Voice over Internet Protocol (VoIP)
... dynamically designed and managed. The trend from proprietary, vendor-centric, end-to-end solutions to integrated, open, IP-based environments results in more customizable, flexible, and extensible systems. VoIP related technologies, such as Session Initiation Protocol (SIP), are based on the concept that user preferences, client devices, services, and underlying infrastructures have separate requirements. Therefore, SIP acts as an ideal protocol for adapting to change by separating the signaling from the hardware and media. SIP is flexible, extensible, and scalable and is well suited to a broad range of usage scenarios, applications, and infrastructures. SIP is a uniform platform for services such as voice, instant messaging, video, and general presence information. To simplify interoperability between separate systems and reduced operational costs, the SIP divides the network-to-user, network-to-network, and makes the protocols become obsolete. Another VOIP related technology is a T1 Signaling. T1 signaling provides functions such as supervising and advertising line status, alerting devices when a call is trying to connect, and routing and addressing information. There are two different types of signaling information within the T1, Common Channel Signaling (CCS) and Channel Associated Signaling (CAS). CCS is the transmission of signaling information out of the information band. The most notable and widely used form of this signaling type is ISDN. The disadvantage of using CCS in the topology above is that the private branch exchange (PBX) above needs a digital T1 PRI card. CAS is the transmission of signaling information within the information band, or in-band signaling. This means that voice signals travel on the same circuits as line status, address, and alerting signals. VoIP Future Trends VoIP technology is a relatively new telecommunications technology that has been driven by Internet technologies and convergence of voice and data. Some future trends may be predicted by observing current trends. It appears that voice and data network infrastructures will converge. As a result, this will increase the reliability of the data network and the capabilities and features of the voice network. Also, open standards will continue to thrive and push advancements of VoIP technology, while competition will drive down cost. Infrastructure and Reliability Voice networks have traditionally provided more reliability than most data networks. In order for data networks to sustain expected levels of reliability, they must be designed with resilience for both data and voice in mind. According to Dokey and Rushing (1999), “the most significant future trend for VoIP is expected to be the transition of the Internet backbone to Asynchronous Transfer Mode (ATM). ATM was specifically designed for videoconferencing and multimedia applications. Thus, with an ATM backbone, the Internet would have greater bandwidth and could more easily transmit voice, data and video.” Networks designed for voice will bring improved reliability to data networks, while data networks will contribute flexibility and system integration possibilities to voice systems. Capabilities and Features IP systems provide a richer environment for the creation and development of new services. As highlighted by Dokey and Rushing (1999), “new VoIP applications and services will provide customers with more choices and greater flexibility.” IP systems are not constrained by the limitations of older systems and can be more easily integrated into data systems. An example of the new development possibilities is a product that integrates Microsoft's Customer Relationship Management (CRM) solution with Cisco VoIP systems. Bednarz (2004) indicates “small and midsize businesses often lack the IT skills and budget to build sophisticated call center setups that link customer information stored in CRM applications with IP telephony systems. Cisco, working in partnership with Microsoft, aims to change that. Cisco last week announced software designed to more easily integrate its IP-based communications products with Microsoft's CRM software.” The richer development environment of IP systems is made possible by high levels of cooperation and standardization between vendors. Open Standards VoIP solutions are based on support standards such as SIP and RSVP. Ferriter (2004) points out that many products have been developed to support an open standards platform; resulting in the creation of a foundation can be built upon by many, while ensuring reliability and reduced bandwidth congestion. One such standard is the resource reservation protocol (RSVP), a signaling protocol that serves as a traffic manager for the Internet which has improved QoS. Open standards for VoIP will continue to develop and offer improved services to customers. In addition, open standards should serve to foster a competitive environment where vendors strive to deliver effective solutions to customers. Cost Competition among vendors should drive down costs of VoIP solutions. Dokey and Rushing (1999) indicate that consumers should expect “…more competition among fee-based extranet service providers of VoIP technology. As the market grows, vendors will begin targeting market segments through price and service delivery differentiations. Individual and business customers will gain two main benefits from this competition: 1) market demand will drive down IP telephony service fees; and 2) at the same time, vendors will strive to improve services and applications to remain competitive." In the future, consumers and businesses should expect to see more reliable data networks combined with voice networks that deliver more features. These will be delivered in a standards based environment that fosters competition. Eventually, more services and reliability will be available at lower cost. VoIP Services/Technology Providers IP telephony service providers include a variety of organizations that have traditionally been associated with local telephone companies, long distance telephone service (AT&T), cable TV (Comcast), internet service providers (AOL, Earthlink), and fixed service wireless operators. A company by the name of Vonage is an Internet based telephone service focused on delivering VoIP services to customers in both domestic and international markets. Cisco Systems has acquired a software firm in their efforts to throw their hat into the ring with the other VOIP retailers. (Hochenmuth, 2004) There are a variety of companies vying to compete within the VoIP market and within the United States alone, there are approximately 296 companies that can be identified as providing some type of VoIP or IP telephony related service. The traditional organizations such as AT&T, Sprint, and Verizon all provide such services. However, Vonage is one of the original and leading competitors in this space. Only time will demonstrate which companies can survive and compete within this market space. VoIP Regulatory Issues The Von Coalition is comprised of organizations including Intel and Microsoft. According to Gardner (2003), this organization has "helped deter FCC efforts to characterize VoIP as a basic service, defeat regulations imposing access charges, and deter international regulations that would require burdensome accounting rules." However, states and localities are looking into VoIP and associated revenues. In order to regulate and tax IP telephony, some state entities are considering classifying web phoning as a telephone service. While VoIP is still in its infancy, the technology does seem to be spreading quickly; therefore, threatening to reduce the state and local tax revenues generated by plain old telephone service (POTS). In addition, there is also considerable debate concerning rates of alternate service providers like cable companies. With the advances of cable internet versus standard dial up and DSL, IP telephony service providers are concerned the cable developers will develop their own services and give them preferential treatment over the cable modems. (Gross, 2004) With this movement, VoIP is nowhere near being regulated by the FCC as a regular service, but it is something that may be looming on the horizon. National/Global implications of VoIP VoIP is a potentially disruptive technology, with implications that affect just about everyone. "It has enormous social implications, from health care to education to domestic job creation and economic expansion" (Khlopin, para. 4). The accessibility of Internet technology makes the issue a global concern as well as domestic. VoIP has implications that reach into legislative and economic concerns at all levels. States and countries everywhere will have a legislative impact on VoIP. Legislative On July 22, the U.S. Senate Committee on Commerce, Science and Transportation passed the "VoIP Regulatory Freedom Act of 2004" (S.2281). Within Congress there is an effort to prevent states from implementing new regulations that will inhibit the expansion of VoIP technology. Khlopin (2004) states that “…movement toward a national broadband communications infrastructure supporting IP technologies is absolutely essential to the United States maintaining a global leadership position in the development of new technology… Saddling the new world of IP with yesterday's rul...