# Presentation: 035538

## Future Applications of Voice Over IP – Challenges & Obstacles 

**Future Applications of Voice ****Over IP – Challenges & Obstacles **

**Joe Rinde**
**4 September, 1997**

## Technology Implications

**The Future of Voice Over IP Is a New Way to Communicate**
**The Future Is Not in Cheaper Voice**
**A Way to Communicate As Different From Telephone**
**As Telephone Was From Telegraph**

## All Or Nothing?

**Future Communications Will Use**
**Packet Switching**
**And Circuit Switching**
**Both Will Be Used to Deliver Integrated Services**
**Users Will Benefit by**

**Paying the Lowest Possible Price for Services**

**Receiving the services they want**

## Single or Multiple Lines?

**Should All Services be on a Single Line?**
**Sometimes**
**The Provision of Services**
**Independent of Network**
**In the Most Cost Effective Manner**
**In a Given the Situation**
**Sometimes That Means a Single Line**
**Sometimes It Means Multiple Lines**

## Classic View of Telecom

## New View of Telecom

## Vault

**A Marriage of :**
**Packet Switching**
**And Circuit Switching**
**Under the Canopy of Intelligent Services****To Allow the Provision of Services Across Whatever Network Is Appropriate at the Time**

**Users Should Not Be Concerned With Networks**
**Users Should Be Free to Focus on Services**

## Vault Components

**Vault Components**

## Applications

**Command and Control**
**Fax**
**Voice**
**Collaborative Multi-Media**

## Cost Savings

**Confused Comparisons**
**Price of PSTN vs. Cost of IP**
**Creates a Warped View of Relative Costs**
**Tariff Basis**
**By the Minute vs. By the Month**
**Regulatory Issues**
**Access Charges / Accounting Rate**
**These Discrepancies Will Normalize Over Time Eliminating the Arbitrage Opportunity**

## Voice Over IP

**Phone to Phone Internet Telephony**
**Not Economic Domestically on a Dial in Basis**
**Domestic Long Distance Is Already Low Priced**
**Internet Telephony Needs Gateways****Which Are a Major Cost of the Service **

## Voice Over IP

**Applicable Internationally Where Prices Are High**
**Based on the Recent WTO Agreement This Arbitrage Opportunity Will Diminish Over the Next 2 Years**
**Who Will Use International Voice Over IP?**
**Bandwidth Is Limited, So Delays Will Exist**
**Who Will Pay for Additional International Bandwidth**
**Consumers May Tolerate It, but Business Won’t**
**A Viable Alternative for Intracorporate Calling**

## Intracorporate Phone Calling

**Uses Existing LAN and WAN Infrastructures**
**Can Interface to a Existing PBX**
**Callers Use Standard Hand Sets**
**Selection of PSTN or IP Made Dynamically by the PBX**
**Use of IP Is Transparent to the User**
**Hopefully**

## Intracorporate PC Calling

**PCs on LANs Are Always On-Line**
**A Single Phone Call Adds ********10 Kbps Half Duplex**
**Only 0.3% Of a T1**
**Very Low Incremental Cost**
**Add Calls to and From the PSTN via the PBX**
**Cable Modems or xDSL Technology May Bring This to the Home**

## Fax

**Store and Forward Fax via the Internet**
**Real Time Fax via the Internet**
**Store and Forward Can Be Used As a Mail Box**
**Part of a Universal Mail Box**
**Can Be Used As Follow Me Service**

## Collaborative Multi-Media

**Communication As Different From Telephone**
**As Telephone Was From Telegraph**

## Applications

**Road Warrior**
***Hotel Room With a Single Line***
**Voice Activated Web Page**
***Sales***
***Tech Support***
**Multi-Media Conferencing**

## Marriage of Media

**Video Phone Is Only the Start**

**Shared White Board Is Fundamental**
**Shared Applications --**
**Internet Conference**
**NetMeeting**
**Multi-Way Conferences**
**More Effective Meetings**
**More Frequent Meetings**
***More Usage of Communications***

## How To Transport Voice

**There Is No Single Answer**
**Circuit and Packet Switching Will Both Be Used**
**There Is No Reason Why a PC Can’t Coordinate a PSTN Call With Shared Applications Over the Internet**

**A PBX Can Decide How Phone Calls Will Be Routed**
**A PC Can Do the Same!**

## Usage

**Ease of Use Will Lead to More Use**
**Impromptu Meetings**
**No Advance Setup Required**
**Drop in on a Colleague Across the Globe**
**Knock on His Virtual Door for a Chat**
**Call in a Colleague at a Third Location to Consult**
**Today We Are Limited to a Building**
**To a Single Floor**
**We Will Have More Informal Meetings**

## Impact Of Voice Over IP

**Absolute Usage Will Increase**

**Not Just a Shift of Usage**
**Circuit Switching Use Will Continue**
**Packet Switching is an Additional Capability**
**IP & Conventional Telephony Will Live In Harmony For Years To Come**

## The Future of Voice Over IP

**This Is Not an Cheaper Voice Issue**
**Voice Over IP Will Be Sold on Feature Function**
**Facilitation of Collaborative Computing**
**Part of the PC Centric Workplace**
**Foster New, Not Replacement, Communication**
**Creates New Economic Opportunities For Those Who Exploit Its Potential**

## Rocks On the Road

**DELAY**
**Need for Absolute Reliability**
**System Integration & Ease of Use**
**Costs**

## DELAY

**Who Will Tolerate It**
**One on One Calls**
**Conference Calls**
**Delay Sources — PCs, Gateways, Congestion**
**Digitizing Time**
**Less Time / More Packets**
**Not Practical in the Public Internet**
**Congestion Issues**
**Edges of the Public Internet**
**Well Managed Intranets**

## Reliability

**Voice Is Mission Critical****and How!**
**It Is Bad Enough When You Computer Network Is Down**
**If Your Voice Network Goes Down You Might As Well Go Home**
**Who Will Take the Risk?**
**How to Minimize Transition Risk**

## Ease of Use

**Voice Over IP Must Work From a Hand Set**
**Dialing Must Be Like It Is Today**
**The Same Is True of Fax**
**Remember the Impact of 1+ Dialing**
**Even Use Of 10XXX Is a Market Inhibitor**
**Multi-media MUST Be Easy to Use**
**Delay Is a Factor Here Too**

**Can’t Change How People Work**

**At Least Not Quickly**

## Costs

**Is It Really Cheaper to Do Voice Over IP?**
**Yes**
**But Not by Much**
**Fundamental Switching Costs Are Very Close**
**Bandwidth Use Is Lower**
**But the Cost of Gateways Eats up Most of That**
**For an Incumbent Carrier There Is No Push for Immediate Conversion**
**For a New Carrier It May Be the Way to Go**
**But Watch Out for the Quality of Service**

## Generic Internet Considerations

**QoS — RSVP**
**There is no NNI to signal requests bet. Networks**
**Billing Issue / Settlement**
**Can RSVP be supported in the public Internet?**
***Requires monitoring flows***
***4,000 flows per second***

## More Generic Considerations

**Settlements — Speed & Distance**
***Cost Recovery***** **

**International Traffic**

## More Generic Considerations

**Security & Privacy**
***Crypto Export***** **
**Addressing Through Gateways**
**White Pages**