# Presentation: 060029

## The Internet Telephony Industry

- Jeff Pulver
- President
- pulver.com
- NTIA Internet Telephony Forum
- September 4, 1997 - National Press Club

## Introduction

- Internet Telephony Industry - 1997
- Free World Dialup Demonstration
- Future Effects on Business

## Defined		

- What is Internet Telephony?
- PC <---> PC   (1995)
- PC <---> Phone  (1995)
- Phone <---> Phone (1996)
- It is NOT about Free Long Distance.
- US International Bureau is seeking accounting rate parity with US and 50 largest trading partners
- Not just “internet telephony” but Voice over IP.  If you have TCP/IP connectivity - this technology can be used.

##  What is needed?

- Pentium class machine  (P100 or faster for Netmeeting)
- At least a 14.4k connection to the net
- Microphone
- Speakers (headsets preferred)
- Ability to tolerate less than ideal conversations and conditions.
- Desire to speak to total strangers.

## What is a Gateway?

- Connects from the IP networks and the Public Switched Telephone Networks (PSTN)
- “Low End” - NT Class Pentium.  P133 or faster with:
- Onboard DSP
- Network Card
- PSTN Connection
- Enabling Software
- Don’t look for these products to be scalable yet.

## Who are buying Gateways Today?

- Research Labs
- Competitors
- Carriers. ISPs, selected Corporations
- 1997 is the year of the trial.

## 1997 History	

- Major Telcos announce IT Strategies - including:: AT&T, MCI, Sprint, Cable & Wireless and BT.
- Corporate Adoption of the “Single Wire Theory” - use of a single network for Voice, Video and Data
-  Progress in areas of Standards - H.323 Adopted for Interoperablity.
- Pulver.com market estimate: US$150 million
- About 65 consortiums formed around the world

## 1997 - (continued)

- By mid-year -
- 14 companies  announced Gateway products.  Convergence in the gateway space - from network router companies (Cisco, Bay, Ascend) - to Telcom Equipment Vendors - Nortel, Lucent, Ericsson, and startups - VocalTec, Netspeak, eFusion.
- Look for Strategic relationships to continue to drive the marketplace. (DT in VOCLF)

## 1997 (continued)

- Issues Remaining
- Directory Services (LDAP vs. RAS)
- Quality of Service Improvements
- Accounting and Settlements
- Regulatory Issues:
- ACTA Petition still remains - yet most ACTA members are now becoming ISPs and are looking at offering IP voice services
- Internet Telephony Acronyms - see http://www.von.org

## Enhanced Services

- Voice over IP on IntraNets, ExtraNets and on the Internet
- Fax over IP Services
- Convergence of traditional CTI and Internet Applications
- Internet Voice Messaging (VPIM)
- Internet Call Centers
-  Distributed / Virtual PBX

## Free World Dialup II

- Non-commerical use. Restricted for only calls to friends and family members
- 25 Gateways operating at of August 11, 1997 - including gateways in New York, Atlanta and Tacoma, WA.
- Project supports phone to phone and net to phone calling.  Net to phone is referred to as “Surf&Call”.
- About 3 hours a day used on the NY “Switch”
- Still looking for Operators
- More information - http://pulver.com/fwd

## Free World Dialup II

- ” We are enjoying very much out private Surf&Call page.  Foto shows my 7
- year old doughter talking with her cousin in NYC, she is 9 years old...”.

## The Effect of Voice on the Net

- Reduced barriers to entry via enabled incremental deployment of infrastructure
- Internet Telephony is one of the main motivations for countries to accept cost based settlements
- The movement of intelligence out of the network to the edges enables fantastic service creation opportunities.

## The Effect of Voice on the Net

- The Internet offers new ways to provision customers and deliver information to them.
- The cost of connectivity remains proportional to the duration of the connection, thus to the extent packetization of continous data types are possible, packets do it cheaper than circuit switched.

## The Effect of Voice on the Net

- Rather than viewing voice on the net as a threat - most of the major telcos embrace this technology and will be using it to create enhanced services
- Finally - the mirgration of  computer industry based solutions into traditional telecommunications represents a great thing for end users - (lower costs / more services) and industry participants.

## Show me the Money!

- Ok - so is making money using this technology today?
- Adult Entertainment Industry
- NextGen Telcos
- Great Business Opportunities for Corporate Consultants / System Integrators.
- The Three 1995 Internet Telephony Pioneers -
- VocalTec, Voxware and Netspeak are now Public Companies trading on the NASDAQ exchange in New York. (VOCLF, VOXW, NSPK)

## Future Effects on Business

- Voice services being driven to a commodity services.  Within 25 years almost anybody will be able to offer a “telephony service”.  Challenges to Telstra, AT&T and others is to refine themselves.
- Voice Gateways may become as popular as fax servers and print servers within corporations.
- Death of  the PSTN? No.  Death of the PBX? Maybe.
- Look for leading edge corporations to begin to offer VoIP and Fax /IP services in early 1998.  Corporate trials are already underway.

## Resources

- Jeff Pulver - e-mail:  jeff@pulver.com
- IMTC - http://www.imtc.org
- VON Coalition - http://www.von.org
- VON Home  Page - http://www.von.com
- Pulver.com - http://pulver.com
- The Pulver Report - http://pulver.com/reports
- VON Mailing List - e-mail: majordomo@pulver.com, leave the subject blank - in the body write: subscribe von-digest
- Future pulver.com Workshops and Conferences

## The Internet Telephony Industry

- Jeff Pulver
- President
- pulver.com
- NTIA Internet Telephony Forum
- September 4, 1997 - National Press Club