I am at the closing plenary of the Voice Peering Forum in SanFrancisco. It has been a very interesting two days with a lot of informative and thought provoking conversations and presentations. The Voice Peering Fabric made two very notable announcements today. First the VPF is opening up its ENUM directory to the public Internet. Previously, the VPF ENUM registry has been limited to users of the VPF private ethernet network. Now common route discovery between networks on the VPF and public Internet is possible. More importantly, however, the VPF ENUM registry is no longer just a simple open database. The VPF ENUM registry users can now define the groups of users that have access to their ENUM entries - similar to the features offer by other ENUM solutions such as NetNumber.
The second announcement from the VPF was the launch of the VPF Automated Trading Platform (ATP) which enables a VPF user to define and control a hosted least cost routing and settlement solution. Users will deposit funds with the ATP which will automatically execute clearing and settlement of funds between peering partners.
In many respects, the VPF initiative is similar to Arbinet's VoIP peering service, however, their is one big difference. The VPF ENUM registry and ATP is completely free for VPF users. Automated clearing and settlement of VoIP peering transactions seems like a major infrastructure service that will have a material expense. Nevertheless the folks at the VPF feel confident that the float of prepaid deposits plus the addition of new VPF business will pay for the services
Tuesday, June 24, 2008
Thursday, June 19, 2008
The Voice Peering Forum
Yesterday I mentioned the Voice Peering Fabric (VPF), run by Stealth Communications, as an innovation to watch in NGN interconnection. Twice a year the VPF hosts its Voice Peering Forum. The Voice Peering Forum is a gathering of VPF customers and leaders of the VoIP industry for discussions about the future of peering applications, such as VoIP, over IP networks. I attended the last Voice Peering Forum in December 2007 in New York City and heard a lot interesting ideas and experiences about VoIP peering and new applications. Next Monday and Tuesday, June 23rd & 24th, the Voice Peering Forum will be meeting in San Francisco. On Tuesday, at 11:30am to 12:15pm, I will be participating in a panel discussing "To Couple or Decouple Routing Intelligence from SBC?". I expect it will be an interesting two days. I hope to see you there.
Wednesday, June 18, 2008
Ideas for VoIP Interconnect Evolution
Like other folks involved with VoIP, we ponder how the new interconnect model for future IP services will evolve. I think we all share the same vision - open, global, peer to peer communication between any two applications on the Internet. This is the model we experience with the World Wide Web (WWW) and it works. Any browser can have a session with any web server. The technical challenge of HTTP inter-working is easy and the interconnect model is simple. The WWW business model is a broadcast model. The web site sponsors pay to have their content advertised on the Internet. It is a very simple economic model that benefits both the source (web browser) and destination (web site) of each session.
The interconnect challenge for Next Generation Networks (NGN) is much more complex. Like the WWW model, there are two different challenges: finding a technical and economic solution that encourages networks to interconnect. First, the technical inter-working challenges are much more complex. For example, VoIP, with its many features and codecs is much for complex that a typical web session. But, like all technical issues, the inter-working challenges are being overcome. The more challenging problem is finding the economic model that provides an incentive for for every network to interconnect.
The economic model for interconnecting networks for VoIP and other value added IP sessions such as video, gaming, and content distribution is much less simple than the WWW model. Many folks in the industry have advocated for a "Bill and Keep" model. In this model, the interconnecting networks bill their end user subscribers, keep all the revenue and interconnect with one another for free. There is no sharing of revenue between the networks of the calling and called parties. This simple model does have its merits, but the practical reality is that no network operators have indicated any interest in this model.
The economic model problem is simple, different applications might require more or less network infrastructure services and therefore have different costs, which may be small, but are still material for the network operators. In addition, the direction of the value exchange for session between the source and destination is unknown to the network. In some scenarios the calling party (source) is willing to pay for the entire session, in other scenarios the called party (destination) is willing to pay for the entire session. The major challenge is to find an economic model, coupled with a technical solution, that enables the efficient exchange of economic value that tracks the value of interconnected sessions. When this solution is found, NGN interconnection will flourish.
But back to the point we ponder - how will the winning model for NGN interconnection evolve? We see four possible paths.
1) Dominant Player Defines the Solution
In many industries a dominant player evolves that defines the industry wide standard. AT&T certainly did this for the US telephone network. But, today the telecom world is more competitive and fragmented than ever. It seems unlikely that a single company, or even a consortium of companies can dictate the industry standard.
2) Industry Cooperation
This is possible and we see these beginning of these efforts from CableLabs, GSMA, i3 Forum and others. But the process to define technical standards and standard practices is long and bureaucratic. In addition, since this is a global challenge, there will be competition between different interest groups which are huge, such as wireless versus wireline carriers, or the US versus the EU. This migration path is possible, but long.
3) Regulation
Mandating NGN interconnect standards is a scenario where regulators might add some value. But unfortunately regulators usually do not understand the issues, are overly influenced by the dominant players and lack innovation. It is doubtful that regulators will solve the problem.
4) Grass Roots
The last possible evolution path toward an NGN standard could from the users themselves. For example, this kind of solution could come from an open source project. Another scenario is that a group of small companies or new entrants to the industry develop a solution that works and grows to critical mass.
One possibility for the grass roots success scenario could be the Voice Peering Fabric (VPF) run by Stealth Communications. It is private ethernet network that enables VoIP peering among networks. The VPF is not a carrier and provides a neutral solution for network interconnection. The VPF provides an ENUM server to support the Bill and Keep economic model for interconnection. The VPF ENUM implementation has been successful, but the narrow appeal of the Bill and Keep model has limited its growth. We understand that the VPF will soon be providing infrastructure services that enable efficient interconnect billing settlements between peering VoIP networks. If they get the economic model right, VoIP peering on the VPF will flourish. If this happens, could the amount of network traffic using the VPF NGN interconnect model grow to critical mass and become a de facto standard before being countered by a solution from the industry giants? We will see.
The VPF is just one example of a possible grass roots solution for NGN interconnection. I am certain there are other innovators and entrepreneurs working to solve this global problem. If you know of any, I would like to hear from you.
The interconnect challenge for Next Generation Networks (NGN) is much more complex. Like the WWW model, there are two different challenges: finding a technical and economic solution that encourages networks to interconnect. First, the technical inter-working challenges are much more complex. For example, VoIP, with its many features and codecs is much for complex that a typical web session. But, like all technical issues, the inter-working challenges are being overcome. The more challenging problem is finding the economic model that provides an incentive for for every network to interconnect.
The economic model for interconnecting networks for VoIP and other value added IP sessions such as video, gaming, and content distribution is much less simple than the WWW model. Many folks in the industry have advocated for a "Bill and Keep" model. In this model, the interconnecting networks bill their end user subscribers, keep all the revenue and interconnect with one another for free. There is no sharing of revenue between the networks of the calling and called parties. This simple model does have its merits, but the practical reality is that no network operators have indicated any interest in this model.
The economic model problem is simple, different applications might require more or less network infrastructure services and therefore have different costs, which may be small, but are still material for the network operators. In addition, the direction of the value exchange for session between the source and destination is unknown to the network. In some scenarios the calling party (source) is willing to pay for the entire session, in other scenarios the called party (destination) is willing to pay for the entire session. The major challenge is to find an economic model, coupled with a technical solution, that enables the efficient exchange of economic value that tracks the value of interconnected sessions. When this solution is found, NGN interconnection will flourish.
But back to the point we ponder - how will the winning model for NGN interconnection evolve? We see four possible paths.
1) Dominant Player Defines the Solution
In many industries a dominant player evolves that defines the industry wide standard. AT&T certainly did this for the US telephone network. But, today the telecom world is more competitive and fragmented than ever. It seems unlikely that a single company, or even a consortium of companies can dictate the industry standard.
2) Industry Cooperation
This is possible and we see these beginning of these efforts from CableLabs, GSMA, i3 Forum and others. But the process to define technical standards and standard practices is long and bureaucratic. In addition, since this is a global challenge, there will be competition between different interest groups which are huge, such as wireless versus wireline carriers, or the US versus the EU. This migration path is possible, but long.
3) Regulation
Mandating NGN interconnect standards is a scenario where regulators might add some value. But unfortunately regulators usually do not understand the issues, are overly influenced by the dominant players and lack innovation. It is doubtful that regulators will solve the problem.
4) Grass Roots
The last possible evolution path toward an NGN standard could from the users themselves. For example, this kind of solution could come from an open source project. Another scenario is that a group of small companies or new entrants to the industry develop a solution that works and grows to critical mass.
One possibility for the grass roots success scenario could be the Voice Peering Fabric (VPF) run by Stealth Communications. It is private ethernet network that enables VoIP peering among networks. The VPF is not a carrier and provides a neutral solution for network interconnection. The VPF provides an ENUM server to support the Bill and Keep economic model for interconnection. The VPF ENUM implementation has been successful, but the narrow appeal of the Bill and Keep model has limited its growth. We understand that the VPF will soon be providing infrastructure services that enable efficient interconnect billing settlements between peering VoIP networks. If they get the economic model right, VoIP peering on the VPF will flourish. If this happens, could the amount of network traffic using the VPF NGN interconnect model grow to critical mass and become a de facto standard before being countered by a solution from the industry giants? We will see.
The VPF is just one example of a possible grass roots solution for NGN interconnection. I am certain there are other innovators and entrepreneurs working to solve this global problem. If you know of any, I would like to hear from you.
Tuesday, June 17, 2008
CableLabs and VoIP Peering
Well a lot of blogging from me last week about activities in the field of Next Generation Network (NGN) Interconnection. A more commonly used term for NGN Interconnection has been VoIP peering. However, the term VoIP peering may be is losing is usefulness since it limits the concept to VoIP. Anyway, one organization that has been surprisingly silent in the recent dialog about NGN Interconnection has been CableLabs.
In October 2006 CableLabs released a Request for Proposal (RFP) for "CableLabs® Voice over IP (VoIP) Peering Registry Services". The RFP was focused on delivering a solution for VoIP to VoIP calling between Cable MSOs (Multi-System Operators). The CableLabs RFP generated a lot of excitement when it was first released, but no progress has been reported by CableLabs. Rumors in the industry indicate a pilot trial is in place based on ENUM technology from Net Number deployed by NeuStar. More importantly, however, is the reality that Time Warner (TWC) - a critical player in any successful VoIP peering initiative, partnered with Sprint to handle all of TWCs offnet voice traffic.
So the lack of news about VoIP peering from CableLabs may be telling - there is not much to tell. Perhaps the Cable MSOs are too small a market niche to drive a standard NGN interconnection strategy, or may the initiative was just too early. Another possibility could be the limitation that the CableLabs approach had no mechanism for inter-carrier settlements. Open peering sounds great until you look more closely at the need to manage the profitability of your network. At that point, peering without any economic controls seems like a very risky concept.
In October 2006 CableLabs released a Request for Proposal (RFP) for "CableLabs® Voice over IP (VoIP) Peering Registry Services". The RFP was focused on delivering a solution for VoIP to VoIP calling between Cable MSOs (Multi-System Operators). The CableLabs RFP generated a lot of excitement when it was first released, but no progress has been reported by CableLabs. Rumors in the industry indicate a pilot trial is in place based on ENUM technology from Net Number deployed by NeuStar. More importantly, however, is the reality that Time Warner (TWC) - a critical player in any successful VoIP peering initiative, partnered with Sprint to handle all of TWCs offnet voice traffic.
So the lack of news about VoIP peering from CableLabs may be telling - there is not much to tell. Perhaps the Cable MSOs are too small a market niche to drive a standard NGN interconnection strategy, or may the initiative was just too early. Another possibility could be the limitation that the CableLabs approach had no mechanism for inter-carrier settlements. Open peering sounds great until you look more closely at the need to manage the profitability of your network. At that point, peering without any economic controls seems like a very risky concept.
Friday, June 13, 2008
IP Internetworking Alliance
There is no shortage of new organizations focusing IP Interconnection standards. The latest organization to be formed is the IP Internetworking Alliance or IPIA. IPIA has been established by the GSMA to be the not for profit, governing body of the GSMA IPX. The IPIA mission statement is:
" To provide an environment whereby stakeholders from mobile operators, fixed operators and carriers can agree to technical specifications and commercial templates for the IPX, which will facilitate the global interworking of IP services."
The inaugural IPIA Board members are:
- Belagacom
- BT
- FT Orange
- GSMA
- iBasis (KPN)
- Softbank
- Telecom Italia
- Telefonica
- Telenor
- TeliaSonera
- Vodafone
The guiding principals for the IPIA are:
" To provide an environment whereby stakeholders from mobile operators, fixed operators and carriers can agree to technical specifications and commercial templates for the IPX, which will facilitate the global interworking of IP services."
The inaugural IPIA Board members are:
- Belagacom
- BT
- FT Orange
- GSMA
- iBasis (KPN)
- Softbank
- Telecom Italia
- Telefonica
- Telenor
- TeliaSonera
- Vodafone
The guiding principals for the IPIA are:
•1. Open to participation by all relevant stakeholders, i.e. those using and those providing IPX services;
•2. Transparent and fair decision making processes;
•3. Freedom for innovation and self determination in the development and implementation of IPX services;
•4. Support for national, regional and international requirements, including compliance with relevant regulation;
•5. The IPX Forum will not create standards, but will only define implementation guidelines for the use and implementation of existing standards.
The IPIA plans to begin accepting members in Q3 2008.
The IPIA plans to begin accepting members in Q3 2008.
Thursday, June 12, 2008
ATIS Inter-Carrier VoIP Workshop
The migration to an all IP world takes another small step forward. This week ATIS is holding a workshop in Washington D.C. to discuss Inter-Carrier VoIP Call Routing (ICVR). If you do not know, ATIS stands for Alliance for Telecommunications Industry Solutions. ATIS is accredited by the American National Standards Institute (ANSI) and creates telecom industry standards for everything from provisioning to routing to billing.
The objective of the ICVR workshop will be to determine if there is consensus that it is desirable to reach a single inter-carrier VoIP routing solution. If a single routing solution is desired, then the workshop will begin development of a roadmap to achieve a single routing solution. This workshop is based on the work that has been done by the IVCR Focus Group which began in 2006. In January 2008 ATIS published the ATIS Inter-Carrier VoIP Call Routing Assessment and Work Plan. The Work Plan is a good document that describes alternative models for inter-carrier VoIP routing. The Work Plan identifies that inter-carrier billing and settlement are requirements, but no work has been done to define the requirements.
We are happy to see that IP interconnection is getting some serious focus by ATIS which is driven by the legacy telecom operators in the US. This will be good for VoIP vendors and good for consumers if the derived standards encourage an open competitive market.
The objective of the ICVR workshop will be to determine if there is consensus that it is desirable to reach a single inter-carrier VoIP routing solution. If a single routing solution is desired, then the workshop will begin development of a roadmap to achieve a single routing solution. This workshop is based on the work that has been done by the IVCR Focus Group which began in 2006. In January 2008 ATIS published the ATIS Inter-Carrier VoIP Call Routing Assessment and Work Plan. The Work Plan is a good document that describes alternative models for inter-carrier VoIP routing. The Work Plan identifies that inter-carrier billing and settlement are requirements, but no work has been done to define the requirements.
We are happy to see that IP interconnection is getting some serious focus by ATIS which is driven by the legacy telecom operators in the US. This will be good for VoIP vendors and good for consumers if the derived standards encourage an open competitive market.
Wednesday, June 11, 2008
The GSMA IPX
Today's blog is a continuation of the discussion about Next Generation Network (NGN) interconnect. While there is a lot of discussion about the promise of replacing the Public Switch Telephone Network (PSTN) with an all IP network, few efforts seem to be getting past the discussion phase. The GSM Association's IPX effort, however, appears to have some real momentum. The GSM Association (GSMA) is the global association of wireless carriers who use the GSM wireless technology developed by ETSI. The majority of wireless users worldwide are on GSM networks. Since the number of wireless users surpass the number landline users, the GSMA is well positioned to define a NGN architecture which could replace the PSTN.
The GSMA' s proposed architecture for NGN interconnection is its IP eXchange or IPX. It is a grandiose plan that appears to address every possible carrier requirement. It appears so grandiose in fact that some may believe it will never happen. However, I think betting against the GSMA IPX would be a mistake. The concept was first publicized in 2006 and in February 2008 the first trials of the IPX were announced. One unique aspect of the IPX plan is that it addresses the requirement of intercarrier settlements upfront. If the IPX enables cascading settlement transactions among carriers, then the economic incentives will be in place to encourage open interconnect among carriers.
Today most carriers continue to interconnect via PSTN SS7 networks because it offers a proven economic model for interconnect compensation. However, carriers will follow the money. If the IPX has a better economic model for interconnect, then the IPX is positioned to replace the PSTN as the global voice network.
The GSMA' s proposed architecture for NGN interconnection is its IP eXchange or IPX. It is a grandiose plan that appears to address every possible carrier requirement. It appears so grandiose in fact that some may believe it will never happen. However, I think betting against the GSMA IPX would be a mistake. The concept was first publicized in 2006 and in February 2008 the first trials of the IPX were announced. One unique aspect of the IPX plan is that it addresses the requirement of intercarrier settlements upfront. If the IPX enables cascading settlement transactions among carriers, then the economic incentives will be in place to encourage open interconnect among carriers.
Today most carriers continue to interconnect via PSTN SS7 networks because it offers a proven economic model for interconnect compensation. However, carriers will follow the money. If the IPX has a better economic model for interconnect, then the IPX is positioned to replace the PSTN as the global voice network.
Tuesday, June 10, 2008
The i3 Forum
As I mentioned in my blog yesterday, Next Generation Network (NGN) interconnection is a popular topic. On June 2nd, the opening plenary at the International Telecoms Week (ITW) conference in Washington D.C. was an announcement made by the International Interconnect Forum for IP services, also known as the i3 Forum. The i3 Forum was founded in Q3 2007 by the following eight international carriers:
- ATT Wholesale
- DT ICSS
- France Telecom Orange
- SingTel
- Telecom Italia Sparkle
- Telefonica
- Telekomunikacja Polska
- TeliaSonera
These eight carriers claim to represent 40% of all international traffic and serve more than 1 billion customers in 80 countries.
The mission and focus of the i3 Forum will be to provide specifications, based on existing standards, which can be used by the international wholesale carriers for migration of voice services to IP technology and IP-based multimedia services. The i3 Forum is not a standards body and will make use of existing standards from the ITU, ETSI-TISPAN, IETF and 3GPP. The group plans to liaise with other industry bodies with similar/competing interests such as GSMA and IPIA.
This group of former PTTs point out that domestic interconnection standards for TDM/IP or IP/IP are outside the scope of their mission. It seems to me that NGN interconnect, like the Internet, would not be constrained by geographic boundaries. But, since this is a group of PTTs that must feel the threat of wireless operators, I assume that it is best for them to keep local telecom interconnection a non-standard practice that creates an obstacle for new competing local carriers.
- ATT Wholesale
- DT ICSS
- France Telecom Orange
- SingTel
- Telecom Italia Sparkle
- Telefonica
- Telekomunikacja Polska
- TeliaSonera
These eight carriers claim to represent 40% of all international traffic and serve more than 1 billion customers in 80 countries.
The mission and focus of the i3 Forum will be to provide specifications, based on existing standards, which can be used by the international wholesale carriers for migration of voice services to IP technology and IP-based multimedia services. The i3 Forum is not a standards body and will make use of existing standards from the ITU, ETSI-TISPAN, IETF and 3GPP. The group plans to liaise with other industry bodies with similar/competing interests such as GSMA and IPIA.
This group of former PTTs point out that domestic interconnection standards for TDM/IP or IP/IP are outside the scope of their mission. It seems to me that NGN interconnect, like the Internet, would not be constrained by geographic boundaries. But, since this is a group of PTTs that must feel the threat of wireless operators, I assume that it is best for them to keep local telecom interconnection a non-standard practice that creates an obstacle for new competing local carriers.
Monday, June 9, 2008
ETSI NGN Interconnect Workshop
VoIP has been deployed for years, but VoIP is still just emerging as a viable alternative to replace the PSTN completely. The challenges of technical interconnection between networks are being solved as the standards mature and as VoIP equipment vendors improve their platforms. However, the challenge of solving the business problem of interconnect between carriers is just beginning. To replace the PSTN, the VoIP model must provide an economic incentive for ubiquitous interconnection among all VoIP networks - this requires intercarrier settlement.
Finding a solution for Next Generation Network (NGN) interconnect and settlement is becoming a relevant and popular topic. This week ETSI TISPAN is hosting a Workshop on Interconnection. The scope of the workshop will cover all aspects of the creation of a global standard for the IP interconnection of NGN services. It will aim to address interconnection requirements elaborated by GSMA and other organizations and how they could be taken to standardization in 3GPP and TISPAN, toward the timely creation of standards for the interconnection of next generation of IP services.
At TransNexus, we believe that the ETSI Open Settlement Protocol (OSP) has already defined a technical solution for the cascading settlement requirements defined by the GSMA. To learn more about how OSP can be used for NGN interconnect and settlement see: www.transnexus.com/White%20Papers/NGN_Settlement_using_OSP.pdf.
Finding a solution for Next Generation Network (NGN) interconnect and settlement is becoming a relevant and popular topic. This week ETSI TISPAN is hosting a Workshop on Interconnection. The scope of the workshop will cover all aspects of the creation of a global standard for the IP interconnection of NGN services. It will aim to address interconnection requirements elaborated by GSMA and other organizations and how they could be taken to standardization in 3GPP and TISPAN, toward the timely creation of standards for the interconnection of next generation of IP services.
At TransNexus, we believe that the ETSI Open Settlement Protocol (OSP) has already defined a technical solution for the cascading settlement requirements defined by the GSMA. To learn more about how OSP can be used for NGN interconnect and settlement see: www.transnexus.com/White%20Papers/NGN_Settlement_using_OSP.pdf.
Tuesday, June 3, 2008
ITW brings the end of GTM
I have spent the last two days at the International Telecoms Week (ITW) conference in Washington, DC. It has been a productive and well spent two days.
For wholesale carriers worldwide, this time of year has always been reserved for an annual trip to the GTM conference hosted by IntelSat in Washington DC. The GTM show had been very popular and growing for years. However, overtime, arrogance and over priced services began to permeate the IntelSat event. I do not think it was the fault of IntelSat, but rather the fault of the firm they hired to run the show for them.
Anyway, this year Capacity Magazine launched the competing ITW conference at the same time as GTM and located just one mile away on Connecticut Ave. in Washington. The success of the ITW show and the demise of the long running GTM conference is dramatic. The content of panel discussions I saw were meaningless, but it really does not matter. What the ITW participants want is a convenient venue for meeting partners and customers provided at a reasonable price. ITW provided that service. It is amazing how rapidly the market reacts when it is given a better alternative.
Like VON, I think the GTM conference is gone forever.
For wholesale carriers worldwide, this time of year has always been reserved for an annual trip to the GTM conference hosted by IntelSat in Washington DC. The GTM show had been very popular and growing for years. However, overtime, arrogance and over priced services began to permeate the IntelSat event. I do not think it was the fault of IntelSat, but rather the fault of the firm they hired to run the show for them.
Anyway, this year Capacity Magazine launched the competing ITW conference at the same time as GTM and located just one mile away on Connecticut Ave. in Washington. The success of the ITW show and the demise of the long running GTM conference is dramatic. The content of panel discussions I saw were meaningless, but it really does not matter. What the ITW participants want is a convenient venue for meeting partners and customers provided at a reasonable price. ITW provided that service. It is amazing how rapidly the market reacts when it is given a better alternative.
Like VON, I think the GTM conference is gone forever.
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