The ISP Column
An occasional column on things Internet
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Infrastructure ENUM

March 2007
Geoff Huston



  After much initial fanfare a couple of years ago ENUM has matured to
  a state where it is currently yet another under-achiever in the
  technology deployment stakes. ENUM initially presented itself as a
  very provocative response to the legacy telco position of
  monopolising public voice services through their exclusive control
  over the Public Switched Telephone Network (PSTN) and the associated
  controlling position over the telephone number space (the so-called
  "E.164" number space, after the ITU-T recommendation E.164 which
  recommends country code assignments for switched telephony
  services). The perception was that ENUM was going to dismantle these
  levers of control and open up the voice market to a new wave of
  competitive carriers. If the address plan was the key to the PSTN,
  then ENUM was intended unlock this network and position the new wave
  of Voice Over IP (VOIP) carriers to take over any residual treasures
  of the traditional voice market.

  Events have not played out according to these expectations, or at
  least not yet, and not via ENUM as it was originally conceived. Yes,
  there is a lot of VOIP happening, from user services such as Skype
  and Google Talk through to VOIP systems that have pretty much
  replaced the historic PABX configurations. But ENUM itself is not
  taking over the voice services world. We have yet to see a major
  change in the major regulatory regimes to head beyond limited scope
  "ENUM trials" and to open up their entire national number space to
  ENUM registration. We've yet to see end users in a position to
  exercise complete and total control over the manner and type of
  service delivery associated with their phone number.

  ENUM, it would appear, is languishing quietly in an increasingly dim
  and dusty regulatory corner.

  But that does not mean that the VOIP industry has been passively
  waiting for interest in ENUM to pick up. Indeed, a widely held view
  is that the original concept of ENUM completely missed the target
  and that the real leverage of ENUM is not as a service for end users
  to express their preferences, but as a means of inter-carrier
  signalling, or "Infrastructure" ENUM as distinct from the original
  concept of "User" ENUM. In this article I'd like to look at the
  current state of Infrastructure ENUM and look at the tensions that
  this topic has raised between the open and closed service models.

        A Recap of User ENUM

        If you are attached to a VOIP network that is connected to the
        wider PSTN network via some kind of VOIP gateway and you make
        an outgoing call, then how should your local gateway route the
        call? The initial operation is to see if you are calling
        someone else that is behind the same VOIP gateway, in which
        case the call can be completed locally via VOIP. If not then
        the only thing the gateway can do is to pass the call request
        out into the PSTN for call completion, and pay the PSTN the
        standard call termination charges to complete the call. But if
        your local VOIP gateway had a means of access to "complete"
        knowledge of the ways to reach every dialled number, then if
        the number you called was in some other carrier's VOIP world,
        then, ideally, your gateway could avoid using the PSTN to
        complete the call, and simply route the call via IP to the
        corresponding called party's VOIP gateway.  

        From this perspective, the core User ENUM problem is how to
        support a PSTN bypass function. In other words, how can a VOIP
        gateway dynamically discover that a called number maps to a
        VOIP service that is directly reachable via the Internet,
        without resorting to the PSTN.  

        The approach taken by User ENUM is to use the public DNS as
        the discovery mechanism. The starting point is where clients
        publish their call preferences using the DNS. If I wish to be
        reachable via SIP, for example, I use the DNS to associate my
        conventional E.164 number with a SIP address. I create a DNS
        zone using a transform of my phone number and then insert a
        Resource Record in this DNS zonefile that references my SIP
        URI. The calling party (or its agent that is attempting call
        completion) uses a DNS lookup to establish my call
        preferences. It applies a simple transform to the E.164 called
        number to generate a DNS query, and the DNS responses describe
        the set of services that are associated with that number, the
        called party's relative preferences and the description of the
        rendezvous point to actually complete the requested
        transaction. My SIP URI is returned and the call can be
        completed using SIP.  

        So this is "User" ENUM. A zone of the public DNS (e164.arpa)
        is populated with E.164 PSTN numbers Each complete E.164
        number is a terminal DNS zone, and is populated with a
        collection of service rendezvous URIs. This is an opt-in
        multi-service where each E.164 number may be added into the
        DNS, and the contents of the zone file reflect multiple
        services that may be provided by multiple different service
        providers.

  For all its virtues, "User" ENUM really hasn't happened yet. Yes,
  there are trials, but mass deployment in the scale of hundreds of
  millions of ENUM entries in the DNS has proved challenging so far.

  There are a number of factors here that may explain this
  situation. It can be quite a complex operation to correctly populate
  an ENUM DNS zone, and there is the question of who should be
  maintaining the user's zone. Given that a user may want to use
  multiple service providers for different services, then how do
  multiple service providers each maintain a subsection of a single
  DNS zone without treading on each other's toes? And whose E.164
  number is it anyway? If I cancel my PSTN service can I still use the
  same number exclusively for SIP calls? But within all these
  potential factors, perhaps the most significant one is that most, if
  not all, of the traditional PSTN operators see ENUM as a threat
  rather than an opportunity. ENUM allows users to exercise
  fine-grained control over service selection, with the potential of
  constructing a highly volatile and very price sensitive environment
  voice market where the user has complete control over service
  selection on a scale of hours or even minutes. For incumbent
  telephone operators this is undoubtedly a nightmare of the worst
  order, and ENUM represents a future that simply has to be resisted
  in any and every possible way.

  Even the oft-touted dreams of E.164 phone numbers taking up the role
  of a universal identity schema so that one number could lead to your
  web page, your SIP service, your mailbox, and so on, were perhaps
  just another instance of incredibly wishful thinking on the part of
  an insatiably voracious DNS name registration industry. The issue
  here appears to be that ENUM is simply pushing too hard against a
  well-entrenched incumbent PSTN voice industry, for whom ENUM
  represents a future that simply is not aligned to their perception
  of self-interest.

  So if User ENUM is having such a hard time, why has Infrastructure
  ENUM managed to spark some interest? One possible reason is that
  Infrastructure ENUM services a slightly different client base. These
  clients, the competitive voice carriers, have similar cost
  minimization motives to end users, but also have a far greater
  ability to translate such motivations into outcomes.

What do the Competitive Carriers want from ENUM?

  ENUM takes on a different guise from the perspective of a
  competitive VOIP-based carrier. From this perspective, ENUM is an
  efficient way to dynamically discover the ultimate identity of the
  terminating carrier, their preferences in the way in which the call
  should be terminated, and the termination rendezvous point. It's not
  the preferences of the end-user here, but the end-user's VOIP
  service provider's preferences that are important. This is what is
  being referred to as "Infrastructure ENUM".

  In theory, infrastructure ENUM could be considered to be somewhat
  unnecessary, as it appears to duplicate the role of the SS7/C7
  signalling mechanism in the PSTN framework. So why is infrastructure
  ENUM of interest to VOIP carriers? As is usual in things ENUM, the
  answer turns inevitably to money. Not only does SS7 equipment
  represent a considerable financial and technical investment for a
  competitive carrier, but SS7 is, in effect, no more than a PSTN
  traffic director. If the primary objective of the signalling system
  is to discover the cheapest possible call termination path for any
  call across all possible transports, then SS7 and the PSTN are
  generally a last resort, and the most valuable information for
  competitive carriers relates to alternative IP-based call
  termination mechanisms that would be used in preference to the PSTN.

  From the competitive VOIP carrier's perspective infrastructure ENUM
  is not really about the end users' fine-grained preferences relating
  to local service preferences. It's actually about call termination
  options for number blocks and leverage of the Internet as an
  inter-VOIP transit network. Infrastructure ENUM is about dynamic
  discovery of the terminating carrier's preferred call termination
  paths that bypass the imposed inter-carrier SS7-defined paths across
  the PSTN, and, consequently. It's about creating sufficient impetus
  to re-define inter-carrier call accounting settlement regimes and
  related call termination fees. The essential characteristic of
  infrastructure ENUM is that its all about describing entire E.164
  carrier number blocks, rather than opted-in individual end user's
  numbers, and it's motivated by redefining the financial aspects of
  inter-provider arrangements, rather than publishing the end user's
  individual preferences.

  Infrastructure ENUM is ideal for competitive voice carriers to
  announce to other carriers a collection of rendezvous points for
  termination of services that relate to calls made to numbers within
  their number blocks. Infrastructure ENUM is logically populated by
  number blocks rather than individual numbers, for which the carrier
  is the nominated carrier of record. Infrastructure ENUM allows
  carrier to announce the services that the carrier is willing to
  terminate and the associated rendezvous points that will perform
  service termination. It allows the carriers to undertake call
  service termination bilaterally, removing any third party
  intermediaries from the picture, and also removing any associated
  forms of call termination fees and call accounting settlements that
  these intermediaries would normally impose on these competitive
  carriers. This is why Infrastructure ENUM, or I-ENUM, is a topic of
  persistent interest in this industry.


I-ENUM

  The promise of I-ENUM is best seen with an example. Imagine that you
  are a PSTN carrier that supports IP-based services internally, and
  you are using E.164 numbers for called party identification when
  undertaking service completion operations. So VOIP, MMS, SMS, and so
  on, are all terminated to a a service termination point using E.164
  numbers as the lookup token into some service database. When
  presented with a call request then the only available database to
  consult is the E.164 number database, and to achieve this you need
  to launch an SS7 request, and you'll get back an E.164 record, a
  carrier of record for that number and a path to complete the
  call. But what if you don't like the answer? What if you with to use
  IP-based carriage services to bypass any intermediate PSTN carriers,
  and perform the call completion function directly with the
  terminating carrier, avoiding forced intermediate carrier-imposed
  settlement changes?

  Here I-ENUM comes into play. I-ENUM is an ideal way for VOIP
  carriers to selectively announce to other VOIP carriers a set of
  rendezvous points for service termination. Its an implementation of
  an inter-carrier PSTN bypass, if you want to look at it that way.

  Mechanically, the approach is to announce in some I-ENUM DNS domain
  the E.164 number block for which this carrier is the
  carrier-of-record, and populate this DNS zone with the description
  of the services that the carrier is willing to terminate, and
  nominate the IP rendezvous URI that performs service termination in
  the terminating carrier's network.

  So it's the same ENUM technology, but now it's the carriers
  attempting to undertake the discovery and termination operation
  relative to the terminating carrier rather than relative to the end
  user. The operations are similar to ENUM, but translated into a
  carrier context:
     - Identify the service being requested
     - Lookup the called number in the I-ENUM DNS domain
     - Select the terminating carrier's URI for a compatible 
       terminating service entry that is published against an 
       enclosing number block entry.
    - Complete the call request using a service rendezvous operation

[Figure 1 - Infrastructure-ENUM and User-ENUM]

  It appears that what carriers want from ENUM is the ability to
  selectively disclose E.164 called numbers to nominated terminating
  service bindings that are accessible to certain other carriers at
  specified rendezvous points. They would like this disclosure to be
  under the full control of the terminating carrier, and that the
  information disclosed by the terminating carrier to be relative to a
  nominated carrier's query, rather than being a unilateral act of
  publication for any party to query. In other words they would like
  the answer to be variable, depending on the party making the
  query. They would like number blocks to be described via this
  mechanism, and the publication framework to be maintained with a
  minimal provisioning overhead and minimal operating
  expenditure. What the carriers want is for the originating and
  terminating carriers to be jointly in full control of their service
  interconnection policies, and for the products of these policies not
  to be unnecessarily exposed to a wider audience. So neither the
  number blocks, the services, the rendezvous points or the bilateral
  interconnection arrangements are necessarily to be exposed to a
  wider audience here.


Implementing I-ENUM

  It appears that the industry knows, roughly, what it wants, but the
  means of achieving it are not so clear.

  The approaches to I-ENUM appear to be along the lines of:
    - splitting the existing ENUM DNS delegation hierarchy into 
      multiple trees close to the root of the hierarchy and operate 
      ENUM and I-ENUM as parallel and distinct hierarchies, or
    - work at the ENUM terminal point and enrich ENUM with further 
      DNS Resource Records and query sequences, or
    - use 'private' ENUM contexts.


  A - Splitting the DNS ENUM hierarchy

  This approach to Infrastructure-ENUM uses the same NAPTR DNS
  Resource Record entries as User-ENUM, and uses the same general
  lookup mechanism to resolve a called number to a collection of
  URIs. Here the regular expression substitution capabilities of
  NAPTRs can be used to take a general NAPTR resource record form and
  generate a called-number specified rendezvous URI to perform call
  completion.

  This approach has no change to ENUM Resource Records, no change to
  NAPTR capabilities, and no change to the operation of the DNS.  It
  just relies on a split ENUM DNS hierarchy, as indicated in Figure 2,
  where a new DNS tree, named something like "ie164.arpa" would hold
  I-enum records, while leaving "e164.arpa" to continue to contain
  User ENUM records.

[Figure 2 - Split ENUM hierarchy for I-ENUM]

  And here's where the problems start!

  The e164.arpa ENUM hierarchy was a significant challenge to all
  concerned. Representing one realm's identity space within another
  quite distinct identity realm is invariably ill-advised, and more so
  when the political framework that governs to two realms differ
  markedly. The E.164 number space has its challenges, where, oddly
  enough, "countries" are sometimes difficult to define and difficult
  to deal with.

        The classic example of the "country problem" in the E.164
        context is Taiwan. Yes, you can place a phone call to a
        Taiwanese number in most parts of the world, but you'll not
        find the country "Taiwan" listed in the E.164 number plan
        under any alias whatsoever. Its just not there!  And its not
        in ENUM as a consequence of the ITU-T and IETF arrangements
        over ENUM governance that allow the ITU-T the right of veto
        over the inclusion of country code entries in the e164.arpa
        DNS space. So how can country dial code for Taiwan exist
        within the PSTN, yet be completely excluded from ENUM? The
        answer is that the nature of the inter-governmental treaty
        arrangements that lie behind the ITU allow some member states
        to exercise a veto on the recognition of others as peer member
        states, and Taiwan is the subject of such a veto. In the PSTN
        world this is not exactly an insurmountable problem, in that
        PSTN operators can add additional configuration entries into
        their international switches that in essence 'synthesise'
        Taiwan as if it had its own country code. And by some
        coincidence almost every country has decided to use the same
        E.164 country code. The DNS is not so flexible in this respect
        and a similar approach to mapping +886 into 6.8.8.e164.arpa
        using informal local arrangements simply does not work that
        way!
  
  So if ENUM has presented some particularly tough challenges, why
  would I-ENUM be any easier to construct? Why is there a need to
  create a second DNS hierarchy that maps from E.164 to DNS resource
  records? Why does this require the involvement of member states of
  the ITU-T? Why would any service provider ask for higher levels of
  government intervention and regulatory control in competitive
  signalling infrastructure? The question is relevant because the use
  of "ie164.arpa" for I-ENUM will require government approval and
  involvement, and in deregulated regimes this is precisely the
  opposite of the current regulatory direction.

  Another aspect of the emerging service industry is that there is no
  longer a uniform scenario of monolithic all-inclusive service
  providers, and instead we have a variety of actors, some of whom
  specialize in offering only a small selection of services. If we
  want to preserve user choice here then we probably need to get back
  to addressing the basic ENUM problem of many hands wanting to edit
  the same DNS zone file. If we don't wish to bias I-ENUM for this
  monolithic single vertically integrated service provider world then
  you have the problem of multiple service entities wanting to
  maintain their service record within the same DNS zone file. So the
  basic question here how do you know that 2 DNS "trees', namely
  e164.apra and i164.arpa, are enough? And if not, then how many trees
  really is enough? Who gets to make that decision?  We have been here
  before, by the way, and in that case ENUM was seen as being the
  solution, not the problem!

        Earlier work in this space by Marshall Rose in 1992 used the
        same approach of placing rendezvous information in the DNS,
        using a transformed E.164 number as the lookup key into the
        DNS hierarchy rooted at "tpc.int". Here the exercise was not
        call termination, but fax termination, where the A record in
        the DNS mapped to an internet termination point was capable of
        completing the 'last mile" as a true fax. A messaging paging
        service was later added using a new hierarchy of E.164
        numbers, in a tree rooted at "pager.tpc.int". The implication
        was that each additional service implied a need to create and
        populate a new DNS tree of the form <service>.tpc.int.

        ENUM was a way of combining all these service-specific DNS
        hierarchies into a single number hierarchy, where the services
        are placed in resource records at the leaves of the tree,
        rather than creating a multiplicity of service-specific trees.

  It seems to me that ie164.arpa, and its variants that also rely on a
  split of the DNS tree, is not really an answer to the carrier's
  needs in this space. It manages to bring back into focus the
  relatively ad-hoc arrangements between the IETF and the ITU-T that
  did resolve the situation in terms of control of the number space to
  any party's satisfaction, without any new insight that might make
  this task more straightforward the second time around, and contains
  no promises that this won't occur a third time, or even more!

  It appears, sensibly, that we are somewhat reluctant to simply
  repeat the mistakes of the past, and the concept of multiple
  instances of the entire E.164 number space in the DNS is not one
  that looks like it is the most appropriate way of supporting
  I-ENUM. But we are nothing if not endlessly creative, and the next
  proposal is that each national regime start its own infrastructure
  enum hierarchy just below the country code. So if you happen to look
  at Australia (E.164 country code of 61), then the enum DNS
  delegation tree is a 1.6.e164.arpa, and the infrastructure enum tree
  for Australia would be rooted at "infra.1.6.e164.arpa."  Of course
  not every country code in the E.164 recommendations is a two digit
  code. The North American numbering plan uses the E.164 code is 1,
  while many other countries use a three digit code. Aside from
  loading static tables (something we are trying to avoid in this
  entire dynamic information discovery domain), how do you know which
  country code is of which length? And would every national regime use
  the English abbreviation "infra" to label its infrastructure ENUM
  hierarchy?


  B - More games with NAPTRS

  It appears that the "ie164.arpa" is incapable of meeting all the
  various service-specific requirements that may arise from I-ENUM,
  and that a more general approach is a collection of DNS hierarchies
  of the form <service>164.arpa. But this is also a relatively
  unattractive solution, in that it tends to create more and more DNS
  hierarchies.

  The original ENUM concept was to compress these multiple trees into
  a single instance and use a set of NAPTR resource resources to
  describe the set of services associated with an E.164 number. Could
  this be extended to include I-ENUM requirements? The idea here is
  that the service records are not placed in a single DNS zone file,
  but are themselves further points of delegation, allowing the user
  to delegate DNS zones for individual services.

  There is a proposal intended to achieve precisely that by
  introducing a number of modifications to the syntax and semantics of
  the NAPTR DNS resource records to allow for NAPTR records that point
  to further delegation zones rather than terminal entries. This is
  intended to allow a leaf ENUM zone file to contain service-specific
  entries that in turn point to service-specific DNS zone files. This
  allows a distinction to be drawn between the queries of what
  services are associated with a particular E.164 number and what URIs
  are the rendezvous points for these services. An example of this
  approach is shown in Figure 3.

    DNS information

    $ORIGIN 3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.
      NAPTR 10 100 "u" "E2U+sip" "!^.*$!sip:info@example.com!"  .
      NAPTR 10 102 "u" "E2U+msg" "!^.*$!mailto:info@example.com!"   .

      NAPTR 10 100 "d" "E2U+sip" "" 3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.
      NAPTR 10 102 "d" "E2U+msg" "" 3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.

    $ORIGIN _e2u.3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.
      _sip   NS  sipservice.example.com
      _msg   NS  mailservice.example.com

    $ORIGIN _sip._e2u.3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.
      . URI 10 10 "sip:info@example.com"
      . URI 10 10 "sip:info@example2.net"

    $ORIGIN _msg._e2u.3.8.0.0.6.9.2.3.6.1.4.4.e164.arpa.
      . URI 10 10 mailto:info@example.com

[Figure 3 - Delegated service rendezvous descriptions in the DNS]


  What this ends up is still a rather unsatisfying compromise. On the
  positive side this approach avoids endlessly replicating ENUM
  delegation trees for each service type, and it avoids the
  administrative problem of multiple service providers attempting to
  edit the same single DNS zone file, which, in general is Good. On
  the other hand this does represent more load on the DNS, with yet
  another Resource Record type (the URI type) and another layer of
  indirection when attempting to query the DNS, which is Not So
  Good. However, it still exposes the inter-carrier service rendezvous
  points to public view and exposes inter-carrier signalling to public
  view, which is probably Bad. It requires the inter-carrier
  information to be placed at the leaf of the ENUM delegation tree,
  and not at the higher point in the delegation tree that corresponds
  precisely to the carrier's number block, and this is just plain
  Ugly!

  As far as I can see, both these approaches fail in critical ways. If
  the desire from I-ENUM is the ability to perform selective
  disclosure of information then these approaches simply fail to meet
  that objective. From the carrier's perspective there is an evident
  aversion to make this inter-carrier service termination information
  generally available to the public because of the ever-present risks
  of exposing the service to denial of service attacks and attempts to
  subvert the service. And the desire to disclose responses that may
  vary according to the carrier performing the query is to implement
  bilateral interconnection policies that may entail different
  services being exposed to different carriers.

  So is I-ENUM looking for answers in all the wrong places? Is DNS
  just the wrong tool to implement these requirements?

  Perhaps not, but here we need to consider the differences between
  "public" and "private" DNS capabilities.


  C - Private I-ENUM

  Another approach to the I-ENUM requirement is to use ENUM
  technology, but base this upon a private DNS structure that is not
  part of the public DNS hierarchy. There is no doubt that as far as
  distributed databases go DNS is a remarkably slick, efficient and
  cheap solution, and possibly it really the best in its class. So if
  the problem is just the "public" part of the public DNS, then
  another approach is to continue to use the DNS, but use a private
  DNS hierarchy.

  Private DNS allows each carrier to craft its DNS advertisement to
  suit individual interconnection arrangements, and through DNS
  filters and DNS selective response generation only divulge
  information to the correct querying party and only expose service
  rendezvous points according to the associated interconnection policy
  with the carrier in question.

  This approach does not require any additional DNS Resource Records,
  nor does it create a multiplicity of service-specific ENUM DNS
  hierarchies, nor does it create the situation of multiple distinct
  service providers all attempting to edit parts of a single DNS zone
  file. Just as critically, private DNS approaches can be accompanied
  by various forms of restricted access to the DNS service. The
  implication is that service rendezvous points are not unilaterally
  published in a relatively hostile world. The service rendezvous
  points, and the number blocks under the control of each carrier are
  not implicitly passed into the public domain through use of private
  ENUM.

  There is no compelling need to have inter-carrier service
  termination information made public through a public DNS I-ENUM
  model, and there are strong arguments why the opposite approach of
  private bilateral information exchange is a better fit to the actual
  inter-carrier industry dynamics here. It should come as no surprise
  to learn that in this space I-ENUM as a private DNS solution is
  already replete with vendors, products, customers and carrier users.


I-ENUM and The Standards Perspective

  The IETF's ENUM Working Group has been considering I-ENUM for some
  years, taking the general approach of adapting the User ENUM
  structure in e164.arpa as the starting position. This activity has
  served to highlight the observation that the requirements for end
  user preference settings in U-ENUM are intrinsically quite different
  for carrier interconnection policy expression in I-ENUM. The general
  directions of the ENUM WG's efforts to resolve this difference
  between the ENUM requirements are described above. Interestingly,
  the ie164.araa-styled approach using a Branch Location Record
  remains a Working Group item, and appears to have reached a
  consensus position in the Working Group. The next step is that of
  publication as a Proposed Standard in the IETF.

  But if the industry's preferred approach truly lies in the direction
  of private DNS approaches then this calls into question the
  potential role of the IETF in defining technology to support the
  information exchange between various forms of service
  providers. Should the IETF embark of a rather difficult path to
  standardize a second E.164 hierarchy within the DNS and once more
  embark on a rather complex conversation with the ITU-T over relative
  roles and responsibilities for this administration of this second
  ENUM domain? Should the IETF embark of standardization of an
  information model for carrier inter-connection that has some
  distinct implications on the types of inter-connection arrangements
  that can be supported within this standards framework? Who should be
  setting business roles for carrier-to-carrier interconnection? Is
  this logically or practically within the purview of the IETF?

  This appears to be a case where standards cannot provide a complete
  framework in addressing the various requirements and managerial
  perspectives where the DNS and the E.164 identity spaces are made to
  intersect. While technology folk can reach a consensus position that
  a particular technology is viable and can produce running code, the
  ultimate acceptance of that standard by industry players relies on
  the additional constraint that the standard serves a real need, and
  does so in a manner that at the very least does not constrain the
  actions of these industry players.

  Perhaps the problem is actually with the industry itself, and the
  underlying extent of the changes that are happening within the
  industry as VOIP-based competitive carriers grow into being
  significant players in the voice market.


The Emerging Realities of the Global PSTN Industry

  If the competitive VOIP-based voice carriers can leverage VOIP and
  Infrastructure ENUM to dismantle the dominance of the conventional
  regulatory-inspired call termination paths and the associated
  inter-PSTN operator call accounting regimes then it is possible that
  we will witness a "perfect storm" for the traditional PSTN
  providers.

  VOIP providers are completely uninterested in "call minutes". The
  revenue stream from the customer comes in the form of a fixed
  monthly fee, and in this environment variable costs are
  unacceptable. Consequently the VOIP carriers are demanding "bill and
  keep" arrangements as opposed to call minute-based inter-carrier
  compensation. The additional motivation here is that not only does
  call accounting introduce variable costs into a fixed revenue
  business sector, but the costs imposed on the industry to perform
  this form of financial settlement range from the sublime to the
  outrageous!

  So it is possible that the combination of VOIP, Infrastructure ENUM,
  end-to-end IP carrier-to-carrier services without forced PSTN
  intermediation, bill and keep services, the avoidance of SS7 and
  PSTN transit paths all combine to make a mutually supportive set of
  factors that just might force the residual PSTN carriers completely
  out of the voice market. This indeed would be a revolutionary
  outcome for the Infrastructure ENUM effort!











Disclaimer

  The above views do not necessarily represent the views of the Asia
  Pacific Network Information Centre.



About the Author

  GEOFF HUSTON holds a B.Sc. and a M.Sc. from the Australian National
  University. He has been closely involved with the development of the
  Internet for many years, particularly within Australia, where he was
  responsible for the initial build of the Internet within the Australian
  academic and research sector. He is author of a number of Internet-
  related books, and is currently the Chief Scientist at APNIC, the
  Regional Internet Registry serving the Asia Pacific region. He was a
  member of the Internet Architecture Board from 1999 until 2005, and
  served on the Board of the Internet Society from 1992 until 2001.

  www.potaroo.net