COMMITTEE I: TELECOMMUNICATION
STANDARDIZATION
August 3 to 6, 2004
Asunción, Paraguay / OEA/Ser.L/XVII.4.1
CCP.I-TEL/doc.558
6 August 2004
Original: English
REPORT ON THE USTTI – CITEL VIDEOCONFERENCE“VOICE OVER IP: CHALLENGES AND OPPORTUNITIES”HELD ON TUESDAY, AUGUST 3, 2004
(Item on the Agenda: 3.2)
(Document submitted by the Chair of the WG on Advanced Network Technologies and Service)
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Summary
In an effortto foster an open dialogue and spark debate onthe critical issues regarding deployment of Voice Over Internet Protocol(VoIP) technology in the Americas region, a2½ hour videoconference workshop was held on Tuesday, August 3, as part of the ongoing PCCI Meetings in Asuncion, Paraguay. The workshop included participants from Washington, DC, Chile, Nicaragua and Peru, as well as attendees of PCCI. The workshop was moderated by USTTI, andutilized the platform of the World Bank’s Global Development Learning Network, and was made available via real time webcast at the World Bank website.
The workshop was opened by moderator Kelly O’Keefe, Senior Curriculum Coordinator, USTTI, who welcomed the respective organizations, introduced the participants, and defined the goals and objectives of the workshop, as stated above. Ms. O’Keefe also introduced the structure of the workshop, which was intended to facilitate the maximum amount of interaction between the panelists in Washington and the various participants throughout the Americas Region. The workshop consisted of three primary topics, each of which would be introduced with brief presentations by the panelists and/or experts in the participating countries, and each of which would be followed by a question and answer session.
The first topic was “VoIP Technology: Where it’s Headed, Why it’s Attractive and Current Deployment Challenges.” Art Reilly, Cisco Systems, provided a general introduction and overview of the current state of VoIP technology. Mr. Riley stated that VoIP will transform the telecommunications industry in the coming years, as telecommunications operators move from traditional circuit-switched technology to the soft switch technology that enables VoIP. Along with substantial cost-savings to operators and to consumers who use VoIP, Mr. Riley also discussed the advantages of VoIP with regards to its ability to combine such applications as e-mail, fax and voicemail, as well as the VoIP’s potential to assist the disabled with their communications needs. Finally, Mr. Riley discussed the three keys to establishing a secure network for VOIP to operate on: encryption, the use of appropriate firewalls, and the establishment of proper controls over access to the network.
Mr. Frank Urbany, BellSouth, emphasized the cost savings of VoIP technology, estimating that the cost of installing soft switches is 50% less than for traditional circuit switches. He also emphasized the importance of technology neutrality when it comes to the introduction of VoIP in a particular market, stating that competition between different technology platforms will ensure the lowest prices and the highest quality of service for consumers. Mr. Urbany also discussed the need for a transparent regulatory environment that encourages competition as essential for countries seeking to attract the investment necessary to build a VoIP infrastructure.
Ms. Marilyn Cade, AT&T, focused on the technology of VoIP. She stated that just as carriers migrated from analog to digital in the past, they are now in the process of migrating to VoIP. Ms. Cade said that over time, voice will become just another application, along with such applications as video, data and multimedia. She also stated that she believes that VoIP may serve as an effective bridge in many developing nations between the old PSTN system and the future communications system of Next Generation Networks.
Eduardo Gabelloni, CITEL Working Group on VoIP, Rapporteur Advanced Services, discussed the work of the group up to this point in time. He stated that the conversion to VoIP necessitated the need for new definitions, and that CITEL had therefore carried out a study with regards to this need. Mr. Gabelloni stated that among the key findings of the study is the fact that standards are necessary to ensure quality of service, but that he anticipates that the introduction of IPv6 will assist greatly with this issue. The study also indicated the importance of widely available broadband services in order to take full advantage of VoIP technology. With regards to regulatory issues, Mr. Gabelloni also stressed the need for a regulatory environment that encourages the long-term infrastructure investments that are necessaryfor the successful introduction of VoIP.
Mr. Felix Castro, Chairman of PCC1, briefly discussed the need for a new regulatory framework to allow for the orderly introduction of VoIP. He stated that he supports the exciting new applications made possible by VoIP, and reminded the group that PCC1 is responsible for recommendations to its Members on how to ensure a successful roll-out of VoIP.
The second topic of the workshop was “Regulatory and Public Policy Considerations.” The first presenter was Chris Libertelli, FCC, who opened his remarks by stating that creating a regulatory framework for VoIP is a top priority for the FCC. Mr. Libertelli reviewed some of the public policy issues that regulating VoIP raises, including its effect on Universal Service Obligations, the need to maintain appropriate legislative authorities, emergency services, and VoIP’s potential to assist the disabled. Mr. Libertelli also stated that the guiding principle of the FCC when it comes to regulating VoIP is to do everything possible to empower the consumer, and to avoid having either the government or industry dictate the methods or the means of the commercial introduction of VoIP.
Mr. Link Hoewing, Verizon, provided a brief overview of the industry perspective on potential VoIP regulatory efforts. Mr. Howeing called for a light regulatory approach with regards to VoIP. He emphasized that in many areas industry is working together in order to solve potential problems, and therefore avoid the need for additional regulation. Mr. Hoewing pointed to progress in such areas as emergency services, developing new methods of funding universal service, wiretapping, and improving quality of service as areas where industry has already made significant strides.
Pablo Bello, Undersecretariat of Telecommunications, Chile, was unable to participate, and was replaced by Maria Ignacia Jofré, Head of the Department of Legal Studies, who discussed current public policies in Chile, which she said are following a model that will lead to as little regulation as possible of emerging VoIP applications. Mr. Edwin Garcia Tellez, TELCOR, gave an update on what is happening in Nicaragua, which he stated is now opening its market to competition. Mr. Tellez stressed the need to ensure that VoIP is channeled so that it can generate the maximum possible social good. He also stated that it will be important to update the public policy of Nicaragua to reflect the competitive market, and to attract investments in the emerging VoIP marketplace.
The final topic was “Economic Impact on Industry.” The discussion began with Mr. Libertelli, FCC, who stated that VoIP does indeed displace revenue from traditional telecoms operators, but that at the same time, it also creates significant opportunities. VoIP also has a huge impact on consumers, as it will significantly reduce the rates that they currently pay for voice service. Mr. Libertelli also discussed the current debate in the U.S. over the rights of the 50 states to individually regulate VoIP services. He suggested that the regulations that the states are using to justify their intervention are legacy regulations from the days of telephone monopolies, and that these regulations may well not apply to an IP environment. He also expressed the opinion that a new method of collecting Universal Service Obligation funding must be created, as the current system is losing more revenue each year.
Mr. Howeing, Verizon, stated that is was important that the Internet remain as tax-free, fee-free and access-charge-free as possible, in order to continue to help it attract new investment dollars, as well as to continue to encourage consumers to adapt new services and applications, such as VoIP. He agreed that there is work to be done in the areas of access charges and interconnections fees, and stated that this will require much effort, as these are very complex issues.
Carlos Valdez, Head of the Secretariat for Communications, Peru, spoke with regards to the situation in his country. He stated that most consumers in Peru currently access the Internet via public phone booths, and that some consumers are already using this system to place phone calls over the Internet. However, quality of service for these calls is still limited, but he expressed hisoptimism for the future development of VoIP in Peru.
Ms. O’Keefe closed the workshop by thanking all of the participants and the World Bank, and by requesting that any additional questions be forwarded to her at her e-mail address: .
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