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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
AT&T Business Services

Internet Telephony Conference Enterprise Roundtable:State of the IndustryFebruary 6, 2003

Joe AibinderDirector, AT&T VoIP Business Services

slide2

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
slide3

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
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
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??

voice over ip marketplace drivers
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 development building common infrastructures and technologies
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

slide8

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

slide9

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

slide10

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
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

slide12

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
so what is really happening in the market
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
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 telephony virtual ip pbx configuration
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
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 call center integration concept with sip based voip services

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 what does it take to make it work well
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?
voice quality monitoring rating
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
slide20

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
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