The State of VoIP Peering:

VoIP Peering SummitInternet Telephony Conference & Expo

Hunter NewbyChief Strategy Officertelxp: 212.480.3300www.telx.com

1. History Repeats Itself • Trends in Communication

2. The Physical Layer Internet3. VoIP vs. VoPI4. US Communications Real Estate

• The PSTN vs. The Internet• Proximity Drives Peering

5. Enterprises Extend to the Core for L2 VoIP6. The Formation of Enterprise Peering7. Rapid Growth of Ethernet Transport8. The Voice Internet9. Bi-Lateral vs. Multi-Lateral TDM, ISP, & VoIP10. ENUM Registries: What & Who?

Today’s Top 10…

History Repeats Itself…

1835- 1840s

1876-1880s

1924-1930s

1971-1990s

2000 +

1995+

InternetInternet

ISPsISPs

ISPsISPs

ISPsISPs

MAEMAE

ISPsISPs

ISPsISPs

ISPsISPs

Remember how the Public Internet began…

NAPNAP

Internet

VoPI

VoIP

VoIP…Public Vs. Private

Location, Location, Location…

The SIX, Seattle, WA

Equinix IBX, San Jose, CA

MAE West, San Jose, CA

PAIX, Palo Alto, CA

Equinix IBX, Chicago

Ameritech NAP, Chicago

MAE East, Vienna, VAEquinix IBX, Ashburn, VA

PAIX, 111 8th Ave, NYC

Telehouse America,25 Broadway, NYC

•

NAP of the Americas, Miami

•••••

•

••••

Major U.S. Peering Sites

Location, Location, Location…

Major U.S. Core Sites

•

•

•

•

•

The Westin Building, Seattle, WA

One Wilshire Blvd, LA

600 S. Federal St, Chicago, IL 60 Hudson St, NYC

56 Marietta St, Atlanta, GA

•

•36 NE 2nd, Miami, FL

TECOTA, Miami, FL

•2323 Bryan, Dallas, TX

Difference between Core Interconnection Sites& Other Colocation Spaces:

Interconnect Facilities = Access at the Transport Layer to Services

Space Available

Networks Present

Need/Cost forLocal Loops

Space CostHigh Interconnect Value

Core

Adjacent

Direct

Pure Colo

Then…

Now…

New Corporate WANs

The Common Node enables:

Enterprise Peering

telx Meet Me Area Monthly Cross Connects

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

August November February May

Fiber

DS3

DS1

Ethernet

Enterprise & Service Providers’ Spending Plans for 2005:

Enterprise Users Service Providers1 Ethernet Private LAN VoIP

2 VoIP Ethernet Private Line

3 IPsec VPNs Layer 3 IP VPNs

4 Ethernet Private Line Ethernet Private LAN

5 SSL VPNs Managed Security

6 Managed Security IPsec VNPs

7 Layer 3 IP VPNs Unified Messaging

8 Video Over IP SSL VPNs

9 Ethernet Access to Frame Relay

Video over IP

10 Mobility Mobility

Source: Heavy Reading

Use of Ethernet Services from a Service ProviderSource: Heavy Reading

0%

10%

20%

30%

40%

50%

60%

70%

Already Use Plan to Use Plan to Usein 2005 or

Later

No Plans toUse Ever

All Respondents (318)

SME Respondents(234)Large EnterpriseRespondents (84)

How Voice Internets Will Be Built…

End User Enterprise Carrier

Build your own VoIP Network

Hybrid: own gear, outsource ASR, CDR

Cable MSO VoIP ASP Hosted IP PBX Softswitch Partition

Bi-Lateral Vs. Multi-Lateral

TDMMinutes

ISP

VoIP

Bi-Laterals: TDM wholesale voice minutes transactions implies a commercial relationship – typically wholesale

termination between 2 parties

No such thing as Multi-Lateral in TDM since there is no “peering fabric” and every TDM minute has a $

Value

Off-sets: closest thing to “peering” in TDM minutes an agreement where bi-lateral debts negate one another occurs at Layer 2 in the non-analogous OSI model

Bi-Lateral Vs. Multi-Lateral: TDMMinutes

ISP Peering: interconnecting at Layer 2

Bi-Lateral Peering: directly between 2 parties who agree to connect

typically a “free” exchange of IP traffic occurs on a Public Peering Fabric or via a Private Peering

Interconnect (Loop, Cross Connect)

Multi-Lateral Peering: Multiple parties all agree to send and receive traffic with each other via a Peering Fabric

typically a “free” exchange of IP traffic some instances include “paid peering”

• costs less than IP transit• costs more than “free”

Bi-Lateral Vs. Multi-Lateral: ISP

VoIP Peering: The interconnection of two, or more networks Several definitions at Layers 2, 3, 5 and 7

Layer 2 Peering: through a common Ethernet switch most similar to traditional ISP peering distributed peering is possible

Layer 3 Peering: VoIP interconnections through the public Internet gateways interconnecting through the cloud usually wholesalers avoiding TDM transport

Layer 5 ENUM: can occur through both the Internet and an Ethernet Fabric

ENUM – Bi-Lateral and, or Multi-Lateral

Layer 7 SIP: can occur through both the Internet and an Ethernet Fabric

SIP Peering - Bi-Lateral

Bi-Lateral Vs. Multi-Lateral: VoIP

ENUM Registries/Data StoresCurrently Available

VeriSign

E164.org

The VPF

Carrier / Enterpris

e B

Carrier / Enterpris

e B

Carrier / Enterpris

e A

Carrier / Enterpris

e A

VeriSign:

VeriSignDirectory

Customer Provided L2 or L3 (IP VPN) Link;Handles media streams.

Customer Provided L2 or L3 (IP VPN) Link;Handles signaling & routing

CarrierCarrier PublicInternet

PublicInternet

e164.org:

E164.orgDirectory

Users send queries via public IP to e164.org, which replies back with routing info.

End UserEnd User

EnterpriseEnterprise

Signaling & Media Streams are exchanged

between e164.org users directly over public IP.

Carrier /Enterpris

e 1

Carrier /Enterpris

e 1

The Voice Peering Fabric:

VPF ENUMRegistry

1. User initiates call2. Query sent to ENUM

Registry3. Routing info returned4. If “true,” call

established through the VPF

5. If “false,” call sent to user’s select VOIP Carrier (through VPF) or PSTN

Off-NetVia VPF

orPSTN

Off-NetVia VPF

orPSTN

Carrier /Enterpris

e 2

Carrier /Enterpris

e 2

The Voice Peering Fabric

(VPF)

Originating Phone Terminating Phone

1.

2.

3.

4.

4.

4.

Who’s Using ENUM Now?

Enterprises Universities Carriers (CLECs)

Carriers representing End-Users (VoBB)

Other Number Mapping Services DUNDi

All in an effort to reduce monthly spend on metered telephone calls.

The State of VoIP Peering:

VoIP Peering SummitInternet Telephony Conference & Expo

Hunter NewbyChief Strategy Officertelxp: 212.480.3300www.telx.com

Thank you.