NEW! Special Feature

Parlez-Vous Voice Over Packets? Rapid growth in VOP can translate into success for service providers around the globe By Tony Gallagher

Voice over packets (VOP) is gaining momentum worldwide, as both greenfield carriers and incumbents recognize the benefit of switching from a circuit-based architecture to a packet-based networking environment. By choosing a next-generation open standards platform, carriers can quickly and cost-effectively roll out services -- calling/debit cards, unified messaging, directory assistance, customer care services and more -- over the public Internet or private packet-based networks.

From incumbent Post, Telegraph, and Telephone (PTT) carriers to startups, today service providers around the globe are deploying solutions that enable revenue-generating services. VOP enables service providers to build networks that meet today's needs and provide the packet-based services that are the foundation for future success.

The Language of Networking

VOP technology -- including voice over Internet protocol (VOIP), voice over asynchronous transfer mode (VOATM) and voice over frame relay (VOFR) -- refers to the transfer of voice and fax services over networks using packet switching instead of traditional circuit-switched technology. VOP is considered to be the language of next-generation networking, and future success will depend upon understanding it.

As government deregulation of telecommunications networks spreads and an appreciation for the benefits VOP grows, so does the use of packet-based telephony. Probe Research expects minutes of use for global VOP services to increase from 7.7 billion in 2000 to more than 570 billion by 2005.

Packet-based networks are less expensive to build and maintain than their legacy circuit-switched counterparts, which dedicate channels solely to voice. In addition, because packet switching makes much more efficient use of network capacity, packet-based networks can move both voice and data at a far lower cost.

By deploying VOP, incumbent and new service providers increase their revenue streams – both by leveraging existing subscriber bases and attracting new customers. They also can expand their territories by taking advantage of low startup costs for new points of presence (POPs). Further, they open the door to future profitability and increased customer satisfaction by expanding service offerings.

Using the Right Tools for the Job VOP networks are not yet available everywhere: Government restrictions in some countries still protect incumbent circuit-switched carriers. However, next-generation networks are proliferating and service providers who take advantage of global expansion can develop a competitive edge pursuing solutions that enable them to offer voice services in addition to faster Internet access. Networking in the international arena is a formidable task, however. Service providers must deploy packet-based networks that deliver reliable service and toll-quality voice – characteristics that are absolutely essential for any service provider who hopes to be competitive. Service providers also should leverage best-of-breed partnerships and employ the highest quality standards-based technology to address the challengesof a competitive marketplace.

Interconnection

The ability to connect to the public switched telephone network (PSTN) seamlessly and cost effectively is essential yet challenging because every country has its own signaling system 7/xxxxx 7 (SS7/C7) protocol variant. Using a signaling controller that is separate from the voice gateway to provide an SS7 interface between network access servers and local PSTN provides an effective and flexible solution. A signaling controller should have worldwide SS7 protocol support.

Bluewin, a spin-off of Switzerland's traditional PTT carrier Swisscom, offers comprehensive Internet service for residential and home office customers. Its initial challenge was two-fold: get to market rapidly, to quench the rapidly growing need for Internet access; and ensure that access was available and reliable throughout the country.

By selecting a signaling controller with the market's most flexible programmable protocol solutions, Bluewin was able to connect its data network with the local PSTN quickly and effectively.

Integrated communications provider iomart faced similar challenges in Scotland. By deploying dial access that supports SS7/C7, iomart is building a solution that will support VOIP in the future> It will enable iomart to position itself not simply as an Internet service provider (ISP), but as an integrated telecommunications and Internet company. In 15 months, iomart brands garnered more than 40 million calling minutes per month from 150,000-plus subscribers.

Shaanxi Telecom, one of China’s fastest growing ISPs, also has relied on a signaling controller to provide an SS7/C7 interconnection solution. Using SS7 interconnection to tap into the PSTN has helped Shaanxi realize new revenue opportunities, reduce operations costs and scale its networks efficiently. Cost-Effective Access

The same signaling controller that helped iomart and Shaanxi offer SS7/C7 connectivity enabled them to reduce PSTN connectivity charges, because it allows service providers to interconnect to the PSTN using intermachine trunks (IMTs). These cost significantly less and are generally more readily available than ISDN primary rate interfaces (PRIs) – the most common method of connecting to the PSTN. IMTs provide direct peer-to-peer connection to the PSTN, eliminating the need to invest in additional switches.

For Shaanxi, the solution is proving to be beneficial. By centralizing functions for adding SS7 to a packet-switched network, Shaanxi believes it can save as much as 50 percent on switching interface costs while reducing trunk costs by 30 percent.

The solution iomart selected enabled it to go live with SS7 capability from day one and with minimum capital expense. The company used a signaling controller to build the SS7/C7-capable dial access infrastructure required for capturing interconnect charges in the United Kingdom’s booming free ISP market.

The Australian Academic Research Network (AARNet), which acts as a service provider to its member institutions, provides a different example of VOP’s cost-effectiveness. AARNet and member CSIRO, a scientific research organization, have built a next-generation network that provides VOIP services. Their cost-saving implementation uses voice gateways positioned at each CSIRO state office and connects all PBXs over the AARNet backbone. Scalability

Scalability – both in network capacity and in new service offerings – is a high priority in the international market. Service providers must select the most flexible and modular equipment available, work with vendors who offer product ranges with varying densities, and incorporate standards-based, interoperable components so the network can grow seamlessly. Scalability has been a critical success factor for Genuity, a U.S.-based carrier whose global IP network has termination to more than 450 locations worldwide. Genuity carries traffic for Dialpad.com, which offers free Web-to-phone telephone service. Dialpad.com’s service usage surpassed all expectations by soaring to some 5 million minutes a day in less than six months. Its network has provided reliable, high-quality service continuously and features voice gateways with proven “five 9s” reliability. Further, the interoperability of Genuity’s network, including the voice gateways, H.323 gatekeepers and specially-designed software, enabled the carrier to build out the network seamlessly and keep up with demand.

Multiple Service Offerings/New Revenue Opportunities

Offering multiple next-generation services can be a key differentiator among service providers, thereby increasing potential revenue opportunities. An open standards-based, cost-effective network can facilitate the deployment of revenue-enhancing service features.

One essential element in doing this is an open programmable switch. Service providers can use a switch with voice applications on top of their VOP networks in order to add an intelligence that enables enhanced services such as pre- and post-paid calling cards.

Telekom Austria uses an open programmable switch as the foundation for state-of-the-art directory assistance and customer care services. With this solution, the PTT can connect callers immediately to the best-qualified agent in any of its directory assistance and customer care centers throughout the country. In addition, the platform offers a unique level of networkwide call control, with inter-site call transfers between agents rearranged automatically through the network.

Telia, Sweden’s national telecom operator, uses the same open programmable switch as the foundation of its operator and directory assistance applications. It operates as a front-end switch for all operator calls in a Centrex environment. For directory inquiry services, Telia uses it as an announcement and voice-response system. For example, the switch handles queued messages for waiting customers, automatic readout of the found subscriber number, and a voice response menu that customers use to connect directly to the desired number.

A Road to Success

Service providers who are flourishing in the global market share certain characteristics. They have learned the language of VOP, and they have developed packet-based networks with interoperable, open standards-based equipment which make up the foundation for offering next-generation services. By providing these services over intelligent, packet-based networks, service providers can address customers’ needs, build new business opportunities and find success.,

Tony Gallagher (tgallagh@cisco.com) is senior manager, product marketing, packet telephony division, Cisco Systems Inc. in San Jose, California.