VoIP regulation approach in Switzerland VoIP regulation approach in Switzerland Daniel Voisard Chairman of VoIP WG OFCOM – Federal Office of Communications Switzerland
VoIP regulation approachin Switzerland
VoIP regulation approachin Switzerland
Daniel VoisardChairman of VoIP WG
OFCOM – Federal Office of CommunicationsSwitzerland
2
• 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
3
• 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
4
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
5
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
6
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
7
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)
8
-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)
9
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
10
• 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
11
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
12
• 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
13
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
14
• 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
15
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)
16
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)
17
2008
USOUSO
1
2
• Regulation through prescriptions and recommendations
• Derogations, agreementsVoIP
WG
Consumer oriented regulation
Competition oriented regulation
2005
VoIP regulation in parallel phases
18
• 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
19
--Requirement X (new)
-~Requirement D
?~Requirement C
~Requirement B
Requirement A
VoIPMobile TelTDM Tel
What basic requirements apply to VoIP?
20
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
21
• 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)
22
• 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)
23
• 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)
24
• 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)
25
• 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)
26
• 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)
27
• 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)
28
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)
29
• 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)
30
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)
31
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)
32
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)
33
• 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
34
Thank you for your attention