wtpf – 2001 on ip telephony · 2001-05-10 · wtpf - ip telephony 3 overview of wtpf (held in...

WTPF WTPF –– 20012001On IP TelephonyOn IP Telephony

(Seminar in Niamey, April 2001)(Seminar in Niamey, April 2001)

Note: The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU or its membership.

Saburo TANAKACouncellor, TSB/ITU

[email protected]

2WTPF WTPF -- IP TelephonyIP Telephony

AgendaAgenda

l Overview of WTPF ð Purposeð Agenda for WTPF

l What are the issues?ð What is IP Telephonyð Opportunities and challengesð Policy and Regulatory issues

l What will be the impact of IP Telephony? ð In developed countriesð In developping countries

l Results of WTPF


Overview of WTPFOverview of WTPF(Held in Geneva from 7(Held in Geneva from 7--9 March 2001)9 March 2001)

l Purposeð To provide a forum for discussion and for exchange

viewsð WTFP shall not produce prescriptive regulatory

outcome but prepare reportPurpose

l The agenda of the WPTFð The general implication of IP Telephonyð Actions to assist Member States & Sector Members to

facilitate adaption to the new environmentð Action to assist MS & SM in meeting the human

resource development

l Attendance ð WTFP was attended by 757 persons (121 MS including

25 LDC, 99 SM)


What is IP Telephony?What is IP Telephony?l Definition

ð IP Telephony: a generic term for the transmission of voice, fax over packet-switched IP-based networks

ð Voice over IP: The transmission of voice over circuit employing Internet Protocol

ð Internet Telephony: Transmission of voice over the Internet

A wide variety of services can be provided using combination of: the type of terminal devices used, where the gateways are located and the underlying means of transmission. WTPF had only “working definition” and it requested ITU-T to define more clear definition on “IP Telephony” and “Internet Telephony”.

A call from the GSTN to an IP terminal

GSTNIP network IP access

H.323.POP(Gateway)

Normally a local call,

handled by Telco A

International geographic part of the call. There is no 1 to 1correspondance to normal PSTNdistance

International geographic part of the call. There is no 1 to 1correspondance to normal PSTNdistance

International boundary

Carrier Domain

IP-Based network domain

T 0 2 0 8 5 0 0 - 0 0( 1 0 6 1 4 7 )

I P N e t w o r k

IW F

T e r m i n a t i n gN e t w o r k

L o c a l o r d i s t r i b u t e df u n c t i o n C a l l i n i t i a t e d f r o m P S T N / I S D N / P L M N

t o P S T N / I S D N / P L M N

P S T N / I S D N/ P L M N

IW F

P S T N / I S D N/ P L M N

L o c a l o r d i s t r i b u t e df u n c t i o n

O r i g i n a t i n gN e t w o r k

Call from International Telecommunication Network (ITN) to another ITN via IP-based Network

T0208480-00

IP Network

IWF

H.323 or SIP[1]terminal

IPAccess

Local or distributedfunctionCall initiated from IP Network

to PSTN/ISDN/PLMN

PSTN/ISDN/PLMN

(106147)

Call from IP Network User to the ITN

T0208490-00

IP Network

IWF

H.323 or SIPterminal

IPAccess

Local or distributedfunction Call initiated from PSTN/ISDN/PLMN

to IP Network

PSTN/ISDN/PLMN

(106147)

Call from ITN to an IP-based Network user

T0208510-00(106147)

IP Network

IWF

H.323 or SIP[1]terminal

IPAccess

Local or distributedfunctionCall initiated from IP Network

to PSTN/ISDN/PLMN

PSTN/ISDN/PLMN

H.323 or SIPterminal

IWF

IP Network

IPAccess

Local or distributedfunction

Call from an IP-based Network user to another IP-based Network user via an ITN

1. Computer to computer1. Computer to computer

l Needs similarly equipped Internet users (e.g., IP telephony software, multimedia PC etc), both logged-on simultaneously

l Main motivation: avoidance of usage-based telephone charges

l Software vendors include VocalTec, Camelot etcl Market: Less than 15 million potential users?

Internet

Phone Gateway Computer Phone Gateway Computer

2a. 2a. Computer to Computer to telephone or telephone or faxfax

l Suitably equipped Internet users able to call any telephone user (not necessarily vice versa)

l Main motivation: Reduction of international telephone charges

l Service providers include IDT (Net2Phone), FWDl Market potential : Sending <15 million equipped

users, receiving >800 million telephone users

Phone GatewayComputer

TelephonePublic Switch

Internet

Desktop PC

2b. 2b. Computer Computer to service to service provider provider telephonetelephone

l Suitably equipped Internet users browse Website and choose voice/video connection option

l Main motivation: Service provider can interact directly with potential clients, via voice or other electronic means

l Market potential: Integration of sales-oriented web site and telemarketing. Pornography, Gambling ...

Web Server

Public Switch

Internet

Desktop PCPhone GatewayComputer atService Provider

3. Telephone 3. Telephone to telephone to telephone (fax to fax) (fax to fax) via Internetvia Internet

l Any telephone user to any otherl Main motivation: Accounting rate bypass, market

entry for non-facilities-based carriersl Potential service providers include any PTO with

settlement payments deficit (e.g., US = US$5.7bn)

l Market potential : 850+ million telephone users

Telephone TelephonePublic Switch

Internet

Phone Gateway Computer

Phone Gateway Computer


Opportunities and challengesOpportunities and challenges

l Opportunities ð Unifying platform for emerging converged networkð Reduce prices to consumers and the costs of market

entry for operators ð In terms of volume of traffic carried and level of

investment committed

l Challenges ð Undermine the pricing structure of the incumbent

Public Telecommunication Operators (PTOs)ð Transition to IP-based networks also poses significant

human ressource development challenges


IPIP--based networks = the technology based networks = the technology of choice?of choice?

l Several major PTOs will migrate all their international traffic onto IPð The apparently lower cost of moving traffic over

IP-based networkð Necessity in the age of the Information Societyð May serve as a dynamic stimulus to economic

growthð To offer much wider and diverse range of multi-

media services and innovative applications

l But how about for developing countries? ð No answer, study requested to ITU-T

The influence of IP Telephony on priceThe influence of IP Telephony on price

l IDC forecasts that “Web Talk” revenues will reach US$16.5 bn by 2004 with 135 billion mins of traffic

l Gartner Group forecast that IP Telephony and competition in Europe will reduce prices by 75% by 2002

l IP Telephony as % of all int’l calls in 2004ð Tarifica forecast 40%ð Analysys forecast 25%

l In developing countries, the majority of IP Telephony calls are incoming Source: IDC.

0.208

16.5

2000 2004

“Web Talk” revenues, US$bn

Minutes of use by month, Minutes of use by month, Hongkong SAR ('000s)Hongkong SAR ('000s)

Source: OFTA (www.ofta.gov.hk)

0

250

500

750

1'000

1'250

1'500

498

698

898

1098

1298

299

499

699

899

1099

1299

0200

Dial-up Internet (via PSTN)

International voice (incoming and outgoing)

Deutsche TelekomDeutsche TelekomPercentage change in call Percentage change in call volume (minutes) 1998/99volume (minutes) 1998/99

-7.1%

Domesticlong-

distance

-2.1%

Int'loutgoing

calls

7.2%

Local calls

36.0%

Calls tomobile

networks

86.3%

Calls toInternet (T-

Online)

Source: Deutsche Telekom annual report.

DialDial--up Internet traffic as % of up Internet traffic as % of total traffic minutestotal traffic minutes

38%

27%19.5%

8.5%

18%12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1998 1999

Telia (Sweden)

Telecom Portugal

Telenor (Norway)

Source: PTO annual reports. Note: For Telia, Internet traffic as % of local minutes. For others, as % of total

Infrastructure capacity and costs, Infrastructure capacity and costs, TransAtlantic cables, 1988TransAtlantic cables, 1988--20012001

Source: ITU, adapted from FCC.Note: Circuit costs assume a usage level of 18%, a compression level of 5:1 and a life-time of 20 years.

1

10

100

1'000

10'000

TAT-81988

PTAT-11989

TAT-101992

TAT-12/131996

AC-11999

TAT-142000

FlagAtlantic2001

Cir

cuit

cost

p.a

. (U

S$)

1

10

100

1'000

10'000

100'000

Cir

cuit

cap

acity

(64

kbit/

s, 0

00s)

Circuit capacity, rising by 89% p.a.

Circuit costs, falling by 72% p.a .

+0.28 US$

Receives 0.30 US $ for terminating charge

Pays 0.02 US $ for local call.

Retains 0.28 US $

0ISP in

Developing country

-0.53 US$Receives US $ 0.02 local call charge.

Receives US $ 0.55 settlement.

PTO in Developing

country

+0.25 US$

CollectUS$ 1.00 from user

Pays US$ 0.30 to ISP for terminating call.Retains US$ 0.70

Collect US$ 1.00 from user

Pays US $ 0.55 settlement.

Retains US $ 0.45

PTO in Developed

country

DifferenceIP-TelephonyAccounting Rate

ChallengesChallenges

Revenue gain and revenue loss


Different Policy and Regulatory Different Policy and Regulatory approaches approaches

l Possible government policy objectives for IP-Teleph.

ð Universal Service/Universal Accessð Affordable telecommunications servicesð Tariff re-balancingð Ensuring a level-playing field for competitors and new

entrantsð Promotion of new technologies and servicesð Stimulating investment in network build-out and new

servicesð Impact on revenue streams of incumbent operatorsð Technology transferð Human resource developmentð Economic growth as a whole and in particular in the

communications sector.


The general pictureThe general picture

At present, several broad national policy emerge

ð First, there are countries that include some or all forms of IP Telephony within their regulatory system ð Second, there are countries that prohibit IPTelephonyð Third, there are countries that do not regulate IP Telephonyð Lastly, there are countries where the situation is uncertain or the issue remains to be formally

addressed.

Status of IP Telephony in ITU Member StatesStatus of IP Telephony in ITU Member States

Cyprus, Ethiopia, Kenya, Peru, PhilippinesCountries that permit voice/fax over IP based networks but prohibit over public Internet

Albania, Azerbaijan, Belize, Botswana, Cambodia, Cameroon, Côte d’Ivoire, Croatia, Cuba, Ecuador, Eritrea, Gabon, Indonesia , India, Israel, Jordan, Latvia, Lithuania, Morocco, Mozambique, MyanmarNicaragua, Nigeria, Pakistan, Paraguay, Qatar, Romania, Senegal, Seychelles, Swaziland ,Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey

Countries that prohibit the use of both the Public Internet andIP-based networks for voice or fax services

Australia, Canada, China, Korea (Rep.), MalaysiaPermitted. If real-time, treated similarly to other voice telecommunications services (licensable, subject to more extensive provisions of voice regulation)

Czech Republic, Hong kong SAR, Japan, Singapore, SwitzerlandPermitted. If real-time, subject to light conditions (notification/registration may be required, other basic provisions of voice regulation

EU Countries5, Hungary (if delay =/>250ms and packet loss >1%),

Iceland

Permitted or not regulated, if not real-time (not considered

voice telephony)

Angola, Antigua and Barbuda,1Argentina, Bhutan, Congo,Costa Rica, Dominican Republic, Estonia2, Gambia, Guatemala, Guyana, Madagascar, Malta, Mexico, Mongolia 2, Nepal, New Zealand, Poland, Slovak Republic, St Lucia1, St Vincent3, Tonga, Uganda, United States4, Viet Nam

No specific prohibition for voice/fax over the Public Internet or over IP-based networks


Other Policy and Regulatory issuesOther Policy and Regulatory issues

l License restrictionð A few countries expressly license PTOs to

provide IP Telephony -l Regulatory distinctionð Type of service, Voice or Data, Mode of

network transmission, Quality of service l Ffunctional equivalencel Technological Neutralityl Impact of IP Telephony on Universal

Service/Access

Developing country concernsDeveloping country concernsl Developing countries receive no international

settlement payments for IP trafficð Increasingly, incoming IP traffic includes IP

telephony and fax traffic which they must terminate

l They must pay to peer with US/EU backboneð Peering costs are rising as IP traffic continues to

grow exponentiallyl They must pay both half-circuits of the

International Private Line to the foreign ISPð Even though traffic flows in both directions over the

circuit, once it is establishedl Telephone and fax traffic shifting to the Internetð What will replace the US$7 bn from settlements?

Pricing IP for voice servicesPricing IP for voice servicesl In competitive, low-price marketsð Main market opportunity for IP Telephony is for

value-added services, e.g., unified messaging

l In markets in transition to competitionð IP Telephony offers a route towards early

introduction of competition and creates downward pressure on prices

l In high-price, monopoly marketsð Where permitted, IP Telephony creates opportunities

for low-cost callsð Even if not permitted, IP Telephony is widely used to

reduce costs of international call termination

IP Telephony wants to be “free”IP Telephony wants to be “free”

0

1

2

3

4

5

6

18-Oct-99

22-Nov-99

10-Dec-99

12-Jan-99

04-Apr-00

Reg

iste

red

use

rs (

mill

ion

)

0

50

100

150

200

250

300

350

Cal

l min

ute

s (m

illio

n)Users

minutes

Cumulative number of Dialpad users & call minutesSince launch on 18 Oct. 1999

Source: ITU, adapted from DialPad.com press releases.

Opinion AOpinion A(The general implication of IP Telephony)(The general implication of IP Telephony)

WTPF is of view thatð IP Telephony application are best supplied in a market in which

consumers have choiceð Government regulation should aim to foster an effective competitive

environmentð Regulation may be appropriate where there is market failure or when

public interest cannot be adequately met by industryð Member States should examine the implication of applying existing

regulatory regime to IP-based services and application

WTPF invitesð MS & SM to consider the possibility of the introduction and of the

deployment of IP technologies and IP applicationð All MS to review their current regulatory framework with a view to:

– Encourage investment– Achieving public policy goals in the context of a converged communication service

environment– Considering the possibility of opening their communication services market with

respect to IP Telephony by adopting a competition oriented approach

Opinion BOpinion B(Action to assist MS & SM in adopting to the changes in the (Action to assist MS & SM in adopting to the changes in the

telecommunication environment due to the emergence of IP Telephotelecommunication environment due to the emergence of IP Telephony)ny)

WTPF invite the Secretary General and the Director of the Bureauxð To promote understanding of the potential benefits of IP-based

technologies and IP application to assist MS &SM, particularly developing countries

ð (i) by updating previous IP Telephony case studies;ð (ii) by carrying out cost studies;

(iii) by helping to attract investment and promoting the use of international lending, Bureaux

ð In the pursuit of the above, to conduct regional workshops in partnership with Member States and Sector Members(i) how telecommunication infrastructure build-out;(ii) technologies that can support IP Telephony;(iii) how to create an environment that will attract investment;(iv) issues such as cost structures, pricing mechanisms, interconnection, numbering, quality of service and market consideration, etc.

Opinion COpinion C((meeting the human resource development challenges)meeting the human resource development challenges)

WTPF invites the ITU, in particularly ITU-D ð to facilitate the sharing of knowledge and views, by Member States and Sector

Members

Invites ITU-Dð 1 to encourage Member States and Sector Members to create integrated human

resources transition plans;ð 2 to assist Member States and Sector Members in evaluating and identifying new and

changing human resources requirements; ð 3 to draw upon existing BDT research and skilled personnel to identify:ð (i) HRD/HRM and training issues related to network evolution;ð (ii) HRD/HRM and training issues related to new technologies, including IP; ð (iii) skills leading to the creation of a business environment that will attract

infrastructure investment,

Invites ITU-T and ITU-R….Invites Sector Members…Invites SM & MS….invites ….

Opinion DOpinion D(Essential studies by the ITU to facilitate the introduction of (Essential studies by the ITU to facilitate the introduction of IP IP

Telephony)Telephony)

WTPF invites the three ITU Sectors ð each, for matters within its competence, and based on contributions from ITU Member

States and Sector Members, to initiate new studies or pursue current ones, and to present any findings as soon as possible, to facilitate the introduction of “IP telephony” on a global basis, particularly with respect to:

ð 1. in ITU-R,compatibility and inter-operability of radio access between IP networks and PSTNs,

ð 2. in ITU-T,

a) a clear working definition of “IP telephony” and “Internet telephony”;b) whether, and to what extent:

ð i) to require compatibility of “IP telephony” with the existing international telephone service;

ð ii) compatibility should also include, but not be limited to, aspects of performance;c) whether, and to what extent:

ð i) to consider the possibilities of how “IP telephony” can be a part of national PSTNs;

ii) aspects of traffic identification and measurement;d) identifying the cost elements of international IP connectivity

ð 3. In ITU-D, taking account of the need of developing countries to plan a strategy of migration for their

networks into IP-based networks

wtpf – 2001 on ip telephony · 2001-05-10 · wtpf - ip telephony 3 overview of wtpf (held in...

Documents