Voice-over-IP Telephony

Voice-over-IP technology (VoIP) was developed during the past decade and has reached operating levels during the last two or three years that make it competitive with traditional telephone services. In many regards, it is posing a challenge to many aspects of the conventional structure and market paradigms that have held sway for voice services for more than a century, including per-minute charges, numerous usage and access charges, and end-user control through access network control.

The purpose of this course is to examine the benefits of the use of IP technology for telephony as a replacement for conventional voice services and thereby to gain an understanding of the technical, regulatory, and commercial implications this would have for the telecommunications sector, users, and the general public, in a globalized market in which services of this type can be provided by virtual means and with a coverage that transcends the norms and the borders of each nation.

The problems and the potential of VoIP cannot be understood without delving into certain technical aspects of voice transmission through this technology, most of which are related to the provision of high-quality service. The problems focus on the correct use of protocols and mechanisms for implementing and using this technology along the different links of the value chain, such as the access network, national or international transportation, and the provision of end-to-end services.

Likewise, it is essential to understand the evolving nature of these services. They have developed gradually, beginning in controlled corporate environments and then spreading little by little into increasingly public, mass settings. Along the way, the parallel development of Internet broadband technology has given a strong impetus to VoIP, with a close relationship being forged between the two. They are both catalysts for the popularization we are seeing of these services, together with the appearance of numerous IP service providers through specialized portals that transcend all types of borders and regulations and establish a new standard for voice communication user costs.

Moreover, the different models of businesses using this technology as well as the conventional models using traditional patterns for telephone rates and charges create opportunities and pose threats in a greater or lesser degree for all operators–both new ones and incumbents–depending on the market segment in question and the strategy that each of them decides to follow. In this regard, it is necessary to explore the different myths that have arisen in connection with VoIP, as regards its possible threat to the conventional long-distance telephony market and its alleged use for international voice transmission activities that are not strictly legal according to the regulations of the various countries. It is also vital to understand cost structures, notions of values and rates, and other factors that determine the competitiveness of each voice service in an increasingly competitive and global market.

In addition, the current status of regulatory development in the area and the possible outlook for future development pose challenges to governments and, in general, to all of the sector’s stakeholders. What is critical here is to gain an understanding of the possible regulatory frameworks and the impact that this technology can have on highly sensitive markets, as well the natural move toward a simplification of regulations that is gradually accepted worldwide as a result of measures taken by international standardization bodies and the conclusion of bilateral and multilateral treaties. Along the same lines, the provision of services abroad through these technologies creates additional challenges, not only for sectoral officials but also for those responsible for taxation, customs control, and international trade.

In view of the foregoing, a minimum understanding of the different aspects of VoIP is essential for decision-making purposes in a constantly changing market environment, with a technology considered highly disruptive and in a setting in which entry barriers are increasingly being lowered.

The Colombian Association of Engineers (ACIEM), as an ITU Center of Excellence, and Regional Training Center of CITEL have developed this course as a six-week virtual training tool offered over the Internet. It is designed for engineers, lawyers, managers, economists, academics, and telecommunication professionals, in general, and will be taught by Mauricio López, an engineer with almost 15 years of experience in various areas of the sector, especially in telecommunications regulation and markets, who has served as an adviser and an Expert Commissioner and Executive Director of the Colombian Telecommunications Regulatory Commission (CRT).

Asociación Colombiana de Ingenieros
Colombian Association of Engineers (ACIEM)
Telephone: (57-1) 369-0424
E-mail: [email protected]
Bogotá, Colombia