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Packet Telephony Primer

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    Packet Telephony Primer

    3 C o m T e c h n i c a l P a p e r s

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    1

    Packet Telephony Primer

    Contents

    Introduction 2

    A New Value Model 2Present and Future Telephony and Computing Models 3

    Market Drivers 5

    Tariff Arbitrage 5

    Freedom of Choice 5

    Plummeting Capital Costs 6

    Microsofts Application Dominance 6

    Intels Planned Obsolescence Strategy 6

    Voice Connectivity over Data Applications 6

    What Is Packet Telephony? 7

    Carrier Applications 7

    Enterprise Applications 7

    Packet Telephony Standards 8

    Packet Telephony Products 8

    Toll Bypass Products 8

    Internet Phones 8

    LAN-Based PBX Systems 8

    The UnPBX 9

    Related Products and Markets 9

    Long-Term Trends 10

    Building a Packet Telephony Network 10

    The Desktop 10

    The Gateway 10

    The Gatekeeper 11

    IP Fabric 11

    Key Market Issues 12

    Where Is the Technology Going? 12

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    Packet Telephony Primer

    By Chris Lamb

    This document describes many of the concepts

    underlying packet telephony. Packet telephony isa technology by which voice traffi c is placed on

    packet-based networks such as those runni ng the

    Internet Protocol (IP). The concepts described

    here are suffi ciently general that they also apply

    to voice over Frame Relay and voice over

    Asynchronous Transfer Mode (ATM). The term

    packet telephony encompasses all of these

    mani festati ons.

    Introduction

    3Com Corporation has embarked on a broad

    strategic and product initiative to drive theconvergence of data and telephony networksby delivering a wide range of capabilities to

    meet the business needs of enterprises world-

    wide. By marrying technologies that have tra-ditionally been separate, 3Com is poised to

    move the industry to a new paradigm.

    The convergence of voice and data net-

    works has the potential to drive radicalchanges in collective business behavior by

    delivering information more pervasively and

    more completely than todays networks. The3Com vision is to create a single fabric to

    deliver both voice and data, enhancing the

    effectiveness and productivity of individuals incorporations worldwide.

    Today, customers can purchase systems

    that wed voice and data in limited applica-tions and with confined scope. The auto-

    matic call distributor (ACD) is one such

    example (Figure 1). ACD systems allow

    customer service agents in tele-phone call centers to access cus-

    tomer files in conjunction with

    incoming telephone calls. Thoughthey have existed for years, ACD call

    centers remain costly and difficult to

    deploy, requiring a great deal of cus-tomized systems integration for each site.

    Another example is the voice logging/

    auditing system used by emergency call centers

    (e.g., 911) and by financial institutions. Again,the deployment of these systems has been

    limited because of the awkwardness and lim-ited scalability of the underlying technology:

    voice on one network, data on the other, tied

    together by obtuse database linkages. By cre-ating a single unified fabric for both voice and

    data, 3Com is laying the groundwork for a

    realignment that will allow the easier andbroader deployment of such systems.

    The real power of data and telephony

    integration is its potential to spawn new appli-

    cations. Integral to this opportunity is the useof industry standard architectures upon which

    independent third parties can build applica-

    tions. Such applications have the power tospark radical shifts in collective business

    behavior.

    While the potential impact of this conver-

    gence is enormous, the size of the separateinstalled bases of data and voice makes migra-

    tion a formidable task. Solutions available upto now have generally been limited to point

    products with relatively narrow scope and

    with no answer to the installed base dilemma.

    As a multi-bill ion dollar company, 3Comoffers the breadth of products and the depth

    of experience necessary to migrate customers

    to this new paradigm. 3Com is committed toprotecting its customers investment and to

    migrating their infrastructure in ways thatrespect their current business practices.

    A New Value Model

    The goal of packet telephony is to provision

    voice over packet-switched fabrics in both the

    2

    Acronyms andAbbreviations

    ACDautomatic call distributor

    ATMAsynchronous Transfer

    Mode

    CoSClass of Service

    CTIcomputer telephony

    integration

    ETSIEuropean

    Telecommunications

    Standards Institute

    IEEEInstitute of Electrical and

    Electronic Engineers

    IETFInternet Engineering Task

    Force

    IPInternet Protocol

    ISDNIntegrated Services Digital

    Network

    ITSP

    Internet telephony serviceprovider

    PSTN

    Trunks

    Ethernet

    Station

    interface

    Databas

    e

    server

    ACD

    Figure 1.Automatic Call Distributors TieTelephone Systems and Data Communications

    Together

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    local area network (LAN) and the wide area

    network (WAN). Whereas today voice and

    data generally flow over separate infrastruc-tures, the vision is to drive these two commu-

    nications methods over a single medium,

    allowing users to engage in media-rich com-munication in a natural and straightforward

    manner.

    3Com is sowing the seeds of a paradigmshift. This shift will turn the telephony industry,

    which to date has been highly vertical and

    proprietary, into a horizontal industry, openingit to a flood of new vendors and applications.

    3Com is uniquely positioned to drive this

    shift by providing value to customers for their

    next-generation networks.With the move to integrated data and

    telephony over packet networks, the commu-

    nications industry will emerge into three dis-tinct strata (Figure 2), with vendors providing

    value predominantly in one stratum and part-

    nering with vendors in other strata.

    At the first level reside the infrastructureplayers: vendors who provide the network

    foundation upon which the other levels are

    built. This level will be 3Coms primary areaof focus. Infrastructure will consist of 3Com

    systems products, including switches, routers,

    and access devices, all of which will supportmultimedia. To date, 3Com has offered many

    multimedia-enabled infrastructure products,

    starting with SuperStack II switches with

    PACE technology, first introduced in 1995.

    3Com continues to introduce multimedia-

    enabled products to help migrate users to

    next-generation networks supporting media-rich applications such as packet telephony.

    The next level consists of services. This

    stratum will be dominated mainly by softwarevendors who provide underlying software to

    manage transactions. Examples of these ser-

    vices include call processing, resource manage-ment, and accounting and settlements. This

    technology wil l be generally transparent to

    users, much as the network operating systemsrunning on todays LANs are transparent to

    network users.

    At the top tier are applications. Applica-

    tions are visible to end users and provide theservices required to initiate and complete

    business transactions. Examples include call

    centers, interactive voice response (IVR),conferencing bridges, and private branch

    exchanges (PBXs). Today, most application

    vendors deliver highly vertical products based

    on proprietary hardware and software. Forward-thinking application vendors will migrate to a

    software-only business model. This tier will

    also see the emergence of large numbers ofstart-up ventures.

    Present and Future Telephony and

    Computing Models

    The transition to this new order will likely

    occur gradually, emerging from organizations

    back offices and special applications workgroups.

    3

    Acronyms andAbbreviations

    ITUInternational Telecommu

    cations Union

    IVRinteractive voice respons

    MCUMultipoint Controller Uni

    PBXprivate branch exchange

    PCBprinted circuit board

    PRIPrimary Rate Interface

    PSTNpublic switched telephon

    network

    QoSQuality of Service

    RSVPResource Reservation

    Protocol

    TDMTime Division Multiplexin

    VOIPvoice-over-IP

    xDSL

    digital subscriber line

    Callprocessing

    Infrastructure

    Services

    Applications

    Infrastructure: switches,routers, and gateways needto support QoS

    Services: software andmiddleware need to provisionapplications over packet fabric

    Applications: processes andtelephony services visible toend users

    Accounting &settlements

    Conferencebridge

    PBX

    Voicemail

    Callcenters

    IVR

    API

    API

    Resourcemanagement

    Switches GatewaysRouters

    Figure 2. Packet Telephony Will Transform the Communications Industry

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    The current paradigm consists of a circuit-

    switched fabric for voice networks (Figure 3)

    and a completely separate LAN infrastructurefor data. Today, most businesses use a propri-

    etary PBX or key system for voice.

    The hybrid model (Figure 4) is typical of

    todays computer telephony integration (CTI)implementations. While most businesses con-

    tinue to run the bulk of their enterprises on

    separate networks, some have selectivelydeployed hybrid systems for specific applica-

    tions, generally those designed to generate

    revenue, such as telemarketing, or minimize

    costs, such as after-sale support.In a typical CTI system, the incoming

    callers number is transferred to a databaseapplication, which displays information

    related to the call, such as the customers

    service record. There is loose coordination

    over a proprietary link between the telephonyand data traffic. Such applications allow a cus-

    tomer service agent to transfer a customers

    data records to a specialist along with the call.The key to the hybrid paradigm is that

    computers and telephony are loosely inte-

    gratedthe I in CTI notwithstanding. The

    CTI market is severely restrained because itrelies on proprietary connections between

    insular systems. Unlike the world of packet

    telephony, which throws the doors open tounfettered competition, CTI relies on an arms-

    length relationship, over a proprietary link,

    between complementary vendors who haveworked out bilateral business arrangements.

    The dynamics of the CTI business are

    very different from the LAN industry. As

    compared with the brutal free-for-all of theLAN marketplace, the CTI approach makes

    for a Tower of Babel in which vendors, by

    building competitive moats, have restrictedtheir ownand their competitorsfreedom

    of action. While CTI had the potential to be

    wide open, due to the closed-system roots ofthe major players, this market became an oli-

    gopoly of telephony-computer partnerships.

    The new packet telephony paradigm con-sists of telephony and data tightly coupled on

    packet-based, switched, multimedia networks(Figure 5). In this new world, data and voice

    share a common transport. Designed withnext generation networking equipment, this

    fabric is capable of growing to support future

    applications such as video conferencing andvideo streaming. The fabric can support mul-

    tiple Classes of Service (CoSs) and provide

    guaranteed Quality of Service (QoS) to multi-media applications. In this paradigm, the

    transport for telephony becomes transparent;

    users will be unable to distinguish whether a

    call is placed over a packet network, a circuit-switched network, or a combination of the

    twonor will they care.

    This new paradigm has the power tospark fundamental shifts in collective business

    behavior, as people exploit the simultaneous

    and joined delivery of voice and data applica-tions over a single, unified fabric. This will

    provide unprecedented opportunities for new

    enterprises to provide innovative applications.

    4

    Trunks

    Carrier

    LAN

    Phoneline

    s

    PBX

    Figure 3. Data Networks and Telephone SystemsAre Completely Separate Today

    Trunks

    Carrier

    LAN

    Data

    base

    server

    Proprietar

    y

    control

    interface

    Phoneline

    s

    Figure 4. Hybrid Paradigm: Arms-Length

    Connection Between Data Networks and

    Telephone Systems

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    The transition to the new paradigm willtake years to complete. Today, only a small

    subset of customers have any compelling busi-

    ness need to adopt this new technology.However, as the technology matures and new

    applications proliferate, packet telephony will

    appeal to a broader market. These customerswill be looking for standards-based solutions

    delivered end-to-end by vendors such as 3Com.

    Market DriversNew technologies and applications must offer

    customers definitive value. The value proposi-

    tion for packet telephony will change as themarket emerges, but it is most likely to occur

    in the following steps.

    Tariff Arbitrage

    Todays market drivers for packet telephony

    focus around tariff arbitrage across the WAN.

    In many international

    markets, particularly

    highly regulated ones, com-munications carriers have tariff

    structures that are artificially high

    as compared with deregulated markets.Additionally, these markets generally offer

    lower tariff structures for data connections.

    A number of startups have begun toexploit tariff disparities and provide users with

    significant savings on their long distance

    charges. Internet phones and voice-over-IP

    (VOIP) gateways, two products designed toexploit these disparities, are discussed later in

    this paper. Tariff arbitrage products are purely

    tactical infrastructure plays, which will beshort-lived as the international communica-

    tions carrier markets embark upon a process of

    deregulation over the next two decades. As

    artificial tariff disparities evaporate, the valueproposition will implode. Vendors who hope

    to survive this transition must be able to re-

    articulate their value propositions using a newvocabulary.

    Freedom of Choice

    In the future, data and voice convergence willfacilitate new business processes, enabling

    people to work more effectively. Perhaps most

    5

    Voice

    logging

    server

    Ethernet

    switch

    Central

    site

    Multimedi

    a

    workflow

    server

    ACD/PBX

    server

    Remoteaccess

    server

    gateway

    Remoteac

    cess

    servergat

    eway

    Accessswi

    tch

    orrouter

    Ethern

    et

    switch

    Brancho

    ffice

    Analogorp

    roprietary

    digitallife

    line

    Accessswi

    tch

    orrouter

    Corporate

    intranet

    PSTN

    Figure 5. New Paradigm: Voice and Data Mergedin a Single, Open Architecture

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    importantly, this technology will release cus-tomers from the limitations of proprietary

    solut ions, allowing organizations to develop

    integrated voice and data applications tailored

    to their own needs, much as PC users todaycan build data applications using Visual

    BASIC. Already, a cottage industry has

    emerged to deliver object-oriented softwaretools that allow customers to develop their

    own IVR applications. These tools are just the

    beginning of what customers will be able todo for themselves under the packet telephony

    paradigm.

    Plummeting Capital Costs

    Another market driver is the opportunity to

    slash acquisition and operating costs. In 1997,

    the capital cost of building a LAN telephonysystem was higher than the cost of building

    separate LAN and phone systems. Vendors

    who advocate such systems claim that the com-

    bined infrastructure can lower maintenancecosts, but there is a decided lack of evidence

    on this point. However, the dynamics of this

    marketplace are about to change.Many proprietary PBXs are built on

    technology that is measured in decades. By

    contrast, the data networking industry runs

    on a very different metabolism. The LANindustry typically has 18-month product life

    cycles, and tradit ional LAN infrastructureequipment costs generally decline by 20

    percent per year. Vendors building next-

    generation packet telephony products under-

    stand where costs are excessive and how todrive them down by employing higher levels

    of product integration and by using next-

    generation silicon technology. Horizontalplayers, such as 3Com, understand the power

    of open systems and how to exploit the dyna-

    mics of this new business model to achievemarket dominance.

    Microsofts Application Dominance

    Microsofts application dominance and itsapplications proliferation strategy are also key

    market factors. Microsoft continues to bundle

    more capabilities in each new release of

    Windows software. One of its recent releasesincludes NetMeeting, a voice and data confer-

    encing product, and NetShow, a videostreaming product. These products will be on

    tens of millions of desktops over the next few

    years, giving users the capability to begin

    using voice over packet-based networks.

    Intels Planned Obsolescence Strategy

    Intel is another determinant in this industry.Ever since the advent of AMDs reverse-

    engineered 286 microprocessorwhich

    caught Intel napping and forced a violent

    migration to 386 technologyIntel hasembarked on a planned obsolescence strategy.

    A result of this phenomenon is a biennial

    (quickly becoming biannual) wave of new PCswith triple the power of their predecessors.

    Intel is also driving new applications, espe-

    cially heavy users of microprocessor power,onto its platforms. Intel can be expected to

    support the widespread adoption of real-time

    voice and video, because it will force a newupgrade cycle using microprocessor tech-

    nology that only Intel can provide.

    Voice Connectivity over Data Applications

    Just as global environmental change has extin-

    guished some species and spawned new ones,

    the competitive environment in telephony is

    driving change. First and foremost is the pro-liferation of Web connectivity, which provides

    an alternative patha data pathinto orga-

    nizations worldwide. Many organizations areusing Web connectivity as a mechanism to

    reach out to their trading partners. Thus far,

    Web connectivity has been data oriented, buta few organizations are now experimenting

    with Web-based call centers, in which users

    can click on a screen object to obtain a voiceconnection to an agent.

    Another example of a promising voice-

    over-data application is the airline reservationsystem. Today, a travel agent having difficultybooking a reservation must call the airline

    over a special toll-free number, provide record

    information (such as a record locator) to theairline, and request special service. In the new

    model, the agent needing assistance could

    click on a help me button, and the applica-tion would bring up a voice connection to the

    airline. The airline representative answering

    6

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    the phone would immediately be linked to therelevant customer record. This application

    would save time for both parties while elimi-

    nating the cost of a separate telephone call.

    This example illustrates the power of joinedand simultaneous delivery of voice and data

    communications over an open, standards-

    based fabric.

    What Is Packet Telephony?

    There has been a lot of confusion regarding

    packet telephony in two specific areas. First,packet telephony is not Internet telephones.

    Internet telephones are software packages sold

    predominantly through retail chains for hob-byists to place telephone calls over the Internet.

    They are generally awkward to use and offer

    poor voice quality. Packet telephony is alsonot the same as computer telephony integra-

    tion (CTI). As discussed earlier, CTI is the

    loose integration of computer systems withtelephony switches.

    Packet or IP telephony is the simulta-

    neous and joined delivery of voice and data

    communications over a single, unified com-munications fabric based upon the Internet

    Protocol (IP). Packet telephony traffic will be

    delivered within the enterprise over an organi-

    zations intranet and outside the enterprise ini-tially over a circuit-switched fabric. Over time,

    as corporations develop extranets with theirtrading partners and as those partners install

    interoperable packet telephony systems, cor-

    porations will deliver packetized voice end-to-

    end outside of the enterprise.

    Carrier Applications

    In the carriers, packet telephony is emerging

    as a key bypass technology. A new class of car-riers, Internet telephony service providers

    (ITSPs), is building packet-based WANnetworks to carry voice traffic. Even some tra-ditional long-distance carriers are experi-

    menting with packet-based WANs, primarily

    for service outside their regulated markets.New partnerships and consortia will emerge as

    these carriers attempt to create worldwide

    packet-based telephony networks.

    Enterprise Applications

    In the enterprise, packet telephony willemerge in applications where the value propo-

    sition can be clearly articulated. This is likely

    to begin with specific applications in large

    organizationsapplications utilizing thejoined delivery of data and voice over a single

    infrastructure. Examples include next-genera-

    tion call centers, new voice logging systems,and unified messaging: the joined receipt of

    voice mail and e-mail.

    Because of its radical technological depar-ture, packet telephony will emerge at the

    fringe of organizations in value-added applica-

    tions, not in the core premises telephony

    fabric. Given the critical importance of thetelephony infrastructure, telecom managers

    will be reluctant to move the core of theirbusiness onto a completely new technologyuntil the technology proves itself.

    Much of packet telephonys present

    deployment is for toll bypass over WANs.Organizations are purchasing VOIP gateways

    to combine their phone and data infrastructures

    (or at least selected links in their infrastruc-tures) primarily to high-tariff countries.

    Domestically, organizations with large branch

    office systems (such as banks) and a capillary

    data infrastructure to reach those branches arealso exploiting the WAN data network to

    carry voice. In an odd reversal of the metaphor

    that sold T1 multiplexers for years (voicepays for the circuit; data rides for free), these

    customers have already installed and justified

    their data networks and are using spare capa-city to carry intra-corporation voice traffic.

    Over time, as the business justification

    shifts to increased employee productivity and

    effectiveness, packet telephony will infiltratethe LAN fabric. Several events need to occur

    to effect this change. Much of the high cost ofinstalling a LAN-based telephony systemtoday lies in the infrastructure components (as

    opposed to telephone handsets or other client

    equipment). Within one year, these costs willreach a crossover point with traditional PBXs

    (Figure 6 on page 8), and within two years

    they will be at a 30 percent discount to PBXcosts.

    7

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    Another key issue is infrastructure relia-

    bility. Current LAN telephony systems use PCchassis for common infrastructure compo-

    nents. Many of these components lack

    redundancy, making the system vulnerable to

    component and system failure. However, anew generation of products built upon ful ly

    redundant, carrier-grade systems is coming to

    market. The 3Com Total Control remoteaccess concentrator is one such platform.

    Packet Telephony Standards

    Four major organizations are working on var-ious aspects of packet telephony standards: the

    International Telecommunications Union

    (ITU), the Internet Engineering Task Force(IETF), the European Telecommunications

    Standards Insti tute (ETSI), and the Institute

    of Electrical and Electronic Engineers (IEEE)under the auspices of its 802 committee.

    The ITU has developed the so-called

    H.32x family of standards related to videoconferencing. Each H.32x standard pertains

    to a specific type of network, and refers to the

    appropriate subsidiary ITU standards for callprocessing, capability exchange, channelaggregation, media stream multiplexing, audio

    and video codecs, and data conferencing

    standards.

    Packet Telephony Products

    The packet telephony products being deliv-

    ered today are largely tactical, self-containedproducts that rely only tangentially on a larger

    infrastructure to deliver their value. Thedearth of true systems products in this market

    space is attributable to the lack of an end-to-

    end, multimedia-ready IP packet infrastructure.

    Many 3Com customers are in the process ofupgrading their entire fabric to support

    media-rich traffic, including voice and video.

    However, in the absence of a sizable installedbased of media-enabled infrastructure, the

    packet telephony vendors are blocked from

    using the core of the data network and are leftto deliver tactical products at the fringes.

    There are several broad categories of packet

    telephony products.

    Toll Bypass Products

    Toll bypass products sit on the edge of the

    network between a local PBX and a wide areapacket network (Figure 7). An example is the

    VOIP gateway, which provides a VOIP con-

    nection between two or more PBXs over a

    packet-based network. The VOIP gatewaypacketizes voice and carries it across the pri-

    vate corporate intranet. The VOIP gateway is

    an outgrowth of voice over Frame Relay prod-ucts, which perform a similar function over a

    Frame Relay backbone. 3Coms PathBuilder

    S600 access server offers voice over Frame

    Relay and voice over ATM support.

    Internet Phones

    As discussed previously, Internet phones aresoftware packages that run on PCs and pro-

    vide connectivity over an Internet connection.

    These consumer-oriented products can best bedescribed as toyware or bundleware: free

    or nearly free software that delivers less than

    business toll quality. Although the hobbyistmay be willing to tolerate these products, they

    are generally not business quality today.

    LAN-Based PBX Systems

    A new product category is emerging that pro-

    vides PBX capabilities over the LAN. The

    LAN-based PBX, which promises to substitutefor and replace traditional enterprise PBXs, is

    a key ingredient to moving to convergence.

    Several startups are delivering voice switches

    that run on Windows NT. These switchescreate, manage, and tear down voice connec-

    8

    $800

    $600

    $400

    $200

    Present

    UnPBX(key system knockoffs)

    IP telephony

    Traditional PBX

    End-userc

    ostperseat

    2000+

    Figure 6. Packet Telephony Costs Will Reach a

    Crossover with PBX Costs

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    tions between stations on the LAN. The sta-

    tions themselves communicate peer-to-peer.The voice traffic between stations is digitized,

    placed into data packets, and transmitted

    across the packet network directly between thestations, bypassing the LAN-based PBX. For

    this class of product, the voice is transmitted

    in the packet domain. End stations involve theLAN PBX only when call control is required

    for instance, when transferring a call, creating

    a conference call, or sending a call to voicemail.

    The UnPBX

    A fourth product category is the UnPBX.These products are key system and small PBX

    knockoffs built around Windows NT servers.

    Unlike the LAN PBX, however, they do notuse the data network to transport voice calls.

    Rather, they employ station cardsprinted

    circuit boards (PCBs) that have connectionsto stations (telephones), and trunk cardsPCBs that attach to the public telephone net-

    work. Unlike the LAN PBX, the UnPBX

    operates entirely in the circuit-switcheddomain.

    The PCBs for these products are built in

    a PC Card form factor (usually PCI bus) andconnect to each other using a Time Division

    Multiplexing (TDM) bus. The Windows NT

    server is used primarily as a housing for thecards and to provide rudimentary connectivity

    to software applications, such as basic voicemail and auto-attendant, running on theserver.

    The value proposition is aimed at key sys-

    tems and low-end PBXs. This new generation

    of products is built on a open system thatallows additional software applications to be

    written for Windows NT, a standard and easy

    environment. The station cards and trunkcards themselves, though built to a standard

    form factor, tend to be proprietary in imple-

    mentation. However, standards are expectedto emerge here, and costs will drop dramati-

    cally as production benefits from economies of

    scale.A major drawback of the Windows NT

    hybrid is limited scalability. Typically sup-

    porting a maximum of 150 users, these sys-

    tems cannot easily scale past a single WindowsNT chassis.

    Related Products and Markets

    The video-conferencing market is a technolog-

    ical cousin to packet telephony. To date, mostvideo-conferencing systems have been large

    room systems that communicate point-to-point across the WAN. A family of standards

    called H.320 allows systems from di fferent

    manufacturers to interoperate over Integrated

    Services Digital Network (ISDN) links.More recently, the concept of desktop

    video conferencing has emerged, allowing

    individuals to use this technology directly

    9

    Ethernet

    switch

    PBXCentralsit

    e

    Voiceover

    FrameRel

    ay

    gateway

    Voiceover

    FrameRel

    ay

    gateway

    FrameRel

    ay

    link

    Router

    Router

    Ethernetswitc

    h

    Brancho

    ffice

    PBX

    Figure 7. Toll Bypass Is the First Manifestation of

    Packet Telephony

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    from their desktops. The latest wrinkle isnetworked desktop video conferencing. When

    desktop video conferencing becomes net-

    worked, the infrastructure must change to

    allow users to dial, transfer, and conferencevideo calls from their desktops.

    The networked desktop video-confer-

    encing industry has converged on a family ofstandards called H.323. However, existing

    LAN infrastructures were not built to handle

    the demands of networked video conferencing.

    Long-Term Trends

    Several long-term trends will drive the growth

    in packet telephony. The convergence of voiceand data into open, standards-based platforms

    will provide an impetus for independent

    software vendors to develop voice- and data-enabled applications for increased effective-

    ness. Examples of these services range from

    unified messaging (the bundling of voice and

    e-mail) to the commoditization of voice mailand personal agent services such as Wildfire.

    Another trend is the delivery of telephony

    services transparently across packet and cir-cuit-switched networks. As was discussed ear-

    lier, some of the early packet telephony players

    are exploiting tariff differences between voice

    and data for toll bypass, but this market willbe short-lived as carriers become deregulated

    and pricing disparities collapse. Ultimately,users will not care how a call is transported,

    whether in the packet, circuit, or cell domain,

    so long as the call gets to the recipient with

    acceptable quality and at a competitive price.In fact, service providers may offer a range of

    services, with appropriate cost/quality

    tradeoffs.

    Finally, broadband access technologiessuch as cable modems and digital subscriber

    lines (xDSL) will also enable packet telephony.

    The broadband technologies promise todeliver huge amounts of data to the periphery

    of networks. They also promise to create a

    new category of utili ty providers. For example,Media One, an unregulated subsidiary of US

    West, is conducting trials of cable-based

    broadband services to the home as a means of

    faster Internet access. I f they succeed, they willbe ideally positioned to provide packet-based

    telephony services to their customers.

    Building a Packet Telephony Network

    To build an IP telephony system end-to-end

    requires three new types of components: a

    modified desktop, a gateway, and a gatekeeper(Figure 8). If multiparty conferencing is

    desired, a fourth component called a Multipoint

    Controller Unit (MCU) is also needed.

    The Desktop

    On the desktop, the user has one of two types

    of systems. Many users will have an Ethernetphone that plugs into an Ethernet RJ-45 jack.

    Other users, often those who use the phone

    extensively and in conjunction with a PC, will

    have handsets or headsets that plug into theirPCs.

    The Gateway

    All LAN-based telephony systems today need

    to connect to the public switched telephone

    10

    Ethernet

    switch

    LANPBXru

    nningon

    H.323gat

    ekeeper

    H.323gat

    eway

    Layer3sw

    itch

    Corporate

    intranet

    PSTN

    Figure 8. Data and Voice Share a Common LocalInfrastructure

  • 8/12/2019 Packet Telephony Primer

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    network (PSTN). Gateways are productsspecifically designed to convert voice from the

    packet domain to the circuit-switched

    domain. The gateway converts packetized

    voice (voice that has been digitized and placedinto an Ethernet frame) to a format that can

    be accepted by the PSTN. Gateways support

    four types of connections: Analog

    T1 or E1

    ISDN, generally Primary Rate Interface (PRI) ATM, at OC-3c and higher speeds

    Since the digitization format for voice on

    the packet network is often different than on

    the PSTN, the gateway will also provide thistype of conversion, often called transcoding.

    Gateways also pass signaling information,

    including dial tone.

    The Gatekeeper

    The third major component is the gatekeeper.

    Although the nomenclature can be somewhatconfusing, gateways and gatekeepers provide

    completely separate functions. The gatekeeper

    is primarily designed to throttle the originationof additional real-time connections over the

    network. Real-time applications register them-

    selves with the gatekeeper before attempting

    to bring up a session. The gatekeeper mayrebuff a request to bring up a session, or may

    grant the request at a diminished data rate.

    This is most relevant for video connections,which can consume vast amounts of band-

    width for high-quality connection. Packet

    telephony call control, call management, andvoice switching intelligence will also reside in

    the gatekeeper.

    IP Fabric

    A robust packet infrastructure is required to

    support IP telephony and other real-timeapplications. At a minimum, switched 10Mbps Ethernet to the desktop is required. The

    switches themselves must be nonblocking and

    support multiple internal queues. Telephonycalls traversing the intranet will go through a

    Layer 3 switch, which will need to support

    multiple queues and Quality of Service features

    such as IEEE 802.1p, 802.1Q and ResourceReservation Protocol (RSVP).

    Voice quality is most affected by transmis-sion delays across the fabric, which cause gaps

    in the conversation when one party stops

    talking and the other begins speaking. Delaysare introduced at a number of points in the

    network. One source is the encoding of voice

    from analog to digital. This conversion delay

    is exacerbated by voice compression algo-rithms, which require large samples of the

    voice stream before compressing and packe-

    tizing it. A similar delay occurs at the remoteend when the voice is converted back to

    analog.

    Additional delays are incurred as thepacket propagates through the packet net-

    work, though as long as the packet remains on

    a LAN with wire-speed switches, the propaga-

    tion delay is minimal. At the LAN/WAN edge(the router, Layer 3 switch, or other access

    device), however, there can be considerable

    queuing delays because of the speed disparitiesbetween LAN and WAN.

    A more vexing problem occurs because of

    the variability of delay, also called jitter. Jitterdelays occur primarily because of traffic condi-

    tions on the backbone network. One particu-

    larly troublesome problem is head-of-lineblocking. If all packets arriving in a switch (or

    router) are treated with the same priority, avoice packet can get stuck in queue behind

    other, less time-critical packets. But the nextvoice packet traversing the network might not

    incur the same delay. The result is an accordion

    effect, where several packets arrive over a largeinterval or, conversely, in quick succession.

    Without appropriate design, this can wreak

    havoc on a telephone conversation. A numberof techniques have been developed to address

    this problem. One technique is to use jitter

    buffers to smooth out the ebb and flow of

    packets. However, jitter buffers, which store astring of packets, introduce additional

    absolute delay.

    A third problem is packet loss. Most endstations using data connections are designed

    to accept and recover from an occasional lost

    packet. Unfortunately, the human ear is not sotolerant. Unless the network employs specific

    countermeasures, such as forward error correc-

    tion or error concealment, users will hear

    11

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    annoying gaps and clicks. The effect on usersdepends upon the packet loss rate and the

    compression algorithm used. The higher com-

    pression schemes are less forgiving.

    Key Market Issues

    The packet telephony market today is embry-

    onic. Most products have proprietary imple-mentations; very few use VOIP standards,

    because the standards themselves are in flux.

    As a result, different vendors products are notinteroperable.

    The industry is working feverishly to

    deliver a business-quality product, and given

    the multi-bill ion dollar market opportunity,there is little doubt that such products will

    emerge rapidly. 3Com has introduced a busi-

    ness quality solution in its Total Controlremote access concentrator, a carrier-class

    platform that features high reliabil ity and

    redundancy.

    Where Is the Technology Going?

    Data networking technology is becoming

    increasingly pervasive, ubiquitous, and essen-tial. LANs have already spread out from niche

    applications in the enterprise, across the enter-

    prise, to medium and small businesses. The

    next wave of technology promises ubiquity ofdata networks in the home. As this common

    transport permeates our society, it will become

    a key medium for carrying voice.Another trend is the rapid improvement

    in technology. The initial packet telephony

    implementations are appropriate for pilot andtrial networks. A new generation, shipping

    shortly, will bring the quality and reliability

    up to business standards. The capabilities willcontinue to improve rapidly, driven primarily

    by rapid improvements in digital signal pro-

    cessing technologies, which are key to con-verting voice between the packet- and circuit-switched worlds. Correspondingly, costs will

    plummet as manufacturers deliver production

    volumes.A third area of improvement is deploy-

    ment of QoS and policy-based management

    capabilities over the IP fabric. 3Com andother manufacturers are beginning to deliver

    next-generation product portfolios that sup-

    port bandwidth reservation, multiple classes ofservice, quality of service, and other features

    required by telephony and video applications.

    Another trend that portends the wide-

    spread deployment of packet telephony is thefavorable competitive environment that will

    emerge over the next two decades, particularly

    for carriers. A recent treaty, driven by theITU, lays the groundwork for deregulating

    service in the countries that comprise 95

    percent of the worlds long-distance market.That phenomenon, in conjunction with the

    telecom free-for-all in the United States and

    the desire of alternative service providers to

    penetrate all markets including access to thehome, promises to drive a huge market in

    packet telephony. In fact, one Dataquest

    analyst recently predicted that long-distancecosts would drop from an average of five cents

    per minute to one cent per minute for IP

    connections.For many businesses, however, real value

    will be obtained not by lower long-distance

    costs, but by the benefit of delivering voiceand data together, enhancing worker effective-

    ness and productivity. Additionally, packettelephony lays the framework for multimedia

    communications such as desktop videoconferencing, enhancing the productivity of

    collaborating groups of people through rich

    communications.We are on the verge of a new era. Packet

    telephony will drive an explosion of commu-

    nications between individuals and betweencollaborating workgroups worldwide. The

    tools, and the tools to build the tools, that are

    being created by a unified, open communica-

    tions architecture will create an environmentthat fosters competition and encourages inde-

    pendent application providers. Driven by

    packet telephony, this revolution will lay thefoundation for corporations to work in innov-

    ative, productive, and effective ways.

    12

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    Printed in U.S.A. 500657-001 3/98

    1998 3Com Corporation. All rights reserved. 3Com is a publicly owned corporation (NASDAQ.COMS). 3Com and SuperStack are registered trademarks of3Com Corporation or its subsidiaries. PACE, PathBuilder, and Total Control are trademarks of 3Com Corporation or its subsidiaries. Windows and WindowsNT are trademarks of Microsoft. Wildfire is a trademark of Wildfire Communications. Other brand and product names may be trademarks or registered trade-marks of their respective owners. All specifications subject to change without notice.

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