According to Frost &
Sullivan, the long-distance wholesale voice services market is set to
catapult from $19.85 billion in 1999 to $57 billion by 2005.
In last
month's column, I discussed network convergence as it related to the
different parts of the network as a whole. In this column, I will examine
the backbone or the high-bandwidth interstates that connect the different
population centers across the world and take a closer look at how the growth
and availability of more and more bandwidth is enabling an environment for a
potentially highly lucrative convergence application known as long-distance
wholesaling.
EVER MORE BANDWIDTH
Because of the rapid developments of fiber optic technology and the
installation of very high bandwidth fiber optic-based data backbones for
countrywide or worldwide networks, the amount of bandwidth is doubling every
nine months. It is estimated that there will be approximately 380,403 miles
of long-haul fiber networks in place by 2002, up from 200,700 in 1998 in the
United States, according to KMI Corporation. Wired Magazine also reported
that since 1995, annual installations of long-haul fiber networks in Europe
have shot up nearly 700 percent. As bandwidth continues to increase and
becomes a more plentiful commodity, channels for selling the bandwidth and
applications that will use the bandwidth are developing. One example is
long-distance wholesaling.
Long-distance wholesaling is one of the most compelling convergence cases
because the financial benefits are so clear, and because the barriers to
entry are low. If you look at the pioneers in IP-based long-distance
wholesaling market today (including PSINet, Level 3, iBasis, and ITXC) who
are offering IP services to domestic and international carriers,
corporations and services providers, you begin to see the amount of possible
applications and business models that can provide new revenue streams.
ADDING VOICE TO THE DATA MIX
Becoming a long-distance wholesaler involves leveraging the data
bandwidth infrastructure in order to offer voice services. Data network
owners can tap into the worldwide voice market very readily with the new
generations of network equipment that allow calls to be concentrated from
the PSTN to the data network. The problem for network providers is using the
best methods for adding voice services successfully, with high quality. The
voice service must be as good as today's PSTN services. The solution lies
within smart management of packet latency to ensure circuit-like behavior
inside the IP network.
In order for a data network to support voice, there are a number of
system elements that can be used. Trunking gateways allow connection of the
data network to the PSTN to support long-haul carrying of switched calls. In
addition, switching services can be added to the data networks through the
use of softswitches. These can be added to an existing data network fairly
easily and inexpensively to support voice services, although there are
tradeoffs for each, and choosing the right flavor is critical for both
short-term and long-term service and business objectives.
The key system element that allows support and processing of voice calls
is the trunking gateway. The main issues with selecting the right gateway
are voice quality versus bandwidth (how much bandwidth do you use to ensure
quality?), connecting to the customer (how many services need to be
supported?), and maintaining voice quality as bandwidth becomes more
constrained.
CHOOSING THE RIGHT GATEWAY
When choosing a trunking gateway, it is important to determine what
services will need to be supported, such as voice and data (dial-up modem,
IDSN, fax), and which type of gateway most suits the technical requirements
and business opportunities of a particular network. Today, most trunking
gateways are built on RAS concentrator platforms and can provide capacity
for existing data access services, as well as adding voice services. A
service provider will need to decide whether to implement a gateway that
supports all of their services (a universal gateway), or one that supports
voice only. If voice is the only concern, then a trunking gateway dedicated
to voice services can offer higher capacity at a lower per port price. If
the subscription rate to each service is uncertain, then the universal
equipment will be the most flexible solution.
Determining how configurable the trunking gateway needs to be for the
voice service is also an important consideration. The trunking gateway can
be configured to provide different levels of voice quality, bandwidth usage,
and ability to add services such as dial-up modems. If a provider has excess
bandwidth, a trunking gateway can be configured for the lowest cost per port
using G.711 to encode speech and ensure the highest quality.
With a situation of having excess bandwidth, it is easy to provide high
quality by utilizing the growing bandwidth for voice calls. There is no need
to compress the voice, or to try to eliminate silent packets or other
variables that could cause degradation in the voice quality. For example,
G.711 could be used, which is the same speech coding used on the PSTN,
providing toll-quality calls over the data network.
With the advent of multi-protocol label switching (MPLS), IP network
managers can build IP-based virtual circuits with controllable QoS. The
service provider can guarantee their success with MPLS by having excess
bandwidth available in their networks. Because of the excess bandwidth,
network owners can provide low latency for packets over their network, which
is the biggest quality factor.
Without congestion on the network, latency will be very low and quality
will be high. Without congestion, stresses in the system are avoided and
quality and reliability can reach levels equivalent to that of the PSTN. The
complexity of implementing a high-quality virtual circuit is simplified by
the simple use of excess bandwidth.
Ensuring that the equipment is capable of adapting to congestion over
time is also critical. It is important that the trunking gateway be able to
reduce voice bandwidth while maintaining voice quality. For example, with
the use of digital signal processor (DSP)-based trunking gateways, it is
easy to switch to low-bandwidth speech codecs such as G.726 or G. 729a,
which can reduce the data bandwidth required by up to a factor of eight.
Further reduction in bandwidth without impacting quality can be achieved by
eliminating silent packets.
A good feature to look for in a gateway is silent packet suppression. In
this case, the gateway removes packets containing only silence, which can
save considerable bandwidth since the typical conversation is only active
about 40 percent of the time. Good voice quality is maintained by
reproducing the background noise when a silent packet is removed to ensure
the user won't think the line has gone dead or has been disconnected. If
bandwidth needs to be reduced further, the gateway will need to be easily
configured for compressing speech data to reduce bandwidth using G.726,
G.729a or G.723.1.
The other benefit of a configurable gateway is the ability to add
capacity for additional services. Many trunking gateways are based on DSPs
to handle the access function and can be easily reprogrammed to add a new
service if sufficient capacity is built in. A major benefit and advantage of
this is that it allows the service provider to have a single piece of
equipment for all of its services over the network, greatly simplifying
their network administration and lowering their expenses.
CONCLUSION
Adding VoIP wholesaling services to managed data networks can be
straightforward and rewarding. The relative simplicity of adding the
equipment to provide the additional voice service makes a compelling
business case. By only gaining a fraction of a point in the wholesaling
market, a data service provider can easily add millions of dollars in
revenue. Next month, multi-service access systems will be discussed as
another example of network convergence. I will address this application of
voice as a new service that providers are trying to deploy using their
broadband data access service to tap the voice market, and explain some of
the limitations and costs involved.
Scot Robertson is the product line manager for Remote Access Products
at Analog Devices, Inc., a leading manufacturer of precision
high-performance integrated circuits used in analog and digital signal
processing applications. Scot can be reached at [email protected].
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