1. Next Generation IP- Telephony Petri Helenius Director, Product Development pete@kpnqwest.fi http://silver.kpnqwest.fi/SMI-VoIP.ppt

2. Why IP? Only single network to manage –Cost savings Management Monitoring Change flexibility Runs over a variety of transports –ATM –Frame relay –PPP (over Sonet/xDSL/…) –802.11 WLAN –Ethernet –Etc...

3. Why IP? Public standards –Internet success –Volume of equipment sold –Application expandability video whiteboard

4. Challenges Reliability –Achieved by both clustering servers and duplicating infrastructure –At the end of the day, VoIP can be engineered more reliable than PSTN telephony Ease of use –Migration and learning issues addressed by retaining the familiar interface (desktop phone) while adding functionality to both the device and software on the desktop

5. Challenges II Perceived voice quality –Due to the digital nature of VoIP, quality, when riding on a well engineered network is superior to mobile telephony, very close to PSTN –Public Internet not there yet, don´t confuse VoIP with Internet telephony (although they will converge) Scalability –Systems must deliver scalability to thousands of subscribers on a single system

6. Challenges III Price –TODAY: equipment cost comparable to old- world –20% annual price erosion –Operational cost lower Change management –Install IP telephony with all new installations –Comprehensive integration tools just becoming available

7. Short history of IP-telephony 1997: Toll bypass –Gateway - Gateway –Target market: International –Benefit: cost savings –Still available today 1998: Complementing traditional telephony –Gateway - Phone, Gateway - Gateway –Target market: branch offices, teleworkers –Benefits: flexibility, low entry cost, manageability

8. Short history II 1999: From integration to migration –Advanced reliability and flexibility –Target market: all –Benefits: comprehensive selection of applications, flexibility, manageability, cost savings 2000: Service provider tools and equipment –Enables providing hosted enterprise-class telephony solutions –No need to dedicate equipment or servers on per-customer basis

9. Why now? Pieces of the puzzle are all available –local LAN (power and CoS enabled switches) –CoS/QoS functionality in routers across the board –CoS/QoS functionality in backbone –redundant, scalable and manageable servers –high density PSTN gateways –IP enabled applications –commoditization of IP bandwidth (will probably never happen with PSTN)

10. IP Telephony Market Source: Frost and Sullivan 1999

11. Market Opportunity B US$ Opportunity

12. Packet Voice Velocity Mass Deployment Enterprise Packet Voice Applications Toll Bypass Through the Chasm

13. The Real Reason Voice over IP takes telephone communications to the Internet innovation rate

14. KPNQwest CoS enabled IP network IP telephony network IP-telephony server farm PSTN Customer siteb Jyväskylä 21 22 23 41 42 IP 172.16.33.7 IP 172.16.33.8 IP 172.16.34.6 IP 172.16.34.5 IP 172.16.34.4 IP-telephony service farm (IVR, ACD, Conferencing, etc.)

16. Service provider based telephony routing Helsinki 535152 Signaling/ accounting/ route server KPNQwest ISP B Signaling/ route server

17. Expanding towards public IP telephony network Helsinki 535152 Signaling/ route server KPNQwest Turku ISP B Signaling/ route server

18. Implications VoIP New way of using -’click-n-call’ - Directory Integration - Intuitive user interface - Ease of integration New players -Loosers: Traditional telcos, CS manufactures -Winners: ASPs, Networking Companies,IT Consulting New applications -Integration to wireless(WAP, WLAN, GPRS) -Multimedia telephones -Open environment

19. New Age – New Rules Voice is not the only service : IP telephony means multimedia services VoIP will be the first service to be deployed as an IP real-time communications service, but other will follow –videophone –videoconferencing –collaborative working,...

20. New Rules II IP Telephony will allow new ways to communicate –“Surf and phone” –“Click and phone-communicate” IP Telephony is a technology facilitating introduction of new sophisticated services –Benefit from an ever-wider base of existing applications (IP-software development) –Benefit from the universal IP addressing scheme –Benefit from IP security mechanisms end-to-end secure telephony

21. Immediate future Full service provider based telephony –only terminals(phones) and maybe a fax- gateway box on site –rapid deployment –instant moves and changes –low TCO Various terminals –softphones –IP desktop phones –mobile integration

22. Benefits of Service Provider Based IP-telephony No capital investment into PSTN gateway equipment No capital investment into server equipment Least cost routing done by service provider –preferences can be set by the customer Up and downscaling robust (within minutes) –mergers –subsidiary selloff –functional reorganization –physical site changes

23. Considerations for IP Telephony RFP How the QoS/CoS is done in the network? Local tail redundancy options Cost of upgrading the local tail Server redundancy Service redundancy (availability %) on-net tariffs off-net tariffs to your usual destinations statistics / detail records total cost of a seat

24. Next steps Full communications integration –voice –video (desktop + room-based) –collaboration –online presentations –mobile All of the above combined FINALLY enable a virtual workplace

25. Q&A! Petri Helenius pete@kpnqwest.fi http://silver.kpnqwest.fi/SMI-VoIP.ppt