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Explore the market, phones, service providers, and enterprise solutions in the world of SIP. Discover the challenges and opportunities in the SIP industry.
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The Real World of SIPA Business Perspective Trefor Davies – ETphones.net Board of Directors, SIP Forum. Co-chair Certification Working Group Sip:tref@sip.etphones.net Email tref@etphones.net +44 1522 533 888
Agenda • Where have we come from? • Review of market • Phones • Service providers • Enterprise • The anatomy of a real SIP system • Where do we go?
BlueWin eAccess Broadband Services WorldCom BT Telus Telstra TalkingNets SIP Service Providers • bConvergent • Callserve • Deltathree/iConnect Here • Exario • Level 3 • iBasis • Telia • Denwa • Vonage • BroadSIP • Song Networks • Sonera • CoolCall • Korea telecom • Peerlinx (wireless) • GoBeam
BlueWin eAccess Broadband Services BT Telus Telstra SIP Service Providers • bConvergent • Callserve • Deltathree/iConnect Here • Exario • Level 3 • iBasis • Telia Sonera • Vonage • BroadSIP • Song Networks • Korea Telecom • Peerlinx (wireless) • GoBeam
BlueWin eAccess Broadband Services MCI BT Telus Telstra Voice Pulse Voz Telecom Fordyce Bredbandsbolaget Xtraphone KDDI IAXTEL TeleSIP.net Free World Dialup Net2Phone SIP Service Providers • Vonage • SIPphone.com • BroadSIP • Song Networks • Addaline • DialPad • KT • Peerlinx • GoBeam • SIPTel • NTT • Iptel • Primus • Mobitus • ETphones.net • bConvergent • CallServe • Delta3 iConnect Here • Exario • Level3 • Telia Sonera • iBasis • Packet8 • CallUK • Japan Telecom • Telio • Most US ILECs in process
Service Providers in Japan • Market getting very competitive • Broadband market split roughly • 30% Yahoo Broadband (MGCP) • 70% NTT, KDDI, Japan Telecom (SIP) • 120m people • 40m households 10m of whom have broadband (8Mbps or 24Mbps) – note gov’t target is 75% by 2006 – ie 30m. • 80% (ie 8m) of these have Residential Gateway • =>roughly 5m SIP subscribers, mostly through black phone into residential gateway
Enterprise Activity • Enterprise solutions • Pingtel, SNOM, MKC Networks, Siemens, Microsoft, eDial, Intertel • “Hosted solutions” • Broadsoft, Sylantro, Vocaldata… • Mainstream Enterprise Voice vendors – SIP about to move on from being mostly roadmap • Features
Some Enterprise Implementation Examples • Yale University -16k users • IBM – stated aim to have entire worldwide workforce using SIP by 2006 (600,000< people) • Reuters • University British Columbia
Anatomy of a SIP service Easy for new players to get in the market • Drivers • Regulatory • Local Numbers & ENUM • SIP server • The NAT issue • Applications • Conferencing • PSTN connectivity • Billing • Marketing • Dollars
Drivers For SIP Services • Toll bypass • Still currently mostly restricted to new kids on the block – actually driving incumbents to change • Good potential for ISPs looking for delta revenue • A few vendors and operators starting to try and take advantage of other benefits
Regulatory • High Profile in the USA • Pulver, - very careful not to call it a telephony service • Vonage/Packet 8 -Minnesota/California et al • Much less of an issue in Europe • UK completely deregulated – anyone can set up a service • Emergency services • Typically either not supported or via local PSTN gateway
PSTN Hook-Up • Termination is easy • Choices • global players (iBasis Level 3 etc) • smaller CLEC or • doing it yourself • Origination has been harder to find. • Dearth of numbers • Was a shortage of people offering it outside of USA
ENUM • ENUM trials at different stages of maturity around the world • Australia, Austria, Brazil, Canada, China, Denmark, Finland, France, Germany, Hungary, Ireland, Japan, Korea, Malaysia, Netherlands, Poland, Singapore, Slovenia, Sweden, Switzerland, Taiwan, UAE, UK, USA
Billing • Whole range of billing options available • Servers typically provide CDR data that can easily be interfaced to billing software of choice • Billing can be expensive - pricing pitched as % of revenues (3 – 4%) • Some server vendors provide integrated billing solutions
The NAT issue • Mix of solutions out there • Stand alone • Solutions integrated with other features eg DSL modem/ SIP comms server/firewall • Session Border Control • Softphones sold with STUN server hookup • Intelligent solution with STUN & RTP relay options
The NAT issue – some numbers • Take 1 E1 –> 2Mbps = approx 62 concurrent G729 calls • Assume 1 in 10 using the service at any given time = 620 users • Rule of thumb – 20% users behind symmetric NATs =>3,100 total subs per E1. • 1Mbps secure bandwidth can cost up to $10k a year
NAT continued • Best Case • Service provider provides SIP enabled residential gateway or adapter or all phones are STUN enabled – very low server bandwidth needs • Current pragmatic option • Use intelligent NAT detection in server – 2Mbps serves 3100 subscribers ($6.45 per sub) • Worst case • Service Provider relies on purely RTP relay approach – 2Mbps serves 650 subs ($30.75 per sub)
SIP Server • Most SIP server vendors had to change strategy - server alone was not saleable during hard times • Now just seen as an essential commodity - part of a wider portfolio • (eg as a key part of a systems integration activity or applications offering) • Performance should still be viewed as a differentiator
Conferencing & media servers • 3 Basic Choices: • “Carrier class” hardware based solutions – typically a partnership between media server and apps company • Software only – runs on standard platforms – big benefit is scalability and economic price points • Open source products – experience to date suggests some way to go on quality
Other Applications • Big thrust is presence and collaboration aka Openscape, Windows Messenger etc • Disappointingly few presence based services out there at the moment other than the traditional ones (non SIP) and specific enterprise product rollouts. • SMS ringback • Easy to do with SIP
Marketing • Most important driver of business success & very cash dependant • Vonage advertising on TV in USA • Estimate 250k customers by end 2004, 1m by 2006. Just raised $35m • Free World Dial Up • Approx 125k? subs. Uses resources of pulver.com. Free PSTN calls promotions
Dollars • ITSP setup costs €40 - €60 per subscriber in first year (assumes own hosting) • For an ISP typical delta revenues of €8 a month brings fast recovery of investment
Conclusions • 2004 is the year SIP companies start making profit • Service Providers everywhere coming off the fence – often against their will. • With basic infrastructure in place road is clear to start taking advantage of what SIP can really offer