VoIP The Future of Voice in the Internet

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1 May 13, 2005 HECC 1 VoIP The Future of Voice in the Internet Hans Eriksson KTH Xtrafone AB Agenda Who am I? VoIP - perspectives (user, new operator, telco) VoIP - two case studies VoIP as a Motivator for IP deployment Deployment scenarios Conclusions May 13, 2005 HECC 2

VoIP - perspectives (user, new operator, telco) VoIP - two case

2 May 13, 2005 HECC 3 Who am I? Roots in academia - Uppsala Uni, SICS Telia - Swedish monopoly PTT CTO for VoIP at Telia Networks Created Digisip - Swedens first commercial VoIP operator Xtrafone - Commercial VoIP operator VoIP KTH VoIP - user perspective VoIP -> Voice over Internet Protocol If you have Internet access you can get telephony! If you have Internet access you probably already have it MSN Messenger, Skype, Voize, ICQ, The only requirement: Internet access Software is free The user s financial entry barrier is almost gone! May 13, 2005 HECC 4

VoIP operator CTO @ Xtrafone - Commercial VoIP operator VoIP expert @ KTH VoIP - user perspective VoIP -> Voice over Internet Protocol If you

3 May 13, 2005 HECC 5 VoIP - user perspective #2 Most VoIP scenarios use the computer as the phone The computer makes a cumbersome phone Ease-of-use, noisy fan, sound quality, maintenance, etc. VoIP phones and adapters are getting cheaper ($40) The cumbersome-to-use barrier is going away VoIP - user perspective VoIP -> Voice over Internet Protocol If you have Internet access you can get telephony! If you have Internet access you probably already have it MSN Messenger, Skype, Voize, ICQ, The only requirement: Internet access Software is free The user s financial entry barrier is gone! May 13, 2005 HECC 6

VoIP phones and adapters are getting cheaper ($40) The cumbersome-to-use barrier is going away VoIP - user perspective VoIP -> Voice over Internet

4 May 13, 2005 HECC 7 VoIP - new service provider perspective A new service provider needs: Hardware requirements 2 old PCs (2* $ 200) PRI card ( $ 1500) Internet access Open Source software The barrier for new Service Providers is almost negligible VoIP - old telco perspective The fixed line business is evaporating faster and faster The current PSTN technology has reached its ceiling It can only do 64kbps voice and nothing more Users barrier for change is gone Barrier for new competitors is gone Future looks pretty hard May 13, 2005 HECC 8

perspective The fixed line business is evaporating faster and faster The current PSTN technology has reached its ceiling It can only do

5 May 13, 2005 HECC 9 Skype - a raving success Skype - computer <-> computer telephony You can talk to other computer based phones Skype Out - computer -> PSTN telephony You can call normal PSTN telephones - and pay for it Skype In - PSTN telephony -> computer telephony You can be called from PTSN telephones You get a normal phone number Currently on-line: 2.5 million users VoIP SP case study - Xtrafone customers They have Internet access ADSL, Cable-TV, Satellite, fiber, whatever They want to call more and pay less They want to use to a normal phone, not a computer Customer costs: Start-up EUR 40 (adapter) Monthly fee: EUR 4 Calling charges: EUR 0.02 Telephonica: EUR 0.16 I.e. pretty normal consumers May 13, 2005 HECC 10

5 million users VoIP SP case study - Xtrafone customers They have Internet access ADSL, Cable-TV, Satellite, fiber, whatever They want to call more and pay less They want to use to a

6 May 13, 2005 HECC 11 VoIP SP case study - Xtrafone AB The company: 2 persons - Fredrik/Sales, Hans/Operations Market: Swedish ex-pats in Spain get a Stockholm 08-number UK ex-pats in Spain get a London or Birmingham number Emigrants that want phone number in the old country customers and growing fast Technology 1 server for billing, customer care, web server 7 year old Mac Various Open Source software PSTN connectivity: CityLink - $2 / month / user Total CAPEX: $ ZERO ( + competent man-hours ) Intertex - a PBX killer in your pocket Enterprise solution VoIP based PBX Firewall Wireless base station Can also work as a Swiss-army knife server for a village! Local drop-off at any place along the way $120 May 13, 2005 HECC 12

7 year old Mac Various Open Source software PSTN connectivity: CityLink - $2 / month / user Total CAPEX: $ ZERO ( + competent man-hours ) Intertex - a PBX killer in your pocket

7 May 13, 2005 HECC 13 VoIP as a Motivator Wherever IP goes, VoIP can go Service Providers: Consumers are willing to pay for telephony - VoIP can subsidize IP deployment Organizations: Traditional telephony is costly - VoIP can motivate IP deployment Internet Eco-systems The technology architecture must support a eco-system 1-N service providers running the cables 1-N service providers offering transmission 1-N service providers offering IP-access 1-N service providers offering VoIP, , TV, Not for philantropical reasons but for economic reasons! The single general consolidated approach do not scale! You do not know what the future will bring Except that it will radically change your way of doing things May 13, 2005 HECC 14

1-N service providers offering transmission 1-N service providers offering IP-access 1-N service providers offering VoIP, email, TV, Not for philantropical reasons but for economic

8 May 13, 2005 HECC 15 Conclusions Main VoIP technology characteristics It works! It is cheaper! It builds upon the Internet - technology, community, users, This makes VoIP very attractive If you do not move - someone else will move This makes VoIP un-stoppable If you do not move - someone will go around you There is a lot to do - there is use for everybody Even ex-telcos! Final word Do not re-build the old ways but with new technology! Thank You! Hans Eriksson <hans@hecc.se> May 13, 2005 HECC 16

else will move This makes VoIP un-stoppable If you do not move - someone will go around you There is a lot to do - there is

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