“Tutorial on Technical Challenges Associated

with the Evolution to VoIP”

Presented by:
Susan Spradley – President, Wireline Networks
Alan Stoddard – General Manager, Carrier Next Generation Networks

FCC Office of Engineering and Technology

September 22, 2003

FCC – Office of Engineering and Technology

 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 2
What is Voice over Internet Protocol (VoIP)?

Voice over the Internet (VOI or VON)

Public
Internet

QoS = Best Effort

Data Cable
Voice over IP CMTS
Video
Feed

MTA
“Managed”
IP Network

Public
Internet
QoS = Controlled Load or
Guaranteed Wireline
Wireless

FCC-OET 9/22/03 -- 3
 Telecommunication Network Transitions
Analog Analog to Digital Digital to Packet
POTS SS7, CLASS features Multimedia, Personalization
Service
BETTY JONES 1:05
Drivers 919-992-1295

Large Offices Office Consolidation Network Consolidation

Operation Voice
Drivers Data
Video

One Chief Clear Regulation/Standards Evolving Regulations

Regulation
&
Standards
Multiple Forums Driving
Standards
Packet conversion, like Digital conversion, driven by Business Case
FCC-OET 9/22/03 -- 4
 Vision
Converged Packet Network

• Eliminating Boundaries
– Geographic independence IP Network
– Service flexibility
– Service provider reach
• Data-voice network consolidation
• Central office consolidation
• New service opportunities Video
– Desktop Video Data
Voice
– Application sharing

Revenue generating and Cost Saving Opportunities

FCC-OET 9/22/03 -- 5
 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 6
Digital Switching

VoIP begins with Digital Voice

A
D
A/D Converter

In Digital Switching …
… Voice is Data.
FCC-OET 9/22/03 -- 7
 Digital Circuit Switching
LD
Swiches
Single Time Division Multiplexing
Byte
CH0 CH1 CH2 …
Tandem
Channels
Office
Channels are Reserved
No Voice and Data Integration
End End
Hierarchical Design
Office Office
Engineered
Bandwidth

Wasted Remote Remote

Capacity

Bandwidth

Engineering Maintenance

Used Bandwidth

Time

High Network Value but … High Network Cost

FCC-OET 9/22/03 -- 8
 Packet Switching

No Tandem Layer
No Remote Layer
Less • Costs
Equipment • Maintenance
End
Office
Remote
Dynamic •
Bandwidth Engineering
Flat Network Allocation • Utilization
Maximum
Bandwidth

Unused Unified • Value

Data and
Data
Voice • Utilization
Capacity

Bandwidth

Voice Bandwidth
Engineering Maintenance
Time

Voice and Data Coexist

FCC-OET 9/22/03 -- 9
 Value
Dynamic Bandwidth Allocation

TDM Packet Link

Unused
Trunk Group 1
Data
Trunk Group 2

Trunk Group 3 Voice

• Paths Channelized and Grouped • All Bandwidth is available

• Routes Require pre-Engineered • Routes Dynamically Switched
• Unused Channels are Wasted • Voice is prioritized
• No prioritization • Data fills unused space

Voice alone gains over 30% higher utilization

Data and Voice Coexist Efficiently

FCC-OET 9/22/03 -- 10
 ATM Cell Switching vs. IP Routing

Synchronous Stream Asynchronous Stream

Cell 0 Cell 1 Cell 2 … Header Payload Header Payload

Fixed Size Multi-Byte Cells Variable Length Multi-Byte Packet

End End End End

Office Office Office Office
ATM Core IP Core

Multi-Byte Cells Variable-Byte Packets

Dynamically Allocated
Bandwidth Reserved
Switched per Session
Advanced QOS
No Native Allocation Scheme
No Native Reservation Scheme
Packets are Routed Independently
Limited QOS
Routers are Unaware of Session

FCC-OET 9/22/03 -- 11
 Smart IP Routers and Switches

QoS management at different layers

Layer 3 - DiffServ Prioritizes Packet Routing
Layer 2 - 802.1 Q/p Prioritizes Ports and Ethernet Frame
- Fragment large packets on Low Speed Links
Layer 1 - Overprovision Bandwidth

er 3
Lay
k
wo r
Net e
rfac
4 Bits 4 Bits 8 Bits
DiffServ Inte
First 16 Bits of DSCP IP
er 2
Version Header
IP Data Gram Length Field Lay
(ToS) in k
a t a L ET
D N
ER
Ethernet Frame 802.1 Q/p ETH , etc.
ATM
802.1
802.1 QQTag
Tag
Des Source Protocol er 1
Mac t Mac P
• riority
PriorityBits
Bits Payload Lay l
sica
Type
V
• LAN
VLANID
ID
Ph y
Bandwidth iber
T 5, F
48 Bits 48 Bits 32 Bits 16 Bits 512 - 12000 CA
Bits

FCC-OET 9/22/03 -- 12
 Speech Codecs

G.711: “uncompressed” TDM coding: PSTN standard

Compression (reduction in required bit-rate, e.g., G.729)
• Accommodate access link speed (e.g., wireless)
• Reduce bandwidth needed in core:
− trade off compression against cost
Concerns
• Baseline voice quality will be lower for lower bit-rates
• Increased end-to-end delay
• Reduced performance with expected packet loss rates
• Transcoding
− are there other compression codecs in the network?
− how often will multiple transcodings occur in a complicated
path?
− frequency of use for features requiring transcoding
conferencing, voice mail

FCC-OET 9/22/03 -- 13
 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 14
 The Voice Quality Problem:
How can you know the voice quality is what you want?

Application layer
Network operator wants:
A voice quality indicator

Network Engineering
Network layer Planning Process
Manufacturers specify:
Delay, link utilization, buffer size
codecs available
packet loss rate
Need to establish correspondence between the packet level behavior and the quality
perceived at the application level.
FCC-OET 9/22/03 -- 15
 Engineering VoIP

Network Topology Controllable parameters Transport & handoff

Creator Traffic Profile
(voice codec, (IP,ATM, TDM,
(access type, (loading,
packet size, packet islands,
equipment, core) %voice/ %data)
packet loss) TDM handoff)

Adjustments Analysis of Packet Network Impairments

to Network Predicted Network Performance
Design

Implementation

Operational Measurements
(Delay, Packet Loss, Jitter)

Results Analysis & Processing

FCC-OET 9/22/03 -- 16
Reliability
Maintaining service during network failure events

• Design & Testing: Reliability Before Deployment

─ Reliability Analysis: H/W+S/W Failure rate prediction
─ System and network failure mode analysis
─ Zero Downtime Upgrade and Maintenance by Design
• People & Processes: Responsiveness & Global Support
─ Traffic assurance verification in Large Office test labs
─ Large System Integration Centers in all market environments
Asia, NA, SA, Europe, Asia
• Architecture: Engineered for Redundancy & Survivability
─ Self-Healing, Recovers in a Crisis
─ Overload Controls incl. Priority Service to Essential Services
─ Lawful Intercept (CALEA)

"I find that the harder I work, the more luck I seem to have."
- Thomas Jefferson

FCC-OET 9/22/03 -- 17
 Maintaining Security with VoIP
Voice Network Traffic
TDM VoIP
Control (OAM&P)
Dedicated Channels Shared Channels

Signaling

Public Network Bearer/Data Public Network

Network Security Hurdles: Remove Security Hurdles:

• Theft of Service • Strong device authentication
• Service Disruption • Secure OAM / Encryption
• Privacy • Strong operator authentication
– Bearer - eavesdropping • Network partitioning & access control
– Signaling – collect caller ID / information
• Voice and signaling accessibility
– Control - theft of subscriber info

FCC-OET 9/22/03 -- 18
 Packet Interconnect Between Carriers
Network 1 Network 2 Key
Packet Bearer Path
Call ISUP Call Signaling Path
Server Server TDM Bearer Path

(1) Tandem (2) Local or Tandem

Packet Offnet Traffic Between
Network Networks - Significant &
Growing Percent of Total
Minutes
A B C D

GW GW GW GW
TDM TDM
Office Office

Remove Barriers to Cost Reduction with Standardization of:

• Signaling Protocols
• Media Protocols
• Services Delivery
• Packet Interconnect Rules & Billing Agreements
FCC-OET 9/22/03 -- 19
Allow Carriers to Maximize Voice over Packet Architecture Advantages
 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 20
 Technical Transition Models

• Transition Models
• Enterprise Networks
– IP PBX
– Hosted Services
– VoIP VPNs
• LD Networks
• Local Networks
• Beyond Voice -- Multimedia Networks

FCC-OET 9/22/03 -- 21
 Transition Models
Overlay - Grow all new
line and trunks on VoIP,
Cap TDM
Evolve - Add IP interfaces to Rip & Replace - Replace
existing TDM infrastructure, existing TDM infrastructure with
VoIP
new growth on VoIP

Total Cost - $$ Total Cost - $ Total Cost - $$$

Softswitch Hybrid
TDM Softswitch
Softswitch
+
r ei rr a C

Carrier Carrier
Hosted VoIP Hosted VoIP
PBX or Key Hybrid IP
System PBX

+ or
IP PBX IP PBX
si r pr et n E

FCC-OET 9/22/03 -- 22
 Enterprise Transition
IP PBX

Evolve - Hybrid IP PBX Ovrelay (New) / Replace - IP PBX

• Churn users as needed – growth or • New offices or branch sites
service mobility • Minimize in-building wiring by
• Leverage existing CPE using data only connection

Remove Barriers to Profitability

• Retail IP Phones provide cost and feature flexibility
• Reduced cost IP connectivity to PSTN
• Enhanced end user mobility (campus-wide) – increased productivity
Over 25% of the US PBX base expected to
be IP-enabled by year end 2005
FCC-OET 9/22/03 -- 23
 Enterprise Transition
Separate Interconnect to VoIP VPN
Local LD Data
Provider Provider VoIP VPN
Provider
Provider

HQ Site 1

HQ Site 1

HQ Site 2

HQ Site 2

PBX Key IP PBX

PBX Key System IP PBX IP Centrex Centrex
IP Centrex Centrex Sites System Sites
Sites Sites Sites Sites Sites
Sites Sites Sites

•Separate voice & data links •Converged links – local, LD, data
•Separate local PSTN & LD connectivity •Simple mgmt, efficient b/w use
•Complex mgmt, inefficient b/w use •Improved access for remote users
Remove Barriers to Outsourced Private Networking
Drive New Carrier Revenue / Customer Retention
FCC-OET 9/22/03 -- 24
 Enterprise Transition
Hosted VoIP (IP Centrex)

Evolve – Hybrid IP Centrex Overlay (New) / Replace - IP Centrex

• Churn users as needed – growth or • New offices or branch sites
service mobility • Minimize in-building wiring by
• Leverage existing CPE using data only connection
Remove Barriers to Outsourced Voice – Save up to 35% over IP PBX
• Retail IP Phones provide cost and feature flexibility
• Outsource but retain control with improved end user management tools
and simplified moves, add, changes
• Avoid Long Distance charges
• Enhanced user mobility and feature transparency – campus-wide, at
home, remote offices, on the road – for improved productivity
FCC-OET 9/22/03 -- 25
Drive High Margin Carrier Revenue Stream - Differentiated Service Bundle
 Long Distance Transition

VoIP
VoIP

Overlay Evolve / Replace

• Add additional switching nodes • Convert or replace existing nodes
• Groom trunks to new VoIP nodes • Delay additional switching nodes
• Interconnect inefficiencies for later growth
between TDM and VoIP • Limit operational expense
Remove Barriers to Carrier Expansion & Service Introduction
• Improved Capacity - Relieves CPU Exhaust
• Fewer Trunk Groups, Muxes, X-Connects & Simplified Trunk Rearrangement
• 15-25% Reduction of Interconnect Ports between Switches
• Ability to Address New Markets at Low Cost

Provide up to 20% Carrier Cash Flow Improvement and Packet Infrastructure to

FCC-OET 9/22/03 -- 26
Speed IP Services Delivery
 Local Network Transition

VoIP VoIP

Overlay Evolve / Replace

• Add additional switching nodes • Convert or replace existing nodes
• Groom trunks to new VoIP nodes • Delay additional switching nodes
• Interconnect inefficiencies for later growth
between TDM and VoIP • Limit operational expense
Remove Barriers to Carrier Expansion & Service Introduction
• Eliminate Tandems, X-Connects, Trunking between Switch Nodes
• Reduce Switch Nodes by 50-85%, Equipment by 60-80%, B/W use up to 30%
• Expand Out of Territory at Low Cost
• Retain / Grow Centrex - National Centrex, Centrex IP, Churn PBX to Hosted IP
Provide 10-20% Carrier Cash Flow Improvement and Packet Infrastructure to
Speed IP Services Delivery FCC-OET 9/22/03 -- 27
 Beyond Voice – Multimedia Transition

Multimedia Existing
Phone
Overlay (New) / Replace Evolve - Converged Desktop
• IP phone required • Traditional voice services maintained
• Softclient flexibility – PDAs and PCs with new multimedia add-ons
become phones • Existing desktop retained - new phone
• Voice becomes a subset of data services upgrades at end user driven pace
bundle – delivered over DSL or data • Utilizes existing TDM SIMRING or IN
connection
• Enables ubiquitous service delivery
Remove Barriers to New Service Introduction
• Simplify communications – Personal Communications Mgr, Unified Messaging
• Enhance productivity – Video Calling & Conferencing, Web-Push / Co-Browsing
Provide New Carrier Revenue Stream & Differentiate Service Set
FCC-OET 9/22/03 -- 28
 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 29
 Business Transition
Network separate from Service
Network Transition
• Competitive Local: Cable, W-, CLEC
– Cities/Municipalities?
• More Competitive LD: IXC vs LEC
• Data Access:
– Res: DSL vs Cable
– Biz: LEC vs IXC
• Emerging Acccess Implications?
– Wireless LANs
– Fiber to the Home (FTTH)
Services Transition
• Voice: LECs  to Cable, W-,
CLEC
• Video: Cable  Broadband
• IM: Yahoo, AOL  to ASP
• Client Based Services
– SIP Clients
– Peer to Peer
– Napster Model
• Service Provider Based Service
– Yahoo, AOL, Microsoft, Apple
– Business specific Companies
– Bring your own broadband

Separating Service & Network permits Service ubiquity independent of access

FCC-OET 9/22/03 -- 30
 Business Transition
Transition Squabble, Struggle, Brouhaha

Cable Co’s Yahoo/AOL/MSN

LECs
Network/Access Services Apple/Microsoft
• Competitive Carriers: Cable, ISPs •IM: Yahoo, AOL  to ASP

Wireless • International Carriers: AT&T

• Data Carriers: UUNET
•Voice: LECs  to Cable, W-,
CLEC

Carriers –
–
Res: DSL vs Cable
Biz: LEC vs IXC
•Video: Cable  Broadband
•Next Gen: Yahoo, AOL, Microsoft, LECs, IXCs,
• Implication of Wireless LANs, Hot spots etc.

Industry Specific
(e.g. Banks, Gaming,
Brokerage..)
IXCs CLECs Cities/
Municipalities

Market will determine Niche vs End-to-End providers

FCC-OET 9/22/03 -- 31
 Business Transition
New Models
Providers move with customer to new Business Models
Network Based Services
• Network operators provide Service based on
Access (Network + Services)
• Partnerships: Yahoo/SBC - MSN/Verizon
• Mergers?
• Can drive Uniformity/Ubiquity

Service Provider Based Services

Client Based Services • ISPs offer ad hoc, interpersonal
• Peer-to-Peer communications brokerage
• Web/Napster • Bring your own broadband
• Pre-arranged Address exchange • Fwd.pulver.com, IM, Email
• SIP based clients • Reliability required?
Wiretap required?

Regulation will impact viability of new Business Models

FCC-OET 9/22/03 -- 32
 Agenda
Introduction
IP Telephony Overview
Technical Considerations
Technical Transition Models
Business Transition Models
Conclusions

FCC-OET 9/22/03 -- 33
 Conclusions
• Technology is decoupling Service from Access
• Users desire ubiquitous service access,
personalization and the freedom of mobility
• There are technology challenges that need to
be considered in developing and deploying IP
Telephony
• There are both technical transition and
business transition models to consider

FCC-OET 9/22/03 -- 34