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- <?xml version="1.0" encoding="ISO-8859-1"?>
-
- <article id="paper-134">
- <articleinfo>
- <title>Voice telephony, the next peer-to-peer application?</title>
- <author>
- <firstname>Georg</firstname>
- <surname>Schwarz</surname>
- </author>
- <copyright>
- <year>2003</year>
- <holder>Georg Schwarz</holder>
- </copyright>
- </articleinfo>
-
-
- <section>
- <title>A technical invention gives birth to a new industry</title>
-
- <para>When in 1876 Alexander Graham Bell was granted a patent for the electrical
- telephone he was not the first one, as we know today, to have come up with
- such a device. Beyond doubt however, it was the historical achievement of that
- enterprising American to clearly recognize the vast economic potential of that
- invention, which soon formed the basis of a fast-growing, multi-billion dollar
- industry.</para>
-
- <para>Even though today's phones only quite remotely resemble the first models from
- Bell's days, their basic technological principles of operation have remained
- largely unchanged to date, and so has the core business model of telephone
- companies. Today just like a hundred years ago telephone customers for a
- monthly fee get connected to the operator's local switch and thus to the
- telephone network. They are assigned a telephone number through which they can
- be reached by other subscribers. When a call is placed it is the operator's
- task to establish the callee's line corresponding to the dialed number, and to
- set up a connection between the two parties. In the early days, this was done
- over dedicated pairs of wires which were interconnected over the operator's
- switchboards. Today, classical voice telephony typically uses TDM (time
- division multiplexing) technology in the carriers' backbones. In any case
- dedicated resources (wire pairs or fixed time slots) are temporarily assigned
- exclusively to a connection for the duration of the call. Not surprising,
- pricing models have come in use which charge callers by the length of a call,
- with rates going up by distance to account for the longer "copper lines" being
- occupied. The deployment of modern electronic switching technologies and large
- bandwidth fiber networks as well as, probably most importantly, the fierce
- competition in liberalized telecommunications markets has helped to bring down
- the price per minute of a long distance or international phone call often to
- only fractions of what they used to cost in former decades. Nevertheless, the
- principle of charging by the minute remains unchallenged, and due to the
- increased volume of calls still accounts for a considerable part of the
- telecom industry's revenues.</para>
- </section>
-
- <section>
- <title>The telco business model</title>
-
- <para>The basis of the telco business model is the exclusive access to and control
- over the customer a telephone company obtains when it connects a subscriber to
- its network. All incoming and outgoing connections to and from that customer
- will necessarily be established through the local switch and can thus be
- recorded and potentially charged for by the telco. When a subscriber dials a
- number it is the telephone company's switching equipment that performs the
- task of setting up the connection to the called destination. Reachability of
- subscribers on other operators' networks, for example in other countries, is
- ensured by telephone companies forging interconnection agreements between each
- other and taking care of handing over calls. Here as well the charging model
- among operators follows the lines of "paying by the minute". For the end
- customer, the subscriber, the local telco remains the only contractual partner
- and service provider; it is the telco's role to offer voice services, set the
- price tag and send the bill.</para>
-
- <para>From the customer's perspective this rigid model has been softened in part by
- liberalization of long distance markets. Subscribers in many countries for
- their telephone calls can select other providers than their local telco and
- make calls at these companies' tariffs. This new freedom of choice however is
- not brought about by a change in technology but by incumbents being forced
- through legislation to hand over calls to competitors at conditions and prices
- defined by regulatory authorities.</para>
-
- <para>Particularly in Germany liberalization has led to an unparalleled decline of
- the price per minute of a long distance call. In spite of the increased
- overall call volume these changes have resulted in a considerable reduction of
- revenues from the voice minute business for ex-monopolist Deutsche Telekom.
- Markets in many other countries have seen or will see a similar, albeit often
- less dramatical development. The basic telco business model however remains
- untouched. The new entrants, enabled by regulation, simply take away some of
- the market share from the incumbents, but they operate at the same technology
- and the same business principles. Most importantly, it is the operator of the
- "last mile" that continues to ensure reachability of the subscriber under his
- or her telephone number and that determines, within the framework set by
- regulation, which services customers can use.</para>
-
- <para>That "ownership of the customer" is a direct result of the technical voice
- telephony network architecture; and it is that fact which enables operators to
- control or at least participate in revenues from non-voice transport related
- "value added" services such as directory assistance or other "premium
- services". The operator of the last mile draws its dominating position within
- the telephony value chain from its technical monopoly on the local call setup
- and termination service. This holds true for all telephone networks, analog
- (POTS) or digital (ISDN), fixed or mobile (GSM, etc.).</para>
- </section>
-
- <section>
- <title>The success of the Internet</title>
-
- <para>With the advent of the Internet in the 1980s and, driven by the success of the
- World Wide Web, increasingly in the 1990s for the first time in history a
- world-wide communications infrastructure emerged whose philosophy and whose
- operational and technological concepts do not follow the approach of a
- "carrier-centric network". Traditional communications networks such as the
- world-wide telephone network (including mobile networks) or the telex network
- (or to a certain extend even radio and television broadcast networks) have
- been set up by one or several operators with the aim of connecting subscribers
- and offering them certain communications services. Consequently, these
- networks are designed along the lines of the carrier-centric network
- architecture model. They are typically architectured to offer a specific
- service only, e.g. voice telephony. End user devices (e.g. telephones) have a
- network interface and protocol with rather limited capabilities. They must be
- capable of selecting the service offered by the network (i.e. dial a
- destination number or pick up an incoming call) as well as some means of using
- that service. The service creation is always done by the provider, i.e. the
- network.</para>
-
- <para>In contrast, the Internet is based on a completely different approach.
- Conceived as a robust means of interconnecting computer systems over large
- distances and enabling the remote use of these computing resources, it
- followed the approach of the "simple" network. With TCP/IP, the network
- protocol the Internet is built on, the "intelligence", e.g. error correction,
- the resolution of network addresses, all "higher level" services, in short
- almost the entire service creation occurs on the hosts connected to the
- network. One basic design goal of TCP/IP and a fundamental assumption of the
- Internet is that every host connected to the net can communicate with any
- other host. Likewise, there is no intrinsic limitation or preference from the
- network architecture which services a host connected to the Internet can use,
- or who will provide these services. Once a host has Internet connectivity, it
- is (ignoring for the moment artificial, deliberate restrictions through
- firewalls etc.) up to the operator of the host, not of the network
- infrastructure, which other hosts (servers) to connect to for whatever
- services and in turn which services to offer to whatever other hosts on the
- net. In this respect, the Internet's design as a simple, universal network is
- fundamentally opposed to the "operator-centric", special-purpose network
- approach, where service creation occurs within the network and is provided and
- controlled by the network operator. It is undoubtedly this property, which
- enables new Internet services to be deployed by practically anyone without the
- network having to be upgraded first, that has greatly contributed to the
- tremendous success the Net has seen over the past decades.</para>
-
- <para>From a traditional telecommunications network provider's point of view, the
- Internet is a commercial accident, if not a nightmare, since it does away with
- the operator's monopoly or even preferred position on service creation.
- Successful online businesses such as Ebay, for example, need not share their
- revenues with local ISPs or telcos as it would have been the case in a
- carrier-centric network architecture (for example Deutsche Telekom's BTX
- service from the 1980s and early 1990s or similar "video text" systems). With
- its roots as a research network there has never been such a thing as a
- "business case for the Internet"; otherwise the Net would most likely not look
- the way it does, if it existed at all.</para>
- </section>
-
- <section>
- <title>The impact of IP on voice telephony</title>
-
- <para>The success of the Internet in the 1990s led to the establishment on IP as the
- universal, ubiquitous communications protocol. With the availability of
- suitable devices, e.g. workstations or personal computers with audio support,
- and sufficient bandwidth between Internet sites such as universities, people
- pursued the idea of using these communication lines for voice (and later
- video) conversations. Soon a number of applications and protocols were
- developed, most of them more or less incompatible with each other. When the
- popularity of the Internet rose as more and more people got "online" and the
- typical dialup bandwidth increased due to better and cheaper modem technology
- "Internet telephony" found its way into the commercial software and service
- provider market. The motivation was and still is to use the Internet as a
- means of toll bypassing, especially in countries with high long distance and
- international telephone rates due to limited competition in that market.</para>
-
- <para>In the mid 1990s Internet telephony was sometimes portrayed as the imminent
- death to telephone operators. That scenario did not materialize for a number
- of reasons: Thanks to liberalization and the abundance of available fiber
- capacities prices for long distance and even international telephone calls
- have dropped sharply in many markets reducing the financial incentive of toll
- bypassing. Secondly, until only very recently, almost all end users have been
- using dialup connections for Internet access, preventing most of them from
- having a permanent online connection that would have given then reliable
- reachability for incoming Internet telephony calls. Also, while narrow-band
- Internet access in principle is sufficient for good quality voice
- communications over IP it requires some prioritization mechanism which are not
- available in today's Internet. Thus Internet telephony was quickly dismissed
- as unreliable and qualitatively inferior. Last, the lack of standardized
- Internet telephony protocols that would have ensured interoperability between
- various applications as well as the technical problems of determining one's
- intended conversation partner's availability and location on the Internet
- greatly limited their usefulness. Consequently, so far, for end customers such
- applications are a niche product at best.</para>
-
- <para>Nevertheless, Voice over IP (VoIP), i.e. the technology of transmitting voice
- conversations over an IP network (not necessarily the Internet), quietly
- matured over the years. While originally the notion of saving call charges
- prevailed, later the focus of VoIP deployment shifted towards reducing
- operational cost by replacing proprietary and thus expensive to maintain
- classical telephone systems and, since data application and networks had
- become an essential part of enterprises, by doing away with the need for
- separate on-site telephony network infrastructure and support staff.
- Standardization efforts for VoIP led to the development of the H.323 family of
- protocols by the ITU and somewhat later SIP (Session Initiation Protocol) by
- the IETF (Internet Engineering Task Force). While both protocols are similar
- in their basic approach towards VoIP by separating call setup between
- terminals (e.g. IP telephones) from the actual exchange of media (e.g. an
- audio stream of a conversation) most people will probably agree that although
- H.323 due to its earlier start today still enjoys the bigger market
- penetration, SIP, thanks to its simple yet elegant, "Internet-like" design
- will ultimately prevail.</para>
-
- <para>The emergence of these open VoIP standards has created the opportunity for new
- entrants to the previously highly proprietary telephony equipment market (and
- likewise poses a severe long-term threat for vendors of traditional telephony
- systems). As with other IP-based technologies, companies have realized the
- potential of Open Source products (and in particular Linux) as a basis for
- their development activities. Some of them, for example Cisco Systems with
- their VOCAL project, have recognized the Open Source model as a means of
- efficient and quality product development.</para>
-
- <para>IP telephony equipment not only holds the promise of reducing investment and
- maintenance costs but moreover, thanks to its open nature, greatly facilitates
- the development of new services particularly in the field of Computer
- Telephony Integration (CTI), for example the seamless integration of a call
- center into an enterprise database and directory environment. In the domain of
- voice carriers, the development of robust VoIP equipment together with the
- tremendous growth of data traffic has led to the concept of the Next
- Generation Network, or NGN for short. The idea of the NGN consists of replacing
- the traditional TDM-based voice backbone of a carrier with a VoIP-based
- backbone, ideally using a single IP network for both voice and data services.
- In the latter scenario of a "converged" network voice telephony becomes just
- another IP service, reversing the situation of the early days of data
- communications when data connections were realized on top of voice networks.</para>
-
- <para>Today, even incumbent carriers are seriously considering or are already
- starting to deploy Next Generation Networks, often encouraged by vendors of IP
- equipment who have realized their opportunity of extending their scope of
- business. Proponents of NGN technology point out that it not only helps the
- operators to reduce cost but enables the deployment of new services. For
- consumers however, the transition to NGN first of all does not bring about any
- significant change as long as customer network access and the end user
- equipment remain traditional telephony technology. In other words, the mere
- transition to NGN does not touch upon the traditional telco business model
- since it does not affect ownership of the customer but rather provides
- operators with a new, potentially more cost effective network technology. In
- this respect, the introduction of NGN is somewhat comparable with the
- replacement of analog switching technology by digital carrier voice networks.
- It did enable a number of new services, but did not challenge the telephony
- value chain.</para>
-
- <para>A real change however is brought about the increasing availability of
- broadband Internet access, typically via DSL or cable, for both enterprise and
- residential customers. Access is typically charged by traffic volume (or
- customers just pay a flat monthly fee), no longer by connection time. This
- allows users to have permanent or quasi-permanent connectivity to the Internet
- instead of "dialing up to the Net". Always-on access already did and will
- continue to change the way people make use of the Internet.</para>
-
- <para>Broadband Internet access eliminates many of the obstacles Internet telephony
- has been struggling with in the past. Since it provides "always-on"
- functionality it has the potential of delivering constant availability for
- incoming communications requests just like a traditional telephone line.
- Broadband access, together with fast, cheap personal computers boosts the use
- of large-bandwidth applications, so ISPs are impelled to provide these
- customers with adequate IP backbone capacity. As a result, the available
- bandwidth is typically significantly larger than that required for an audio
- stream. New popular real-time applications such as online gaming create
- additional demand for high-quality IP connectivity. So even with the absence
- of any strict quality of service mechanisms for IP broadband Internet access
- typically allows for IP-based voice telephony of good or, with increasing
- available bandwidth, even excellent quality.</para>
-
- <para>This development provides companies with the opportunity of offering telephony
- services over IP to broadband Internet subscribers, bypassing the local
- telco's monopoly on the last mile. While it might seem natural for the local
- ISP to come up with such a "value added" service offering, and in fact many
- already do, there is no such strict technical requirement. Just as with any
- other IP services, in principle anyone with adequate Internet connectivity can
- offer them.</para>
-
- <para>Companies like Vonage in the US have built their business around that idea.
- They are providing their customers with a SIP-based VoIP terminal adapter to
- be connected the residential IP (cable or DSL) router. Up to two conventional
- telephones can be plugged into that adapter, making it a small IP-enabled home
- PBX. Using any broadband Internet access (which Vonage does not provide) users
- can make outgoing calls via Vonage's servers. Vonage provides a gateway to the
- PSTN (i.e. the plain old telephone network) enabling their customers to use
- their telephones just as if they were connected to a conventional phone line.
- Moreover, Vonage provides conventional telephone numbers for their
- subscribers, enabling them to receive incoming phone calls which are
- terminated at their local SIP adapter. Ideally, users do not even realize that
- they are using Voice over IP for their telephone calls. Vonage thus has
- assumed exactly the role of the traditional telco, just making use of a
- different access technology. Since the company is in control of their
- subscribers' incoming and outgoing calls the traditional telecom business
- model still applies, albeit with a new provider.</para>
-
- <para>Other players will soon pursue a far more radical approach. With the ever-
- increasing popularity of Internet-based messaging and online gaming it is only
- a matter of time until high quality voice functionalities are integrated into
- these applications or even new IP-enabled voice communications consumer
- devices will appear on the market that have the potential of substituting
- conventional voice telephony. Microsoft, for example, has started to offer a
- voice communications kit for their Xbox gaming machine. It enables subscribers
- of Microsoft's XBox Live online gaming service to make voice conversations
- with one another over that platform. Besides, that company is busily
- integrating telephony functionality into their Windows CE operating system.</para>
- </section>
-
- <section>
- <title>Do consumers need a telephony service provider?</title>
-
- <para>With growing proliferation of always-on broadband Internet access so-called
- Integrated Access Devices (IADs) will increasingly appear on the market which
- allow people to use their Internet access for voice telephony much like they
- do today with the conventional telephone network. The interesting question
- will be whether these devices will come bundled with specific service
- offerings and whether customers will be forced to use specific platforms or
- providers for their Internet-based telephone calls. Under the latter scenario
- the dominating position within the telecommunications value chain would just
- pass from the network operators to user device (or software) vendors.</para>
-
- <para>The acceptance of any public communications network highly depends on the
- number of communications partners users can reach over it. In the case of the
- Internet the open, standardized nature of its communications protocols and its
- liberal policies ensured success over closed, proprietary data communications
- platforms. With the development of SIP (Session Initiation Protocol) in the
- past years a powerful IETF standard for Internet-based messaging has been made
- available for IP-enabled communications devices and applications. In some
- respect, SIP extends the philosophy of electronic mail (i.e. Internet-based
- non-real-time messaging) to all sort of real-time messaging, including but by
- far not limited to voice telephony. Strictly speaking, SIP as a messaging
- protocol deals with the setup and control of communication sessions only, not
- with the actual media exchange (for the latter job, a stack of other suitable
- protocols has been standardized). This approach helps to maintain a simple,
- yet powerful protocol and ensures its far-ranging applicability. SIP's
- addressing scheme is based on the proven, scalable, existing world-wide DNS
- (domain name service) system. SIP addresses, which assume the role of the
- telephone numbers from traditional telephony, thus bear a high degree of
- similarity to email addresses, and since they are independent from the actual
- communications media (voice, video, text, etc.) they can naturally provide the
- basis for true unified messaging (UM).</para>
-
- <para>SIP solves the problem of mobility and locating users that do not necessarily
- have a fixed IP address by allowing them to temporarily register with a SIP
- server (which can be located anywhere on the Net), much like connecting to a
- POP3 or IMAP server to retrieve mail. The SIP server will then forward any
- incoming connection requests for that user to the present location on the
- Internet. Since only the session setup and control is handled by the SIP
- server while the actual media stream is typically passed directly between the
- two parties' computers or IP phones SIP servers require relatively little
- resources. SIP services, just like web or email services can thus be offered
- by anyone with Internet access and control over a DNS domain. Due to the
- flexibility of the SIP protocol users can easily combine SIP services (e.g.
- voice mail) from any provider. Whether providers will succeed in bundling
- services and assuring customer loyalty becomes primarily an issue of
- marketing, not of technology. Bare voice transport as simply yet another
- comparatively low-bandwidth service in an open IP environment will be a
- commodity for which consumers will no longer be willing to pay by the minute.</para>
-
- <para>In short, SIP has the potential of turning the Internet into a universal, open
- platform for real-time messaging. All it takes for broadband Internet users to
- participate is a suitable SIP client (i.e. a software application running on
- the user's PC or a messaging device such as an IP phone) and a SIP address and
- corresponding SIP server to register with. The latter service can be expected
- to be (and in fact already is) available for free or a very small monthly fee
- from many providers; or users with their own DNS domain might even run their
- own SIP server, ensuring their reachability. SIP makes voice telephony or
- other types of real-type communications a peer-to-peer application,
- essentially returning to the original aim of the Internet: enabling direct
- communications between any of the systems connected to the network.</para>
-
- <para>This implies the question whether there is still a role for a telephony
- service provider. Even if the use of SIP addresses will gain significant
- popularity for voice communications over the Internet it will probably be a
- long way until they become an accepted mainstream form of communications. It
- is hard to imagine that Internet telephony will replace the traditional phone
- network altogether in any foreseeable future, nor that people and businesses
- will completely cease using traditional telephone numbers for their
- reachability. Therefore, even those users who completely switch to Internet
- telephony will continue to subscribe to some form of gateway to and from the
- PSTN. Such gateways however can in principle be located anywhere in the Net
- and run by anyone, not necessarily just the local ISP or telco. The speed at
- which non-traditional addresses, i.e. SIP addresses or some equivalent
- addressing scheme, become accepted as a replacement for telephone number for
- voice communications is one important factor that determines how fast telcos
- will loose their influence.</para>
-
- <para>Aside from the social acceptance of new telephone "numbers" there is another
- issue that makes it doubtful whether a true global peer-to-peer scenario will
- find widespread use outside the group of Internet hobbyists. Since the
- Internet so far does not provide any global user authentication mechanisms
- peer-to-peer telephony is destined to become an easy victim to all sorts of
- malicious or junk calls, especially since IP-based phone calls could easily be
- automated and placed at negligible cost. Although people have been putting up
- with that very problem when it comes to email the effect would probably be far
- more damaging on real-time communications. Moreover, unlike electronic mail,
- which was a completely new service when the general public became aware of the
- Internet in the 1990s, Internet voice telephony must stand the comparison with
- traditional telephony in terms of quality, security and reliability if it is
- to replace it. Some sort of caller authentication mechanism therefore
- represents an important prerequisite. Such a requirement however does not only
- exist for telephony but for many other applications as well. This makes it
- easily conceivable that such authentication services for Internet applications
- and users will successfully be introduced in the future. Whoever provides and
- has control over these services will assume part of the role that telephone
- companies still hold in the traditional telephony world.</para>
- </section>
-
- <section>
- <title>Can Open Source make a difference?</title>
-
- <para>Since with IP as the network protocol the service creation occurs on the
- terminal device (e.g. the IAD, the PC or the IP-enabled telephone) it is these
- devices, no longer the network, that determine what services and providers the
- users see and can subscribe to. Domination over these devices thus implies
- control over the telecommunications services market.</para>
-
- <para>Open Source can give enterprises and consumers the option to make use of the
- opportunities an IP-based communications infrastructure offers. In a closed
- source environment software vendors will be tempted to promote or even enforce
- the use of a limited set of services from specific providers only according to
- their economic and strategic interests, limiting consumers' choice and
- competition. On the service provider side, the Open Source model and the
- existing code base will help enterprises to rapidly develop new services and
- to tailor and combine services according to their clients' needs. Open Source
- can thus be expected to extend its success from traditional non-voice Internet
- services, many of which, such as DNS or electronic mail, rely almost entirely
- on Open Source implementations, to IP telephony services. Security and
- reliability requirements, which are particularly high for telephony services,
- also favor the Open Source development model for such applications.</para>
- </section>
-
- <section>
- <title>What about mobile telephony?</title>
-
- <para>So far, considerations have focused primarily on fixed line telephony
- services. With mobile phone services, the situation is still somewhat
- different, although ultimately a similar development can be envisioned.
- With the proliferation of 2.5G and particularly 3G (i.e. GPRS and UMTS) mobile
- services, network operators aim at selling data services to customers in order
- to increase revenues. Although these network architectures are still well
- within the traditional "carrier-centric" model, allowing operators to retain
- ownership over the customer, they pave the way for acceptance of IP-enabled
- mobile devices. Operators must make sure that new data communications
- services, which one the one hand they hope will enable them to sell new
- content-based services to subscribers, will on the other hand not lead to
- customers making use of that data connectivity to substitute for traditional
- services such as SMS or ultimately, with the help of VoIP-capable mobile
- devices, voice telephony, i.e. services which measured by data volume today
- are extremely highly-priced and thus profitable to operators. Such a
- cannibalization scenario requires the availability of the respective
- functionality in end user devices. Here again Open Source development might
- empower consumers to make use of their devices in the best of their own
- interests.</para>
-
- <para>An even bigger threat for mobile network operators comes from the emergence of
- WLAN (Wireless LAN) hotspots, not only to data services that the owners of
- UMTS licenses have put their hopes on for consolidation of their business
- cases, but beyond that to the traditional voice telephony business, i.e. their
- present cash cow. Although it is still unclear today what the wireless data
- market will look like and who will be the dominating players in a few years
- (traditional network operators, local hotspot operators, or vendors of mobile
- devices or respective software) there should be little doubt that the
- availability of comparatively inexpensive always-on broadband network
- connectivity and IP as an open network protocol will lead to a similar
- development as in the fixed line world. Recent standardization efforts for
- Fixed Wireless Broadband (IEEE 802.16a) and particularly Mobile Wireless IP
- Access (IEEE 802.20) might pave the way for further deployment scenarios.</para>
- </section>
-
- <section>
- <title>Outlook</title>
-
- <para>The perspective of the increased proliferation of inexpensive broadband
- "always-on" Internet access leading to a qualitatively new kind of access to
- consumers and thus undermining traditional business models not only holds for
- telephone companies. In principle, any established communications and
- information infrastructure, whether it is for example radio or cable
- television, is potentially affected by the competition of IP as an open,
- universal network protocol. Internet radio has already developed into a
- serious player in the media industry. Compared to conventional radio it offers
- the advantage to the entertainment industry of not having to apply for scarce
- frequency resources (and often licenses) and at the same time enables
- potentially global reach. It is only a matter of typically available bandwidth
- for digital television to become a mainstream Internet service. In the field
- of Video on Demand distribution via Internet is already a reality, turning
- broadband Internet access into a direct competition to plans of cable network
- operators of selling to consumers personalized premium entertainment as a
- lucrative value-added product for their networks. Just as telephone companies,
- cable network operators are about to loose their technical monopoly for such
- "higher-value" services and are endangered of seeing themselves confined to
- the role of yet another high-speed Internet access provider, i.e. of having to
- live from the revenues of a "bit transport provider".</para>
-
- <para>In contrast to radio or television operators, the added value telephone
- companies offer to their customers is not some content but merely the call
- setup (i.e. location of the callee) and the voice transmission. The fact that
- on the one hand this kind of service, measured by its data volume, is
- extremely highly-priced and on the other hand could be provided by intelligent
- end-user devices with the help of the existing DNS infrastructure, makes the
- telco business model particularly vulnerable - or, depending on the
- perspective, attractive - to substitution by IP-based technology and the
- consequent recreation of the value chain.</para>
-
- <para>Today's telcos will increasingly find themselves trapped by the success of
- high-speed Internet access. Even if they recognize that threat there
- ultimately seems to be little what they could do to prevent it. With a mix of
- technical as well as legal and regulatory obstruction and clever marketing
- they are arguably in a good initial position of delaying that process. Over
- time however, pressure from other influential industries such as entertainment
- or consumer device vendors as well from public and politics, who realize that
- failing to adopt new communications schemes will put their countries behind
- other societies, will prevail. That leaves for telcos the choice to either
- transform themselves into an entertainment and service provider amongst a
- competition of many others, or to confine themselves to the role of the
- operator of the last mile, maybe providing basic IP connectivity in addition.</para>
-
- <para>It will be interesting to see whether other players will be able to take over
- the telecom companies' dominating role in telecommunications service markets
- or whether consumers will be capable of making use of the freedom of choice
- the Internet architecture model offers them. Just as with computing services
- so far, Open Source has the potential to enable both consumers and businesses
- to efficiently solve their communications needs, including voice telephony,
- the way they want.</para>
- </section>
-
- <section>
- <title>Acknowledgements</title>
-
- <para>The author would like to thank his colleagues from Detecon's "Strategic
- Telecommunications Services and Architectures" group for numerous valuable
- discussions on that subject over the past months.</para>
- </section>
-
- </article>
-
-
-