VoIP regulation approachin Switzerland

VoIP regulation approachin Switzerland

Daniel VoisardChairman of VoIP WG

OFCOM – Federal Office of CommunicationsSwitzerland

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• Switzerland and its telecom regulation– facts, legislation, broadband, Swiss vs. EU

• The Swiss perception of VoIP– access vs. service, last mile, convergence

• The Swiss regulation approach to VoIP– VoIP reg. history, VoIP Functional Standards

• VoIP market in Switzerland– VoIP impact on the future, service provider's solutions

Outline

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• Voice over Internet will replace the classical telephony

– so prophesized Jim Clark in 1996 (at that time Chef von Netscape).

• What has changed since this prophecy?

– all over IP (Technology)

– availability of broadband connection

– signalling protocol (SIP)

– back to basics: separation of voice and data

– large deployment of mobile telephony

– competition between PTS

Assumption: VoIP is hopeful

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Area : 41'300 km2

Population : 7.31 million

Capital City : Bern

Governement : confederation with direct democracy

Language : 4

Annual Growth : 2%

GPD per capita : US$ 32'000

Member of : EFTA

Not member of : EU, EEA

Switzerland in the middle of Europe

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OFCOM

DETEC

ComCom

FederalCouncil

National Council

Council of States

Le

gis

lati

on

Ex

ec

uti

on

DecreesDecisionsUS + radio (WLL, GSM, UMTS,WIMAX) concessions

Fixed concessionsPreparation for messages,laws and decrees

Messageswith lawprojects

357 registered PTSwhereof 138 withconcessions

Federal Assembly

FederalCommunicationsCommission

Federal Departmentof Environment,Transport, Energyand Communications(Ministry)

Governement

Telecom legislation in Switzerland

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Household with BB: 40% (26% ADSL, 15% cable)Incumbent ADSL users: 490'000 Resellers ADSL users: 312'000Major Cable Op BB users: 270'000 Other Cable Ops BB users: 210'000

Broadband in Switzerland

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The EU authorization directive identifies two forms of service supply:

Security & Privacy

Quality of Service - publishing

Directory entry information & access

Conditions - use of numbers

Contracts to Consumers

Universal Service Financing

Notification of NRA

Security & Privacy

Quality of Service - publishing

Directory entry information & access

Conditions - use of numbers

Contracts to Consumers

Universal Service Financing

Notification of NRA

Emergency Services

Number Portability

Integrity and Availability

Publication of price and tariffs

Directory

ECS PATS

ECS : Electronic Communications Service

PATS : Publicly Available Telephone Service

PATS providers can furnish services forming part of the universal service and are subject to interconnection between networks (Access Directive)

Swiss regulation vs. EU regulation (1/2)

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-DirectoriesDirectories

-Number portabilityNumber portability

-Carrier selectionCarrier selection

E.164 resourcesE.164 resourcesE.164 resources

Publication of NTPPublication of NTPPublication of NTP

-Consumer protection(call barring)

Consumer protection(call barring)

-Services for impairedServices for impaired

-Emergency callsEmergency calls

Lawful InterceptionLawful InterceptionLawful Interception

-InteroperabilityInteroperability

InterconnectionInterconnectionInterconnection

--Geographical cover

--Network access, QoS

Data servieVoice service in real timeVoice service in real time, QoS

Offer of services outside the services of the US

Partial offer of services according to US

Offer of all services according to US (art. 19 OST- Decree)

OtherService forming part of US

Universal Service (US)

Swiss regulation vs. EU regulation (2/2)

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Soft Switch

VoIPService

MediaGatewayxDSL /

CablemodemDSLAM /Head end ISP

SoftSwitch

VoIPAdapter

VoIPAdapter

IP-Backbone

VoIPService

MediaGateway

PSTN

NTP

NTP

NTP

ab

VoIP is an (IP) application running reliably only if a broadband connection with a guaranteed quality and a free connecting ability is available

Separation of network (access) and service

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• VoIP service providers are dependent on a reliable network infrastructure (access and backbone). Two possible options to offer this network infrastructure:

– Option A• IP BB access and connecting network (today typical CATV

or xDSL with connectivity net) is proposed by BB service providers with distinct end user contract, the network access is open to third party services

– Option B• IP BB connection is supplied by the VoIP provider either on

its own net infrastructure or through a wholesale product

Impact of VoIP on the last mile

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Dive

rsity

of pe

rform

ance

crite

ria

Regul

atio

n

Mobility

Traditional Fix net

Telephony

MobileTelephony

Dive

rsity

of pe

rform

ance

crite

ria

Traditional Fix net

Telephony

MobileTelephony

NewVoice Telephony

ServicesVoIP

Traditional view Possible, future view

Regul

atio

n

Technology-neutral voice

services

Mobility

Evolution & convergence of new voice services

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• Regulation– Requirements of the services forming part of the universal service

must be fulfilled in one of the IP technology adapted forms– Necessary adjustments of the regulatory guidelines will be introduced

for IP technology– The access to emergency call services is important, exact

requirements for nomadic services must be discussed and specified in the detail

• Technical– VoIP providers need reliable broadband connections, quality

agreements for the net entrance are necessary– The world-wide standardised telephone numbering plan E.164 is the

most important achievement of the telephone service. VoIP providers must agree on the adoption of this achievement and promote the standardisation as to keep the interoperability of telephone services

Entry barrier for VoIP market

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09.2

002 "Fact

sheetVoIP" a

nd "VoIP

FAQ " documents

11.2

002 VoIP

Workshop 1

01.2

003 VoIP

Working Group OFCOM-Industr

y

06.2

003 "W

orking Document on VoIP"

01.2

004 TAP for p

ublic tele

phony serv

ices Q

oS

06.2

004 VoIP

Workshop 2

09.2

004 "Q

oS" > "V

oIP Functional S

tandard

s"

12.2

004 "VoIP

Functional S

tandard

s"

2005

Adaptation of le

gislation

VoIP regulation history

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• 29/11/2002 : creation of the OFCOM-Industry VoIP WG with a clear mandate:

"Technical, administrative and legal aspects concerning quality criteria, rights and obligations, and interconnection of IP infrastructures to other infrastructures in connection with Public Telephone Service"

• Who are the VoIP WG members?

The NRA OFCOM FN operators Swisscom, TDC, Orange, Tele2,… Cable operators Cablecom, Swisscable,…Manufacturers Cisco, Alcatel, Siemens,…

The OFCOM-Industry VoIP WG

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VoIP as public telephony service

VoIP can be considered today as public telephony service because:

• real time / voice quality are almost guaranteed• service provided on standard telephone numbers (E.164)

Public telephone service : major rights and obligations

Rights :• E.164 telephone numbers allocation• interoperability

Obligations :• access to emergency numbers• carrier selection (CPC)• interoperability• services for hearing and visually impaired• Lawful Interception

2004 VoIP Workshop results (1/2)

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What the actors expect from regulator

Short term:• E.164 telephone numbers allocation only to operators with a legal

company office in Switzerland• exemption from the access to emergency numbers for VoIP services

considered as nomadic

Medium and long term:• reasonable application of the interconnection and access regulation

(Telecom Act revision) for the VoIP/BB accesses• agreement on the content of the Telecom Act in relation to the VoIP

characteristics

2004 VoIP Workshop results (2/2)

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2008

USOUSO

1

2

• Regulation through prescriptions and recommendations

• Derogations, agreementsVoIP

WG

Consumer oriented regulation

Competition oriented regulation

2005

VoIP regulation in parallel phases

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• Introduction with− basic principles of the regulation of telephony services− two phases approach of the VoIP regulation

• Three chapters− Interoperability, interconnection− Access to network and services (end-user side)− Numbering

• For each functionality− legal reference− VoIP Workshop result− standards/references associated− comments/problem description− possible solution with advantages, disadvantages and regulatory impact− VoIP WG proposal

• Working document with purely informative goal (on http://www.ofcom.ch) without regulating constraints

• Final document of the OFCOM-Industry Working Group on VoIP (in standby, can be reactivated if necessary)

"VoIP Functional Standards" document

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--Requirement X (new)

-~Requirement D

?~Requirement C

~Requirement B

Requirement A

VoIPMobile TelTDM Tel

What basic requirements apply to VoIP?

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Which adjustments should be carried out for VoIP?

• Type A– Requirement can be applied to VoIP without any change of

the legal disposition• let the implementation of the PTS

• Type B– Legal disposition or technical and administrative

prescriptions must be adapted for VoIP• OFCOM changes / edits prescriptions –> PTS implement

• Type C– The requirement is no more applicable (obsolete, no more

public interest)• exemption clause for VoIP -> no implementation necessary

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• Access to emergency services– access to all emergency numbers (112, 117,118, 144, ..)– correct routing– localisation's data base for stationary end user numbers– requirements for nomadic services

PSTN 1

PSTN 2

Swisscom

Centralised data base

•Routing•Localisation

end-user localisation data

Requirements with problems (1/5)

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• Access to emergency services - proceedings

- explanatory letter (problems, possible solutions) sent to the concerned actors (polices, emergency calling centres, emergency organizations...) > strong negative reaction

- meeting with concerned actors organised by OFCOM in May- development of Technical and Administrative Prescriptions (TAP)- consultation of the offices concerned by the new TAP- publication and effectiveness of the TAP at the end of 2005

Requirements with problems (2/5)

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• Carrier Selection (CS)

( )Internat. comm.

Nat. comm.CPS

Internat. comm.

Nat. comm.call-by-

call

VoIP ?mobilefixed

Public telephony service providerObligations to guarantee carrier selection

Requirements with problems (3/5)

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• Carrier Selection (CS)

• Pro− the end-user is not linked to a provider− free competition at service level, niche markets are protected− no long term binding contract (possible to change every 5 days)

• Against− the free choice is actually guaranteed with the choice of VoIP

providers (separation of access and service)− CS/CPS is inherited from the traditional telephony world, not

corresponding to IP world philosophy (price independent from time)− additional entry barriers without advantages can block new

applications

Requirements with problems (4/5)

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• Carrier Selection (CS) - proceedings

- consultation (with questionnaire) of concerned actors (operators, end user's associations)

- synthesis, internal consultation, modification of TAP and eventually of the Telecom Decree

- study and decision of the ComCom- meeting with concerned actors organised by OFCOM- consultation of the offices concerned- publication and effectiveness at the end of 2005

Requirements with problems (5/5)

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• Lawful Interception (LI)

- much more complicated (liberalisation of the market, Internet, new technologies) than with PSTN

- traditional voice monitoring overhauled by:

growing flow of information

access to new systems

- possible solution: adopt a generic interface for most of the technologies

true challenge

- in Switzerland :

DBA (special tasks service) is responsible for LIOFCOM will meet DBA members to discuss the VoIP case

- new DBA prescriptions in collaboration with the incumbent

Requirements without problems (1/2)

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• Outgoing call barring

obligation applicable to VoIP services independently of the network technology

• Advice of charge

should not be applicable to VoIP services

• Calling-line identification

transmission of the calling-line technically more difficult for VoIP as for PSTN > interconnection agreements must take it in consideration

the TAP "Calling-line identification" will be modified for more technological neutrality

• Publication of NTP

apply the obligations and wait on possible complaints, eventually adapt the catalogue of recommended interfaces

• Extraterritoriality

work in collaboration with EU

Requirements without problems (2/2)

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What can we expect in the future ?

• new entries on the market (Skype, Vonage, Tele2, Sunrise,…)• VoIP on WLAN (e.g.. Hotspot)• VoIP on mobile on mid term, if the data transmission is

cheaper or flat rate• entry on the market from the incumbent (Swisscom) with

a real product in 2006 (?!)• the voice services prices will be cut• the business case for the operators offering only voice (Calling

Card, CPS) will be more difficult• importance of bitstream, alternative providers can offer

internet access and voice (with QoS)

The Swiss VoIP market (1/2)

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• 28 registered TSP on 1/05/2005

VTX Datacomm AGLAN Services AG

Vox ConvergenceGuest-Voip.ch

VoiplinkGreen Telco AG

Voice IP Com GmbHGlobal Network Schweiz AG

VIA NET.WORKS AGGemeinschaftsantennenanlage Ossingen

Ticinocom SAExtrafon GmbH

System-Clinch InternetEquant Communications Services AG

Swiss IP ComE-fon GmbH

Swisscom SolutionsEconoPhone AG

Swisscom FixnetMexan GmbH

SOLPA AGDynamic-net.ch AG

One4all AGCablecom GmbH

myVoIP.chBT Switzerland Ltd

MyTel GmbHBlackpoint Net

The Swiss VoIP market (2/2)

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The pure VoIP product: Econostream

• first VoIP telephony offer over BB (ADSL or cable) in Switzerland

• setup ISK 2'700 – ISK 535/month - ISK 2.7 (1.1)/min fix nat.

• totally nomadic with a Swiss E.164 number + portability

VoIP service provider's solutions (1/3)

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The bundle product: Digitalphone from Cablecom• IP telephony on the cable• ISK 1'080/month - ISK 1.6/min fix national• free calls between 19.00 and 07.00, and during the weekends• with a Swiss E.164 number + portability + limited nomadic use

HFCWAN

PSTNSwisscom

EthernetSwitch

Firewall

VoiceGateway

VoiceSwitch PE

Router

CMTS

CableModem

INDOCSIS 1.1

MGCP 1.0

NCS version 1.0

Alcatel S12

IP / MPLS

VoIP service provider's solutions (2/3)

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The P2P product: Skype

• P2P IP telephony

• free of charge

• SkypeOut to dial E.164 numbers

• SkypeIn to be called from E.164 numbers: this service will be regulated like "standard" VoIPservices!

VoIP service provider's solutions (3/3)

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• The regulation approach (2 phases) adopted by OFCOM (CH) is well accepted by VoIP actors.

• Access to emergency calls (localisation and routing) as major problem but should be technically solved soon. Manufacturers on the point to bring valuable solutions.

• Initial phase of VoIP market development already at its end, very fast grow at mid term.

• Any delay in the VoIP regulation can have serious consequences. The actors of the market expect a clear position of the regulator.

• To bring together the telecom regulator and the actors of the VoIPmarket to discuss the future regulation is very fruitful for both parties.

• Pragmatic solutions for legal obligations should be adopted quickly.

Some conclusions

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Thank you for your attention