacity than is needed

Reduce costs by purchasing only the number of trunks needed and sharing them across multiple sites

More efficient spend: spend $ on Bandwidth

Fixed channels for voice and data cannot creates wasted capacity

Dynamically allocates bandwidth for voice and/or data needs

t 11Average Market Price Comparison

Average Market / Industry Pricing: Does SIP Save $?

ANALOG PRICING LOCAL PRI PRICING SIP TRUNK PRICING

$40 Line $450 23 channels

$20 Trunk(single channel)

50% Savingswith SIP Trunking

Up to 50% Savingswith SIP Trunking

No Wasted Bandwidth

Purchase in single increments

DE

LIV

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Y

CH

AN

NE

LIN

TE

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TA

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$ 0.05 $0.025 $0.0262% Savingswith SIP Trunking

25% Savingswith SIP Trunking

Competitive International Rates

$20 per channel

t 12$ Benefit of SIP Trunking

1 Carrier

t 13Benefits of SIP Trunking over TDM - Simplify, Save, and Scale

ScaleBusiness Challenge: Traditional Solution: SIP Solution:

Seasonal Call Volume PRIs are hard wired –Over provision – Waste money Under provision – Lose customers

Provision trunks as needed with no physical installation; remote turn up

Service that grows with business

Must add PRI channels 23 at a time with 30+ day lead time

Increased Scalability - SIP Trunks can increase by single increments within days not weeks – demand driven

Teleworkers Must use extensions with multiple providers and multiple bills

Obtain Local phone numbers for remote users with one bill

t 14Network Management Needs: Simplify & Scale

EVENTS & ALERTSEstablish thresholds for up/down status, utilization, response time and other metricsView device or interface “health” – how close is actual performance to the threshold?

t 15Disaster Recovery and Failover Needs: Save & Scale

• Automated hunting from a primary PBX to a secondary

• Automated failover to PSTN with full trunk talk-path

• Seamless geographic redundancy

• Support for IP redundancy

• Full portal Management

• Time of day and date routing

• PBX and PSTN forking

t 16Simplify, Save, Scale

SIP Enables: Convergence of Voice & Data –Eliminate single-use network with more robust IP network –Reduce $ on static, fixed, aging TDM network –Allocate $ to applications (productivity and production)

t 17Who is the Ideal Customer? Simplify, Save, Scale

• Wants to Lower Costs• Running multiple networks (TDM & IP)• Has high volume of LD usage• Many locations

• Converge Multi-Location Companies• Centralize the platform for multiple locations• DIDs from multiple locations converged to one converged system

• Need Advanced Disaster Recovery and Failover• Failover and redundancy schemes• Portal and DNS options

• New Office Application or New Hardware• New PBX, phones, routing or switching• New CRM, productivity application, application requiring more bandwidth

• Many vendors, networks, and bills • Simplify Network Monitoring• Simplify vendor administration

t 18SIP Trunking - Qualifying a Sales Opportunity

• How many locations do you have?

• How many simultaneous calls do you have at any given time?

• How many minutes do you average per Month (Local, IntraLATA, LD, and Toll-free)?

• How many and what type of lines do you have coming into your facility (Analog or PRI)?

• How much Bandwidth do you currently have available?

• Can I get a complete copy of your telecom bills?

t 19

Practical Approaches to Deploying SIP Trunks

Section 3:

1 2 3Internet

• NAT Traversal

• Routers & Firewalls

• Deployment Goals

• Ensuring Service Works

Process Security• Good Vs. Bad

• Bandwidth Sizing

• Congestion

t 20Internet Access – Good Vs Bad

• Dedicated Voice Circuits

• Voice Optimized Access– ADSL– SDSL– T-1

• MPLS or QOS

• Tier 1 Internet T-1 and above

• Plain xDSL

• Cable Internet

• Tier 2 or 3 Internet Access

• Pre-Wimax Wireless

• Satellite

• Shared Internet Circuits

The Good The Bad

t 21Internet Access – Sizing the Circuit

G.711

• Un-Compressed Voice

• Best Quality

• Budget 85K per Concurrent Call

• Ideal when the amount of bandwidth is not an issue.

G.729a

• 8 to 1 Compression

• Lower Quality

• Budget 30k per Concurrent Call

• Ideal when waiting for new bandwidth to be provisioned or when the bandwidth on site is very good.

Estimate Bandwidth

Current Data Peak Utilization (Kb) + (Concurrent Calls X Codec Budget Kb)

t 22What is Congestion?

t 23Where is the Congestion?

t 24NAT Traversal & Security

NAT Traversal IssueStandard NAT does not work with SIP. SIP message

contains IP address of the PBX and traditional NAT does not translate.

To support SIP with NAT the router or the Firewall that is performing NAT must possess Application Layer Gateway (ALG) functionality.

SIP Aware FirewallWith standard firewall 10s of thousands of ports would need

to be permanently opened in corporate firewallsSIP Aware firewall opens ports for specific calls and

then closes them when calls complete

t 25 An ALG / Firewall Deployed

t 26Deployment Goals

• Deliver the service on time

• Service Works

• Minimize Tech Hours

• Deliver High Quality Voice

• Do not open up customer’s network to hackers

t 27Practical Steps: 101

• Detailed Application Notes

• Pre-Network Assessment

• Training and Certifications

• Right-sizing Bandwidth

• Proper Codec Selection

• Quality Internet

Process Ease of Use Saves Everyone More Time

t 28Deploying VOIP On-Time

• Assure LOA and RESPORG are filled out correctly– Avoids Porting issues

• Verify MPOE and DMARC at customer locations– Avoids carrier and Internet delays

• Do not change orders after submission– Avoids service delivery delays and mistakes

• Practice setting up service– Avoids on-the-job learning delays

• Coordinate the IP circuit activation ahead of the SIP Trunk– Avoids problematic installs

t 29Q&A

Joe MerrillVice President of Business Developmentjmerrill@bandwidth.com

Sean RiversChannel Director VOIP Sales Engineeringsrivers@bandwidth.com

Channel Sales Information888-BWC-VARS(888-292-8277)

Questions?

t 30Who is Bandwidth.com?

140+ Employees

Sell:Business-class data (DSL thru OCx)Hosted IP-PBX ServicesFlexible T-1Wholesale VoIP ServicesSIP TrunkingProfessional Services

99.1% Customer Retention

#1fastest growing privately held company in North Carolina   

#16

Annual award given for a company’s achievements in creating a positive work environment that attracts and retains employees through a combination of benefits, working conditions and company culture.

fastest growing privately held telecom company in the Country

#1fastest growing privately held company in the Country

250% Annualized Revenue Growth

Thank you

The information conveyed in this presentation, including oral comments and written materials, is confidential and proprietary to Mitel and is intended solely for Mitel®

employees and members of Mitel’s reseller channel. If you are not a Mitel employee or a Mitel reseller, you are not the intended recipient of this information and are not invited to the conference, and cannot participate in or listen to and/or view the presentation. Please delete or return any related material. Mitel will enforce its rights to protect its confidential and proprietary information, and failure to comply with the foregoing may result in legal action against you or your company.

Joe Merrill – Vice President of Business DevelopmentSean Rivers – Channel Director – VOIP Sales Engineering