Transcript IP Telephony

IP TELEPHONY:
Challenges and Prospects
TOGO TELECOM
Abossé AKUE-KPAKPO
Telecommunication Manager
Chief, Internet and Business Services Division
Tel. : (228) 21 68 54 / 04 01 81
Fax. : (228) 21 88 36
E-mail : [email protected]
19/04/2001
Abossé AKUE-KPAKPO
TOGO TELECOM
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IP TELEPHONY:
Challenges and Prospects
CONTENTS
I – INTRODUCTION TO IP TELEPHONY
II – TECHNICAL ASPECTS
III – CHALLENGES AND PROSPECTS
IV - CONCLUSION
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IP TELEPHONY:
Challenges and Prospects
CONTENTS
I – INTRODUCTION TO IP TELEPHONY
• Preliminary remarks
• Definition(s)
II – TECHNICAL ASPECTS
• Characteristics of the two networks
• Types of communication
• Developments
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IP TELEPHONY:
Challenges and Prospects
PRELIMINARY REMARKS
The advent of IP telephony is perceived as a
fundamental change in telecommunications of
the same magnitude as the replacement of the
telegraph by the telephone.
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IP TELEPHONY:
Challenges and Prospects
PRELIMINARY REMARKS
IP telephony is founded on the Internet
network using the IP protocol.
Conventional telephony is founded on the
public switched telephone network (PSTN).
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IP TELEPHONY:
Challenges and Prospects
Definition
In general terms, IP telephony means
voice transmission over the public
Internet network.
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IP TELEPHONY:
Challenges and Prospects
Definition
It is also referred to as voice over IP (VoIP).
This service means more or less the same
thing, except that in some cases it is not the
public Internet network which is used.
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IP TELEPHONY:
Challenges and Prospects
CHARACTERISTICS OF THE TWO NETWORKS
PSTN
IP
Highly reliable
Relatively reliable
High voice transmission
quality
Acceptable transmission
quality
Real time or synchronous
Deferred time or
asynchronous
Simultaneous
conversation between
two points on Earth
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Connectionless
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IP TELEPHONY:
Challenges and Prospects
Types of communication
Three main types:
PC to PC
PC to telephone
Telephone to telephone
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IP TELEPHONY:
Challenges and Prospects
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IP TELEPHONY:
Challenges and Prospects
Gateway
Public Switch
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IP TELEPHONY:
Challenges and Prospects
Gateway
Gateway
Public Switch
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IP TELEPHONY:
Challenges and Prospects
Development
1994 : First trials of type PC to PC
1996 : Trials of type PC to telephone
1997 : Significant progress
Emergence of telephone to telephone
1998 : Integration of voice on the web
Emergence of free call centres
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IP TELEPHONY:
Challenges and Prospects
Growth
Booming market
Estimate international VoIP traffic
1998 : 200 million mins.
1999 : 1 750 million mins.
2000 : 3 700 million mins.
2001 : 6 200 million mins.
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IP TELEPHONY:
Challenges and Prospects
Some forecasts
IDC :
1999 : 2.7 billion mins.
2004 : 135 billion mins.
Deltathree.com :
2000 : 16 billion mins.
2005 : 35% of all international
traffic
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IP TELEPHONY:
Challenges and Prospects
III – CHALLENGES AND PROSPECTS
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IP TELEPHONY:
Challenges and Prospects
Challenges
4Large amounts of money at stake
4Many new entrants
4Challenges for incumbent operators in
Africa?
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IP TELEPHONY:
Challenges and Prospects
Challenges
4Business opportunities
4Fear of a fall in turnover
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IP TELEPHONY:
Challenges and Prospects
Business opportunities
1– Internet creates new demand for specialized
links.
2 – IP telephony generates national traffic to the
Internet network.
3 – Other income from the Internet
(e-commerce, website development and
hosting, other services).
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IP TELEPHONY:
Challenges and Prospects
Evolution in dem and for SL
45
40
35
30
25
Num ber of SL
20
15
10
5
0
1998
1999
2000
2001
Years
Annual demand
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Cumulative demand
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IP TELEPHONY:
Challenges and Prospects
Business opportunities
8 00000
7 00000
6 00000
5 00000
USD
4 00000
3 00000
Se rie s
1
2 00000
1 00000
0
1999
1999
1999
1999
Ye a r
Se rie s
1
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IP TELEPHONY:
Challenges and Prospects
Fall in turnover
4Revenues from international traffic
4Revenues from settlement of accounts for
international traffic
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IP TELEPHONY:
Challenges and Prospects
Fall in turnover
4Rates 30 to 50% lower
4Potential fall in turnover for international traffic
4Examples
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IP TELEPHONY:
Challenges and Prospects
Fall in turnover
4KPN states that 21% of its traffic is
generated by the Internet.
4Deutsche Telecom states that, in 1998,
calls to the Internet increased by 86% to
7.7 billion minutes of traffic, i.e. 164% of all
its outgoing international traffic.
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IP TELEPHONY:
Challenges and Prospects
Fall in turnover
4IP telephony provides a means of
bypassing switched networks.
4IP telephony is not regulated.
4Possible drain on foreign currency.
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IP TELEPHONY:
Challenges and Prospects
Fall in turnover
4Given that international traffic accounts for
30 to 40% of total turnover, and
4that account settlements may represent up
to 30% of turnover, then
4there are problems ahead for incumbent
operators in our developing countries.
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IP TELEPHONY:
Challenges and Prospects
Prospects
Will depend on:
4quality of IP telephony
4tariffs for international calls
4cost of switched networks
4legislation
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IP TELEPHONY:
Challenges and Prospects
Prospects
4If the quality of IP telephony improves, it
will become a must, obliging us to think in
terms of progressively migrating from
switched networks to IP networks.
4If
tariffs for international calls are
significantly reduced, then IP telephony
may remain marginal.
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IP TELEPHONY:
Challenges and Prospects
Prospects
4If the cost of our switched networks is
reduced, then competition from IP telephony
will be less acute.
4Finally, the future will also depend on the
legislation introduced.
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IP TELEPHONY:
Challenges and Prospects
Conclusion
4Incumbent operators face severe
competition in an area accounting for a large
proportion of their turnover.
4Possible solutions:
Tariff rebalancing
Increasing teledensity to bring down
the costs of the switched network
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IP TELEPHONY:
Challenges and Prospects
Conclusion
Establishment of appropriate legislation that
takes into consideration the cost of each
network
Monitoring of the network to avoid bypassing
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IP TELEPHONY:
Challenges and Prospects
Bibliography
1 - ITU Internet reports: IP telephony
International Telecommunication Union
2001
2 – Challenges to the network: Internet for
development
International Telecommunication Union
2001
3 – ITU News
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IP TELEPHONY:
Challenges and Prospects
Bibliography
Websites
1 – http:\\itu.int\wtpf
2 – http:\\itu.int\itu.docr\gs\council\c00\docs\78.pdf
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