Voice over IP VoIP

1
Voice over IP (VoIP) background and
regulatory aspects
Background for discussions at ERG meeting
17.6.04
Olli Mattila Finnish Communications Regulatory
Authority ( Chairman of the IRG FN WG / VoIP
Subgroup)
2
Content

• Technical concept of VoIP vs PSTN phone
• Comments on market development / impact on
  PSTN
• Comments on regulatory issuers
• Ficoras decision on VoIP service
• IRG FN WG / VoIP subgroup

3
Technical concept of VoIP vs PSTN
4
Next Generation Networks (NGN) / IP-architecture
approach
All services and applications ( voice, data,
video)
Services
Internet protocol (IP)
Transmission
All network technologies
5
Voice is one service inside NGN-communication
services
6
Concept of IP Communication

• Protocols split transmitted data into packets,
  add necessary addressing information to the
  packets and transmit them and assemble again data
  in receiving end

7
PSTN telephony vs VoIP

• PSTN telephony VoIP
• - Circuit switched - Packet switched
• E.164 numbering - URL SIP names, E.164, IP
  addr,
• Intelligent network / - Dumb network /
• dumb terminal intelligent terminal
• Charging bases - Charging bases
• location, distance, min - more limited
• Closed system - Open system
• inherited security - security vital issue
• Tech quality - Tech quality
• standardised transmission - depend mainly
  on delays
• characteristics and delay variations

8
Co-existance of IP phone and PSTN phone
Today and long in the future publicly offered
VoIP has to co-operate with PSTN (terminated,
originated at PSTN)
PSTN
Internet
Gateway
This reflect to questions, like - numering
9

• Nature of VoIP service creates problems with
  several consumer protection issues, like
• Location independence (nomadicity)
• customer is able to register at any access point
  in any country
• service provision can be controlled from any
  point world wide
• Active terminals
• requires electric power
• Open network ( compared with closed PSTN
  network)
• security questions

10
Comments on market development / impact on PSTN
11

• VoIP market trends
• At present at its infancy, estimated in
  September 2003
• less than 200 000 VoIP users world wide
• less than 20 000 VoIP users in Europe
• But expected to grow rapidly because
• reduced capital and operating costs
• voice services with a number of new features
• new revenue opportunities for access providers
  through triple play,
• that means voice, data and broadband
  internet
• Growing number of broadband internet access will
  accelerate
• the use of VoIP
• Public VoIP service is at least on plan/ trial
  basis in most of EU countries

12
Estimations of VoIP switch over varies

• Today 10 15 of international voice traffic
  is based on VoIP
• Optimistic estimations suggest that 50 of
  worlds telephone traffic will be based on VoIP
  by 2006. More pessimistic estimates refer to year
  2015.

PSTN
IP based
2006 -2015
13
Comments on regulatory issues
14
Regulatory discussions have started

• USA
• FCC published a proposed rulemaking in March 2004
• several state regulators are considering the
  issue. New York Public
• Service Commission issued decision (in May 21)
  on Vonages VoiP
• EU
• Ficora made regulatory decision on TeliaSoneras
  VoIP service
• in October 2003
• Several EU countries are establishing national
  working groups or about
• to launch national consultations on the issue
• EU Commission plans to put document on VoIP
  regulatory aspects
• for public consultation

15
Categories of VoIP services from regulators
point of view

• Outside of regulatory concern
• Corporate internal use on business LAN/WAN
• IP phone IP phone, self provided
• 2. In principle under regulation (end user
  services)
• Carrier internal use
• 3. Inside regulatory concern
• IP phone to PSTN phone
• PSTN phone to IP phone
• IP phone IP phone service provided by operator

16

• Dimensions of regulatory issues on VoIP
• a) Consumer protection
• USO directive PATS definition / obligations?
  
• b) Market / competition control, for example
• Relationship with relevant markets substitute
  to
• PSTN voice telephony?
• Interconnection / termination - regulatory
  costing?
• Retail prices location / distance
  independent?

17
Definitions in the USO Directive

• Electronic communications service (ECS) A
  service normally provided for remuneration which
  consists wholly or mainly in the conveyance of
  signals on electronic communications networks
• Publicly available telephone service (PATS) a
  service available to the public for originating
  and receiving national and international calls
  and access to emergency services through a number
  or numbers in a national or international
  telephone numbering plan

18
Basic regulatory questions
Are VoIP (which of VoIP services) classified as
publicly available telephone services (PATS) and
thus regulations set for traditional telephone
service apply ? If yes, can the obligations be
obeyed ( due to technical restrictions) in
practice ? Note see as an example list of
obligations set in the Ficoras VoIP decision
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Emergency calls

• Emergency arrangements do not fit calls over
  internet,
• because the nature of internet
• customer is able to register at any access point
  in any country
• service provision can be controlled from any
  point world wide
• Basic problems
• problem with reach the emergency centre
• problem with wrong or lack of callers location
  information

20
VoIP quality

• Mainly affected by transmission delays,
• delay variations, packet losses (and bandwith)

• Quality classes defined by ETSI/TIPHON for
• end to end quality
• ITU has technically standardised 5 QoS classes.
  Two first are regarded acceptable for VoIP
  service
• Current international VoIP is mainly based on
  Best Effort

21

• Legal interception
• Difficult to administrate due to (international)
  location
• independence of IP
• VoIP also makes use of encryption more easy
• ETSI is working on the issue concerning
  technical arrangement
• Communication security
• Network integrity /service availability (power
  failures, terminal closing due to spam and
  network overloading)
• Communication confidentality

22

• Numbering issues
• VoIP numbers in national numbering plans
• Is there reasons to aim specific number series
  for VoIp service ?
• Is there need in future for common URL to
  identify for emergency services (for example
  SIPSOS_at_ home-domain) ?
• Universal service issues
• review USO models including VoIP ?
• Extra territorial issues ( services coming
  outside Europe)
• influence of possible unsymmetric regulation ?
• obligations for services coming outside of EU ?

23
Ficoras decision on Soneras VoIP service in
Finland
24
VoIP regulation in Finland

• TeliaSoneras VoIP Service (Sonera Puhekaista)
• service is offered only to TeliaSoneras broad
  band users
• offered as a subsitute for PSTN connection
• FICORAs decision in October 2003
• www.ficora.fi/englanti/document/SoneraPuhekaista.
  pdf
• TeliaSoneras VoIP service was considered to be
  PATS because
• the service is available to the public
• the service is offered through a number in the
  Finnish numbering plan
• users can originate and receive national and
  international calls and use emergency services
• the service was also considered to be offered at
  a fixed location

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• TeliaSoneras VoIP service has to comply with
• the obligations set for PATS in the national
  regulation,
• main obligations beeing (1)
• ensure that users are able to make international
  calls
• using access code 00
• ensure that users are able to access the
  emergency call
• number 112 and other special emergency number
  free of charge
• on request of user , free of cost, arrange a
  categorised
• barring service
• free of charge provide itemized bills
• ensure that users nme, address and telephone
  number is
• collected and published in telephone directory

26
TeliaSoneras VoIP service has to comply with the
obligations set for PATS in the national
regulation, main obligations beeing (2)

• equip its communications network and
  communications service
• with technical facilities that allows legal
  interception
• service that recipient can see calling number
  (CLI)
• ensure that its activities can continue under
  exceptional circumtances
• ensure that network and service satisfies the
  quality requirement of the Act
• follow provision of the Act on protection and
  Data Security in Telecommunications (for example
  regulation how to treat , store and use call
  data)

27
IRG / FN WG / VoIP subgroup

• Just starting the work, first meeting on Monday
  June 21th
• Co-operation with
• Commission
• IRG End User group
• CEPT / ECC / TRIS group
• / NNA VoIP PT
• Follow
• National regulatory development in Europe
• USA (and Japan) regulatory development
• Work of other organisations (OECD, ECTA, etc)
• Standardisation work (ETSI, IETF, etc)