A report for dti john Horrocks Horrocks Technology Limited with David Lewin Peter Hall Ovum Limited

Executive Summary 1

Objectives 1

Networks 1

Figure 1: Comparison between the Internet and managed IP networks 1

Internet 1

Managed IP 1

Approach 1

Open = unrestricted access and use 1

Closed = restricted access and use 1

Functionality and service creation 1

At network edges by users or independent third parties 1

Within or at the edge of networks but only where enabled by the operator 1

Charging 1

Subscription or traffic volume only 1

Can support usage based charging 1

Connectivity at the IP level 1

Full interconnection 1

Hardly any at present 1

Addressing 1

Public global system 1

Internal private addressing possible 1

Quality of service 1

Not managed 1

Managed to support defined levels 1

Services 2

Figure 2: Development routes 3

3

The market 3

Figure 3: Changes in retail market segments 5

5

Figure 4: Voice service provision 5

5

Telephony services types 6

Terminals 6

Figure 5: Trends in terminal use 6

6

Access 7

Figure 6: Access developments 7

7

Networks 7

Traffic 9

Figure 7: Growth of voice traffic from PCs 9

9

Figure 8: Projections of residential minutes 9

9

Figure 9: Future scenarios 10

Period 10

Short term
2001-2005 10

Medium term
2006-2010 10

Long term
2011 onwards 10

Services 10

Public telephony (E.164) universal 10

Internet named telephony grows but only for informal groups 10

Public telephony (E.164) universal 10

Internet named telephony becomes an any-any service 10

Both exist alongside each other 10

Service provision 10

Fragmentation 10

Consolidation and battle between ISPs and telcos 10

Impossible to predict 10

Terminals 10

Analogue unaffected 10

Growth phase for telephony from PCs 10

Analogue terminals start to decline 10

Growth phase for standard IP telephones and integrated home systems 10

Integrated home systems 10

Access 10

Separate analogue and ADSL NTPs 10

Analogue access declines 10

Growth phase for new IP based NTP 10

Standard IP based NTP 10

Networks 10

Growth phase for bypass and ITSPs 10

Growth of wholesale services 10

Growth of global IP managed networks without interconnection 10

Replacement of circuit switched networks with SIP on IP or BICC on ATM. Media carried direct on ATM in many networks 10

IP based interconnection implemented 10

Slow migration to all-IP as SIP gradually replaces BICC and IP is used without ATM and SDH 10

Conclusions 11

1 Introduction 12

1.1 Terminology 12

Figure 10: Terminology 13

13

1.2 Acronyms 13

2 IP Technology and networks 15

2.1 The Internet protocol 15

Figure 11: The central role of IP 15

15

2.2 The commercial drivers behind IP 16

2.3 IP networks and their state of development 16

2.3.1 The public Internet 16

Figure 12: Structure of the Internet 17

17

2.3.2 Managed IP networks 17

2.3.3 Comparison 18

Figure 13: Comparison between the Internet and managed IP networks 18

Internet 18

Managed IP 18

Approach 18

Open = unrestricted access and use 18

Closed = restricted access and use 18

Functionality and service creation 18

At network edges by users or independent third parties 18

Within or at the edge of networks but only where enabled by the operator 18

Charging 18

Subscription or traffic volume 18

Can support usage based charging 18

Connectivity at the IP level 18

Full interconnection 18

Hardly any at present 18

Addressing 18

Public global system 18

Internal private addressing possible 18

Quality of service 18

Not managed 18

Managed to support defined levels 18

Figure 14: Service provision and types of network 19

19

2.3.4 ATM 19

3 Networking issues 20

3.1 Identification systems 20

3.2 Routeing 21

3.2.1 Routeing in circuit switched networks 21

3.2.2 Routeing in the public Internet 21

3.2.3 Routeing in Managed IP networks 22

3.3 Protocols and signalling 23

3.3.1 Session Initiation Protocol (SIP) 23

Figure 15: SIP in proxy mode 24

24

3.3.2 H.323 25

Figure 16: H.323 25

25

3.3.3 H.248 & Megaco 26

3.3.4 BICC Bearer Independent Call Control 26

3.3.5 Tiphon 26

Figure 17: TIPHON Standards 27

27

3.3.6 Proprietary protocols 27

3.3.7 Comparison of protocol stacks 27

Figure 18: Typical call control protocol stacks 28

28

Figure 19: Typical protocol stacks for media packets 29

29

3.4 Next generation network architecture 29

3.4.1 Introduction 29

Figure 20: Next generation network 30

30

3.4.2 Softswitches 30

3.4.3 Transport structures (ATM, IP and MPLS) 30

3.5 Network boundary devices 32

3.5.1 Firewalls 32