Building a Global VoIP Network. Michael Burrell, Senior Manager Orange Business Services. August 22, 2006

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1 Building a Global VoIP Network Michael Burrell, Senior Manager Orange Business Services August 22, 2006

2 Service Provider relationships > what service provider relationships and types of carrier services are typical in various regions of the world? Page 2

3 types of carrier services Customer PBX Network Access Point (CE when VoIP) DID Emergency Local Outbound Calls Last Mile Access Long Distance To fixed and mobiles 0800, 845 call collection* > Local Services - DID, Emergency > Local Outbound Calls Typically TDM, IP Centrex (developed countries) - May incur usage charges for local calls in certain countries > Long Distance or International Calls Outbound fixed, mobile, domestic or international, plus inbound calls - TDM or IP Trunking (mainly H.323, some SIP) Page 3

4 coverage vs. control challenge 250 sites, 5 business units, 50 countries 100+ relationships! multiple SPs, price schemes, circuits, CPE, maintenance contracts, bills, help desks, points of failure result in limited network flexibility and difficult to know the overall cost!

5 SP relationships driven by regulatory factors > industrialized nations - liberalized telecom markets - G7, Western Europe, Australia, Hong Kong, Korea, Singapore > emerging markets opening up - Brazil, China, India, Russia, Eastern Europe > developing nations - closed markets - Africa, Mexico, Middle East, southeast Asia, Latin America Page 5

6 types of telephony services Industrialized Nations Emerging Markets Developing Page 6

7 comparison of telephony services poor good IP-PBX Page 7 Managed IP-PBX Hosted IP-PBX IP-Centrex IP-PBX on customer site yes yes no no Need for service provider no yes yes yes Shared (multi-tenant) no no no yes Flexibility, scalability Features, customized apps Reliability, disaster recover Migration to VoIP Ease of install, Capex Customer support Multi-site networks Target market Large sites Medium to Large Medium sites Small to Medium Source: Delphi Inc., FTNA analysis

8 global network integration > how do you knit your diverse regional networks into a seamless global enterprise network? Page 8

9 answer: MPLS based IP VPN MNC headquarters GPRS Access MNC subsidiary or partner SME dynamics any to any CoSPBX accessibility business critical adaptable global reach reporting Extranet VAS provider flexibly support DSL Access sites voice QoS multiple access Private options Dial Private secure Domain and available MPLS scalable, IP VPN hybrid TDM/IP IPSec Gateway PBX support Public Domain Orange single unified network Secure Orange Gateway visibility Internet & control Direct Messaging Services Orange Server Management benefits all are needed for global VoIP traffic Small branch office Internet Dial MNC supplier Remote user Page 9

10 roll-out strategy > what s the best strategy for rolling out IP Telephony to the various sites in your multinational network? - set the strategy first: avoid one for one replacement - pick a region, any region: close to home vs. far away - centralized architecture deploy first or early on to benefit small-medium sites LAN IPT first or WAN? - proof of concept pilot - opportunistic site deployment PBXs end of life or end of lease - long-term migration: ROI driven Page 10

11 multi-vendor vs. single vendor > feature support - least common denominator > multi-vendor management capability > administration tools > training costs > disaster recovery > volume discounts > SIP? multi-vendor = 20%+ higher TCO Page 11

12 implementation > Integrator vs. Service Provider > equipment and network provisioning - VAT management critical: 18%+ > staging, configuration and installation - centralized vs on-site staging > project management - consistent project management methodology to reduce risk - site/end user migration strategy by country by city > documentation and training > customer site acceptance > operations hand-over Page 12

13 Service Providers > how are the different carriers' strengths in different regions of the world likely to affect your global IP-telephony rollout? Page 13

14 regional players global players Page 14

15 SP capabilities which vendor(s)? life cycle services design resell equipment deploy operational support maintenance Partner Partner Partner managed services IP trunking VoIP VPN Advanced Features, Dial Plan, LCR, Forced On-net, etc where? Europe Global Global Global Page 15

16 Service Provider strengths - network service Service Offerings Full Range Full Range Full Range Countries Strengths > Strong global coverage > Attractive off-net pricing > Web-based monitoring tools > Global customer care > Voice-specific SLAs > Flexible service based on complexity, functionality a customer requires > Strong SLAs > Extranet type offering EMEA > Strong IP MPLS in Europe > Extensive coverage > Online performance monitoring > Application based SLAs > Significant cost-savings for off-net calls, originindependent pricing > Strong partners, such as Cisco, Avaya, HP > Feature-rich VoIP Source: Current Analysis - VOIP Comparison Europe SP Page 16

17 Service Provider strengths Integration Services IP Trunking Avaya, Cisco, Nortel, Siemens and Alcatel Avaya, Cisco, Nortel Avaya, Cisco, Nortel, Alcatel and Aastra Global Strategic Alliance Partner US Capability Platinum SP Business Partner Europe Global Strategic Alliance Partner Global Capability IP Communications US, UK IP Communications Europe, US IP Communications Global Commerce IPT Select Partner US, UK Global Partner UK Capability Global Solution Partner Resale None None Premium Business Partner France Page 17

18 vendors > how are the different vendors' strengths in different regions of the world likely to affect your global IPtelephony rollout? - vendor market share - presence certified design personnel ability to deploy reliance on partners - localization of features - ongoing management services Page 18

19 major vendor IPT market position by region (1Q06) Worldwide IP Telephony U.S. IP Telephony EMEA IP Telephony 40% 40% 40% 30% 20% 10% 22% 20% 16% 13% 8% 30% 20% 10% 20% 20% 14% 9% 7% 30% 20% 10% 25% 20% 20% 13% 9% 0% Avaya Cisco Nortel Alcatel Mitel 0% Avaya Cisco Nortel Mitel Toshiba 0% Alcatel Avaya Cisco Nortel Siemens Source: Synergy Research Group Unit of Measurement: Lines Time Period: 1Q06 Source: InfoTech Unit of Measurement: Lines Time Period: 1Q06 Source: Synergy Research Group Unit of Measurement: Lines Time Period: 1Q06 40% 30% 20% 10% Asia Pacific IP Telephony 24% 17% 14% 11% 9% Latin America IP Telephony 40% 30% 30% 18% 20% 16% 13% 12% 10% 0% Avaya NEC Cisco Alcatel Nortel 0% Cisco Avaya Nortel Alcatel Siemens Source: Frost & Sullivan Unit of Measurement: Revenues Time Period: 4Q05 Page 19 Source: IDC Unit of Measurement: Lines Time Period: 4Q05

20 regulatory environment impact > what unique regulatory environments may affect IP-telephony in different parts of the world? Closed User Group - On-net only No voice authority permitted International off-net only Domestic off-net Local Service > certain markets are closed (China) or just opening (Turkey, India) > obscure regulations (India PC voice) > certain restrictions video in Middle East or Islamic countries, security and encryption in China Page 20

21 Orange global voice regulatory authority YES > Main constraint: Regulatory clearance (IP presence in 145 countries) - On-net in 97 countries and territories - International Off-net available in 70 countries - Domestic Off-net available in 60 countries Page 21

22 Orange in-country voice authority YES > Countries with direct in-country voice PSTN presence, carrier code and license Page 22

23 be aware of > cultural differences - US tends more toward DIY, Europe toward managed services and out-tasking - end user cultural differences: message handling: voic vs. operators localization support > invoice flexibility - single-site vs. multi-site, CDRs, bill-back ability - implementation charges in local currency with VAT itemized - billing in currency of choice, format (electronic) > SLAs > reporting Page 23

24 summary > complexity reigns > regulatory/market forces shape options > MPLS IP VPN to integrate global network > consolidate Service Providers globally > centralize and standardize to gain greatest benefit - essential to set the global/regional strategy - single vendor strategy to lower TCO > global reach, local presence - eliminate locally provided maintenance contracts Page 24

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