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IP telephony - today and tomorrow Mikael Wällstedt Business Manager, IP telephony Ericsson Telecom AB IP Services SE-126 25 STOCKHOLM Sweden Tel: +46 8 719 35 43 Fax: +46 8 719 06 08 [email protected] Agenda - IP telephony What is IP telephony? How does it work? Why IP telephony? What about the future? What is IP telephony? mobility Telecom Industry GSM on the Net IP telephony Internet PC-LAN PC desk top computing Infocom Industry Computer Industry main frames Media Industry electronic publishing and entertainment A changing world % 80 70 60 Data traffic Voice telephony 50 40 30 20 10 0 1996 1997 1998 1999 2000 2001 Source: FT Media & Telecoms IP telephony evolution IP Nerd to Nerd (computer to computer) IP Nerd to Grandma (computer to phone) IP Grandma to Grandma (phone to phone) IP telephony product life cycles Basic sw/hw infrastructure Horizontal Segmentation Value Added Applications Vertical Segmentation Application/Network Integration Horizontal Segmentation How does it work? Phone-to-phone traffic over IP PSTN VG UDP connection Logical channel (audio data) VG PSTN IP network GK TCP connections Control signaling (call control, logical channel control) GK VG = Voice gateway GK = Gatekeeper Unvalidated Ph-ph, PC-Ph, Fax-to-Fax Fax PSTN Fax VG VG PSTN IP network GK IVR GK VG = Voice gateway GK = Sitekeeper IVR = Interactive voice response PhoneDoublerTM Call Forwarding POTS Line PSTN PRI Internet ISP Access Voice Gateway Phone DoublerTM Quick Call Click & Dial Free Phone, Banking Helpdesk numbers Why IP telephony? IP telephony business case - today International long distance traffic Domestic long distance traffic Corporate Services Delta Three IP telephony Global Network Fully Integrated with the PSTN D3 => cost savings for the end user RETAIL PRICES $/min From the US to: AT&T Discount Card* Argentina Brazil China Colombia Russia Venezuela $2.03 $1.93 $2.73 $1.95 $2.57 $1.42 $0.95 $0.84 $1.16 $0.85 $0.95 $0.63 D3 $0.32 $0.35 $0.45 $0.28 $0.25 $0.30 * VoiceNet Interroute- domestic long distance International Access ISDN Bilbao La Coruna Huesca Lleida Tarragona Balaeres (Illes) Zaragoza etc Madrid Barcelona Seville Valencia Corporate LAN - multiple accesses Legacy Phone & Fax QSIG/PBX WLAN Devices Managed IP Network IP Node GSM on the net GSM network Bluetooth Wireless IP enterprise office concept H.323 Client IP-Phone What about the future? Next Generation Services and Solutions Service Solution Voice Mobility Video UMTS service capabilities Multimedia E-mail Individualisation E-commerce Service provider Infotainment Value added service provider Games SMS ...and more Business solution Moving up in the value chain Revenue source Service/Product Pay per view, advertising Hosting charges/commission Hosting charges Internet Service charges Service charges Content Information, content, journalism, etc. E-Commerce Electronic commerce, security, billing, marketing Hosting ISP Wireless ISP Access charges Connectivity Hosting of corporate Web pages “Extranets” Regular Internet services (Email, FTP, Web servers, etc. Internet Services adjusted to mobile users Email over SMS, WAP, etc. Connectivity to Internet Access to corporate Intranets Bearer GSM-user charges Services Wireless data transmission Technology development PSTN interconnection Standards QoS Enhanced Services Thank you Mikael Wällstedt Business Manager, IP telephony Ericsson Telecom AB IP Services SE-126 25 STOCKHOLM Sweden Tel: +46 8 719 35 43 Fax: +46 8 719 06 08 [email protected]