Attachment 15 Ip Telephony and Voice Over Ip (Voip)

Attachment 15
IP telephony and voice over IP (VoIP)

Table of contents
Page
1 Working definition of IP telephony..............................................................................
1
1.1 Technical motivations for IP telephony.......................................................
1
1.2 Introduction to the different types of IP telephony......................................
2
1.2.1 Scenario 1: PC to PC........................................................................
2
1.2.2 Scenario 2: Phonetophone over IP................................................
!
1.2.! Scenario !: PC to phone or phone to PC..........................................
"
1.! Working definition of IP telephony.............................................................
#
2 $evie% of current regulatory frame%ork......................................................................
&
2.1 'eneral remarks...........................................................................................
&
2.2 (vervie%......................................................................................................
)
2.! *reas for revie%...........................................................................................
)
2.!.1 *chieving policy goals in the conte+t of convergence and e+isting
market conditions.............................................................................
........................................................................................................,
Internet Protocol (IP) Attachments
2.!.2 -ncouraging investment. spurring innovation. advancing
development and opening markets...................................................
........................................................................................................,
2.!.! Customer /enefits.............................................................................
,
2.!.0 1niversal service2access o/3ectives for telecommunication
services.............................................................................................
........................................................................................................,
2.!." Consideration of technological issues such as 4uality of service. . . .
,
2.!.# Interconnection and access policies.................................................
15
2.0 *gency contacts...........................................................................................
15
Page
! Case studies and e+perience sharing.............................................................................
15
!.1 Introduction..................................................................................................
15
!.2 $esults of policies em/racing IP telephony.................................................
15
!.! Policies consistent %ith transition2convergence of net%orks......................
15
!.0 Sharing e+perience in developing ne% methodologies and approaches......
11
!.0.1 'eneral remarks...............................................................................
11
!.0.2 *pproaches to technologyneutral. sectorspecific regulation.........
11
!.0.! *pplication of domestic telecommunication regulation esta/lish
ing effective competition. universal service2 access o/ligations in
cluding any other. further o/ligations. and other e+periences.........
......................................................................................................12
0 Conclusions: policy aspects..........................................................................................
12
IP telephony and voice over IP (VoIP)
1
1 Working definition of IP telephony
11 Technical motivations for IP telephony
*lthough IP telephony does not yet constitute a su/stantial percentage of the glo/al %orld%ide
telephony traffic volume. it is e+panding rapidly as a result of the follo%ing technical motivations:
16 The circuits%itched net%ork %as designed and optimi7ed to provide a single product 8
fullduple+ 0 k97 s%itcha/le voice channels /et%een points :#0 ;/2s digital channels6.
26 <=ata<. in general. are characteri7ed /y /ursts of information rather than the constant /it
rate flo%s typically associated %ith speech.
!6 =ata /ursts can /e most efficiently transported using packets of information that can /e
interleaved in time %ithin a net%ork %ith other packets /eing carried /et%een other sources
and destinations.
06 >or more than 05 years. voice has /een digitally encoded into #0 ;/2s streams that can /e
transported over the #0 ;/2s channels. 9o%ever. advances in voice coding permit a %ide
range of options. e.g. from ") ;/2s to higher 4uality audio at #0 ;/2s. ?ultiple+ing voice
at a rate other than #0 ;/2s is difficult over the #0 ;/2s circuits%itched net%ork. 9o%ever.
IP telephony su/scri/ers need to interconnect %ith the more than 1 /illion %orld%ide
classical telephony su/scri/ers. and implementation of a transcoding mechanism makes it
necessary to transform their lo%er /itrate to the legacy #0 ;/2s encoding :much like %hat
happened %hen the lo%rate encoding of mo/ile net%orks %as connected to fi+ed PST@
net%orks6.
"6 Significant %ork has /een performed in I-T> and else%here to provide realtime or near
realtime capa/ilities using IP that permit voice to /e transported over IP using the range of
voice coding. Carriergrade products that integrate those protocols are /eing introduced in
the field to produce 4uality of service that satisfies their customers. I-T> is currently
%orking on protocols that ensure that AoS constraints are met in a consistent manner over a
set of traversed net%orks.
#6 This fle+i/ility to transport a variety of user information streams. i.e. constant and varia/le
/it rate. different speeds. etc.. allo%s packets%itched net%orks to evolve to%ards the
o/3ective of one integrated net%ork for a %ide range of applications.
&6 * single integrated net%ork :packets%itching6 can mean less operational and maintenance
costs compared %ith multiple overlay net%orks. 9o%ever. in the short term there may /e
additional e+penses.
)6 In addition the fle+i/ility of packets%itched net%orks to accommodate ne% information
streams. %ith a %ide range of characteristics and /ased on the IP and the host of open.
standardi7ed interfaces and languages availa/le to it. allo%s the introduction of ne%
applications producing ne% revenue streams. In some cases those capa/ilities could /e the
real driver for the introduction of IP transport %ithin telecomunication net%orks rather than
the <reproduction< of e+isting telephony services.
1
The material in this section has /een provided /y B=T.
Attachment 15 IP telephony and voice over IP (VoIP) 1
,6 IP/ased net%orks can use the same underlying lo%er layer transport facilities. i.e. t%isted
metallic pairs. ca/le. %ireless. optical fi/re. satellite. The evolution to IP/ased net%orks
can /e accomplished economically /y deploying IP/ased packet s%itches2routers that can
/e connected /y e+isting transport facilities. This %as a tremendous vehicle for offering
Internet access to mass markets in developed countries o%ing to the availa/ility and
u/i4uity of those transport facilities.
1! Introd"ction to the different types of IP telephony
*ccording to the nature of the IP net%ork used. %e may speak of t%o ma3or categories for voice
transmission over IP net%orks. The first is essentially /ased on the Internet. %hich is seen as the
interconnection of a host of pu/lic or private net%orks on a glo/al scale. The second is provided /y
service operators using managed IP net%orks. %ithin %hich a num/er of preinstalled mechanisms
:routing algorithms. coding. etc.6 serve to ensure a 4uality of service level that is accepta/le for
speech.
There are three voice over Internet protocol :CoIP6 usage scenarios according to terminal
e4uipment and types of net%ork:
1!1 #cenario 1$ P% to P%
In this scenario. the calling and called parties /oth have computers
2
that ena/le them to connect to
the Internet usually via the net%ork of an Internet service provider :ISP6
!
. The t%o correspondents
are a/le to esta/lish voice communication only /y prior arrangement. since /oth users have to /e
connected to the Internet at the same time :having fi+ed in advance the time at %hich they %ill
communicate via the Internet. unless of course they are permanently online6 and use CoIP
compati/le soft%are
0
. >urthermore. the caller must kno% the IP address of the called partyD to
overcome this correspondents must agree to consult an online directory server :updated %ith each
connection6 %here users register prior to each communication or have other %ays of locating and
/eing a%are of the availa/ility of their correspondentEs connection to the Internet :Instant
?essaging technologies6.
2
*ctually the term computer or PC indicates a device capa/le of e+ecuting a CoIP application soft%are program.
Today. %e see the emergence of advanced user appliances like personal digital assistants :P=*6 or advanced mo/ile
handsets that are capa/le of running CoIP soft%areD therefore the term PC used in the se4uel is used for convenience
and should /e understood in the a/ove general meaning.
!
The role of the ISP is primarily to allo% his su/scri/ers to connect to his net%ork and provision them %ith an IP
address allo%ing them to use Internet applications. The case of accessing to the Internet through an ISP is cited here
as the dominant e+ample. (f course users connected directly to a F*@ or W*@ :enterprises or academia net%orks6
can have an IP address 8 al/eit a private one /ehind a net%ork address translation :@*T6 scheme 8 and use the
Internet applications %ithout the intervention of an ISP.
0
The telephony soft%ares currently availa/le on the market all have a similar structure. displaying a control panel
from %hich the main telephony functions may /e controlled and the configuration and options menus consulted. *ll
such soft%ares provide access to Internet relay chat :I$C6 areas. in %hich users can e+change te+t messages in real
time. to %hich end a list of individuals using the same soft%are and currently online is displayed. *ccording to the
product. there is also a menu %hich ena/les the user to make a call to a specific IP address that is permanent and
corresponds to a machine that is already connected to the net%ork. Some products may include encryption of voice
communication. * voicemail option ena/les voice messages to /e recorded /y the machine.
In this scenario. the ISP is generally accessed via the pu/lic telephone net%ork /y means of a
simple telephone call. This means of access still predominates. even in developed countries.
*lternative solutions. kno%n as </road/and< and /ased on the telephone net%ork :+=SF
technology6. a ca/le television net%ork or a %ireless access net%ork :F=?S technology6. are
currently at the early stages of deployment. and are not yet in %idespread use. even though certain
countries are already %ell e4uipped
"
.
The ISPEs role in this scenario is limited to the simple provision of access to the net%ork. %hich in
turn ena/les the user to access the Internet. The voice application used /y the customer is
transparent for the ISP. %hich takes no specific measures to guarantee the 4uality of the voice
service. In short. one cannot in such a scenario speak of <telephony< in the conventional sense of
the %ord. i.e. the provision of a service /y a third provider. /ut merely of the use of a voice
application via the Internet. such usage having /ecome as commonplace as any other net%ork
application. The protocol used /et%een the t%o communicating parties is often the 9.!2! :see
*nne+ >.1 to IT1T $ecommendation 9.!2!6 protocol defined /y IT1T :e.g. the @et?eeting
application6D ho%ever. I-T>Es SIP protocol :see *nne+ >.26 could see more %idespread use in the
future. This solution is illustrated in >igure 1 /elo%.

Internet
*ccess net%ork *ccess net%ork
I#P
I#P
1ser * 1ser B

I#P
net&ork
I#P
net&ork
'ig"re 1 ( P%)to)P% IP telephony
1!! #cenario !$ Phone)to)phone over IP
In this case. the calling and called parties are /oth su/scri/ers to the pu/lic telephony net%ork
:fi+ed or mo/ile 6 and use their telephone set for voice communication in the normal %ay. There are
t%o methods for communicating /y means of t%o ordinary telephone sets via an IP or Internet
net%ork.
"
The main -uropean 1nion. @orth *merican and ;orean operators already report an availa/ility in the order of ,5G
*=SF access :see also IT1Es <@e% Initiatives: Broad/and< reports6.
1!!1 *se of gate&ays
This means that one or more telecommunication players have esta/lished gate%ays that ena/le the
transmission of voice over an IP net%ork in a %ay that is transparent to telephone users. What %e
have in this case is not the Internet /ut a <managed< IP net%ork. i.e. a net%ork %hich has /een
dimensioned in such a %ay as to ena/le voice to /e carried %ith an accepta/le 4uality of service.
>igure 2 /elo% illustrates such a scenario.
+anaged IP
net&ork
1ser *
,ate&ay
Telephony 'i-ed or
Wireless .et&ork
,ate&ay
1ser B
Telephony 'i-ed or
Wireless .et&ork
'ig"re ! ( Phone)to)phone IP telephony "sing gate&ays
In this scenario. the gate%ays and managed IP net%ork could /elong to different players. depending
on %hether %e are looking at:
a6 the purely internal use of CoIP %ithin the net%ork of a single telephone operator. %hich
o%ns and manages the entire operation. handling /oth users * and BD
/6 the provision of a longdistance voice service /y a longdistance operator using CoIP
technology :users * and B in this case /elonging to different net%orks6. in %hich case the
%hole operation /elongs to and is managed /y such a longdistance operator.
1!!! *se of adapter bo-es
* num/er of companies market /o+es %hich resem/le modems and are installed /et%een the userEs
telephone set and his connection to the PST@.
In order for this arrangement to %ork properly. each of the t%o users needs to have a su/scription
%ith an ISP %hose access parameters have /een preprogrammed in the /o+.
The calling party initiates his call in the same %ay as in a conventional telecommunication net%ork.
and the first phase of the call is in fact set up on that net%orkD ho%ever. immediately after this the
/o+es e+change the information re4uired for the second phase. The conventional call is then /roken
off and the /o+es. on the /asis of the data they have e+changed and the preesta/lished parameters.
esta/lish a connection /et%een each of the t%o correspondents and their respective ISP. (nce the
4 Attachment 5 IP telephony and voice over IP (VoIP)
call has /een esta/lished. the /o+es locally convert the voice signals into IP packets to /e
transported over the Internet as illustrated in >igure !. This scenario is in principle very similar to
scenario 1. e+cept that the t%o users do not re4uire a PC and the need for an Internet <rende7vous<
is facilitated /y the procedure /eing initiated in the form of a telephone call. 9o%ever. this type of
arrangement has /een only marginally successful since it re4uires 8 as in the PCtoPC case 8 that
the t%o correspondents each /e e4uipped %ith the same type of /o+.
Internet
1ser *
P#T./I#0.
net&ork
1ser B
P#T./I#0.
net&ork
1o-
,ate&ay
1o-
,ate&ay
'ig"re 2 ( Phone)to)phone IP telephony "sing adapter bo-es
The t%o methods in this scenario call on t%o types of net%ork to esta/lish the telephone call.
i.e. the Internet or a managed IP net%ork. and the PST@.
1!2 #cenario 2$ P% to phone or phone to P%
In this scenario. one of the users has a computer /y %hich he connects to the Internet via an access
net%ork and an ISP :in a similar %ay to scenario 16. %hile the other user is a <normal< su/scri/er to
a fi+ed or mo/ile telephone net%ork.
1!21 P% to phone
3
When the computeri7ed user %ishes to call a correspondent on the latterEs telephone set. he must
/egin /y connecting to the Internet in the traditional manner via the net%ork of his ISP. (nce
connected. he uses the services of an Internet telephony service provider :ITSP6 operating a
gate%ay %hich ensures access to the point that is closest to the telephone e+change of the called
su/scri/er. It is this gate%ay that %ill handle the calling partyEs call and all of the signalling relating
to the telephone call at the called party end.
It should /e noted that the ITSP provides a one%ay PCtophone service and does not manage
su/scri/ers as suchD in fact, the PC subscriber uses the ITSP's services solely for outgoing calls. It
should also /e noted that the ITSP has a managed IP net%ork. there/y ensuring a certain 4uality of
service for voice as far as the gate%ay closest to the called su/scri/er. and that the ITSP also
manages the interconnection %ith the latterEs telephone operator. =espite their use of CoIP
technology. ITSPs consider themselves to /e telephone service providers and generally provide
their services to individuals in the conventional manner. i.e. %ith a charge per minute.
#
The same remark noted for scenario 1 applies hereD the ISP case is only the dominant e+ample. The user can /e
connected to the Internet /ehind a F*@ or W*@ %ithout the need of ISP mediation.
1!2! Phone)to)P%
In this case the calling party is the telephony user and the called party is the PC user. Since a
telephony user can essentially dial an -.1#0 num/er to reach the called party. then someho% the PC
user should have an -.1#0 num/er
8 either indirectly: in case of its interconnection to the net%ork /ehind an IPtechnology
private /ranch e+change :P*BH6 s%itch :actually in this case %e can more properly speak
a/out an <IP phone< rather than a PC device that is connected to the F*@ managed /y the
IP P*BH6D
8 or directly: in this case the IPside su/scri/er has an -.1#0 address allocated /y an
IP telephony operator.
Technically speaking only the first of the a/ove cases %orks today through the availa/ility of
IP P*BH devices. The second case %ill %ork pending the availa/ility of a translation mechanism
/et%een implemented /y the IP side that translates the pu/lic -.1#0 num/er to the IP address of the
called party. This %ill only /e availa/le pending the implementation of a technology like -@1?.
>igure 0 /elo% illustrates this scenario.
*ccess net%ork
I#P
1ser *
1ser B
Telephony 'i-ed or
Wireless .et&ork
,ate&ay
or
IP PA14
Internet
I#P5s
net&ork
Internet
telephony
provider5s
net&ork
'ig"re 6 ( P%)to)phone or phone)to)P% IP telephony
12 Working definition of IP telephony
IT1T Study 'roup 2 issued the follo%ing e+planations of the term <IP telephony<:
<IP is an acronym for Internet Protocol. It is a communications protocol developed to support a
packet s%itched net%ork. The protocol has /een developed /y the Internet -ngineering Task >orce
:I-T>6. IP Telephony is the e+change of information primarily in the form of speech that utilises a
mechanism kno%n as Internet Protocol<
The position of Study 'roup 2 regarding the term <Internet telephony< should also /e noted:
<The com/ination of the term EInternetE %ith the term EtelephonyE is seen as inappropriate. The
Internet offers many capa/ilities to users including the a/ility to carry /idirectional speech in real
time or near real time. We consider this to /e an intrinsic capa/ility of the Internet and not a tele
communication service<
*part from the possi/le use of the telephone net%ork as a net%ork providing access to the Internet.
it is possi/le to categori7e the scenarios presented a/ove into t%o types:
Type 1: Those re4uiring the intervention of an operator and ena/ling. /y means of a gate%ay.
the partial :in one direction as in scenario !6 or full :in /oth directions as in scenario 2
%ith gate%ays6 provision of communication to the glo/al pu/lic s%itched net%ork.
Type !: Those re4uiring no intervention /y a third provider :as in scenario 1 or scenario 2 %ith
/o+es6 and %ithout the need for a gate%ayD in this case. the application of CoIP is seen
as one of the multiple applications of the Internet %orld.
Type 2 is close to %hat Study 'roup 2 considers as <Internet telephony< in the sense that it uses
<the intrinsic capa/ilities of the Internet and IdoesJ not IinvolveJ a telecommunication service<.
Type 1 scenarios on the other hand use the Internet protocol as a /earer for speech /ut involve an
intervention of an operator if only for the provision of an interconnection service to%ards a
telephony net%ork su/scri/er. They are closer to the a/ove definition of IP telephony though that
definition focuses only on the transport technology used for speech transmission :namely. the
Internet protocol6 and does not seem to address the other kno%n attri/utes of telephony as a service
provided /y an operator.
It goes %ithout saying that the first type of usage is the more advantageous. at least in the short and
medium terms. It is alone in providing access to over one /illion telecommunication net%ork users
throughout the %orld. there/y contri/uting to universal access to telecommunication services.
The second type of usage is of interest. in the short term. only to the community of Internet users.
and %ill /ecome valid as a long term universal communication model once all user e4uipment
:particularly terminals6 throughout the %orld has migrated to <native< IP technology for accessing
the Internet. and once the technologies needed to implement the 4uality of service for applications
involving interaction /et%een individuals :%hether /y voice and2or other media6 have /een %idely
introduced in IP net%orks. Fater in this document. %e shall /e focusing on the discussion of
pro/lems relating to implementation of the IP telephony service and to the %ays in %hich the PST@
and net%orks using IP technology interact. We shall also /e looking at the technological factors
favouring migration /y the telephony service to IP net%ork technology and at the prospects that are
opened up /y that migration in terms of ne% services.
! 7evie& of c"rrent reg"latory frame&ork
!1 ,eneral remarks
The introduction and gro%th of IP telephony raises a num/er of important policy issues. IT1= is
challenged %ith advising and assisting ?em/er States and Sector ?em/ers in response to specific
concerns and needs of developing countries regarding the policy implications that surround the
introduction of <IP telephony<.
&
In this report. e+pert advice and assistance is provided in three
ma3or sections:
16 revie% of current regulatory frame%orksD
&
(pinion =
http:22%%%.itu.int2IT1 =2e strategy2internet2iptelephony2=ocuments2%tpf25512Chaireport.htmlK(PI@I(@=
26 country case studiesD and
!6 shared e+periences in developing ne% methods and approaches for the introduction of IP
telephony.
This part of this report is meant to serve as a general guide. not a step/ystep plan. The Secretary
'eneralEs report to. and the ChairmanEs report of. the third World Telecommunication Policy >orum
:WTP>6. http:22%%%.itu.int2osg2spu2%tpf2%tpf25512inde+.html provide useful /ackground discus
sions of the many policy issues. as %ell as a survey of the varied domestic regulatory policy
approaches of IT1 ?em/er States. The survey reveals that there is no single policy approach. and
indicates that the policy issues %ill continue to evolve as IP telephony technology is enhanced and
more %idely deployed.
*spects of the Secretary 'eneralEs report and the WTP> ChairmanEs report have /een included in
this report %here applica/le. $eaders are encouraged to consult the full reports as %ell as the source
documents prepared for the WTP> for additional detail. 9o%ever. as the underlying technologies
and markets evolve. it is important to consider the effects of these changes on policies and to plan
for change %ithin the policymaking process.
!! 8vervie&
*s IP net%orks and IP telephony /ecome more %idespread. policymakers face the challenge of
evaluating %hether current regulatory frame%orks. developed initially for circuit/ased net%orks.
are relevant and appropriate for IP/ased net%orks. This challenge is arising at a time %hen many
?em/er States are lightening their regulatory regimes and moving to greater reliance on
competition to ensure consumers the /roadest possi/le access to telecommunication services.
(%ing to the very different regulatory regimes created to address particular domestic economic.
political and infrastructure challenges. ?em/er States may %ant to focus their revie%s on the
rationale /ehind their policy frame%orks. and especially the desired effects in the conte+t of overall
economic and social development. In particular. the e+isting level of net%ork development and state
of the communications market generally are issues that most likely %ill have to /e taken into
account. Countries that have very lo% teledensity levels must address the most /asic difficulty of
/uilding a telecommunication infrastructure.
Within these /road policy frame%orks. IP telephony may raise a num/er of specific 4uestions for
policymakers and regulators re4uiring a careful and informed /alancing of different and sometimes
competing interests. *s a threshold matter. it is useful to understand the short and longterm
economic conse4uences of any policy decision. It is also essential for regulators and policymakers
to understand that there is no policy model that is universally applica/le. * num/er of approaches
may /e appropriate.
It is recommended that ?em/er States consider the /enefits of:
16 >irst. defining the /road telecommunication policy o/3ectives for the country. %ithin the
conte+t of overall economic development and social needs. and
26 Second. tailoring the regulatory regime to reach these o/3ectives.
!2 Areas for revie&
*s the /asis for determining policies specific to IP telephony. the 'roup of -+perts /elieves that
?em/er States may /enefit from a revie% of their more general domestic telecommunications
regulatory frame%orks %ith the follo%ing in mind:
Attachment 5 IP telephony and voice over IP (VoIP)
!21 Achieving policy goals in the conte-t of convergence and e-isting market conditions
?em/er States may need to evaluate their policy goals /efore determining %hat. if any. regulation
is necessary in a converged market. >or e+ample. it may /e appropriate to limit regulation in a
converged. competitive marketplace. employing regulation only %hen there is market failure.
!2! 9nco"raging investment: sp"rring innovation: advancing development and opening
markets
* competitive telecommunications environment allo%s for competition among multiple service
providers and for multiple investors. -+perience around the %orld reveals that competitive
telecommunication models have /een adopted to attract capital investment for telecommunication
and IP/ased net%ork infrastructure /uildout. It is also evident that policymakers and regulators
have successfully implemented a competitive model /y ensuring appropriate safeguards against
undue market po%er. Policies that allo% multiple carriers and Internet service providers :ISPs6 have
/een sho%n to stimulate infrastructure /uildout and lo%er prices for /usiness and consumer access.
!22 %"stomer benefits
Competition has /een sho%n to enhance endcustomer choice /y providing more options /oth in
terms of price and 4uality. Consumer %elfare is usually the greatest in an environment %here there
are no limits on the num/er of suppliers and services.
!26 *niversal service/access ob;ectives for telecomm"nication services
In some circumstances the market may not function to provide telecommunication services to
certain su/sets of users. 1niversal access can /e defined as governmentsponsored programmes
designed to provide access to specified telecommunication services for a community. Several
countries in the developing %orld have adopted universal access models to provide access to a
defined set of telecommunication services in rural and remote areas. and for lo%income
individuals. Without access to these services. Internet and other advanced IP services access and use
is inhi/ited. Countries that implement universal access programmes may %ant to consider the
follo%ing:
* universal access programme that is created to promote the development of telecommu
nication infrastructure in rural and remote areas. and for lo%income individuals.
* universal access programme for telecommunications that is operated in a transparent.
competitively neutral and nondiscriminatory manner.
Clear identification of the universal service re4uirements and provider o/ligations.
When universal access to local services is funded /y a crosssu/sidy :for e+ample. from
long distance telecommunications6. that any crosssu/sidy /e clearly and transparently
identified.
* funding mechanism that is clear as to %hether the funds come from ta+es or revenues.
* universal access plan that promotes infrastructure development and is procompetition.
!25 %onsideration of technological iss"es s"ch as <"ality of service
The service and 4uality capa/ilities of IP telephony technologies are still evolving. To reach the full
range of market needs. it is e+pected that IP technology %ill have functional capa/ilities similar to
circuits%itched technology. Policies that allo% fle+i/ility in choice of technology and application
to address user needs and to permit users to choose among different prices and 4ualities are more
likely to encourage investment and stimulate development.
Attachment 15 IP telephony and voice over IP (VoIP) !
!23 Interconnection and access policies
Within the conte+t of net%ork transition one role of policymakers may /e to ensure that e+isting
services remain availa/le as ne% services are introduced. as driven /y market forces.
Interconnection policy can play a critical role /y ensuring that ne% and e+isting infrastructure can
coe+ist. thus preserving and enhancing the value of /oth. In technology transitions. such as the one
from circuits%itched to packets%itched communication transport mechanisms. there is usually a
period of coe+isting technologies. Policies that recogni7e transition /y allo%ing multiple net%ork
platforms and encouraging their interconnection are prefera/le.
!6 Agency contacts
IT1 maintains a contact data/ase of the regulatory agencies and key contacts of each ?em/er State.
Contact information can /e found at
http:22%%%.itu.int2'lo/al=irectory2inde+.html *n additional source of country/ycountry contact
information is availa/le online at: http:22%%%.totaltele.com2links2list.aspLCategoryI=M2#&
2 %ase st"dies and e-perience sharing
21 Introd"ction
While some developing countries have policies prohi/iting IP telephony. others have policies
em/racing it. Some do not regulate IP telephony at all. %hile others have chosen to include it in a
positive manner %ithin their telecommunications regulatory frame%ork. These countries may /e
motivated /y a desire to encourage and stimulate emerging technologies that can lo%er costs.
increase total revenue opportunities and promote innovation and national economic gro%th. These
policies may /e linked to concerns a/out imposing regulations on technologies that are not fully
mature. Fimitations placed on IP telephony may /e seen as inconsistent %ith approaches designed
to stimulate the deployment and migration to IP/ased net%orks. *lso. regulators may /e hesitant to
intervene in ne% markets unless there is evidence of market failure. =ecisions to prohi/it. regulate
or not regulate IP telephony are often coupled %ith longterm policy o/3ectives for the development
of the communication infrastructure2net%ork.
2! 7es"lts of policies embracing IP telephony
The World Bank has created an Internet 9conomic Toolkit for African Policy)makers
addressing many of the above iss"es in the conte-t of developing economies This toolkit
presents a model of the likely impacts of the Internet on *frican telecommunication companies and
Internet service provider revenues. models of the cost structure and potential reach of Internet
service. data on the e+tent of Internet development in *frica and e+amples of its current use. With
this /ackground. the toolkit goes on to discuss policy choices faced /y countries that hope to
e+pand Internet use %ithin the conte+t of needed telecommunication reform and government
private partnerships involving universities and @'(s. It is availa/le in five pdf files and an -+cel
spreadsheet containing the model itself. It can /e accessed online at:
http:22%%%.infodev.org2pro3ects2finafcon.htm
22 Policies consistent &ith transition/convergence of net&orks
Case studies can provide useful insight into the impact of regulation on the development and
e+pansion of the telecommunication market %ithin a particular economy. Caution should /e
e+ercised. ho%ever. in e+trapolating the findings to economies that do not share the /asic
characteristics of the studied economy. 9o%ever. the methodologies used in these studies can /e
1" Attachment 5 IP telephony and voice over IP (VoIP)
particularly useful to others conducting their o%n case study. IT1 has completed case studies of
" ?em/er States: ;orea. China. Peru. Colom/ia and Canada. These studies are availa/le on line
through the IT1 %e/site at: http:22%%%.itu.int2osg2spu2%tpf2%tpf25512casestudies2inde+.htm
(ver the past four years. the (rganisation for -conomic Cooperation and =evelopment :(-C=6
has undertaken indepth revie%s of the telecommunication regulations in a num/er of economies.
This %ork is aimed at producing. for each country revie%ed. a multidisciplinary revie% of progress
on regulatory reform /ased on international /enchmarking. selfassessment and peer revie%. The
recent revie%s of 9ungary. Poland and the C7ech $epu/lic are specially noted. The revie%s of
9ungary http:22electrade.gfi.fr2cgi/in2(-C=BookShop.storefront2-@2Catalog2B(11!++ and the
C7ech $epu/lic http:22electrade.gfi.fr2cgi/in2(-C=BookShop.storefront2-@2Catalog2B(11!++
are availa/le through (-C= pu/lications.
26 #haring e-perience in developing ne& methodologies and approaches
261 ,eneral remarks
Countries have taken %idely differing policy approaches to%ard IP telephony. %hich may /e related
to different prevailing market conditions or degrees of li/erali7ation. The sharing of these different
approaches can help policymakers define and evaluate options to address issues specific to the
environment in their country.
26! Approaches to technology)ne"tral: sector)specific reg"lation
Technological neutrality is a principle that is invoked /y some policymakers and regulators %hen
addressing IP telephony and other emerging communication technologies. This concept can /e
generally characteri7ed as an effort to apply regulations in an identical manner to like services.
regardless of the technology used to provide these services in a competitive market. 1nless other
policy imperatives take precedence. the purpose of this concept is to support competition policy /y
ensuring that one provider is not given more favoura/le regulatory treatment than another %hen
providing e4uivalent services. (thers /elieve that policymakers should not /e indifferent to
technology. They assert that emerging technologies might /enefit from a <%indo%<. i.e. a form of
asymmetric regulation during an introductory phase. %hich %ould allo% them to develop and gro%
outside traditional regulation.
The principle of technological neutrality %as %idely discussed at the WTP> meetings and the
-+pert 'roup meetings. @o consensus %as reached. 9o%ever. many /elieve that:
16 * country first must have effective competition in order to apply a principle like
technological neutrality.
26 Technological neutrality is a legitimate consideration in policy and regulatory deli/erations.
/ut it should not override /roader procompetition o/3ectives.
The -uropean 1nion :-16 has concluded proceedings to create technologyneutral regulation. The
=irective on access to. and interconnection of. electronic communication net%orks
:C(?:556!)0final of 12 Nuly 25556 harmoni7es the %ay in %hich -1 ?em/er States regulate the
market /et%een suppliers of communication net%orks and services in the Community. The
=irective lays do%n a frame%ork of rules that are technologically neutral. /ut %hich may /e applied
to specific product or service markets in particular geographical areas. to address identified market
pro/lems /et%een suppliers of access and interconnection.
The =irective <Interconnection and access in the ne% -1 regulatory frame%ork for electronic
communications services< and additional material may /e consulted at the -1 %e/site
http:22%%%.europa.eu.int2informationOsociety2topics2telecoms2regulatory2ne%Orf2inde+Oen.htm
262 Application of domestic telecomm"nication reg"lation establishing effective compe)
tition: "niversal service/ access obligations incl"ding any other: f"rther obligations:
and other e-periences
a6 The 1nited ;ingdomEs independent regulator. (>T-F. has had e+tensive e+perience %ith
different regulatory approaches including price caps. and of ad3usting the scope and
intensity of regulation to take into account the level of competition in the market and
technological change. Its %e/site is: http:22%%%.oftel.gov.uk2
/6 In the 1nited States there has /een e+tensive competition in certain sectors of the
telecommunication market since the 1,&5s. especially in long distance and enhanced or
valueadded services. In 1,,#. national legislation %as adopted that specifically opened the
local telecommunication market to competition. *n overvie% of the 1nited States
e+perience is provided in:
http:22%%%.itu.int2IT1 =2e strategy2internet2iptelephony2Seminars22nd-'?2documents2
policy2IPTel21.pdf
c6 India is e+perimenting %ith IP telephony in limited applications. 1nder the @TP 1,,,.
Internet telephony is not yet permitted in India. The 'overnment of India has committed to
monitor the development of IP telephony and its impact on national development and %ill
revie% the issue at an appropriate time. The 'overnment. at present. is %orking on various
issues relating to the IP telephony. ?ean%hile. the incum/ent operator BS@F has plans to
use IP technology for real time service for transit traffic /et%een tandem e+changes.
/ypassing the tandems on an e+perimental /asis at si+ locations in the country using a
separate IP/ased net%ork. *t present it is not envisaged to connect these links to the
Internet. (nly domestic long distance traffic is proposed for e+perimentation %ith CoIP and
no international directdial calls are proposed in this e+periment. This e+periment %ill
cover realtime voice and fa+ services. %hereas data services %ill /e transacted through the
Internet.
6 %oncl"sions$ policy aspects
The policy implications of IP telephony should /e e+amined %ithin the conte+t and comple+ity of
the changes in the market environment. =eveloping countries face the additional challenge of
addressing relatively lo% teledensity levels. *s IP net%orks and IP telephony /ecome more
%idespread. policymakers may face the challenge of evaluating %hether current policy
frame%orks. developed initially for circuit/ased net%orks. are relevant and appropriate for IP
/ased net%orks. *s the /asis for determining policies specific to IP telephony. ?em/er States may
/enefit from a revie% of their more general domestic telecommunications regulatory frame%orks
%ith the follo%ing in mind:
16 ?em/er States may need to evaluate their /roader policy goals /efore determining %hat. if
any. regulation is necessary in a converged market.
26 -+perience around the %orld reveals that competitive telecommunication models have /een
adopted to successfully attract capital investment for telecommunication and IP/ased
net%ork infrastructure /uildout.
!6 Customer /enefits are usually the greatest in an environment %here there are no limits on
the num/er of suppliers and services.
06 In some circumstances %here the market may not function to provide telecommunication
services to a certain su/set of users. governmentsponsored universal access2service
programmes may /e helpful.
"6 Policies that allo% fle+i/ility in the choice of technology and its application to address user
needs and to permit users to choose among different prices and 4ualities are more likely to
encourage investment and stimulate development.
#6 Consider. in competitive markets. %hether to take a technologyneutral approach /y
applying regulations in an identical manner to like services. regardless of the technology
used to provide these services.
&6 Policies that allo% for the coe+istence of multiple net%ork technology platforms and
encourage their interconnection are preferred.
Countries have taken %idely differing policy approaches to%ard IP telephony. %hich may /e related
to different prevailing market conditions or degrees of li/erali7ation. @o policy model is universally
applica/le. * num/er of approaches may /e appropriate. The sharing of these different approaches
can help policymakers define and evaluate options to address issues specific to their country.
Training for policymakers. regulators and operators is essential to help understand the implications
of ne% technologies. ne% market structures and alternative regulatory models. * num/er of
institutions. organi7ations and companies provide training programmes. ?em/ers are encouraged to
take advantages of these programmes. ?em/ers are also encouraged to contact each other and to
share first hand their e+periences.

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