Transcript Internet Telephony Presentation

Integrated Carrier-Grade Platforms:
Lowering Entry Barriers for New Voice
over Broadband Service Offerings
Randy Waters
Founder and Chief Technical Officer
www.carriustech.com
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Session Topic
Voice Over Broadband (VoBB) promises to provide more competition in
the telecommunications service space. However, for VoBB services to
be successful, they must offer high-quality service and be economically
feasible for providers to deploy them. “Traditional” carrier-grade
distributed approaches to deploying next-generation VoBB services
include multiple elements such as softswitches, media gateways,
signaling gateways, and application servers. These solutions are costly
and do not promote the entry of new smaller providers to the
marketplace to introduce competition. Intelligent and scalable carriergrade platforms that offer tight integration of various components (app
servers, media gateways, signaling gateways, media servers, session
controllers) will be required for emerging VoBB service providers to
quickly and economically get a foothold in the marketplace. This
presentation will explore and different approaches for new entrants to
deploy new VoBB services.
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Growth
Service Provider Dilemma
Time
1. IP-enable legacy
infrastructure
(reduce cost)
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2. Enable new
IP services
(Increase ARPU)
Broadband Services Growth
Subscriptions (000)
Broadband Services Subscription
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
CAGR: 23-36%
United States
Western Europe
Asia/Pacific
2002 2003 2004
2005 2006 2007
Year
Source: IDC, August 2003
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The Rise of VoIP
Source: ING Estimate, ING – Voice over IP: Targeting Broadband, November 2004
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Global VoBB Subscriber Penetration
250
Broadband Subscribers
VoBB Lines
200
150
100
BB Data
Only
50
0
2003 2004
Source: Probe Research, IDC, March 2004
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2005 2006 2007 2008
Voice Over Broadband
OSS
Ownership of broadband
access transport infrastructure
not required!
Billing Server
Application
Server
Circuit-Switched
Network
VoBB
Service Provider
VoIP
Network
Internet
MGW
Border Control
Other Services
Broadband
Infrastructure
Service Provider
Broadband Access
Cable
DSL
IP Phones
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Why the VoBB Model?
 Voice still dominates service provider revenues
 Voice now a commodity service – prices dropping
 Regulatory constraints discourage enhancements to circuitswitched access network
 Bundling services required to retain customers
 Fiber rollouts for video underway – big broadband pipes
 Access transport ownership not required to own customer
 Vonage validated the business model
 Now being adopted by carriers worldwide
 Plays to Residential & Enterprise markets
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VoBB Changes the Game
 Specialized service providers can enter market
 Cost of market entry much less than old model
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Avoids expensive access costs and fees
Can focus on service & feature differentiation
Wireline carriers can serve wireless subscribers
Wireless carriers can serve wireline subscribers
Redefines carrier competition
 Flat Rate Plans imminent
 Wireless subscribers
surpassed wirelines in 2001
 ARPU declining since 2000
 Increase network efficiency
 Reduce OpEx
 Migrate to All-IP network
Fixed-Mobile Convergence
WIN/CAMEL
IN Services
SCP
SS7
Other IP
Networks
SGSN
MGW
Border Control
IMS
Core IP
Network
Circuit-Switched
Network
Application Server
Multi-Media
Services
MMD
Multi-Media Domain
IP Multimedia Subsystem
Core IP
Network
Internet
GGSN
PDSN
Border Control
3GPP UMTS RAN
Broadband Access
3GPP2 CDMA RAN
Wi-Fi
Dual-Mode
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RBOCs, ILECs, CLECs, MSOs, IXCs,
ISPs, ITSPs, VNOs
Mostly residential consumers today
Expanding to enterprise
Consolidation will slow entrant
growth over time
Current solutions based on multiple
supplier systems
Large SPs can integrate systems
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60
30
RBOCs, ILECs, IXCs, MSOs
New or smaller SPs less inclined to
integrate
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VoBB Service Providers
VoBB Service Provider Entrants
VNOs, CLECs, RLECs, ISPs, ITSPs
Mid 2004
Mid 2005
Source: IDC - US Hosted IP Voice Services 2004-2008
Forecast : VoIP Invades the Enterprise, September 2004
Emerging VoBB Service Providers
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Quick market entry
Serve growing specialized market
Focus on compelling feature/service differentiation
Minimize integration efforts
Minimize CapEx and OpEx
Enable broad range of features & services
Solution: à la carte bundling of VoBB components
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VoBB Network Components
VoBB Service
Provider
IAD
MTA
OSS
Application
Server
Media Server
Any service provider can
offer VoBB with Internet
access to broadband
subscriber
Trunking
Softswitch
Public Internet
Border
Controller
PBX
Other VoIP
Networks
IAD
MTA
VoBB Service
Provider IP
Network
PSTN POP
City A
Trunk GW
Key Components
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Application Server
Trunking Gateway
Trunking Softswitch
Session Controller
Media Server
IAD
PSTN POP
City B
Trunk GW
PSTN POP
City C
Trunk GW
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Network Integration Issues
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Seamless call flow and feature interworking
End-to-End IP network fire-walling
Nat traversal
Inter-system and network IP security
Cohesive network management
OAM&P interworking
Network operations
Cohesive operational training and documentation
Responsive customer support
VoBB – Bundled Systems
Session Controller
IAD
Application Server
Media Server
Intelligent GW
Suppliers partner to tightly
bundle the solution
Trunking GW
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Trunking Softswitch
Integrated Function Savings
Component
Softswitch/SGW
Border Controller
Avg. Selling Price
$20-40/port
$15-30/session
TGW
$40-60/port
Intelligent GW
$50-70
 Softswitches and SGWs ~ 40% of loaded port cost
 Intelligent Gateway = Softswitch + TGW + SGW + BC
 Intelligent GW saves 30-40% of loaded port cost
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VoBB SP Outlook
 VoBB is obvious high-growth application
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Residential VoBB is currently targeted by vendors
Enterprise VoBB is the next growth area
 VoIP market validated and attracting SPs and vendors
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Price-per-port will decline – equipment costs must keep up
Intelligent GWs will integrate:
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TGW and Trunking Softswitch, and Signaling functions
Border Controller, Address Translation, Billing functions
Application interfacing functions
Intrusion protection, IP Security, and Management functions
Wireline-to-wireless migration
 New VoBB SP entrants will look for bundled solutions
 Vendors must partner to provide bundled solutions to
succeed
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Acronyms
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3GPP – 3rd Generation Partnership
Project
ARPU – Average Revenue Per User
BB – Broadband
BC – Border Controller
CAGR – Compound Annual Growth Rate
CapEx – Capital Expenditure
CDMA – Code Division Multiple Access
CLEC – Competitive Local Exchange
Carrier
DSL – Digital Subscriber Line
GGSN – Gateway GPRS Support Node
GPRS – General Packet Radio Service
IAD – Integrated Access Device
ILEC – Incumbent Local Exchange
Carrier
IMS – IP Multimedia Subsystem
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IP – Internet Protocol
ISP – Internet Service Provider
ITSP – Internet Telephony Service
Provider
IXC – Interexchange Carrier
MMD – Multi-Media Domain
MSO – Mobile Service Operator
MTA – Media Terminal Adapter
OAM&P – Operations, Administration,
Maintenance, & Provisioning
OpEx – Operational Expenditure
OSS – Operational Support System
PBX – Private Branch Exchange
PDSN – Packet Data Serving Node
POP – Point of Presence
PSTN – Public Switched Telephone
Network
Acronyms
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RAN – Radio Access Network
RBOC – Regional Bell Operating
Company
RLEC – Rural Local Exchange Carrier
SCP – Signaling Control Point
SGSN – Serving GPRS Support Node
SGW – Signaling Gateway
SP – Service Provider
SS7 – Signaling System 7
TGW – Trunking Gateway
UMTS – Universal Mobile
Telecommunications System
VNO – Virtual Network Operator
VoBB – Voice over Broadband
VoIP – Voice over IP
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Wi-Fi – Wireless Fidelity