voip group presentation - rev 3

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Presentation Transcript

-VOIP- A Necessary Evolution of Thinking:

-VOIP- A Necessary Evolution of Thinking Butler, Hammers, O’Dea

A brief history of telephony:

A brief history of telephony Quickly changing landscape First call was placed 1876 by Alexander Graham Bell Gradual formation of a large Public Switched Telephone Network (PSTN) Voice-only telephone networks have evolved into part-voice, part-high speed data.

What is VOIP:

What is VOIP V oice O ver I nternet P rotocol A means of routing voice communications over data networks rather than the PSTN.

Why the interest in VOIP?:

Why the interest in VOIP? VOIP allows a greater volume of voice calls to be handled much more efficiently than traditional phone service. Increased capacity per connection reduces cost, especially for international or domestic long-distance calling. Increased flexibility – a phone number is no longer linked to a single location, can move around the world with you.

A history of telecom regulation.:

A history of telecom regulation. Historically, innovations in telecom have been founded by a single company, all the way from R&D to selling to the consumer. This single-party innovation tradition is conducive to the formation of natural monopolies. Great example – Bell/AT&T with the telephone. Also Western Union with the telegraph.

Detrimental effects of telecom monopolies:

Detrimental effects of telecom monopolies Providing telephone service is a field with a naturally high barrier to entry. Costly equipment traditionally needed. Cost to lay cable/infrastructure in place to carry calls. Need for Interconnection Telephone service would be substantially less useful without being able to call between service providers.

Differences between traditional phone and VOIP:

Differences between traditional phone and VOIP Substantially lower barriers to entry! Lower cost, often off-the-shelf equipment rather than specialized, expensive telephone switches. Pre-Existing Infrastructure Calls go over the Internet Can be mixed alongside other data on the same wire. Standardized interconnection medium via the Internet.

Phone/VOIP difference (cont.):

Phone/VOIP difference (cont.) Many players rapidly entered the VOIP market simultaneously, with great success. Somewhat self-regulating thanks to this.

Rural Community Considerations:

Rural Community Considerations Telephone companies were historically reluctant to serve areas with low population densities. Government sometimes provided aid. Low- or No- interest loans for network expansion. Funded by taxes and fees on phone service.

Rural Considerations (cont.):

Rural Considerations (cont.) VOIP is different New Infrastructure is not needed solely for VOIP. No good reason for taxes and fees since the government isn’t subsidizing loans for network expansion. Break-away from the service + infrastructure package idea. Time to aid expansion of ISPs into rural areas? (They’re now the ones adding infrastructure).

VOIP – A Private Entity System:

VOIP – A Private Entity System VOIP service is almost entirely private companies with little or no government intervention. R&D money comes directly from subscriber monthly rates. Adding taxes would drive customers away from VOIP, cutting off critical cash flow for the new industry. Taxation would hinder growth.

911 Requirements for VoIP:

911 Requirements for VoIP ISP guaranteed services Location awareness Communication with PSAPs

911 and VoIP Regulation:

911 and VoIP Regulation Would require regulation to work Define responsibilities Enhance Existing reverse lookup Computer 911

The future:

The future One Step Closer to Perfect Competition Further Convergence Many Competitors Less Telecom Regulation