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Off to See the WizardVoIP The Search for
Courage
Timothy Salapek Tekelec
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Agenda

• Market Perspectives
• History
• Current Climate
• Today's VoIP Business Incentives
• Considerations
• Regulations
• Continuity and Feature Parity
• Quality of Service
• Service Opportunities
• Residential
• Business
• Enhanced
• Network Tour
• Deployment Options

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A Ten Year History of VoIP
Computers will never be more than just toys
PBX Replacement
The Enterprise

• SONET (FR/ATM/MPLS/IP)
• Dedicated
• Well Managed
• Bandwidth Intensive
• Costly

Business Services
Residential Applications And Services
Long-haul and International Trunk
Reduction (PSTN Bypass)
The Internet is just a passing Fad!
Mass MarketVoice
Trunking

• Public Internet
• Unreliable
• No QOS

No one will ever buy bottled water

• Managed IP Networks
• Semi-Dedicated
• Well Managed
• Bandwidth On Demand
• Cost Effective

• PSTN
• Dedicated
• Well Managed
• Labor Intensive

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VoIP Its Been Called

• The end game
• A platform for innovation
• A driver of broadband deployment
• An enabler of economic growth
• Technology with unlimited potential
• The next killer app
• Our future

VoIP
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Why VoIP?
Lower cost? Higher quality? Easier to
manage? Faster delivery?

• PSTN
• Dedicated
• Well Managed
• Labor Intensive

• SONET (ATM)
• Dedicated
• Well Managed
• Bandwidth Intensive

• Public Internet
• Unreliable
• No QOS

• Managed IP Networks
• Semi-Dedicated
• Well Managed
• Bandwidth On Demand

Voice over IP has emerged as a major reason for
declining spending across local, data and long
distance spending. A sizeable number of
businesses are currently using VoIP and several
of them have also reported considerable savings
25 usingVoIP Source Morgan Stanley
Telecommunications Services Survey
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Public Switched vs VoIP
PSTN VoIP Highly Reliable and Available
Interoperability (Sometimes) Slow to add
features Aggressive to add features Mature
Quality of Service Evolving Quality of
Service Mature Vendor Proprietary Young Firms
Open Platforms Defined Market Focused Growth
Market Smart Inside Smart Outside Expensive
Infrastructure Costs still unclear Billing is
well understood Flat Rate (for now?)
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Why VoIP?

• Advanced Features
• CLASS, Business Features, Unified Messaging,
  Conferencing, Web Portals, Mobility
• New Revenues
• Centrex, Key Systems, PBX, and residential
• Value Add to existing services
• Seamless Transition
• Inter-works with any platform
• Legacy TDM
• Next Generation IP/SIP
• Scalability
• Start Small and Grow
• 50 seats to 30,000 seats

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VoIP Business Incentives

• The Defensive Response
• Prompted by emergence of high profile VoIP
  service providers
• Maintain or replace business
• "Fighting fire with fire"
• Issues Addressed
• Loss of residential second line customers
• Erosion of residential base
• Migration of residential and business users to
  "next generation" providers

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VoIP Market Segment

• Incumbents / IXCs pursuing residential VoIP
• Vonage Reaches 400,000 lines (2/05)
• Qwest Residential VoIP introduced (12/03)
• ATT CallVantage introduced (3/04)
• Verizon Residential VoIP announced (11/03)
• MSOs have already introduced VoIP in trials or
  production
• Charter Communications introduced (9/02)
• Time Warner Cable introduced (5/03)
• Cablevision Systems introduced (9/03)
• Cox Communications introduced (12/03)
• Others leading with hosted business services
• SBC Business HIPCS introduced (11/03)
• BellSouth Centrex IP introduced (5/04)
• MCI Advantage expansion to hosted PBX announced
  (3/04)

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VoIPs Explosive GrowthServices Revenue
By 2007, residential broadband telephony services
are projected to generate about 1.4 billion in
revenues
Frost and Sullivan, 2004
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Residential VoIP Broadband
VoIP Penetration of U.S. Broadband Accounts

• Broadband access and VoIP penetration growing
  simultaneously.
• Opportunity for BYOBB providers
• Competition for access providers

Source Vonage/VoIP Business Weekly
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VoIP Business Incentives

• The Attack / Growth Approach
• VoIP can also help realize the objectives of
  growth-oriented carriers
• "Fighting fire with water"
• Benefits
• Attract new customers - by offering integrated IP
  services at reduced cost
• Convert UNE-P subscribers to VoIP
• Expand into new geographic markets - with
  cost-effective converged next-generation networks
• Increase ROI - by leveraging existing broadband
  infrastructure to deliver voice services
• Grow revenues - from existing business and
  residential customers with enhanced applications
• Retain customers - by offering bundled voice,
  data and Internet services

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Agenda

• Market Perspectives
• History
• Current Climate
• Today's VoIP Business Incentives
• Considerations
• Regulations
• Continuity and Feature Parity
• Quality of Service
• Service Opportunities
• Residential
• Business
• Enhanced
• Network Tour
• Deployment Options

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Regulations

• What is the definition of a VoIP service provider
  
• Telco or an enhanced service provider
• How should they be regulated - or don't regulate
  them
• Regulators are reluctant to hamper competition
• Incentives encouraging VoIP development now
• How will this change
• Who will take over and when
• Leverage the market now
• Build flexibility for the future

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Quality of Service

• A perception is VoIP offers lower quality
• From the early experiences of uncontrolled
  services
• No QoS features on the VoIP network
• Can't control the last mile network performance
• If service is cheaper can the quality be less
• Voice quality in the cellular network is changing
  user expectations
• But uncontrolled services are the ultimate
  commodity... many now free
• Carrier grade, high quality solutions are now
  practical
• NG switching, signaling, applications systems
  designed with ground-up support for VoIP
• VoIP aware data networks are easy to build, but
  require engineering, and end to end participation

The right technology and engineering is key to a
Carrier Grade VoIP network.
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Agenda

• Market Perspectives
• History
• Current Climate
• Todays VoIP Business Incentives
• Considerations
• Regulations
• Continuity and Feature Parity
• Quality of Service
• Service Opportunities
• Residential
• Business
• Enhanced
• Network Tour
• Deployment Options

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Where to Get Started

• Residential
• Residential "Basic"
• Residential "Plus"
• Business
• Centrex Replacement
• PBX Alternative
• Premium VoIP Services
• Good News
• You may not have to "decide"

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Residential VoIP Services

• Residential Basic
• Parity with existing CLASS and Custom calling
  first-line residential service offering
• Offer the same for less by "eliminating" access
  costs, bundling for flat-rates
• Residential Plus
• Take advantage of always-on Internet connection
• Add desktop web portal application
• Call Logs
• Click-to-Dial
• Internet Caller-ID / Pop-up Console
• Real-time Call Management
• Find me / One number
• Personalized voicemail and hold announcements
• Subscriber Self Service
• Offer more for the same (or more!)

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Web Portal Functions

• Call Logs / Click to Dial

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Web Portal Functions

• Internet Caller ID / Real-time Call Management

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Web Portal Functions

• Find Me / One Number

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Business VoIP Services

• Centrex Replacement
• Parity with traditional switch-based analog /
  digital centrex or basic key systems
• Can use multi-line gateways for CPE, as with
  residential service
• Expand / reduce feature set to create additional
  tiers or premiums
• PBX Alternative
• Includes the entire complement of features
  available at a business set with a traditional
  PBX and more
• Uses display-capable IP phone for CPE
• Can also use multiline gateways or IADs for
  extension lines
• Provide these services to TDM subscribers through
  integration of IP-enabled Class 5
• Call Center
• Call center functionality for groups of agents
• Integrated within the Application Server
• Provides increased revenue with enhanced services
• Distributed Agents

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Business Product Positioning

• Local Line for business
• Area codes can be chosen for targeted customer
  locales
• Customers can call your business as if you were
  in their area with no long distance charges
• Call branch offices, business associates, as if
  you were in their area with no long distance
  charges
• TeleWorker or Work from Home
• Offer business customers a TeleWorker package
• Business phone extension same number, features
  as if in the office
• Bundle with broadband
• Could be business sponsored and paid for
  business/govt

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Basic Service Continuation

• Compatible with services in your network
• Ability to service POTS phones and subscribers in
  place
• Customers existing expectations for CLASS
  features and services
• New technology must fit transparently in your
  network
• CALEA / Lawful Intercept
• Emergency Services / 911
• Operator Services / Directory Assistance

Continuation of your basic network services is
critical to your business. The VoIP must fit
transparently in your network.
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Agenda

• Market Perspectives
• History
• Current Climate
• Todays VoIP Business Incentives
• Considerations
• Regulations
• Continuity and Feature Parity
• Quality of Service
• Service Opportunities
• Residential
• Business
• Enhanced
• Network Tour
• Deployment Options

Off to See the Wizard Follow the Yellow Brick
Road!
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VoIP Architecture

• Reliable
• Redundant components
• All call processing events mirrored in real time
• Distributed architecture
• Operates on NEBS compliant operating system (Sun
  Solaris)
• Scalable
• Larger servers or multiple server pairs
• High Performance
• 200 calls per second (cps) per server pair
• Unlimited Partitions to be able to support
  deployment to large customer base
• Each partition provides customer specific
  features, number plans, applications, etc.
• Standards Based
• SIP, MGCP, SNMP, CORBA, IMAP, SMTP, SOAP, LDAP,
  SMPP, XML, HTML

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The Architecture for VoIP
Integrated Multimedia Applications
PacketNetwork
SS7 IP
SS7 IP
SS7 IP
SS7 IP
Next GenerationSwitching
SignalingApplicationsSystem
SignalingApplicationsSystem

• Call control
• Media interworking
• Media processing

WirelineNetworks
WirelessNetworks
POTS
xDSL FTTx
Cable
Fixed Wireless
Mobile
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Realizing VoIP Enhanced Services

• Single investment unlocks multiple revenue
  opportunities
• Proven products are now available that can offer
  packet-enabled services to both wireline and
  packet subscribers simultaneously
• Agility and affordability of Next-Generation
  platforms now allows installation side by side or
  in place of existing legacy hosts

Tandem Network
Hosted Application Server
TDM
Packet Enabled Class 5
SIP/ VoIP
IP Network
POTS
SIP/ VoIP
HTTP
VoIP CPE
Web Portal User w/ Traditional TDM Access
Web Portal User w/ Residential VoIP
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VoIP Architecture
Application Servers
Call Agents
Database Agent
PSTN
Legacy Switch

• Single Investment
• Supports multiple access technologies
• Including "off-net" subscribers connected via
  public Internet / peering
• Applicable to residential and business
• Integrate enhanced services and Applications
• Web Portal / IP Centrex / Unified Messaging

Integrated Next Generation Solution
Session Border Controller
Gateway (SIP to PRI, e.g. Cisco 5350)
IP Network
Cable / Fiber /DSL
T1
Cable / Fiber /DSL
Data FW
IP Phone Users
Modem
Public Internet
Router SW/FW
Router/IAD
IAD
IAD
IP Phones
Legacy Phones
Analog Users
Analog Phone
PBX/KSU
IP Soft Phone
Home Telecommuter
Road Warrior
MDU - Multi-Dwelling Units
Office/Branch Office
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VoIP Architecture

• Robust, Flexible, and Scalable Solution for
  Packet and TDM based Telephony

• Advanced VoIP Feature Delivery
• Find-Me / Follow-Me
• Web Portal
• Visual Voice Mail / Unified Messaging
• and More!

PSTN
T7500
ISUP
Integrated IP Feature Server
SIP, SCCP, MGCP, H.248
Managed IP Network
Integrated IP
POTS
VoIP
E911
CALEA
rb 08/04
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Application Server Platforms

• Call Agent Servers
• Controls Routes Voice Signaling and provides
  PBX-like call processing and voice mail features.
• NEBS Compliant servers are supported and
  available for an additional fee.
• Database Agent Server/E-mail/Web
• Serves as a single point of contact for accessing
  the Database which is stored on this server.
• E-mail - Storage of voice mail in an IMAP email
  format. Service providers may choose either Sun
  (Netscape) Messaging, or Stalker as the message
  Store.
• Web Server - Graphical User Interface for
  end-user, enterprise administrator and service
  provider provisioning.
• NEBS Compliant servers are supported and
  available for an additional fee.
• Conferencing
• Ability to have a single conference call with up
  to 100 participants. Ad Hoc (On-demand) and
  Meet-Me Conference functionality are supported
  and available for an additional fee (optional
  functionality).
• NEBS Compliant

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Application Server Platforms

• Session Border Controller (V-SBC)
• Provides protection from the Public Network for
  Tekelec 6000 devices and provides a multiple
  protocol interface for CPE Endpoints to access
  the Call Agent Servers. The V-SBC also is
  configured for short circuiting to allow RTP
  streams to stay at the CPE location thereby
  reducing the amount of bandwidth needed for the
  call. Supports short circuiting for NAT, PAT and
  even sites with no Data Firewall.
• NEBS Compliant
• Streaming Media Server/DTMF Proxy
• Provides media streaming for playing recording
  of announcements, voice mail and music-on-hold.
• When Subscribe/Notify is not configured for a SIP
  device or cannot support RFC2833, the DTMF Proxy
  can be configured to listen in on SIP
  transmissions and then generate the DTMF to the
  Call Agent for call routing.
• NEBS Compliant

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Applications

• Enables three types of services with associated
  applications
• Business IP Centrex/Hosted PBX
• Conferencing (On Demand and Meet-Me, optional
  feature)
• Voice Mail/Unified Messaging
• Web Portals
• Session Border Controller / NAT Traversal
• Optional Functionality
• Front Desk and/or Auto Attendant
• Informal Call Center (Hunt Groups and ACD)
• Mobility Applications
• PBX Trunking
• Integrated access service for customers with
  existing PBX or Key System
• Residential VoIP Services
• Voice Mail
• Conferencing
• Web Portal

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Deployment Options

• Cap and grow strategy
• New customers can be provisioned on the IP
  telephony platform
• Legacy equipment is maintained for the existing
  customer base to serve its useful life
• New requirements for traditional GR-303, LNP,
  A-link consolidation enhancements
• Overlay
• As an application specific adjunct to existing
  networks
• Replace an existing system
• May be discounted by the manufacturer
• Support costs increasing
• The new end to end solution provides fully
  functional Class 4 / 5 infrastructure and services

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VoIP Today
Business Success Portfolio Expertise, tools and
services to accelerate service provider
time-to-revenue
Integration Integrated voicemail, conferencing
faster development
Applications Desktop Integration, Mobility,
Productivity Business Apps built on a PBX
feature set base
Session Border Traversal In-network solution
no reconfiguration, no truck rolls
Open Platform/Interoperability IP phones IADs
- SCCP, MGCP, SIP, APIs, trunking gateways,
softswitches
Administration Browser-based, wizard-driven,
PartitioningPlug and play
Reliability Designed for 99.999 with REDUNDANCY
Scalability and Performance Up to 100,000 users
and 200 calls per second
Customer Service Experienced team dedicated to
respond to all customer needs
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Future of VoIP

• Offers more than POTS equivalency
• Access/Transport becomes a commodity
• Voice becomes basis for packet-enabled/centric
  apps
• Voice becomes the content for applications such
  as PTT, Voice recognition, IM, UM
• Brings solid revenue-generating opportunities
• Achieves home stereo quality
• Signaling plays a vital role in IP networks and
  delivering VoIP services

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Thank You!
Timothy Salapek
919-349-7909 tsalapek_at_tekelec.com