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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international telephone services in Togo
Regional seminar on costs and tariffs for telecommunication services
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Abossé AKUE-KPAKPOTelecommunication Manager
Head, Internet and Company Offer Division
Tel.: (228) 221 68 54/904 01 81
Fax: (228) 221 88 36
E-mail: [email protected]
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
I - Introduction of IP telephony
II - The costs of switched and IP networks
III - Impact of VoIP on the price of telephoneservices in Togo
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
I – Introduction to IP telephony
I.1 – Preliminary information
I.2 – Possible definition
I.3 – Different forms
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Preliminary information
Reliable
High quality voicetransmission
Relatively reliable
Acceptable quality of transmission
IPPSTN
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Preliminary information
Real or synchronoustime
Simultaneousconversation between two points on Earth
Differed or asynchronoustime
Connectionless mode
IPPSTN
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
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Generally speaking, Internet telephony refers to voice transmission over the public Internet network.
Definition
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Definition
Voice on the IP network (VoIP) refers tovoice transmission using the Internetprotocol. The IP network used in this casecan be private or public.
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Forms
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
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Forms
Gateway
Public Exchange
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
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Gateway Gateway
Public Exchange
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
II – The costs of switched and IP networks
II.1 – Technical aspects of switched and IP networks
II.2 – Comparison of the costs ofswitched and IP networks
II.3 – Price of the national andinternational telephone services
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Diagram of the network providing national service for switched and IP networks
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
LE
TNC
RR
Gateway
Gatekeeper
Router
Administration
RR
TNC
LSNGatekeeper
Router
Passageway LE
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Diagram of the network providing international service for switched and IP networks
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
LE
TNC
CT
SAT
Earth Station
Internet
INTERNET LINK
INTERCONNECTION
Passageway
Gatekeeper
Router
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
II.2 – Comparison of the costs of switched and IP networks
Is the IP network cheaper than the switched network?
Yes, for two main reasons:
By virtue of design
By virtue of how it functions
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
II.2 – Comparison of the costs of switched and IP networks
1 – By virtue of design
The IP network is designed to provide minimalquality in a best-effort spirit and competitive environment.
The switched network was built to provide maximumquality in a monopoly environment.
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
II.2 – Comparison of the costs of switched and IP networks
2 – By virtue of the way it operates
The IP network is a shared resource network.
The PSTN is a network that uses dedicated resources.
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international telephone services in
Togo
II.2 – Comparison of the costs of the PSTN and IPSwitched network
Packet-based network
Comparative advantage
Access network Trunk switching
Use of the PSTN
No comparative advantage possible. The Internet telephony access network uses both components of the PSTN
National transmission
Internet link Possible advantage
International switching
Transfer network Possible advantage
International transmission
Internet link Possible advantage
Overhead Overhead Possible advantage
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
III – Impact of VoIP on the price of telephoneservices in Togo
III.1 – Togo’s experience of VoIP
III.2 – Impact of VoIP on national andinternational service prices
III.3 – The future of VoIP in Togo
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international telephone services in
Togo
III.1 – Togo’s experience of VoIP
1996 The first Internet node is opened inTogo
1997 Appearance of Internet telephony in thePC-to-telephone form
1998 Significant expansion of the service usingfree websites
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international telephone services in
Togo
III.1 – Togo’s experience of VoIP
1999 Appearance of the telephone-to-telephoneform
Vigourous reaction on the part of the incumbent operator
2001 Statute regulating VoIP use in Togo
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
III.2 – Impact of VoIP on the price of the nationaland international services
Reduced turnover
Decrease in the collection charge for international communications
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
III.2 – Impact of VoIP on the price of thenational and international services
Fall in turnover since 1996
1997 2.86%1998 7.34% 1999 22%
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
III.2 – Impact of VoIP on the price of the nationaland international services
Decrease in the collection charge for international communications
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
Country Year Collection charge TOGO TELECOM
Collection charge VoIP supplier
1998 2 250 1 200 USA 1999 1 600 600 2000 700 300/200 1998 4 500 1 200 Brazil 1999 1 800 800 2000 990 400/300
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international telephone services in
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III.3 – The future of VoIP in Togo (national)
The future of VoIP can go in one of two directions,depending on whether the incumbent operatormanages to rebalance tariffs or not.
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
telephone services in Togo
III.3 – The future of VoIP in Togo (national)
If tariffs are rebalanced:
VoIP will not have many customers and demand for the service will be marginal.
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Price of telecommunication services on IP networks and the impact of VoIP on the price of the national and international
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III.3 – The future of VoIP in Togo (national)
If tariffs are not rebalanced:
the incumbent operator will provide theservice alongside ISPs whose networks areinterconnected to the PSTN.