VoIP regulation approach in Switzerland. Daniel Voisard Chairman of VoIP WG OFCOM Federal Office of Communications Switzerland
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1 VoIP regulation approach in Switzerland Daniel Voisard Chairman of VoIP WG OFCOM Federal Office of Communications Switzerland
2 Outline Switzerland and its telecom regulation facts, legislation, broadband, Swiss vs. EU The Swiss perception of VoIP access vs. service, last mile, convergence The Swiss regulation approach to VoIP VoIP reg. history, VoIP Functional Standards VoIP market in Switzerland VoIP impact on the future, service provider's solutions 2
3 Assumption: VoIP is hopeful Voice over Internet will replace the classical telephony so prophesized Jim Clark in 1996 (at that time Chef von Netscape). What has changed since this prophecy? all over IP (Technology) availability of broadband connection signalling protocol (SIP) back to basics: separation of voice and data large deployment of mobile telephony competition between PTS 3
4 Switzerland in the middle of Europe Area : 41'300 km 2 Population : Capital City : Governement : 7.31 million Bern confederation with direct democracy Language : 4 Annual Growth : 2% GPD per capita : US$ 32'000 Member of : EFTA Not member of : EU, EEA 4
5 Telecom legislation in Switzerland Legislation Governement Federal Department of Environment, Transport, Energy and Communications (Ministry) Federal Council DETEC Messages with law projects National Council Council of States Federal Assembly 357 registered PTS whereof 138 with concessions Execution Federal Communications Commission OFCOM ComCom Fixed concessions Preparation for messages, laws and decrees Decrees Decisions US + radio (WLL, GSM, UMTS, WIMAX) concessions 5
6 Broadband in Switzerland Household with BB: 40% (26% ADSL, 15% cable) Incumbent ADSL users: 490'000 Resellers ADSL users: 312'000 Major Cable Op BB users: 270'000 Other Cable Ops BB users: 210'000 6
7 Swiss regulation vs. EU regulation (1/2) The EU authorization directive identifies two forms of service supply: ECS : Electronic Communications Service PATS : Publicly Available Telephone Service PATS providers can furnish services forming part of the universal service and are subject to interconnection between networks (Access Directive) Security & Privacy Conditions - use of numbers Directory entry information & access Quality of Service - publishing Contracts to Consumers Universal Service Financing Notification of NRA ECS Directory Publication of price and tariffs Integrity and Availability Number Portability Emergency Services Security & Privacy Conditions - use of numbers Directory entry information & access Quality of Service - publishing Contracts to Consumers Universal Service Financing Notification of NRA PATS 7
8 Swiss regulation vs. EU regulation (2/2) Universal Service (US) Offer of all services according to US (art. 19 OST- Decree) Voice service in real time, QoS Network access, QoS Geographical cover Interconnection Interoperability Lawful Interception Emergency calls Services for impaired Consumer protection (call barring) Publication of NTP E.164 resources Carrier selection Number portability Directories Service forming part of US Partial offer of services according to US Voice service in real time - - Interconnection Interoperability Lawful Interception Emergency calls Services for impaired Consumer protection (call barring) Publication of NTP E.164 resources Carrier selection Number portability Directories Other Offer of services outside the services of the US Data servie - - Interconnection - Lawful Interception Publication of NTP E.164 resources
9 Separation of network (access) and service Soft Soft Switch Switch VoIP Adapter ab VoIP Adapter NTP VoIP Service Service NTP xdsl / Cablemodem DSLAM / Head end IP- Backbone ISP Media Gateway Gateway VoIP is an (IP) application running reliably only if a broadband connection with a guaranteed quality and a free connecting ability is available NTP PSTN 9
10 Impact of VoIP on the last mile VoIP service providers are dependent on a reliable network infrastructure (access and backbone). Two possible options to offer this network infrastructure: Option A IP BB access and connecting network (today typical CATV or xdsl with connectivity net) is proposed by BB service providers with distinct end user contract, the network access is open to third party services Option B IP BB connection is supplied by the VoIP provider either on its own net infrastructure or through a wholesale product 10
11 Evolution & convergence of new voice services Traditional view Possible, future view Diversity of performance criteria VoIP Traditional Fix net Telephony Regulation Mobile Telephony Diversity of performance criteria New Voice Telephony Traditional Fix net Services Telephony Regulation Technologyneutral voice services Mobile Telephony Mobility Mobility 11
12 Regulation Requirements of the services forming part of the universal service must be fulfilled in one of the IP technology adapted forms Necessary adjustments of the regulatory guidelines will be introduced for IP technology The access to emergency call services is important, exact requirements for nomadic services must be discussed and specified in the detail Technical Entry barrier for VoIP market VoIP providers need reliable broadband connections, quality agreements for the net entrance are necessary The world-wide standardised telephone numbering plan E.164 is the most important achievement of the telephone service. VoIP providers must agree on the adoption of this achievement and promote the standardisation as to keep the interoperability of telephone services 12
13 "VoIP Functional Standards" 2005 Adaptation of legislation "QoS" > "VoIP Functional Standards" "Working Document on VoIP" TAP for public telephony services QoS VoIP Workshop VoIP Working Group OFCOM-Industry "Factsheet VoIP" and "VoIP FAQ " documents VoIP Workshop 1 13 VoIP regulation history
14 The OFCOM-Industry VoIP WG 29/11/2002 : creation of the OFCOM-Industry VoIP WG with a clear mandate: "Technical, administrative and legal aspects concerning quality criteria, rights and obligations, and interconnection of IP infrastructures to other infrastructures in connection with Public Telephone Service" Who are the VoIP WG members? The NRA FN operators Cable operators Manufacturers OFCOM Swisscom, TDC, Orange, Tele2, Cablecom, Swisscable, Cisco, Alcatel, Siemens, 14
15 2004 VoIP Workshop results (1/2) VoIP as public telephony service VoIP can be considered today as public telephony service because: real time / voice quality are almost guaranteed service provided on standard telephone numbers (E.164) Public telephone service : major rights and obligations Rights : E.164 telephone numbers allocation interoperability Obligations : access to emergency numbers carrier selection (CPC) interoperability services for hearing and visually impaired Lawful Interception 15
16 2004 VoIP Workshop results (2/2) What the actors expect from regulator Short term: E.164 telephone numbers allocation only to operators with a legal company office in Switzerland exemption from the access to emergency numbers for VoIP services considered as nomadic Medium and long term: reasonable application of the interconnection and access regulation (Telecom Act revision) for the VoIP/BB accesses agreement on the content of the Telecom Act in relation to the VoIP characteristics 16
17 VoIP regulation in parallel phases 1 VoIP WG Regulation through prescriptions and recommendations Derogations, agreements USO 2 Consumer oriented regulation Competition oriented regulation
18 "VoIP Functional Standards" document Introduction with basic principles of the regulation of telephony services two phases approach of the VoIP regulation Three chapters Interoperability, interconnection Access to network and services (end-user side) Numbering For each functionality legal reference VoIP Workshop result standards/references associated comments/problem description possible solution with advantages, disadvantages and regulatory impact VoIP WG proposal Working document with purely informative goal (on without regulating constraints 18 Final document of the OFCOM-Industry Working Group on VoIP (in standby, can be reactivated if necessary)
19 What basic requirements apply to VoIP? TDM Tel Mobile Tel VoIP Requirement A Requirement B ~ Requirement C ~? Requirement D ~ - Requirement X (new)
20 Which adjustments should be carried out for VoIP? Type A Requirement can be applied to VoIP without any change of the legal disposition let the implementation of the PTS Type B Legal disposition or technical and administrative prescriptions must be adapted for VoIP OFCOM changes / edits prescriptions > PTS implement Type C The requirement is no more applicable (obsolete, no more public interest) exemption clause for VoIP -> no implementation necessary 20
21 Requirements with problems (1/5) Access to emergency services access to all emergency numbers (112, 117,118, 144,..) correct routing localisation's data base for stationary end user numbers requirements for nomadic services PSTN 1 Swisscom PSTN 2 end-user localisation data Routing Localisation Centralised data base 21
22 Requirements with problems (2/5) Access to emergency services - proceedings - explanatory letter (problems, possible solutions) sent to the concerned actors (polices, emergency calling centres, emergency organizations...) > strong negative reaction - meeting with concerned actors organised by OFCOM in May - development of Technical and Administrative Prescriptions (TAP) - consultation of the offices concerned by the new TAP - publication and effectiveness of the TAP at the end of
23 Requirements with problems (3/5) Carrier Selection (CS) Obligations to guarantee carrier selection call-bycall CPS Nat. comm. Internat. comm. Nat. comm. Internat. comm. Public telephony service provider fixed mobile VoIP? () 23
24 Requirements with problems (4/5) Carrier Selection (CS) Pro the end-user is not linked to a provider free competition at service level, niche markets are protected no long term binding contract (possible to change every 5 days) Against the free choice is actually guaranteed with the choice of VoIP providers (separation of access and service) CS/CPS is inherited from the traditional telephony world, not corresponding to IP world philosophy (price independent from time) additional entry barriers without advantages can block new applications 24
25 Requirements with problems (5/5) Carrier Selection (CS) - proceedings - consultation (with questionnaire) of concerned actors (operators, end user's associations) - synthesis, internal consultation, modification of TAP and eventually of the Telecom Decree - study and decision of the ComCom - meeting with concerned actors organised by OFCOM - consultation of the offices concerned - publication and effectiveness at the end of
26 Requirements without problems (1/2) Lawful Interception (LI) - much more complicated (liberalisation of the market, Internet, new technologies) than with PSTN - traditional voice monitoring overhauled by: growing flow of information access to new systems - possible solution: adopt a generic interface for most of the technologies true challenge - in Switzerland : DBA (special tasks service) is responsible for LI OFCOM will meet DBA members to discuss the VoIP case - new DBA prescriptions in collaboration with the incumbent 26
27 Requirements without problems (2/2) Outgoing call barring obligation applicable to VoIP services independently of the network technology Advice of charge should not be applicable to VoIP services Calling-line identification transmission of the calling-line technically more difficult for VoIP as for PSTN > interconnection agreements must take it in consideration the TAP "Calling-line identification" will be modified for more technological neutrality Publication of NTP apply the obligations and wait on possible complaints, eventually adapt the catalogue of recommended interfaces Extraterritoriality work in collaboration with EU 27
28 The Swiss VoIP market (1/2) What can we expect in the future? new entries on the market (Skype, Vonage, Tele2, Sunrise, ) VoIP on WLAN (e.g.. Hotspot) VoIP on mobile on mid term, if the data transmission is cheaper or flat rate entry on the market from the incumbent (Swisscom) with a real product in 2006 (?!) the voice services prices will be cut the business case for the operators offering only voice (Calling Card, CPS) will be more difficult importance of bitstream, alternative providers can offer internet access and voice (with QoS) 28
29 The Swiss VoIP market (2/2) 28 registered TSP on 1/05/2005 Blackpoint Net MyTel GmbH BT Switzerland Ltd myvoip.ch Cablecom GmbH One4all AG Dynamic-net.ch AG SOLPA AG Mexan GmbH Swisscom Fixnet EconoPhone AG Swisscom Solutions E-fon GmbH Swiss IP Com Equant Communications Services AG System-Clinch Internet Extrafon GmbH Ticinocom SA Gemeinschaftsantennenanlage Ossingen VIA NET.WORKS AG Global Network Schweiz AG Voice IP Com GmbH Green Telco AG Voiplink Guest-Voip.ch Vox Convergence LAN Services AG VTX Datacomm AG 29
30 VoIP service provider's solutions (1/3) The pure VoIP product: Econostream first VoIP telephony offer over BB (ADSL or cable) in Switzerland setup ISK 2'700 ISK 535/month - ISK 2.7 (1.1)/min fix nat. totally nomadic with a Swiss E.164 number + portability 30
31 VoIP service provider's solutions (2/3) The bundle product: Digitalphone from Cablecom IP telephony on the cable ISK 1'080/month - ISK 1.6/min fix national free calls between and 07.00, and during the weekends with a Swiss E.164 number + portability + limited nomadic use Alcate l S12 Firewall CMTS PSTN Swisscom WAN HFC IN Voice Switch Voice Gateway Ethernet Switch PE Router IP / MPLS DOCSIS 1.1 Cable Modem MGCP 1.0 NCS version
32 VoIP service provider's solutions (3/3) The P2P product: Skype P2P IP telephony free of charge SkypeOut to dial E.164 numbers SkypeIn to be called from E.164 numbers: this service will be regulated like "standard" VoIP services! 32
33 Some conclusions The regulation approach (2 phases) adopted by OFCOM (CH) is well accepted by VoIP actors. Access to emergency calls (localisation and routing) as major problem but should be technically solved soon. Manufacturers on the point to bring valuable solutions. Initial phase of VoIP market development already at its end, very fast grow at mid term. Any delay in the VoIP regulation can have serious consequences. The actors of the market expect a clear position of the regulator. To bring together the telecom regulator and the actors of the VoIP market to discuss the future regulation is very fruitful for both parties. Pragmatic solutions for legal obligations should be adopted quickly. 33
34 34 Thank you for your attention
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