Key Benefits and Requirements for VoIP (part 2)

 For service providers examining the business case for VoIP, the ubiquity of IP as a networking technology at the customer premises opens the possibility of deploying a vast range of innovative converged voice and data services that simply cannot be cost effectively supported over today’s PSTN infrastructure. 

• IP-based internet applications, such as email and unified messaging, may be seamlessly integrated with voice applications  

• IP centrex services allow network operators to provide companies with cost effective replacements for their ageing PBX infrastructure
• VoIP services can be expanded to support multimedia applications, opening up the possibility of cost effective video conferencing, video streaming, gaming or other multi-media applications.

What is more the traditionally open interfaces and enterprise culture surrounding IP networking results in reductions in cost, and gains in productivity and time to market for service providers. 

• The flexibility of next generation platforms allows for the rapid development of new services and development cycles are typically shorter than for ATM or TDM-based equipment.
• VoIP products based on the MSF architecture, unlike legacy TDM switches, often support open service creation environments that allow third party developers to invent and deliver differentiated services.
• Third parties may develop applications and services for end users on open architecture CPE devices such as PCs. By co-operating with such third parties network operators stand to gain increased revenues from the explosion of innovative services that this advance is likely to trigger. 

In addition the consolidation of voice and data in one network can significantly reduces cost. 

• VoIP leverages data network capacity removing the requirement to operate separate voice and data networks.
• IP equipment is typically faster and cheaper than ATM or TDM-based equipment – a gap that is increasing rapidly every few months.
• Re-routing of IP networks (e.g. with MPLS) is much cheaper than, say, SDH protection switching. Whatever the justifications, most service providers recognize that VoIP is the direction of the future – however when looking at a future PSTN scale solution service providers must ensure that the following key requirements are met to provide equivalence with the PSTN: 

1. Security
2. Quality of Service
3. Reliability
4. Migration path
5. OSS support
6. Billing
7. Network Interconnection

These issues are by no means simple and in many cases have delayed roll out of VoIP services. This white paper will look in more detail at these problems and consider at a high level how they might be addressed.