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AT&T Business Services. Internet Telephony Conference Enterprise Roundtable: State of the Industry February 6, 2003. Joe Aibinder Director, AT&T VoIP Business Services. VoIP Industry Background - Evolution.
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AT&T Business Services Internet Telephony Conference Enterprise Roundtable:State of the IndustryFebruary 6, 2003 Joe AibinderDirector, AT&T VoIP Business Services
VoIP Industry Background - Evolution The value of VoIP is evolving from basic cost savings to leveraging convergence to enhanced value-added applications. Arbitrage Int’l-Domestic 1999 Convergence 2001+ Emerging Services and Applications 2003+ 1999- • The most frequent use of VoIP has been international settlements arbitrage • As settlements and PSTN rates decrease these advantages decline 2001+ • True Convergence of bandwidth • Voice and data are allocated dynamically on access and backbone facilities • Added bandwidth becomes available due to convergence of voice and data 2003+ • Emerging applications provide customers with competitive advantages
International Transport Network Interconnect settlements Domestic Transport CO or PBX CO or PBX International Office U.S. Office VoIP Evolution: Arbitrage Savings International Traditional Arbitrage-VoIP Replacement IP Telephony Router/Gateway Local Termination IP Transport IP Telephony Gateway
Voice Savings Opportunities 1. Switched Access Cost Reduction How? Single Access 3. Transport Cost Reduction How? Lower Converged Cost of VoIP 2.Switched Egress Cost Reduction How? Arbitrage On-Net Egress Switched or Nodal Access Egress Network 4. Operations Simplification How? Single Customer SPOC Single Network -Single NOC Convergence
Emerging Applications • VoIP will be the key IP application that drives the innovation -friendly IP architectures that stimulate the creativity of developers • The core generation of new IP communications and collaborative applications will include: • IM / UM / Presence • E-Contact Centers, IP-based Call Centers • Virtual Meetings / Collaboration (NetMeeting) • Desktop Multimedia • IP Centrex in a Box • Multi-Point Videoconferencing, etc. But what’s the emerging killer application??
Emergence of Native IP Environments IP Centrex, IP PBX, IP Phones, Soft Phones, Multimedia on the LAN 3G Wireless, Broadband Networks Enterprises seeking to save money on intra-company telephone calls and faxes Companies want web-based call centers/web callback/e-commerce New IP Based Features and Services Mobility Unified Messaging, Multimedia Conferencing Follow Me, Portals Technology Maturing with Open Standards for easier, faster innovation Converging Local, LD and Data services Voice Over IP Marketplace Drivers
VoIP Services DevelopmentBuilding Common Infrastructures and Technologies Enterprise Offers Managed VoIP: EVPN, Local: IP Centrex/Virtual PBX Managed PBX Apps/E-Contact International Next Gen. Network Global Clearinghouse New Hop-Off Core Network IP Tandem Class 4/5 Local Service Provider Wireless Broadband Wholesalers Broadband Offers PC Based Services
AT&T VoIP Offer Overview - Portfolio RoadMap For the Enterprise, AT&T’s VoIP Portfolio is based on providing a spectrum of services of increasing value…from basic voice services to enhanced applications . VoIP Portfolio Stack • Unified Msg. • Instant Msg. • Electronic Contact * • Portals • Conferencing Enhanced Applications • Mgd. Voice* • Intelligent Routing • IP SDN • IP Centrex • IP Phones • Soft Phones • IP PBX • ACD Advanced Enterprise Services (Switching and Routing) Value • SOHO • Distribution Centers • Headquarters • Branches • Satellite Sites • Broadband • MIS • Frame Relay • ATM • Wireless • Key Systems • PBX • On/Off Net* • International* Managed Data and IP (Basic Voice Services) Connectivity Location Premises Equipment Services *Available Today
Technology Overview - Advanced VoIP VoIP 201 VoIP call flow involves packetizing voice at the Gateway and routing the call via the Gatekeeper. VoIP is Packetized Voice • Real Time Transmission of Voice as Data Packets vs. Analog streams • IP packets, Frame packets, ATM packets • IP packets can be sent over Public Internet, Carrier VPN over CBB, or Private Data Network OSS and Ops Ctr Softswitches/Gatekeepers provide call routing, call control and various management functions Softswitch/Gatekeeper 5 Source MM PC Ethernet Source IP Phone Router Ethernet Ethernet 6 Destination(PBX, Central Office, or LAN) Source PBX 3 3 4 4 IP Network Source Voice/Fax Gateway Router 7 DestinationVoice/FaxGateway Router 1 1 6 8 9 2 Gateways compress the 64K analog channel into an electronic data packet stream. Direction of call PSTN
Growth for IP Voice Services Industry analysts at IDC state,“IP Telephony service revenue will grow at an annual rate of 50 percent for the next five years, increasing from $3.5 billion in 2002 to $35 billion in 2007.” Source: IDC Worldwide Telecom Black Book, November 2002
VoIP Service Options: AT&T’s Voice over IP Services Portfolio Managed VPN Customers: Add voice to current VPN Network Managed Internet Services customers: Add voice to their Internet connection; Jan. 2001 Managed Router Services customers: Add voice to their Frame Relay services Managed Data Network Services Frame Relay Offer to 40 Countries; Sept. 2001 Added D-3 Speeds and extranet extensions to offers; Nov. 2001 Enterprise Office or Hop-Off Enterprise Office Public Switched Network PBX CO or PBX Domestic Transport Domestic Transport International Transport US US IP Transport Router Router Managed Frame Relay Can be US or Global
AT&T’s VoIP Portfolio Enhancements: Spring 2002 VON Announcement AT&T interworks its VoIP services, leveraging its Managed IP, FR and ATM platforms On–Net and Off-Net VoIP services extended to all AT&T’s Global VoIP Sites PBX Router MIS AT&T Managed IP PSTN MRS & MDNS AT&T Frame / ATM PBX Router • Managed Data Network Services and Managed Router Services (MDNS and MRS) with VoIP • Global Frame Transport with QoS enhanced with • ATM transport option • Domestic access speeds up to T-3 • - Hop-Off to PSTN anywhere in the world • Managed Internet Services (MIS) • with VoIP • IP Transport with enhanced QoS plus: • - 768kbps to T-3 access speeds • Global On Net, with MRS and MDNS VoIP Sites • Hop-Off to PSTN anywhere in the world
IP telephony equipment vendors in pitched battle over the premises Cisco started it: Traditional PBX vendors now heavily in the fray Customers new risk, “don’t want to invest in obsolete PBX ” Customers want to minimize risk in migrating to new IP model HQ ITS vs. Divisional ITS; ITS manager’s job is on the line Object of trial: Define business case and prove in solution ITS internal trials can be first experience Remote/greenfield sites running internal traffic - safest starting point International sites: best economics but support can be issue Contact center traffic is mission critical and last to put at risk Carriers need to reach production scale for sustainability Key: Demonstrate quality, provisioning and customer support Pilot is opportunity to shine so plan for security, redundancy ….. So what is really happening in the market?
Current IP PBX Alternatives for Voice Services IP PBX vs. Legacy Hybrid Implementations PC Phone Client PCs IP Phone IP Phone IP Phone 4E Network Remote Location IP PBX IP PBX Router Router IP Network CBB Premises VoIP Gateway PC Phone Client LEGACY HYBRID Router Local PSTN Network IP Card Premises VoIP Gateway Existing Customer PBX Key IP PBX Issues: Connectivity to LEC Premises, LAN Support Proprietary PBX Implementations Service Interworking with Network TDM Phones
Next Evolutionary Phase:Network Based IP TelephonyVirtual IP PBX Configuration IP Phone SIP Phone 4E Network IP PBX AT&T Hosting Center TDM Phones Remote Branch or Teleworker Router Cable or DSL IP PBX IP Network CBB VPN/Router or TA Adapter Network Hop-Off Gateway (Optional) Premises VoIP Gateway PC Phone Client Local PSTN Network Key Virtual IP PBX focus: Application Consistency Premises, LAN Support Local, Inbound Services
Current IP Centrex Standard Configuration Today IP Phone SIP Phone 4E Network Call Controller with IP Centrex TDM Phones Remote Location IP Centrex Router Router IP Network CBB Adapter Network Hop-Off Gateway (Optional) Premises VoIP Gateway PC Phone Client Local PSTN Network Key IP Centrex Issues: Premises, LAN Support Local, Inbound Services Redundancy, failure points
IVR Content PSTN PSTN IVR / Call Center Integration Conceptwith SIP Based VoIP Services VoIP SoftSwitch signalingpath Callers 800 signalingpath 800 call VPN AT&T IP Network VPN Call Center Call Center New GenCall Centers Call Center VPN VoIP Gateways SwitchedAccess Call Center Call Center Call Center Switched Access Call Center Call Center Legacy CallCenters VoIP Gateways Call Center NGN LegacyCall Centers
VoIP works well, provided you: Have a well-managed IP network with low packet loss, latency and latency jitter delivered through over-engineering and/or QoS Have gateways that introduce minimal latency packetization and jitter buffer delays < 100 ms Address interoperability between Gateways and routers Softswitches/gatekeepers and gateways Softswitches/gatekeepers (multi-domain calls) PSTN Signaling and VoIP Signaling Have good CODECs in the gateways that delivers efficient encoding while maintaining good sound quality Understand how to tune the gateways automatic gain control settings, echo cancellation, etc. Understand how to hook the gateways up into COs, PBXs and international switches. VoIP - What does it take to make it work well?
VoIP QoS Monitoring for Network Averages (Watchdog) This internal tool watches the network paths between customer sites for quality. Voice must be sampled more frequently than data to capture quality issues. Based on “R” factor thresholds, auto-tickets are created for possible network reroutes around congestions. VoIP QoS Monitoring for Individual Customer Calls (NPR) Call rating is presented on a secure web site for customer review. NPR customer reports will be the basis for future VoIP SLAs AT&T’s VoIP Service DMOQs Latency, Jitter, Packet Loss, Call Completion, Blocking, Availability, Post dial delay, Time to restore and provision “R” factor (ITU G.107, May 2000) Uses the ITU “R” Factor VoIP Standard Rates calls based on latency, packet loss and jitter according to the ITU G.107 & G.114 standard. Voice Quality Monitoring & Rating
Critical Success Factorsfor the VoIP Services Model • Comprehensive, Global, IP portfolio that includes premises support • Security, Reliability and Redundancy are Critical • Transparent, seamless IP services delivery with efficient interworking among networks and technologies • IP and legacy data networks (FR,ATM) • Legacy and IP Telephony Premises Systems • IP and PSTN Networks • IP technology and protocols migration (H.323, SIP, etc.) • IP Applications (VoIP, IM, Video, UM, Conferencing etc.) • Attractive economic incentives for migration to IP technologies • Convergence of voice and data facilities with dynamic bandwidth • Simplified network management and improved network ROI • QoS and SLAs • Establishing clear, manageable, migration path from the customer’s starting point to the innovative IP applications of the future