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Abossé AKUE-KPAKPO Telecommunication Manager

IP TELEPHONY : Challenges and Prospects TOGO TELECOM. Abossé AKUE-KPAKPO Telecommunication Manager. Chief, Internet and Business Services Division Tel. : (228) 21 68 54 / 04 01 81 Fax. : (228) 21 88 36 E-mail : abosse.akue@togotel.net.tg. IP TELEPHONY: Challenges and Prospects. CONTENTS.

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Abossé AKUE-KPAKPO Telecommunication Manager

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  1. IP TELEPHONY: Challenges and Prospects TOGO TELECOM Abossé AKUE-KPAKPOTelecommunication Manager Chief, Internet and Business Services Division Tel. : (228) 21 68 54 / 04 01 81 Fax. : (228) 21 88 36 E-mail : abosse.akue@togotel.net.tg Abossé AKUE-KPAKPO TOGO TELECOM

  2. IP TELEPHONY:Challenges and Prospects CONTENTS I – INTRODUCTION TO IP TELEPHONY II – TECHNICAL ASPECTS III – CHALLENGES AND PROSPECTS IV - CONCLUSION Abossé AKUE-KPAKPO TOGO TELECOM

  3. IP TELEPHONY: Challenges and Prospects CONTENTS • I – INTRODUCTION TO IP TELEPHONY • Preliminary remarks • Definition(s) • II – TECHNICAL ASPECTS • Characteristics of the two networks • Types of communication • Developments Abossé AKUE-KPAKPO TOGO TELECOM

  4. IP TELEPHONY: Challenges and Prospects PRELIMINARY REMARKS The advent of IP telephony is perceived as a fundamental change in telecommunications of the same magnitude as the replacement of the telegraph by the telephone. Abossé AKUE-KPAKPO TOGO TELECOM

  5. IP TELEPHONY: Challenges and Prospects PRELIMINARY REMARKS IP telephony is founded on the Internet network using the IP protocol. Conventional telephony is founded on the public switched telephone network (PSTN). Abossé AKUE-KPAKPO TOGO TELECOM

  6. IP TELEPHONY: Challenges and Prospects Definition In general terms, IP telephony means voice transmission over the public Internet network. Abossé AKUE-KPAKPO TOGO TELECOM

  7. IP TELEPHONY: Challenges and Prospects Definition It is also referred to as voice over IP (VoIP). This service means more or less the same thing, except that in some cases it is not the public Internet network which is used. Abossé AKUE-KPAKPO TOGO TELECOM

  8. IP TELEPHONY: Challenges and Prospects CHARACTERISTICS OF THE TWO NETWORKS PSTN IP Highly reliable High voice transmission quality Real time or synchronous Simultaneous conversation between two points on Earth Relatively reliable Acceptable transmission quality Deferred time or asynchronous Connectionless Abossé AKUE-KPAKPO TOGO TELECOM

  9. IP TELEPHONY: Challenges and Prospects Types of communication Three main types: PC to PC PC to telephone Telephone to telephone Abossé AKUE-KPAKPO TOGO TELECOM

  10. IP TELEPHONY: Challenges and Prospects Abossé AKUE-KPAKPO TOGO TELECOM

  11. IP TELEPHONY: Challenges and Prospects Gateway Public Switch Abossé AKUE-KPAKPO TOGO TELECOM

  12. IP TELEPHONY: Challenges and Prospects Gateway Gateway Public Switch Abossé AKUE-KPAKPO TOGO TELECOM

  13. IP TELEPHONY: Challenges and Prospects Development 1994 : First trials of type PC to PC 1996 : Trials of type PC to telephone 1997 : Significant progress Emergence of telephone to telephone 1998 : Integration of voice on the web Emergence of free call centres Abossé AKUE-KPAKPO TOGO TELECOM

  14. IP TELEPHONY: Challenges and Prospects Growth Booming market Estimate international VoIP traffic 1998 : 200 million mins. 1999 : 1 750 million mins. 2000 : 3 700 million mins. 2001 : 6 200 million mins. Abossé AKUE-KPAKPO TOGO TELECOM

  15. IP TELEPHONY: Challenges and Prospects Some forecasts IDC : 1999 : 2.7 billion mins. 2004 : 135 billion mins. Deltathree.com : 2000 : 16 billion mins. 2005 : 35% of all international traffic Abossé AKUE-KPAKPO TOGO TELECOM

  16. IP TELEPHONY: Challenges and Prospects III – CHALLENGES AND PROSPECTS Abossé AKUE-KPAKPO TOGO TELECOM

  17. IP TELEPHONY: Challenges and Prospects Challenges • 4Large amounts of money at stake • 4Many new entrants • 4Challenges for incumbent operators in Africa? Abossé AKUE-KPAKPO TOGO TELECOM

  18. IP TELEPHONY: Challenges and Prospects Challenges 4Business opportunities 4Fear of a fall in turnover Abossé AKUE-KPAKPO TOGO TELECOM

  19. IP TELEPHONY: Challenges and Prospects Business opportunities 1– Internet creates new demand for specialized links. 2 – IP telephony generates national traffic to the Internet network. 3 – Other income from the Internet (e-commerce, website development and hosting, other services). Abossé AKUE-KPAKPO TOGO TELECOM

  20. IP TELEPHONY: Challenges and Prospects Abossé AKUE-KPAKPO TOGO TELECOM

  21. IP TELEPHONY: Challenges and Prospects Business opportunities Abossé AKUE-KPAKPO TOGO TELECOM

  22. IP TELEPHONY: Challenges and Prospects Fall in turnover 4Revenues from international traffic 4Revenues from settlement of accounts for international traffic Abossé AKUE-KPAKPO TOGO TELECOM

  23. IP TELEPHONY: Challenges and Prospects Fall in turnover 4Rates 30 to 50% lower 4Potential fall in turnover for international traffic 4Examples Abossé AKUE-KPAKPO TOGO TELECOM

  24. IP TELEPHONY: Challenges and Prospects Fall in turnover 4KPN states that 21% of its traffic is generated by the Internet. 4Deutsche Telecom states that, in 1998, calls to the Internet increased by 86% to7.7 billion minutes of traffic, i.e. 164% of all its outgoing international traffic. Abossé AKUE-KPAKPO TOGO TELECOM

  25. IP TELEPHONY: Challenges and Prospects Fall in turnover 4IP telephony provides a means of bypassing switched networks. 4IP telephony is not regulated. 4Possible drain on foreign currency. Abossé AKUE-KPAKPO TOGO TELECOM

  26. IP TELEPHONY: Challenges and Prospects Fall in turnover 4Given that international traffic accounts for 30 to 40% of total turnover, and 4that account settlements may represent up to 30% of turnover, then 4there are problems ahead for incumbent operators in our developing countries. Abossé AKUE-KPAKPO TOGO TELECOM

  27. IP TELEPHONY: Challenges and Prospects Prospects Will depend on: 4quality of IP telephony 4tariffs for international calls 4cost of switched networks 4legislation Abossé AKUE-KPAKPO TOGO TELECOM

  28. IP TELEPHONY: Challenges and Prospects Prospects 4If the quality of IP telephony improves, it will become a must, obliging us to think in terms of progressively migrating from switched networks to IP networks. 4If tariffs for international calls are significantly reduced, then IP telephony may remain marginal. Abossé AKUE-KPAKPO TOGO TELECOM

  29. IP TELEPHONY: Challenges and Prospects Prospects 4If the cost of our switched networks is reduced, then competition from IP telephony will be less acute. 4Finally, the future will also depend on the legislation introduced. Abossé AKUE-KPAKPO TOGO TELECOM

  30. IP TELEPHONY: Challenges and Prospects Conclusion 4Incumbent operators face severe competition in an area accounting for a large proportion of their turnover. 4Possible solutions: Tariff rebalancing Increasing teledensity to bring down the costs of the switched network Abossé AKUE-KPAKPO TOGO TELECOM

  31. IP TELEPHONY: Challenges and Prospects Conclusion Establishment of appropriate legislation that takes into consideration the cost of each network Monitoring of the network to avoid bypassing Abossé AKUE-KPAKPO TOGO TELECOM

  32. IP TELEPHONY: Challenges and Prospects Bibliography 1 - ITU Internet reports: IP telephony International Telecommunication Union 2001 2 – Challenges to the network: Internet for development International Telecommunication Union 2001 3 – ITU News Abossé AKUE-KPAKPO TOGO TELECOM

  33. IP TELEPHONY: Challenges and Prospects Bibliography Websites 1 – http:\\itu.int\wtpf 2 – http:\\itu.int\itu.docr\gs\council\c00\docs\78.pdf Abossé AKUE-KPAKPO TOGO TELECOM

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