IP telephony today and tomorrow Mikael Wllstedt Business

IP telephony - today and tomorrow Mikael Wällstedt Business Manager, IP telephony Ericsson Telecom AB IP Services SE-126 25 STOCKHOLM Sweden Tel: +46 8 719 35 43 Fax: +46 8 719 06 08 mikael. wallstedt@ericsson. com

Agenda - IP telephony What is IP telephony? How does it work? Why IP telephony? What about the future?

What is IP telephony?

GSM on the Net IP telephony

A changing world % Data traffic Voice telephony Source: FT Media & Telecoms

IP telephony evolution IP Nerd to Nerd (computer to computer) IP Nerd to Grandma (computer to phone) IP Grandma to Grandma (phone to phone)

IP telephony product life cycles Basic sw/hw infrastructure Horizontal Segmentation Value Added Applications Vertical Segmentation Application/Network Integration Horizontal Segmentation

How does it work?

Phone-to-phone traffic over IP PSTN VG UDP connection Logical channel (audio data) VG PSTN IP network GK TCP connections Control signaling (call control, logical channel control) GK VG = Voice gateway GK = Gatekeeper

Unvalidated Ph-ph, PC-Ph, Fax-to-Fax PSTN Fax VG VG PSTN IP network GK IVR GK VG = Voice gateway GK = Sitekeeper IVR = Interactive voice response

Phone. Doubler. TM POTS Line Call Forwarding PSTN PRI Internet ISP Access Voice Gateway

Phone Doubler. TM Quick Call n Click & Dial n Free Phone, Banking n Helpdesk numbers

Why IP telephony?

IP telephony business case - today l International long distance traffic l Domestic long distance traffic l Corporate Services

Delta Three IP telephony Global Network Fully Integrated with the PSTN

D 3 => cost savings for the end user RETAIL PRICES $/min From the US to: AT&T Discount Card* Argentina Brazil China Colombia Russia Venezuela $2. 03 $1. 93 $2. 73 $1. 95 $2. 57 $1. 42 $0. 95 $0. 84 $1. 16 $0. 85 $0. 95 $0. 63 D 3 $0. 32 $0. 35 $0. 45 $0. 28 $0. 25 $0. 30 * Voice. Net

Interroute- domestic long distance International Access ISDN Bilbao La Coruna Huesca Lleida Tarragona Balaeres (Illes) Zaragoza etc Madrid Barcelona Seville Valencia

Corporate LAN - multiple accesses Legacy Phone & Fax QSIG/PBX WLAN Devices Managed IP Network IP Node GSM on the net GSM network Bluetooth Wireless IP enterprise office concept H. 323 Client IP-Phone

What about the future?

Next Generation Services and Solutions Service Solution Voice Mobility Video UMTS service capabilities Multimedia E-mail Individualisation E-commerce Service provider Infotainment Value added service provider Games SMS. . . and more Business solution

Moving up in the value chain Revenue source Service/Product Pay per view, advertising Hosting charges/commission Hosting charges Internet Service charges Content Information, content, journalism, etc. E-Commerce Electronic commerce, security, billing, marketing Hosting ISP Wireless ISP Access charges Connectivity Hosting of corporate Web pages “Extranets” Regular Internet services (Email, FTP, Web servers, etc. Internet Services adjusted to mobile users Email over SMS, WAP, etc. Connectivity to Internet Access to corporate Intranets Bearer GSM-user charges Services Wireless data transmission

Technology development l. PSTN interconnection l. Standards l. Qo. S l. Enhanced Services

Thank you Mikael Wällstedt Business Manager, IP telephony Ericsson Telecom AB IP Services SE-126 25 STOCKHOLM Sweden Tel: +46 8 719 35 43 Fax: +46 8 719 06 08 mikael. wallstedt@ericsson. com