Volume 3, Issue 3 May 2004 IPCC NEWSLETTER MESSAGE FROM THE CHAIRMAN Dear IPCC Members, As the news section of this Newsletter indicates, there have been a plethora of new VoIP deployment announcements in the last month. Research from Infonetics, over the last year and recent S&P ratings also cited herein, concur with this trend. SP deployments, however, are not all that is in bloom this Spring. The IPCC’s Work- ing Group initiatives for 2004-2005 got off to a good start at the Spring VON show in Santa Clara at the end of March. The Working Group meetings were held jointly with the SIP Forum and IPCC Service Providers group meeting. INSIDE THIS ISSUE: There were over 30 attendees, twice as many as we expected, including IPCC Board Members, Vendors and Service Providers from fixed line, Cable and Wire- less companies, representing North America, Europe and Japan. The two hour kick-off meeting covered the industry's evolution toward interconnection and inter- Educational Note: 2 operability. CALEA Update 3 We started working on a proposal for an Interconnection Test Lab where member SP Deployments companies can verify service quality and interconnection specifications and rules Abound for billing, CALEA procedures, billing and operations. At the request of our mem- More Member & 5 bers we added a new Working Group on OSS in VoIP networks. By the end of the Industry News the meetings Working Group members were energized to go off and begin their work. We will continue to report to the membership as the Goals and Objectives Market Rsearch 6 set at these meetings materialize into results. Focus 6 The Spring and Fall conference seasons will be very busy for the IPCC. We had a Regulatory very successful booth at the NCTA Show in New Orleans, May 2-5, 2004, where Update we demoed a fully integrated, working VoCable service provided by IPCC mem- bers. More info. on NCTA will be provided in our next Newsletter. We are moving forward with our plans for Supercomm, June 20-24, 2004 in Chicago, where we will run another VoIP demo and chair an Industry Update Session once again. Plans are underway to run three panels at CompTel in Miami, September 12-14, 2004 on CALEA, Packet Network Architectures and OSS for NGNs. Please don’t hesitate to contact me, if you would like to become involved with the IPCC’s participation at these shows. We are pleased to announce that the IPCC Board has signed on a new management company, AMS. Please note the new ad- dress that is shown on the back page of this Newsletter. Regards, Michael Khalilian M.email@example.com +1-321-230-3070 Page 2 Volume 3, Issue 3 E DU C AT I ON A L N OT E : CALEA UPDATE This article provides an update on recent CALEA (Communications Assistance for Law Enforce- ment Act) developments since the publication of the IPCC’s informational report entitled, “Lawfully Authorized Surveillance for Softswitch-based networks” in July of 2003. As a reminder, the overall purpose of CALEA is to improve the delivery of law enforcement services by offering a body of standards, developed by law enforcement practitioners, covering a wide range of up-to-date law enforcement topics. This IPCC report guided the industry in defining the first set of CALEA safe harbor requirements for packet communications networks. Since that time the U.S. government has stepped up their efforts to insure that their entitled law enforcement activities related to wire- tapping are not jeopardized by new technology. On March 10, 2004, the DOJ, FBI, and DEA filed a Joint Petition for Expedited Rulemaking before the FCC. The purpose of the petition is to clarify that CALEA applies to all public telecommunications carriers, and its applica- tion is technology neutral. The FBI is upset that despite a clear statutory mandate, full CALEA implementation has not been achieved. Although the Commission has taken steps to implement CALEA, there remain several out- standing issues that are in need of immediate resolution. Before you read further, it is important to note that the language of the law clearly states that CALEA may not inhibit nor prevent the development or deployment of new technologies. Federal and State Law enforcement agencies have asked the FCC to clarify or preferably rule on 13 issues in ques- tion. They want the FCC to: • formally identify the types of services and entities that are subject to CALEA; • formally identify “packet-mode services”; • initially issue a ruling finding that broadband access services and broadband telephony services are subject to CALEA; • reaffirm that push-to-talk “dispatch” service is subject to CALEA; • adopt rules that provide for the easy and rapid identification of future CALEA-covered services and entities; • establish benchmarks and deadlines for CALEA packet-mode compliance; • adopt rules that provide for the establishment of benchmarks and deadlines for CALEA compliance with future CALEA-covered technologies; • outline the criteria for extensions of any benchmarks and deadlines for compliance with future CALEA- covered technologies; • establish rules to permit it to request information regarding CALEA compliance generally; • establish procedures for enforcement action against entities that do not comply with their CALEA obligations; • confirm that carriers bear sole financial responsibility for CALEA implementation; • permit carriers to recover their CALEA implementation costs from their customers; and • clarify the cost methodology and financial responsibility associated with intercept provisioning. Earlier this year the FCC announced plans to initiate a rulemaking proceeding to address the matters that it antici- pated Law Enforcement would raise in its upcoming Petition. On March 12, 2004, the FCC requested comments on this matter. Comments are due to the FCC on April 12, 2004, with reply comments due April 27, 2004. This action has created a lot of buzz in the industry and naturally some of the talk has diverged from reality. Some are saying that the FBI wants access to all forms of communication including instant messaging, email, etc. Yet only broadband Internet access service and broadband telephony service are specified in the filing. Other online services, including instant messaging, e-mail, and visits to websites, would not be covered. Broadband service pro- viders are nervous about how this might affect their network plans. IPCC Newsletter Page 3 The government says in its petition that CALEA should apply to certain broadband ser- vices but does not address the issue of what technical capabilities those broadband pro- viders should deliver to Law Enforcement. CALEA already permits those service pro- viders to fashion their own technical standards as they see fit. If Law Enforcement considers an industry technical standard deficient, it can seek to change the standard only by filing a special "deficiency" petition before the Commission. It is the FCC, not Law Enforcement, that decides whether any capabilities should be added to the stan- dard. The FCC may refuse to order a change in a standard on many different grounds. For example, a capability may be rejected because it is too costly. Therefore CALEA already contains protections for industry against paying undue compliance costs. Matt Holdredege, Director of Business Development at Strix Systems in Calabasas California, invites you to e-mail any questions to him at: firstname.lastname@example.org and notes that he is Not A Lawyer. So, please consult your own legal counsel as needed. Matt is one of the principal author’s of the IPCC’s CALEA document. R E C E N T SP D E P L O Y M E N T S Global Crossing Announces Three New VoIP Services Infonetics 2003 World- Global Crossing announced three new VoIP services for enterprises delivered over its wide Market Revenue private MPLS network. The new offerings include: Highlights: • Media gateways up • "VoIP Outbound": enterprise outbound IP voice traffic for long distance and 13% to $745 million international long distance to more than 240 countries worldwide. The IP voice • Softswitch up 31% to traffic will be transported across Global Crossing's private VoIP platform for off- $380 million net TDM completion via the local PSTN. The service will be available in the • Session border summer of 2004 in North America, with phased rollouts to other regions. controllers up 359% • "VoIP Toll Free": Originating TDM Toll Free traffic and conversion to IP for to $29 million transport across Global Crossing's private VoIP platform for IP completion to • Voice application enterprise locations. The service will be available in the summer of 2004 in North server down 9% America, with phased rollouts to other regions. to$33.7 million • "VoIP On-net Plus": Enterprises will be able to connect all of their locations to See Pg. 8. Global Crossing and send IP or TDM on-net traffic for completion to more than 500 cities in 50 countries without traditional long distance and international long distance charges. Call detail records (CDRs), dial plan management and performance tracking will be available via Global Crossing's self-service online tool, "uCommand". Availability is slated for Q4 2004 in North America. In addition, Global Crossing will manage the enterprise voice service within the premises router, administrating the customer's internal dial plan, and monitoring the quality and availability to meet performance SLAs. The new offerings enhance Global Crossing's existing VoIP On-net Transport service, which enables enterprises to use an IP VPN to eliminate traditional long distance and international long distance charges for their managed dial plans. http://www.globalcrossing.com. This service has been available globally since May 2003. http://www.globalcrossing.com/ Page 4 Volume 3, Issue 3 AT&T Launches Consumer "CallVantage" VoIP Service Expands Business VoIP AT&T launched the first phase of its forwarding, call logs, do not dis- AT&T announced an accelerated residential VoIP service at a price of turb, personal conferencing, locate rollout of Business VoIP services $39.99 per month. The service, me and online voice mail. that touch on three key areas: which initially is available in New Equipment Interoperability: Alcatel, Jersey, uses a telephony adapter AT&T is currently supporting a Nortel Networks, Siemens, Avaya & connected to a broadband line. limited 911-type service that will Cisco have been certified as interop- AT&T is offering promotional pric- connect an emergency call to either erable with their network. ing of $19.99 for the first six months the public safety answering point VoIP-Enabling Networking Portfo- of service. AT&T plans to introduce (PSAP) or local emergency service lio: VoIP-enabled options added to the service in the 100 top markets personnel for the address listed managed data and VPN portfolio, across the U.S. during the course of when registering for the service. including an IP local service option. the year. The AT&T CallVantage Vonage has sued AT&T over the VoIP Applications: AT&T will de- features list includes unlimited local use of the name, claiming that it is velop IP Centrex, call center and and long-distance domestic calling, too close to their own brand name. teleworker solutions to be trialed by call waiting, three-way calling, call mid-year. http://www.att.com alwaysON, Broadvox Deploy Sylantro’s Platform UK SP,AlwaysON, has deployed the service to Avanta Managed Sylantro announced first hosted its Virtual Telephony solution, a Services, a leading U.K. managed communs. offering that allows new service for business users offices provider. Avanta is cur- service providers to address the based on Sylantro's telco-grade rently rolling out office facilities consumer VoIP market and the hosted communications applica- that will accommodate more than business IP Centrex market tions and servers. alwaysON also 5,000 users over the next 3 years. through the same platform. revealed the United Kingdom's Avanta estimates savings of at Broadvox, which deployed Sy- largest rollout of IP Centrex ser- least $2.6 million USD in PBX lantro’s hosted communications vices to date. maintenance costs annually, in ad- services for business users in In a contract exceeding $7.5 mil- dition to reductions in cap-ex re- 2002, launched residential ser- lion USD alwaysON will provide quirements and installation fees. vices in three Midwestern cit- wsww..alwaysonvpn.com/ ies . www.sylantro.com Level 3 Readies Wholesale & Consumer VoIP Services Level 3 Communications will rollout will meet 911 and E911 intercon- two new residential VoIP services nection standards across the U.S. companies, value-added resellers aimed at broadband users in more Level 3 reiterated a VoIP strategy nd other distribution channels, than 300 markets across the U.S. by spanning three key areas: Level 3’s HomeTone consumer year's end. The services will be sold Wholesale services sold directly to services aimed at the residential through U.S. cable operators, ISPs carriers & SPs; market, & sold through cable op- and enhanced service providers. The and; Enterprise services designed erators, ISPs carriers – Features service will offer national coverage, for small and medium sized busi- include local phone numbers, inter- enable local number portability, and nesses, sold through local phone connection with the traditional tele Page 5 Volume 3, Issue 3 MORE MEM BE R & IN D USTRY NEW S BRIEFS Cont’d.. phone network for local and Vonage Enters Channel Resale Ar- MCI Expands VoIP Service to long distance services, local number rangement with Circuit City: Vonage Include VPN: MCI is working portability, voicemail, call waiting 3- hired Circuit City as a channel reseller with BroadSoft Inc. to provide way calling and E911 emergency for its packet telephony service, giving extended hosted communica- services with Q2 availability in the the broadband voice provider its first tions capabilities to MCI Ad- US and second half of the year in outlet into retail stores. The starter kit vantage customers. MCI Advan- Europe. Since releasing these services will be marketed to Circuit City custom- tage is a network-based business in September 2003 and January 2004, ers with broadband connections for VoIP solution using one net- wholesale voice traffic has increased by $100 and will include all equipment as work for both voice and data more than 50 percent. well as a free activation and two months services. New functionality to http://www.level3.com/ of local, long-distance service for free. include call screening, simulta- Vonage is also in similar negotiations neous ring, auto attendant, 3rd- with Best Buy and Radio Shack party conferencing, and Web- based receptionist services. PointOne Telecommunications De- Net2Phone, to offer a complete ploys SIPware Prepaid Calling Card ional networks. PointOne has deployed set of telephony solutions for Service From Pactolus: Pactolus the NexTone Multiprotocol Signaling broadband service providers Communications’ SIPware Prepaid Switch in the core of its softswitch net- globally. Complementing its Calling Card service and Rapid- work. The eventual result for PointOne existing PacketCable-ready so- FLEX Application Server have been will be simplified interconnects for its lution, Net2Phone's VoiceLine deployed in PointOne’s Telecommu- largest customers. www.nextone.com. will now offer providers SIP- nications converged network. Utiliz- based hosted telephony services ing SIP. Pactolus solutions allow BroadSoft Announces Ten New Ser- for their residential and SOHO telecommunications carriers and ser- vice Provider Customers: Ten new customers in a bundle with their vice providers to drive down the cost service provider customers have cho- existing product set. and accelerate time-to -market of sen BroadSoft's BroadWorks network network-wide services. communications platform to support Standard & Poor's : the down- hosted VoIP services for the enterprise turn is over. S&P upgraded debt Z-Tel Selects Ubiquity, Acme Packet and residential broadband markets. The ratings for Lucent Technologies to accelerate push into the VoIP announced customers include: Broad- and Alcatel.. Lucent's corporate market: Z-Tel has purchased soft- voice, Broadweave Networks, DRD rating jumped to a "B" from a ware and equipment from Ubiquity Communications PLC (United King- "B-minus," and the outlook was Software Corp. and Acme Packet for dom), Eureka Networks, Inflexion revised to "positive" from the development of advanced calling Communications, ISN Communica- "negative." S&P also raised Al- features. Tool kits and development tions, RealConnect, Ultimate Medium catel's debt to "BB-minus" from products from the two firms will en- Communications, XIPTEL and a "B-plus." able it to deliver the same kind of WorldxChange Communications (New personalized features that it currently Zealand). Taqua Announces 3 More Ru- offers to its existing customer base. ral ILEC Customers: Taqua Net2Phone to Provide VoIP Services announced three more incum- PointOne Deploys NexTone Session in Vietnam with Largest ISP: State- bent service provider (ILECs) Controllers: With the NexTone solu- owned Vietnam Datacommunications customers for its iX7000 Class 5 tion delivering FlexControl traffic Company (VDC), the largest provider packet switch: Cassadaga Tele- management end-to-end across the of data services in Vietnam will market phone (serving western New network, PointOne gains greater con- Net2Phone's VoIP services to its cor- York), Searsboro Telephone trol over its advanced routing capa- porate and residntial customers in Viet- (serving the communities of bilities between domestic and nam. Searsboro and Killduff, Iowa), and South Canaan Telephone. IPCC Newsletter Page 6 MARKT RESEARCH CORNER Infonetics: Equipment Market over IP customer wins -- and ser- to upgrade their metropolitan-area net- Grew 21% in 2003 and is Pro- vice rollouts -- from top tier carri- works (MANs), which are the largest jected to Grow 305% to $5 Bil- ers, including AT&T, Bell Canada, bottlenecks for many providers. Austra- lion in 2007: Worldwide reve- BT, France Telecom, Qwest, SBC, lia, Japan, Hong Kong and Korea al- nue for next gen voice products Telus, and Verizon," said Kevin ready have built highly developed totaled $338 million in 4Q03, a Mitchell, lead analyst of the report. metro infrastructure, which they are 31% increase over 3Q03, as " According to Mitchell, some are using to deliver new services such as vendors benefited from a surge “baby steps” but all bode well for Ethernet connectivity, IP VPNs and of budget clearing and overall 2004-2005. service revenue higher layer applications. Yankee sees trend to VoIP. After dropping www.infonetics.com." the strongest growth ni China, which 28% in 2002, the market re- by 2007 will support approximately turned to a growth phase, According to a February Yankee 2.04 million Ethernet Connections. growing a solid 21% in 2003. Group Report, “Demand for Inter- However, the buildout of metro Annual revenue is projected to net and Apps. Drives MAN infrstructure in Asia’s developing has grow 305% between 2003 and Buildout in Asia’s Developing Mar- been slow. An explosion in Internet 2007 to $5 billion, representing kets“, as burgeoning broadband usage, IP VPNs and Internet Telephony a CAGR of 42%. usage drives up the volume of traf- is driving the increasing growth in traf- fic on their networks, SPs in the fic volume on service provider net- During the past four months, Asia-Pacific region are continuing works. www.yankeegroup.com. there have been many voice R E G U L AT O R Y U P D AT E In October 2003, the U.S. Ninth Circuit U.S. Supreme Court Rules Court vacated the FCC declaratory rul- nications carriers and trade associa- States Can Bar Municipal ing that had classified cable modem ser- tions to begin a period of "good Telecom: The U.S. Supreme vice as an "information service without a faith" commercial negotiations on Court overturned a lower court separate offering of a telecommunica- UNE-p resale rates. FCC Commis- ruling in a case of whether the tions service." The FCC promptly ap- sioners are encouraging the parties to Federal Telecommunications pealed the decision. The Ninth Circuit utilize all means at their disposal, Act of 1996 can pre-empt state Court of Appeals has now declined to including a third-party mediator, to and local laws that expressly review the lower court's ruling. The maximize the success of this effort. prohibit municipal bodies from FCC has 90 days to appeal the US Su- The FCC is requesting extensions of offering telecommunications preme Court www.fcc.gov the deadline for seeking Supreme service. Court review and the stay of its deci- All five of the FCC Commissioners sign sion vacating its unbundling rules. letter urging the nation's telecommunica- The U.S. Supreme Court has Court Challenge Stands to Cable tions carriers and trade associations to overturned the Eighth Circuit, Modem as "Info Service": The U.S. begin a period of "good faith" commer- allowing the Missouri state law Ninth Circuit Court of Appeals de- cial negotiations on UNE-p resale rates. that bars municipalities from offering telecom service to clined to review a lower court's rul- Please Note our New Address: stand. http:// ing that had overturned the FCC's www.supremecourtus.gov/ classification of cable modem ser- International Packet Communications vice as an "information service." The Consortium FCC Commissioners Call for case originally arose regarding 39355 California Street, Suite 307 Negotiated Settlement on whether local municipalities could Fremont, CA 94538 UNE-p: The FCC Commis- require cable operators to open their Phone: +1 510-744-4020 sioners have signed a letter networks to other ISPs. Fax: 510.608.5917 urging the nation's telecommu- www.packetcomm.org CALL T O P A R T I C I PAT E I N I PC C W O R K I N G G R O U P S A N D M A R K E T I N G A C T I V I T I E S U P D AT E As mentioned in previous correspondences and committee meetings, the IPCC is moving forward with the work of its seven new working groups, initiated at our meetings at the VON Spring Show at the end of March. The topics of the working groups will shape our activities into 2005. The Working Groups focus on the issues that our service provider and vendor members have told us are most important to them. The IPCC Working Groups are described below: • The Service Provider Packet Interconnection Group: captures interconnection rules and procedures for public VoIP networks. This group will focus on the challenges of interconnecting VoIP islands nationally and globally. • The Service Provider Application and Services Interoperability Group: liaises between service pro- viders and other industry forums to accelerate the interoperability and conformance testing of multi- vendor VoIP and packet solutions. • The Session Boarder Controllers Group: works with vendors and service providers to define secu- rity and interconnectivity requirements for VoIP networks. • The Government and Regulatory Issues/Opinions Group: works with government organizations such as, the FCC, the FBI, the European Union (EU), and the ANSI T1S1 to represent our members needs. The group also provides education and opinions on behalf of our members to governmental bodies such as FCC and FBI/CALEA. • The Enterprise and Customer Premise Group: works with access providers and vendors to define and establish interconnectivity between the access layer and the core packet transport layers. • The Industry Resources and Education for VoIP and Packet Solutions Initiative: ensures communi- cations between industry organizations and individual companies in order to foster a better and faster diffusion of services and technology. • VoIP OSS (SLA/QoS) Group As mentioned in the MESSAGE FROM THE CHAIRMAN on page one of this newsletter, the IPCC’s marketing Committee is working on the IPCC’s participation at NCTA, Supercomm, CompTel and other shows through the end of the year. We would welcome any members who are interested to join in on our weekly marketing conference and to become involved in these and other activities of the market- ing committee. The IPCC encourages service providers, vendors and enterprise members interested in becoming in- volved in the work of these Working Groups or the Marketing Committee to contact: Michael Khalilian, IPCC Chairman & President V: 321-230-3070 E-mail: M.Khalilian@PacketComm.Org.