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Culture Clash— IMS vs. Peer-to-Peer TMIA 2006 Annual Meeting February 28, 2006

Culture Clash— IMS vs. Peer-to-Peer TMIA 2006 Annual Meeting February 28, 2006. James Rafferty Sr Product Manager jraff@cantata.com. Proprietary and Confidential. Agenda. Background Directions in Voice over IP IMS Peer-to-Peer War, Compromise or other? What Does it Mean? Business Side

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Culture Clash— IMS vs. Peer-to-Peer TMIA 2006 Annual Meeting February 28, 2006

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  1. Culture Clash—IMS vs. Peer-to-PeerTMIA 2006 Annual MeetingFebruary 28, 2006 James RaffertySr Product Manager jraff@cantata.com Proprietary and Confidential

  2. Agenda • Background • Directions in Voice over IP • IMS • Peer-to-Peer • War, Compromise or other? • What Does it Mean? • Business Side • Technical Side • Summary

  3. Background • After some false starts, Voice over IP is hitting the mainstream • Data points: • Skype has 60 Million registered VoIP users and was bought for $2.6B by E-Bay • Vonage has over 1 million paying customers • In the US, both incumbent Telcos and Cable MSOs are starting their VoIP rollouts

  4. Directions in Voice over IP • SIP has become the protocol of choice, with just a few exceptions • Fixed price packages for unlimited calling and common services are generally available • Prices for “minutes” continue to go down • Strong interest from carriers in rolling out value-added services to augment vanilla phone revenues • Traditional voice carriers now have some very “untraditional” competition

  5. VoIP Architectural Models • VoIP began as “replacement” telephone service, with VoIP gateways bypassing Class 4 switches • This evolved to the Softswitch model, which decomposed operations into multiple network elements • SIP (Session Initiation Protocol) began as Peer-to-Peer, but has evolved to have more complexity • Skype borrowed peer-to-peer concepts from file sharing services using a proprietary protocol • 3GPP standards group proposed the IP Multimedia Subsystem (IMS) for next gen IP wireless services • Now strong interest from wireline providers such as BT • Where is this all going?

  6. Two Prevailing Models • Two very different models are gaining the most traction today for VoIP • IMS (IP Multimedia Subsystem) • Peer-to-Peer • Let’s review the drivers for these two directions

  7. IMS • IMS is the latest attempt by the big telecom players to create a rich service creation environment • Previous efforts like the Advanced Intelligent Network (AIN) had limited success • So, what’s different about IMS? • Based on Voice over IP technology, which is replacing legacy switched technology used in AIN • Based on SIP, which already has a growing community of application developers and equipment vendors • Strong interest from both wireless and wireline carriers

  8. Top Level IMS Picture Wifi/ WiMax IP / MPLS PSTN Service Layer Application Server Application Server CSCF (SIP) Control Layer MRF HSS Other Elements Media GW Connectivity Layer

  9. Rich Media Services in the IMS QuickTime™ Web Content HTTP mp3 FTP MPEG-4 Text NFS Network Storage UnifiedMessaging Announcements Video Mail VideoConferencing IPCall Center Pre-Paid Voice Mail Conferencing Video Ringback Gaming SIPMSCML 3G SIP SIPVoiceXML SIP IMG S-CSCF/SCIM SIP Routing Cloud 2.5G IP MSC IMG SIPSIP w/ VoiceXML SIP w/ MSCML SIP PSTN RTP MGW CMTS Cable IP Phones SnowShore IP Media Server MRF

  10. Peer-to-Peer • Heritage of Peer-to-Peer (PTP) quite different • Massive Popularity of PTP file sharing services • Founders of Skype took “lessons learned” from Kazaa and created PTP VoIP • Featuring: • Free on-net calling model • Viral marketing approach • APIs to encourage affiliates • Proprietary technology to get past NATs and firewalls • Built in buddy groups, instant messaging and presence • Low Charges for offnet PSTN connections

  11. Peer-to-Peer VoIP Example Caller Caller Internet Caller Caller Supernode

  12. Other Peer-to-Peer Players • Yahoo has added voice to its Yahoo Messenger • Google has created a chat service which includes voice • Google also exploring other VoIP related services • Microsoft has voice add-ons for their IM service • Lesser known companies such as Voiceglo also have PTP VoIP services

  13. Current State of PTP VoIP • Skype/Ebay still by far the biggest player • Skype has a very aggressive affilitiate program • Other PTP services are mostly based on SIP • PTP VoIP services are currently VoIP islands • No interconnection except via PSTN • Early interest in VoIP peering to resolve • To date, Skype services are all “in the software” at the end point • For example, conferencing typically tops out at 5 users • Exploration of larger scale services which use servers • For example, conferencing vendor Vapps now advertising 500 person conferences for Skype AND PSTN users

  14. War, Compromise or Other? • Make no mistake, IMS and PTP are VERY different technical and business models • Market forces are driving both models forward • IMS is very comfortable model for traditional Telcos and likely for MSOs too • Uses Internet technology in a “walled” garden • Lots of room for innovative services using server based technogy • PTP is more revolutionary approach • Has much more in common with Instant Messaging • Driving end user costs to very low levels, but relies on solid IP infrastructure • Most services are at the application level and in the end point

  15. What Does it Mean? Business Side • IMS and PTP both need innovative applications • IMS much more hospitable for application server and media server vendors • Looks to be a good fit for offering services to enterprises • Still, PTP needs innovation too, but fees may be at the “micro-cents” level • Telcos and MSOs control the pipes in US • Issues about charges for 3rd party applications to gain access to the network • Concept of 2-tier Internet being tested • Carriers would like to charge extra for better performance • Could result in degraded PTP voice quality

  16. What Does it Mean? Technical Side • SIP continues to be the big winner on the technical side • IMS makes substantial use of SIP for various types of service elements • Also makes limited use of Megaco/H.248 • IMS also leverages lots of energy in areas such as XML-based service development • Skype has avoided SIP so far, but will likely use SIP peering mechnisms to talk with SIP VoIP networks in the future • In meantime, Skype developers write to a proprietary Skype API

  17. Summary • IMS and Peer-to-Peer are rival models for next gen VoIP Services • IMS has greater traction among established telco players • PTP has greater “buzz” and fast growing subscriber bases • Backed by the big Internet players such as Google and Ebay • Both IMS and PTP need innovation at the Application level, creating business opportunities

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