ETE405 :: IP telephony

Lecture 2Instructor: Dr. Mashiur Rahman

The Internet Has Replaced the Telephone System and

the Telecommunication Networks

IP telephony : Growth factors

World Enterprise IP Telephony Endpoint Market Grew to $2.68 Billion in 2008, Finds Frost & Sullivan

New analysis from Frost & Sullivan (http://www.conferencing.frost.com), World Enterprise IP Telephony Endpoint Markets, finds that the market earned revenues of over $2.68 billion in 2008. The world enterprise IP desktop phone market continued to grow in 2008, generating $2.57 billion in total revenues. Though steady revenue decline is expected until 2010, the market is expected to gradually recover by 2011 and continue with a healthy growth pattern until the end of the forecast period in 2015.

Trends in Europe

At year-end 2006, 15.6 million consumer voice-over-IP (VoIP) lines were in service in Europe, up from 6.5 million in 2005.

At the end of 2004, only 1.8 million VoIP lines were in service across Europe, equivalent to just over 1 percent of households. By the end of 2005, VoIP subscribers had grown to 6.5 million lines, accounting for 4 percent of households. At the end of 2006, 15.6 million European consumers subscribed to VoIP services, equivalent to 11 percent of households. By mid-year 2007, approximately 22 million households in Europe had VoIP telephone service.

Annual revenues from consumer VoIP services were €583 million in 2005, and €1.5 billion in 2006. Given current growth patterns, VoIP revenues should top €2.8 billion in 2007.

US market

The number of VoIP subscribers soared from 6.5 million in mid-2006 to 11.8 million in mid-2007—equivalent to 10 percent of U.S. households. VoIP service revenues totaled $2.6 billion in 2006 and are on track to reach $4.9 billion in 2007.

major cable companies (often called “multiple system operators,” or MSOs) network-independent service providers (sometimes also described as “enhanced service providers,” or ESPs).

Network-independent service providers, such as Vonage, were the pioneers of the consumer VoIP market. Vonage launched its consumer VoIP service in April 2002, followed by 8x8 in November 2002. At mid-year 2007, network-independent service providers had 3.1 million subscribers and were on track to generate over $1 billion in revenues in 2007.

Game theory

Voice Network Characteristics

• Reliability:• Five nines of reliability • 2 hours of downtime in a period of 40 years of

service:• 2/350,400 hour = 0.00000571• Network availability = 1- 0.00000571=

0.99999429• 99.999429%

Summery of lecture 2