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VoIP for Dummies 2005

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28 Part I: VoIP Basics

What does the NPA-NXX number have to do with VoIP? In Chapter 7, I discuss dedicated networks that have proven to be the highest quality of service (QoS) network type for VoIP networks. All carrier lines for a dedicated VoIP network are priced using the NPA-NXX of each location included in the network.

Following the development of digital services, the corporate sector began demanding more bandwidth from carriers to support their networks. It didn’t take long for carrier companies to develop digital, high-bandwidth transport lines that could meet the diverse needs of the corporate sector.

These newer transport lines would be digital all the way from a customer’s location A to the same customer’s location B, regardless of how many miles were in between. These customer demands led to the development of transport services that multiplied exponentially the amount of available digital bandwidth that could be offered to the corporate sector.

These newer ultrahigh-bandwidth transports were not the same kinds of wires as those in the POTS network. They were usually a thicker-gauge wire or fiber-optic cables. When installed, they connected two or more locations of a customer’s company in a point-to-point fashion versus the circuitswitched method of the PSTN.

These developments contributed to the emergence of private dedicated networks, which in turn ensured that VoIP would be here to stay. (As you find out in later chapters, VoIP becomes a viable option for companies only when used over dedicated networks.) Eventually, on-net VoIP over dedicated networks will replace expensive circuit-switched calling over the PSTN.

The digital services carrier network

The new types of digital lines installed by the carriers began to form a new physical carrier services network. The lines did not cross-connect or intersect with any of the millions of circuit-switched lines that are in place and continue to be installed by the carriers. At the carrier company’s facilities, newer types of fully digital equipment terminated these digital lines.

This new carrier services network was called the digital services carrier network. (It is also known as the digital signal carrier network, or simply as the

DS.) This network used higher-bandwidth digital lines and operated with packet-switched protocols to network computer data. (For more on protocols, which are simply rules for using the network, see Chapter 1.)

Chapter 2: VoIP: Not Your Father’s Telephone Service

29

Soon thereafter, the DS network was defined based on its fundamental unit of bandwidth, known as the channel. The smallest channel unit provided a bandwidth of 64 Kbps (64 thousand bits per second). This channel was called a DS0, pronounced “D–S–zero.” (Many computer gurus start counting with 0; it’s a binary thing.) DS0 became the base unit of bandwidth from which other dedicated transports were defined. (In Chapter 7, I cover the popular DS standards in detail.)

The DS network also introduced to the telecommunications vocabulary another term that characterizes most of the transport mechanisms that are not part of the older circuit-switched network. Because the lines used by the DS carriers were installed between private customer locations and the public at large could not use or connect to them, DS lines became known as dedicated to the customer leasing them. The entire series of DS standards eventually became known as the dedicated carrier services network.

War Breaks Out Between

Circuits and Packets

The corporate sector’s thirst for leasing dedicated DS lines was unquenchable. Soon a dilemma emerged as to how to distinguish the circuit-switched network and the newer dedicated network, which used packet-switching technology. Since its inception, the circuit-switched network was a public carrier services network. The DS network was being called dedicated, or private, because no one but the customer paying for the DS lines was permitted to use them.

Public versus private a.k.a.

Confused over the different terms for the PSTN and dedicated networks? The following list

comes to the rescue, showing the most popular also-known-as terms for both.

PSTN

DS

public

private

public switched telephone network

private dedicated transport network

public telephone network

digital services network

switched network

dedicated network

circuit switched

packet switched

 

 

30 Part I: VoIP Basics

It wasn’t a great leap to make the distinction between public and private types of services. At this point, the name public switched telephone network (PSTN) began to be used to characterize the circuit-switched network. Eventually, the PSTN would be referred to by the telecommunications industry as simply the switched network. The DS name stuck with the network that provided private dedicated transport services. Eventually, the DS network would be referred to as simply the dedicated network.

Figure 2-4 illustrates the physically separate PSTN and DS networks.

POTS telephony continues to use circuit-switched protocols that don’t packetize telephony signals. (See Chapter 1 for an explanation of packets.) POTS signals travel from one line to the next line on a given circuit of lines, just like in the fifth-grade science experiment using tin cans and a string. Another good way to understand circuit-switched protocols is to think about a railroad system. Trains must switch tracks along a circuit of tracks based on the destination of the railroad cars traveling over the tracks. The direction of the train is determined by the physical tracks that the train uses. Figure 2-5 illustrates such a circuit-switched train.

PSTN

DS

Circuit

Packet

switched

switched

 

PC

 

Router

 

Ethernet

Public

 

telephone

 

network

Printer

Figure 2-4:

Noncon-

Server

verged

 

PSTN

 

and DS

 

networks.

Private telephone system

 

Circuit switch 882-0956

412-LATA

Figure 2-5:

 

The circuit-

 

switched

 

network is

Circuit

like a train

0957

traveling on

 

physical

 

tracks.

 

Chapter 2: VoIP: Not Your Father’s Telephone Service

31

If you had

 

VoIP

 

you’d be home

 

by now!

 

Circuit

 

0956

 

VoIP technology has enabled telephony signals to run over dedicated networks using packet-switched protocols. One of the preferred methods of running VoIP in the corporate sector is to use dedicated lines. Instead of being primarily dependent on the PSTN for its telephone service requirements, companies using VoIP protocols can send and receive telephone calls over their private computer networks. Using VoIP, voice signals can be packetized in a manner similar to computer data packets.

VoIP includes the caller and receiver’s network addressing information in the packets sent over the network. If a given circuit on the network is down, VoIP packets can switch to another computer network circuit because the packet is not dependent on the circuit itself for directions. In the previous example, the circuit-switched train is switched solely by the tracks it travels. If the train runs into a broken track, it can’t continue to travel to its destination. VoIP packets can have many alternative routes because the destination address inside the packet tells the network where to route the packet.

Most companies today use packet-switched networks for their computers and separate circuit-switched networks for their voice calls. Figure 2-6 depicts this typical scenario.

32 Part I: VoIP Basics

Typical LAN

Printer

Data

 

E-mail

Ethernet

server

server

 

 

PC

POTS Telephone System

PSTN

Telephone system

Figure 2-6:

Companies typically use nonintegrated

networks for data

and voice.

Telephone

Chapter 2: VoIP: Not Your Father’s Telephone Service

33

Private Telephone Systems

Reduce POTS Line Costs

Computer data networks and circuit-switched voice networks are completely separate, with individual staffing, billing, maintenance, and accounting systems. Although the maintenance costs of computer networks are affordable for most companies, the recurring charges for traditional forms of telephony are huge for small, medium, and large multilocation companies. VoIP is designed to converge (integrate) a company’s voice needs onto the company’s existing computer network. If a company does this, they can eliminate most (if not all) recurring circuit-switched telephony charges.

In the past, the POTS world had only two types of services: local and long distance. Local service covered the entire metropolitan area, with no distinctions for the various levels of toll service that we have today. In the early days of the telephone, long-distance cost customers dearly. A call from New York to the west coast might have cost $3 to $4 per minute. Today, that same call might cost a consumer $.02 to $.05 per minute and a corporate caller $.01 to $.03 per minute. The corporate customer is most likely on some sort of dedicated private network consisting of a phone system connected to the PSTN.

It might appear that the cost of telephony today is dirt cheap in historical terms. This would be a mistaken conclusion. In addition to the carriers getting more organized and the government increasing its regulation of the telecommunications industry, many changes have evolved. These changes have increased your bottom-line telephone bill and increased the number of line items on that bill.

Now, instead of just two types of phone service offered on the PSTN (local and long distance), we have five: local, intralata, intrastate, interstate, and international. Each of these is discussed in detail in Chapter 3. These five services are based on the origin and destination of a call, using the LATA and NPA-NXX to determine those locations. In addition, the same system is used by the government to place various surcharges and fees on each telephone access line.

No one would argue that the quality of carrier-switched telephony is excellent. However, the system that has evolved for charging telephony customers leaves much unsaid and a lot to be desired. Except for local calling, VoIP can reduce or eliminate the charges of the other four categories.

34 Part I: VoIP Basics

To lessen the burden of newer and diverse telephone costs, many companies have acquired their own POTS-based telephone systems. Company-sponsored telephone systems can reduce the monthly bill that consumers and companies pay for telephony services. Four different telephony system models have evolved in the past three decades.

The first model, POTS, has already been described; it is the use of telephony access lines and carrier services over the PSTN through a carrier. The other models are the Centrex, KTS, and PBX models. Each of these are discussed in this sections.

The Centrex model

The second model is the central office exchange service, or Centrex, model. Centrex is physically set up the same as the POTS access line model. Like POTS, Centrex uses the same physical twisted-pair copper lines.

The difference between the POTS and Centrex models lies in how the line is terminated at the carrier company’s facility. Instead of getting switched into the PSTN directly, the Centrex line first goes to the more intelligent main- frame-level telephone system owned and operated by the carrier. From there, the system can provide the customer with many more features not directly available on a plain POTS line. To get these features on a POTS line, the customer typically has to pay for each feature. Centrex provides a bundle of features with little or no added charges.

Because you get more with Centrex, you pay a little more for the line on a per-line per-month basis. Centrex is a good alternative for companies operating out of temporary facilities (such as a lease situation) and for companies that can’t or don’t want to maintain a full-blown telecommunications infrastructure. When you lease a Centrex system, maintenance is usually included, which reduces the need for skilled staff on the company payroll. Figure 2-7 shows how the addition of a Centrex system modifies the model originally shown in Figure 2-1.

The good news is that a VoIP solution exists for the more traditional Centrex situation: VoIP Centrex. You need a computer network in the temporary premises, but that is an expense you can unplug and take with you when you move to your permanent location. With VoIP Centrex, you can start your VoIP network, acquire features galore, and get the maintenance services you need. When you move to your new, permanent location, you simply plug in your network, and you are up and running.

Figure 2-8 shows the addition of VoIP Centrex to the mix.

Chapter 2: VoIP: Not Your Father’s Telephone Service

35

Persons called

 

 

Callers

PSTN

 

 

 

 

Carrier

 

 

company

 

 

facilities

Figure 2-7:

 

Telephone

A typical

 

Local loop(s)

System

Centrex

 

 

telephone

 

Centrex

connection

 

 

 

over a

Inside wiring

POTS line.

Trunks

Centrex (hosted)

VoIP gateway

Carrier company facilities

Person called

PSTN

 

Caller

 

 

Internet

 

 

access

Carrier

 

 

company

 

 

facilities

Figure 2-8:

Local loop

 

VoIP

 

 

 

Centrex,

 

 

sometimes

 

 

called

Inside wiring

 

hosted VoIP.

 

 

Trunks

Carrier company facilities

36 Part I: VoIP Basics

With any Centrex option, you pay more per month in return for avoiding the need to sink costs into your own infrastructure. Also, by using the Centrex host’s facilities, you get a rich feature set with no additional monthly charges. Another benefit is that you can walk away from a Centrex solution anytime you want without penalty. Although some smaller companies keep Centrex forever, most growing companies eventually convert to one of the models described in the following section.

The KTS and PBX models

The other two system models are private telephone systems installed on the company’s premises. Low-volume customers often use a key telephone system, or KTS. High-volume, larger companies often use a private branch exchange, or PBX. These two are a departure from the POTS-line model, where a line is run to each phone on the premises. As such, they are also a departure from the Centrex model, which uses the same type of access line as POTS.

Figure 2-9 illustrates how a typical private telephone system would change the phone mix.

Persons called

 

Callers

PSTN

 

 

 

 

 

 

Carrier

Carrier

 

 

company

company

 

 

facilities

facilities

Figure 2-9:

 

Local loop(s)

 

A typical

 

 

 

private

 

 

 

telephone

 

 

 

system

 

Private

 

connection.

 

telephone

Trunks

 

 

system

Chapter 2: VoIP: Not Your Father’s Telephone Service

37

One big benefit of private telephone systems is that they reduce the number of required access lines. For example, the industry standard is one access line for every six to eight employees who have a telephone. Any reduction in the number of access lines represents an enormous cost benefit for companies when compared to the POTS or Centrex models. In addition, private telephone systems enable the company to provide most traditional call features, such as voice mail, call forwarding, call transfer, and conferencing, to any telephone in the company — at no added cost.

Private Systems versus VoIP

A private telephone system approach can’t begin to compare to a VoIP model in terms of savings. Your guide should be “How much telephone calling traffic, across all five regulated PSTN charging categories, do you or your company have each month?” If your monthly call volume, which is charged by the minute for each line across each charging category, is substantial, a private telephone system model reduces your recurring charges because you use fewer lines. However, VoIP can reduce your recurring charges even further, as you’ll discover in the next chapter.

Following is a list of cost benefits and features that your company can gain by converting to its own telephone system.

Greatly reduced number of access lines

Reduced recurring carrier charges

Reduced access line fees and surcharges

Reduced access line taxes

Elimination of call feature charges

Greater managerial control of telephony systems and services

There is no doubt that moving to a private telephone system saves a company significant money when compared to a POTS access-line model. But keep in mind that all of these cost benefits are based on reductions in the number of lines required or lower costs for features priced on a per-line basis. These benefits are also realized with any VoIP model.

The conventional telephony models described in this section, KTS and PBX, don’t remove the problems associated with telephone costs. They only minimize them by adjusting the number of access lines or calling features you need to pay for. A VoIP system, on the other hand, represents a fundamental change in telephony, and thereby offers huge cost savings, feature enhancements, and productivity improvements. VoIP eliminates the need for most

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