1 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA H.323 Voice Market Haluk Keskiner Cisco Systems, Inc. Voice Technology Group - Product Marketing Fall Forum 2002

2 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA Outline VoIP Vision H.323 Voice Market Issues with today’s VoIP Network How to address them Next Generation VoIP Network Conclusion

3 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA VoIP The VoIP Vision IP network For transport of voice, video and data To enable access to new communication services From any provider, from anywhere in the global network H.323 is well established and has the maturity to make this vision a reality!

4 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA H.323 Market Status H.323 has clearly proven itself as the protocol of choice for global packet based multimedia communications Voice Market  Internet Telephony Service Providers (ITSPs)  Wholesalers, Clearinghouses  Enhanced Services (PC-Phone) Video Market  Growing migration from ISDN to H.323  Enterprise and Service Providers

5 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA What is next for the H.323 market? Drive minutes onto the Service Provider H.323 backbone Enterprise and residential markets present new revenue opportunities for the VoIP service providers Video conferencing and data collaboration market is growing

6 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA ITSP (Internet Telephony Service Providers) Need access to new markets and increase global coverage  Through interconnections with other carriers Address the requirements of managed enterprise services market to provide:  VoIP long distance (Toll by-pass)  Intra-enterprise connectivity (Voice VPN)  Access to new IP based services Most ITSPs have H.323 networks

7 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA VoIP Minutes Are Growing Tremendous Growth Opportunity for VoIP  International VoIP expected to grow by 70% in 2002 to 18.4B MOU  By 2007, international VoIP expected to grow to 127B MOU, representing 54% of all international traffic, including TDM traffic  Retail MOUs: Up 206% in 2001 to 20.6 billion; estimated 2002 growth of 190% to 59.6 billion minutes. (IDC IP Telephony Market, 2002) US Outgoing PSTN Traffic Minutes of Use (Billions) Source: Probe “Voice over Packet Market,” 2002 International Voice over Packet Minutes

8 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA Enterprises Increasingly migrating to IP-PBX, IP-Centrex and VoIP-VPN  By the end of 2005, 28% of all business lines will support VoIP. (Yankee Group, 2002) Looking for ways to reduce capital and operational costs by using a common IP network integrating voice and data. Video is next. Private VoIP networking uses service provider networks as dumb pipes SIP use is accelerating.

9 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA VoIP on Enterprise 55% of US Enterprises projected to adopt SP managed IP-VPNs by 2005 (Infotech, October, 2001) Percent of IP VPNs that will carry data and voice will grow from 13% in 2002, to 72% in 2006 (Ovum, 2002) Source: Ovum, 2002 $M Worldwide VPN Service Revenues Significant opportunity for VoIP service providers!

10 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA VoIP Network Today PSTN SIP wholesale CCM Enterprise AVVID Call Manager IP Video GK xGCP ITSP PSTN GK V SIP ASP (Application Service Provider) H.323 VoIP Clearing house GK H.323 ITSP PSTN GK PBX V IP-PBX Enter prise V V V V What are the issues ? Backbone IP Network

11 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA Issues in a fully interconnected VoIP Network? Security, Network Topology Hiding Reliable Billing Call Admission Control Signaling Inter-working Preserving Quality Media Transparency Operations and diagnostics support Multiservice

12 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA How do we address these issues? Network Privacy and Security Call Admission Control Reliable Billing Protocol Inter-working Introduce anew VoIP network element network demarcation point Introduce a new VoIP network element as the network demarcation point for: IP-to-IP Gateway

13 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA IP-to-IP Gateway for Managed Enterprise IP-to-IP Gateway for Managed Enterprise Enterprise-2 Site-A Enterprise-1 Site-A Site-B PSTN GK IP-to-IP Gateway Benefits: Enterprise and Service Provider networks are hidden from each other ITSP can perform billing and call admission control (CAC) at the edge Multiple enterprises can be served by one IP-to-IP Gateway VoIP Managed Enterprise Service Provider H.323 SIP H SIP - 323

14 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA IP-IP Gateway for VoIP Clearinghouse RAS LRQ/LCF - Call Signaling & Media Stream - Two Call Legs VoIP Clearing House ITSP Partner-A ITSP Partner-B GK IP-to-IP Gateway provides billing and security demarcation Hides network topology and business relationships

15 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA Carrier-B VoIP Network PSTN Carrier-A VoIP Network PSTN IP-to-IP Gateway for peer-to-peer connectivity IP-to-IP Gateway for peer-to-peer connectivity Route Signaling LRQ/LCF Call Signaling & Media Stream RAS GK Provides demarcation for billing Hides network topology, better security Better Call Admission Control at the edge

16 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA IP-to-IP Gateway for Video networks RSVP-unaware video terminals RSVP-unaware terminals RSVP-unaware network RSVP-aware IP network GK RSVP proxy for Video endpoints Guaranteed QoS over SP network Demarcation for billing Call Admission control at the edge Video Service Provider VIDEO

17 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA IP-to-IP Gateway for Signaling Interworking RAS LRQ/LCF INVITE/200OK VoIP Clearing House ITSP Partner-A GK SIP H.323 ITSP Partner-B IP-to-IP Gateway provides H323-SIP protocol interworking Billing and security demarcation Hides network topology and business relationships SIP

18 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA The Next Generation VoIP Network GK xGCP ITSP PSTN GK PSTN SIP wholesale GK H.323 ITSP PSTN GK SIP ASP (Application Service Provider) PBX V Enter prise V IP-PBX CCM Enterprise AVVID Call Manager H.323 VoIP Clearing house IP Video Backbone IP Network V IP-to-IP Gateway is the KEY element to connect these networks VIDEO

19 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA Conclusion H.323 is alive and well! Enterprise services market present significant revenue opportunity to the VoIP service providers IP-to-IP Gateway is the new VoIP network element to help build the next generation multiservice IP network SIP

20 © 2002, Cisco Systems, Inc. All rights reserved. H.323 Voice Market H.323-Forum, November 2002, New York, USA 20 Thank You! © 2002, Cisco Systems, Inc. All rights reserved.