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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
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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.
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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
8/12/2019 Packet Telephony Primer
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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
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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.
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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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