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Voice over IP (Vo. IP) Effects on Telecom Industry Zahid Irfan 2001 -03 -0037 Voice over IP (Vo. IP) Effects on Telecom Industry Zahid Irfan 2001 -03 -0037

What I am going to talk about Communication Networks n Internet n Birth & What I am going to talk about Communication Networks n Internet n Birth & Development of Vo. IP n Effects of Vo. IP on Telecom Industry’s Response n Conclusions and Recommendations n

Internet’s Birth. . 1971 Source : http: //www. cybergeography. org/atlas/historical. html Internet’s Birth. . 1971 Source : http: //www. cybergeography. org/atlas/historical. html

Internet’s Explosion … 1999 Source : http: //mappa. mundi. net/maps_007/ Internet’s Explosion … 1999 Source : http: //mappa. mundi. net/maps_007/

What drives the Internet n The Internet’s backbone. . The protocols – Token Ring What drives the Internet n The Internet’s backbone. . The protocols – Token Ring – User Datagram Protocol (UDP) – Internet Control Message Protocol (ICMP) – Transmission Control Protocol/ Internet Protocol (TCP/IP) http: //oac 3. hsc. uth. tmc. edu/staff/snewton/tcp-tutorial/

Why not USE the NET… n The motivation – The high rates of telephone Why not USE the NET… n The motivation – The high rates of telephone calls from Israel to USA. ($2. 5/min) n The solution – Transmission of Voice signals over the net n Emergence of Voice over IP

Voice over IP n Voice over IP (Vo. IP) – Conversion of voice signal Voice over IP n Voice over IP (Vo. IP) – Conversion of voice signal to stream of packets and using the Network line to transmit to destination and then reconvert it to voice signals

Data and Telephone Network Source : www. howstuffworks. com Data and Telephone Network Source : www. howstuffworks. com

Vo. IP Network PSTN Call Agent Application Servers Media GW Source of Value Added Vo. IP Network PSTN Call Agent Application Servers Media GW Source of Value Added Services Signaling GW IP Network Address Re-solver ENUM Clients • • • Source: www. technet. com

Applications of Vo. IP Internet aware devices n Vo. IP/PSTN hybrid gateways n Interoffice Applications of Vo. IP Internet aware devices n Vo. IP/PSTN hybrid gateways n Interoffice trunking over corporate intranet n Remote access n Voice calls from Mobile PCs and mobile phones n

Benefits Cost Reduction n Simplification n – same network (easy maintenance) – optimization of Benefits Cost Reduction n Simplification n – same network (easy maintenance) – optimization of bandwidth – Fault tolerance n Advanced Applications – video conferencing – white-boarding and shared screens

Quality of Service (Qo. S) Sharing of available capacity n Latency of transmission n Quality of Service (Qo. S) Sharing of available capacity n Latency of transmission n Authentication and Encryption(Secure Telephony n Reliability of Transport n

Growth of Vo. IP n Estimates of various sources · · $500 m to Growth of Vo. IP n Estimates of various sources · · $500 m to $18. 7 b in 1999 -2004 (106% growth) -IDC $270 m to $12. 6 b in 1999 -2004 - Ovum 30% of international phone traffic will be carried over data lines in 2002 against 0. 2% in 2001 - Probe $4 b to $23 b in 2001 -2004. - Kagoor Souce: www. fortune. com

Telecom Industry Losses Source: http: //www. it. kth. se/voip. html Telecom Industry Losses Source: http: //www. it. kth. se/voip. html

Telecom Strikes Back PTCL signs contract with M/s ABS Corporation (min. profit $36 annually) Telecom Strikes Back PTCL signs contract with M/s ABS Corporation (min. profit $36 annually) n AT&T-Yahoo consortium acquires 37% of Net 2 Phone shares n Indian Government to lift ban on Vo. IP in 2002 n

Vo. IP without Enhanced Service Provider Status Source : Merrill Lynch Corporation Vo. IP without Enhanced Service Provider Status Source : Merrill Lynch Corporation

Future Developments Text to voice conversion n Voice to text conversion n Voice response Future Developments Text to voice conversion n Voice to text conversion n Voice response systems n Replacement of Mobile system with IPbased systems n

Questions & Answers Questions & Answers