VoIP interconnect: the end of the minute is approaching
More and more voice traffic is migrating from traditional time division multiplexing (TDM) technologies to a multiplicity of different VoIP implementations. Efficient and secure interconnection of these services is essential to providing a voice service with universal reach, but carriers are simply trying to reproduce TDM interconnection models for VoIP. Players must use this opportunity to choose a new interconnection model that enables service and charging innovation rather than stifling it.
Executive summary
In a nutshell
Ovum view
Key messages
Voice margins will continue to fall
Migration from TDM to VoIP continues
Two-tier VoIP is inevitable
Interconnection is essential but not simple
Moving from bilaterals to hubbing
Risk that IPX could create a private club
End of the minute is approaching
Recommendations for players
International wholesale voice carriers: get bigger, get focused or get out
Fixed and mobile retail voice service providers must prepare for the inevitable
Providers of VoIP interconnection solutions must keep their customers’ options open
Regulators must get off the fence
Voice is changing
Voice traffic continues to grow
Fixed-to-mobile substitution
Falling margins
End-user VoIP
IP voice in the backbone
Benefits and challenges of migrating to VoIP
Benefits of VoIP
Greater efficiency, lower costs
IP enables faster innovation
Additional capabilities of VoIP
Challenges of VoIP
Security
Quality
VoIP variants
Interoperability
Number portability and ENUM
Peering and transit
Charging
Migration from TDM to VoIP
Other challenges
Industry initiatives and opinions
i3 Forum
GSMA’s IPX initiative
From GRX to IPX
Principles behind IPX
Types of IPX interconnection
Industry concerns over IPX
IPsphere
Market players
Retail VoIP providers
VoIP interconnection implementations
Wholesaler opinions on the future of the minute
Regulatory developments
A hands-off approach
Regulatory approach to VoIP in Europe
ECS, PATS and VoIP classifications
ERG VoIP categorisation
Regulatory status in Europe
International regulatory developments
South Korea interconnect tariff
Where do we go from here?
Industry cooperation
Vendor solutions
Regulation
Innovative solution
A hybrid compromise solution will eventually emerge
In a nutshell
Ovum view
Key messages
Voice margins will continue to fall
Migration from TDM to VoIP continues
Two-tier VoIP is inevitable
Interconnection is essential but not simple
Moving from bilaterals to hubbing
Risk that IPX could create a private club
End of the minute is approaching
Recommendations for players
International wholesale voice carriers: get bigger, get focused or get out
Fixed and mobile retail voice service providers must prepare for the inevitable
Providers of VoIP interconnection solutions must keep their customers’ options open
Regulators must get off the fence
Voice is changing
Voice traffic continues to grow
Fixed-to-mobile substitution
Falling margins
End-user VoIP
IP voice in the backbone
Benefits and challenges of migrating to VoIP
Benefits of VoIP
Greater efficiency, lower costs
IP enables faster innovation
Additional capabilities of VoIP
Challenges of VoIP
Security
Quality
VoIP variants
Interoperability
Number portability and ENUM
Peering and transit
Charging
Migration from TDM to VoIP
Other challenges
Industry initiatives and opinions
i3 Forum
GSMA’s IPX initiative
From GRX to IPX
Principles behind IPX
Types of IPX interconnection
Industry concerns over IPX
IPsphere
Market players
Retail VoIP providers
VoIP interconnection implementations
Wholesaler opinions on the future of the minute
Regulatory developments
A hands-off approach
Regulatory approach to VoIP in Europe
ECS, PATS and VoIP classifications
ERG VoIP categorisation
Regulatory status in Europe
International regulatory developments
South Korea interconnect tariff
Where do we go from here?
Industry cooperation
Vendor solutions
Regulation
Innovative solution
A hybrid compromise solution will eventually emerge
LIST OF TABLES
Table 1: Characteristics of different types of IP interconnection
Table 2: Example VoIP interconnection implementations
Table 3: ERG VoIP categorisation
Table 4: Regulatory status of VoIP in Europe
Table 5: Interconnection fees for VoIP in Korea (Korean Won)
Table 1: Characteristics of different types of IP interconnection
Table 2: Example VoIP interconnection implementations
Table 3: ERG VoIP categorisation
Table 4: Regulatory status of VoIP in Europe
Table 5: Interconnection fees for VoIP in Korea (Korean Won)
LIST OF FIGURES
Figure 1: Key components of the IPX model
Figure 2: The IPX interconnection model
Figure 1: Key components of the IPX model
Figure 2: The IPX interconnection model
