Study of Unfair Competition Between Regulated and Unregulated VoIP Providers In the Mixed of Non and all-IP Network Era 1)
2)
Sigit Haryadi
FestyLalitaNiramaya
Telecommunication Engineering Bandung Institute of Technology Bandung, Indonesia
[email protected]
Electrical Engineering Master Program Bandung Institute of Technology Bandung, Indonesia
[email protected]
Abstract—All-IP network in Indonesia are still few in number. It is estimated that more than 5 years from now there are a combination of non-IP networks and all-IP network. At this time, an international VoIP service in Indonesia is given by the regulated and unregulated providers. The regulation of VoIP services are included in government regulation number KM.23.2002 about internet telephony for public use. The unregulated services is defined as the services outside the regulated one and broadly known as OTT (over – the – top) services. The difference between the regulated and unregulated studied from several aspects such as infrastructure, traffic, rates, and quality of service. This study has also found that the regulated VoIP have a better quality of service, otherwise unregulated VoIP service is cheaper. Recommendations resulting from this research is about how to make a fair regulation of VoIP. With proper regulation, the unregulated providers will change to a regulated provider, and will cooperate with the telecommunications network operators. This scheme will provide benefits for users and operators, as well as service providers. Keywords—VoIP, International Unregulated, Over – the – top
connection,
Regulated,
I. INTRODUCTION One of the telecommunication services widely used is a voice communication. Voice over Internet Protocol (VoIP) is one of the technologies for voice communication. VoIP uses internet as a protocolto communicate. The basic concept of VoIP is depicted in Figure 1. The picture shows that VoIP is comprised of voice analog to digital converter or voice coding, packetizer, depacketizer, and IP. At this time, an international telephone connection using VoIP technology in Indonesia servedby a regulated and unregulated provider. The regulation of VoIP services are included in government regulation number KM.23.2002 about internet telephony for public use. Regulation related with VoIP or internet telephony is stated in KM.23 Year 2002 with first revision number 07/P/M.Kominfo/5/2005 and second revision number KM.31 Year 2004. The objective of the regulation is to regulate the VoIP provider and protect the user and guarantee
the connection quality. Regulation is considering the convergence of technology development and a new form of services offered to the customers. Regulation number 14/Per.M.Kominfo/04/2011 is specifically regulating quality standard of internet telephony services. The criteria that need to be fulfilled by VoIP provider are service performance, network performance, and quality of service. The unregulated services is defined as the services outside the regulated one and broadly known as over – the – top services. One of the examples of OTT-telephone services used for international connection is Skype. The characteristics of regulated and unregulated VoIP are different. This difference is creating issues related to type of service, tariff of service, and new form of VoIP services that has not follow the national regulation. The scenario for this study is to compare the two different schemeproviders in several aspects: infrastructure, traffic, tariff, regulation, and QoS (Quality of Service). Recommendations resulting from this research is about how to make a fair regulation of VoIP. With proper regulation, the unregulated providers will change to a regulated provider, and will cooperate with the telecommunications network operators. This scheme will provide benefits for users and operators, as well as service providers. II. VOICE OVER INTERNET PROTOCOL [1] As depicted in Figure 1, VoIP is consisting of voice A/D conversion and packetization. This step is also known as voice coding. Voice coder is converting the analog voice into digital form and change it into packet form before it is sent to the network. Voice coder could be classified as waveform coders and vocoder. Waveform coders is a coder with sampling rate 8000Hz. Bit rate achieved by this coder is 64 kbps. The standard for waveform coders is regulated under ITU recommendation number G.711. Vocoder is also known as parametric coder. This coder is taking samples and divides it
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into 25ms frame. The example of vocoder is Linear Predictive Coder or LPC. The characteristic of LPC is low bit rate,
Figure 1 VoIP Basic Concept [1]
Simple and low quality. Another example of vocoder with a better quality is ACELP or Adaptive Codebook Excited LPC. The standard for this coder is regulated under ITU recommendation number G.729. This voice coder is commonly used for VoIP services. The comparison of voice coding characteristic is shown in Table 1 as follow TABLE 1: VOICE CODING CHARACTERISTIC [2]
VoIP could be classified based on architecture and ownership of VoIP network provided for the user. The classification is depicted in Figure 2. As seen in Fig.2, VoIP could be classified in four classes as follow: VoIP in the backbone Facility Based VoIP VoIP over Broadband P2P VoIP VoIP in the backbone class uses circuit – switching to the end user and packet – switching in the core network orbackbone. Telecommunication operators mostly use this type of VoIP for their backbone network to transport traffic for long distance. The characteristic of this class is a reliable voice communication and the telecommunication operator acts as network operator and service provider. The second class is facility based VoIP. This type of class is using packet – switching for end – to – end communication. The example of this class is Voice over Cable (VoCable) provider or Voice over Digital Subscriber Line (VoDSL).The third class is VoIP over Broadband. In this class the Internet Service Provider (ISP) and the VoIP service provider is not the same entity. The fourth class is P2P VoIP. In this class a customer downloads a free voice-enabled application and communicates by using any form of internet connectivity. Skype is classified in this type of VoIP class. III. REGULATED VOIP
Voice coding chosen for VoIP services is depending on the trade – off between voice quality and bandwidth efficiency. The voice quality could be valued by using Mean Opinion Score (MOS) indicator. The highest score is 4 and the lowest score is 1. Number 1 is represents the worst quality and number 4is represents the best quality.The best quality is affecting the huge bandwidth allocation that requires a lot of investment. Internet application is generally uses TCP/IP protocol for the communication. For VoIP implementation, protocol used is Real-time Transport Protocol (RTP) and User Datagram Protocol (UDP) through IP.
At this follow
time VoIP regulated-providers in Indonesia are as Telkom with access code 01017 Telkomselwith access code 01017, 01052 Indosatwith access code 01016 Excelcomindowith access code 01000 Axis with access code 01012 3 Indonesia with access code 01088, 01089 AtlasatSolusindowith access code 01018 Gaharu Sejahtera with access code 01019
The infrastructure for international connection using regulated VoIP is shown in Figure 2 and Figure 3. Figure 2 is the international connection using PSTN network, and Figure 3 is the international connection using cellular network.
TABLE 2 VOIP CLASSIFICATIONS [3]
Figure 2 Public Switched Telephone Network Infrastructure [4]
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Fig 2 shows that international connection is done through International Gateway that connects call originated from Indonesia. The international gateway is connected with fiber optic cable to Singapore or Malacca, Malaysia. For 2G and 3G networks, the infrastructure used is depicted in Fig 3. At this time, VoIP communication process in cellular technology used in Indonesia is not an end – to – end IP process with packet switching, but it is still using circuit – switching for end user and using packet – switching for backbone. For 2G end – user is connected to Base Transceiver Station (BTS) then to Base Station Controller (BSC). For 3G end – user is connected to Node B and then to Radio Network Controller (RNC). BSC and RNC are connected to Serving GPRS Support Node (SGSN) and then connected to Gateway GPRS Support Node before it is connected to international gateway.
Figure 4 Skype Infrastructure [5]
As a Peer – to – Peer network there are three main components in the infrastructure of Skype, login server, Skype client, and super node. Login server is for user authentication before the user could enter Skype network. Calls are originated from Skype client. Several Skype clients are connected to super node with one specific public IP address.
V. ANALYSIS
Figure3. 2G and 3G Infrastructure
The regulated VoIP provider is guaranteed so that the user or the customer is experiencing the reliable communication. IV. UNREGULATED VOIP Unregulated VoIP is VoIP services provided by provider outside the regulated VoIP, which is broadly known as over – the – top service or OTT.OTT services do not depend on one particular telecommunication network since they don’t have their own private network. One of the most popular VoIP services especially for international connection is Skype. Skype is becoming the cheap alternative for voice communication, especially for international call. Skype was released on August 2003 and on May 10th 2011 Skype Communications was acquired by Microsoft Corporation with value US$ 8.5 billion. The acquisition process was done on October 13th 2011. Skype as an OTT service doesn’t have its own network to communicate. It uses common internet network owned by network provider such as telecommunication operator. Common internet network’s characteristic is a best – effort network. So the quality is not guaranteed.
The existing regulated VoIP service in Indonesia is not an IP end – to – end service. Connection from end – user is still using circuit – switching method. Packet switch method is used in backbone or core network of the infrastructure. This type of service is classified in VoIP in the backbone class. International call could be executed from PSTN or from mobile phone using the telecommunication network owned by telecommunication operator or provider. Since the service owner and the infrastructure owner is the same, they guarantee the connection and call quality executed in their network. In the unregulated VoIP such as Skype, international call is made through common internet network because Skype has no dedicated network. Common internet network has no guarantee on quality of service because it is a best effort service. So Skype has no guarantee on the call quality and connection reliability. VoIP traffic is using Real – time Transport Protocol. In traffic analysis, it required to define bandwidth needed to calculate the resource allocation. VoIP is commonly using G.729 as voice coding. Voice conversations generally consist of 35 – 50% silent time or no conversation happen. VoIP is using Voice Activity Detection or VAD to reduce bandwidth. By using VAD RTP is only sent when voice is detected. All VoIP packets are consisting of two components, voice sample and IP/UDP/RTP header. This header size is always 40Bytes. By using RTP header compression header size could be reduced to 2Bytes. Formula to calculate bandwidth is depicted as follow: L3 L2 8 PPS (1)
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Payload is voice sample, L3 is layer 3 (IP/UDP/RTP), L2 is layer 2 (Ethernet, frame relay, or point – to – point protocol). With assumption voice coding used is G.729 with RTP header compressed (CRTP), L2 is PPP or point – to – point protocol, so bandwidth could be calculated as follow:
20 byte 2byte 6 byte 8 " 50 pps
TABLE 3: TARIFF COMPARISON
bits % byte
28 400 11200 bits per second 11.2 kbps As comparison, GSM traffic needs 13 kbps per user per call. So when we calculate the resource allocation per minute: GSM: 13 kbps * 60 s = 780kb = 780 k: 8 = 97.5*103Byte = 97.5KB VoIP (G.729) : 5.6 kbps * 60 s = 336 kb = 336 k: 8 = 42KB Comparison between GSM and VoIP: 42 100% 43.077% 97.5 It is seen that VoIP is 43.077% more efficient in terms of resource allocation than GSM. So when the capacity is the same, VoIP could handle 2.32 more calls than GSM. Tariff for international call using regulated VoIP is depend on service provider or telecommunication operator. In regulated VoIP, the service provider is also the network owner. This is affecting the tariff of the services because there are cost components such as operational and maintenance of network and interconnection charge. Shown in table below the comparison between Skype tariff, regulated VoIP tariff, and international call non VoIP.
Regulated VoIP tariff used to compare with Skype tariff is mobile – mobile international call with access code 01018 under assumption this tariff is not a promotional tariff. It is depicted in Table 3 that comparison between Skype tariff and regulated tariff is 32.08% for destination call to Singapore and USA. For destination call to UAE Skype is 63.79% cheaper than regulated tariff, and for Germany Skype is 7.13% cheaper. So the average comparison is Skype tariff 33.77% cheaper than regulated VoIP tariff. Regulation related to VoIP or internet telephony service in Indonesia is only for service provided by network operator such as telecommunication operator and other listed provider.Service provided by Skype is similar to service provided by telecommunication operator in the international connection market. This condition could be harmful for telecommunication operators who rely on revenue generated from voice communication. Every country has different point of view regarding unregulated VoIP services such as Skype. Different point of view will affect the decision while making regulation related with this service. However from user’s point of view VoIP services is considered functionally equivalent with conventional telephone services. From regulation’s point of view it is considered important to have such regulation for all kinds of VoIP services and the implication to conventional telephone regulation. Comparing the regulation in Indonesia with other countries is important so that regulatory could find the appropriate form of regulation with considerations related to condition in Indonesia market of international call. In ICT Regulation Toolkit [6] there are three different VoIP market depending on market condition in the country.
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TABLE 4: VOIP REGULATION [6]
VI. CONCLUSION AND RECOMMENDATION It is concluded from analysis that regulated VoIP provides guaranteed international call through dedicated network. For unregulated VoIP there is no guarantee on quality of service since there is no dedicated network. The existing regulation does not include VoIP services provided by OTT services such as Skype. This will affect the sustainability of telecommunication operator in the future. By using voice coding G.729 with compressed RTP and VAD VoIP could reduce resource allocation 43.077% compared to GSM. This efficiency means that VoIP could handle more traffic than GSM using the same capacity. Tariff offered by Skype is 33.77% cheaper in average than tariff offered by telecommunication operator. From the analysis result we recommend that there should be a clear definition of unregulated VoIP service such as Skype especially for international connection. All international connection should go to International Gateway first before routed to designated country. This recommendation is illustrated in Figure 5.
The advantage of this recommendation for user is there is guarantee on the service quality and connection reliability and in the end will increase the customer experience. The advantage for telecommunication operator is a new revenue stream from network lease and interconnection charge as result from the cooperation between telecommunication operator and Skype. Another advantage is the market position of telecommunication operator in international connection market. The advantages for government are the revenue from interconnection and monitoring the international traffic By using the recommendation proposed, there will be a new form of Skype services, especially in terms of quality of service and tariff scheme for Skype services using infrastructure belong to telecommunication operator. Suggestion for further research is about regulation formula related to VoIP services specifically for Skype and for other OTT services in Indonesia. The expectations from the new form of regulation are the application of the new technology could be implemented and give advantages to users and existing telecommunication operator. REFERENCES [1] Roger L. Freeman, “Fundamentals of Telecommunications”, Second Edition, 2005 [2] www.cisco.com/en/US/tech/,“Voice Over IP – Per Call Bandwidth Consumption” [3] http://web.mit.edu/chintanv/www/Publications/MIT_TPP_Thesi s_Chintan_Vaishnav_Final.pdf [4] www.telecomlearningcentre.com/catalog/product [5] Controlling Skype: Network Overview, Skype Login and Fort iGATE Configuration to block Skype, 10 July 2009 [6] www.ictregulationtoolkit.org/en/Section.3579.html
Figure 5. Recommendation VoIP International Connection
To make an international call user A should connect to VoIP gateway first then to tunnel in IP cloud owned by telecommunication operator and then to VoIP gateway before it is routed to user B in other country. With the dedicated link and VoIP gateway the quality could be maintained.
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