Overview

• Present the past, present & future of VoIP. • Focus:

– Technology– Cultural Factors– Economic Factors– Regulatory Factors

Technology Overview

• What is VoIP– The “Real Time” transmission of voice signals

using the Internet Protocol (IP) over the public Internet or private data network.

• Process of Data Transfer– Voice signal is “packetized”– Voice becomes data: dismantled > compressed >

transferred > decompressed > assembled

The Past

• Three fundamental technologies that need to exist:– Telephone– Internet/Intranet (public or private)– Transmission Control Protocol / Internet Protocol

(TCP/IP)• The history of the Telephone• The history of the Internet• TCP/IP

– Invented by Dr. Vint Cerf in 1972– Defines the form of net data packets and how they travel to

their destinations

The Past (continued)

• VoIP started in 1995 by VocalTech, Inc. in Israel– Worked from computer to computer– In 1998 the first PC to phone calls took place

• Supervening Necessity – No regular telephone service– Developed to circumvent legacy networks’

monopoly– Just want to avoid a long distance bill.

The Present

• The Present: – Business adoption and cultural impact– Economic & Financial impact– Regulation

• Business and adoption of VoIP– Lower the cost of communicating– Converge telephone infrastructure with existing data network

• Cultural Impact?– Call center jobs moving away from the U.S.– 250,000 jobs moved since 2001– Need to support products

• Operating Hours– Outsourced staff is highly educated

The Present (continued)

• Economics and Finances– Four groups are affected by VoIP

• U.S. Federal Government– FCC has taken the regulatory right from the

individual states• The technological nature of VoIP - distributed network

– This affects local tax revenue– AT&T sends “part” of their calls over the Internet

The Present (continued)

• Legacy Networks– Verizon has lost 9 million phone lines in the

northeast (16% of total)– AT&T’s revenue is down 18% since 2001– Bells have lost 28 million phone lines since 2001

• Resemble the railroads– WW2 - move from train to automobile and airplane

The Present (continued)

• Cable companies (the ultimate ITSP)– Pressure from Satellite - need to expand to stay competitive– Already have a wired connection to the home– Can offer bundled services

• Cable television• Hi-speed Internet Service• Telephone Service

• Businesses who adopt the technology (#4)– Benefits are there for large companies / not for small COs.– Most say that the real benefit is the enhanced data network.

The Present (continued)

• More on the regulatory role of the U.S. federal government– Take the regulation away from the states– ITSPs must pay 911 emergency assistance tax– ITSP are worried that they will be regulated like legacy

networks• The CALEA (Communications Assistance for Law Enforcement

Act) (1994)– Electronic surveillance for “telecommunication” service

providers– Does this Act (and the 1996 telecommunications Act) open

the door for the U.S. government to regulate the Internet?

The Future

• Increased number of users– 2003 - 131,000 users (in the U.S.)– 2004 - 1,000,000 users (in the U.S.)

• Expand to other platforms– Mobile market and PDAs– Transform the traditional cell phone

• Use of WiFi networks• One number - Persistent Personal Profile

– It may be possible to connect with one universal number (email, phone, fax, etc.)

– No longer dependent on a fixed geographic location• Converging Media

– Data, Voice, Images, Video

Conclusion