Challenges of Delivering Rural VoIP (SP-04)

What is the compelling reason to offer VoIP? High cost of entry into VoIP..

Technical staff learning curves Expected return on investment Class 5 Legacy issues

Poor voice quality & reliability of VoIP transport.. Access gateways, E-911, LNP, 1-800, Operator Services Costs to upgrade network to provide expected high QoS

broadband access - what flavor DSL?

Rapid technology evolution – life cycle?

Telcos’ core business shifts from POTS to IP services carried on ultra-broadband PIPES…….POTS-To-PIPES (P2P)

People moving off ‘wireline’ as a must have connection• Cheaper LD with VoIP and Better mobility with cellular

Directions – Existing Telcos

Telecom Evolution for Rural VoIP

New signaling protocols will be more effective than existing AIN and ubiquitous (SIP)

Corporate sponsors will pay for transport, offer free public phone calls

listen to a 15 second message from the sponsor IXCs role will change

IP centric QoS transport, network management, Core network application service providers and LECs will

prosper if IP enabled LECs will benefit by providing transport access and specialized

applications at the network edge. Local peer to peer switching,

Core applications for network intelligence; E911, routing, LIDB,

Turnkey solutions available for Rural Telcos

Core/Satellite Options for Rural Telco

CoreConfiguration

PSTN Tandem

RemotePSTN

Class 5

SatelliteConfiguration

PBX/Keysystem

IAD

Out-of-Region Area - 1

SatelliteConfiguration

PBX/Keysystem

IAD

Out-of-Region Area - 2

VoIP TerminationCarriers

• Regional traffic stays in region• Avoids backhauling

• LD routed to maximize profitability• Ability to maintain Access/Termination fees

• Backhauled cost reduced via IP• Local Gateway Utilized for pure LD plays

LocalPSTN

Class 5

Trends in Long Distance Voice Transport

Voice over Internet becoming extremely inexpensive means to transport voice and data..

Long distance commoditized, charges becoming inconsequential…or zero

Commercialization of voice transport, “free ride” • Sponsors pay for transport• Users pay for access.

New DWDM technologies will continue to keep supply of transport high and prices low.

Bandwidth expanding rapidly Inherent QoS improvements for VoIP

Innovative applications leveraging embedded intelligence in IP and PSTN gateways..

Applications readily customizable for specific client needs Pay as you go for specialized access and features / utility Video conferencing will lead way to Video over IP

But, Do not overlook Basic Engineering Requirements

Network Engineering is critical for VoIP to deliver expected QoS to subscriber

Network Engineering Considerations

Bay Networks

LD Toll Tandem with LCR

Bay Networks

Class 5

CSA2

PRICAS

SS7 -F

EdgeIQClass 5

Class 5PRICAS

SS7 -F

1 2 3

4 5 6

7 8 9

* 8 #

VoIP Dialtone - IP Phone

EdgeIQClass 5

Network A

Bay N etw o rks

CSA1

IP Trunks

Network DIXC,A,B,C...

IP Trunks

Network B

Network C

Link

IP trunks

Network

Other Rural VoIP Challenges

1) VoIP results in bypass of access/termination fees Use existing CLASS 5 and TDM Carrier terminations

2) 911 service to VoIP subscribers must be provided Configure system to use existing PSAP connections Outsource E911 management available for VoIP

3) DSL speeds are a big factor in VoIP quality Low speeds in the 120kbps range do not support VoIP protocols that take

up to 100kbps VoIP can be compressed to a lower quality 33kbps SIP based DLC/DSL can also solve VoIP bandwidth issues, and reduce OAMP

and backhaul costs 4) Rural carriers must deal with TDM, ATM and IP networks

Operational cost of technical resources, infrastructure components & test/diagnostic equipment

Consider solutions that evolve to a pure IP network infrastructure 5) PSTN subscribers are dropping in the USA

VoIP dial tone service includes CLASS and V/M features @ 1/3rd the Price Cellular services can be bundled w/PSTN and VoIP to attract users New SIP enabled “sticky” services retain customers

Compelling Reasons to deliver VoIP

Competitive offering to prevent subscribers from changing service to “Vonage” type, IM type, VoIP

Access to IP- LD networks for reduced operating costs, and customer retention..

Supply and Demand – Economics of high supply of IP bandwidth

Technology obsolescence – VoIP will reduce overall value of legacy transport systems to basic commodity.

Relocation of network intelligence to the core and edges of the network to provide revenue generating applications.

Potential “Sticky” services

Ringback Tones

Create a globally recognized BRANDED ringback tone

Revenue generating• Subscribers customize

sounds from your content

• Subscribers utilize ring interval to deliver personal voice messages.

• Provider of Subscriber uses interval as advertising time.

ARPU = $1-3/month service fee plus per tone cost

* Average airtime of 9 sec

express yourself with…

Find me Follow me

discover smart tracking with…

Links locations and telephone devices to a single Directory Number and optional Voicemail

TDM and IP terminations.

Subscriber can change terminations.

Can be offered as part of a VoIP dial tone service or independently.

Inbound only or bi-directional.

Hello?

Hey Jack, where are

you?

Hi Kate, I’m

already at the club!

CallPodsexperience instant call fusion…

Differentiate Your VoIP service

Outgoing VoIP call rings at all “Pod” defined numbers

All sites that answer call are instantly conferenced

Connect your subscribers with friends, family, colleagues

Hello?

Hello?

I’m there in about 15

minutes… meet you at

the door

I’m already here…you’d better hurry, it’s getting

busy

Hi guys, I’m leaving

in 5

Customer can seamlessly moves calls between Wi-Fi / VoIM / VoIP / PSTN, and cellular networks

Cellular network never takes control of the call Auto Leap..QoS triggered Leap Can be one number/ one voice mail

By 2007 85% of all cell phones sold will be dual mode.

LocalPSTN

Class 5

VoIP

VoIM

Addressing Challenges of Delivering Rural VoIP (SP-04)

There is compelling reasons to offer VoIP High cost of entry into VoIP can be minimized through

turnkey solutions Voice quality & Reliability of VoIP transport Requires

Fundamental Engineering Practices available from Turnkey solution providers

LD charges being marginalized, Edge Intelligence key to Sticky Services

Rapid technology evolution – life cycle enhanced through SIP based VoIP