A Practical Navigator for the Internet Economy

Voice Over IP Near Inflection Point?

Windows XP & Maturing of SIP Based Components May Create Large Swing of Voice Traffic to IP Networks

Jonathan Rosenberg Describes Elements of VOIP Infrastructure & Operation

pp. 1-10

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With the forthcoming release of Windows XP and Windows Messenger which contains Microsoft's first implementation of a SIP Client, some folk are saying that the stage is set for the creation of a very significant global Voice over IP infrastructure. We set out to find out what the commotion was all about. The first 16 pages of the November COOK Report contain the results of our investigation. The question of whether the technology is coming together in such a way as to create an 'inflection point' that will mark a large and growing shift of voice traffic onto the Internet and other IP networks occurs. While these events are significance, we suspect that three things will ensure that they do not become an significant inflection point. One: Microsoft via linking of Windows Messenger to Passport will try to create its own walled garden. Two: SIP products are not yet totally interoperable. Three: Corporate inertia will slow the distribution of SIP proxy servers.

Our interview with Jonathan Rosenberg one of the co-authors of SIP showed us that from softswitches, to SIP proxy servers, to gateways and to application and security servers a very large part of the functionality of the circuit switched voice world has now been transplanted to IP network infrastructure.

Three years ago the idea was that a softswitch would carry out almost all of the functions of the emulating the requirements of voice calls over an IP network. More recently, however, the process of designing functionality for an edge controlled Internet environment has led to the decomposition of softswitch functionality into various kinds of servers. [Snip]

Infrastructure and Business Model Issues

Windows XP Seen as Generator of VoIP in the Enterprise

XP: New Source of Competition for SIP Proxy & PSTN Termination Services Proxy Server Bundling & Placement on the Desktop Are Major Unknowns,

pp. 10 - 13

Richard Shockey (page 10) states that all major carriers are in various stages of SIP evaluation and role outs. [Snip] Shockey suggests that a critical question is where the proxy server for SIP will go in Microsoft corporate network systems. Microsoft would like to control the customer but so would the carrier. How it is going to all fall out is uncertain.

IPTEL Working Group Users Assess Changes in VoIP Traffic

, pp. 13 - 15

Discussion from IPTel list. Meanwhile in Network World Scott Bradner reports on tests that indicate "on an ISP backbone, IP networks are already easily reliable enough for interactive voice traffic without any QoS mechanisms."

Menard Predicts Development of Open Source VoIP Infrastructure and Willingness of Canadian ISPs with Open Access to Innovate

Suggests SIP Invites to Do QoS Gateways and Enable Direct Payment and Interconnection & Foresees SIP Servers Added by Vendors Directly to Routers,

pp. 15 - 16

Francois Menard: "When you ask what the business model is and who is going to pay for the service, you are asking the right questions. I think that the pressure on carriers to build SIP based real time media and VoIP infrastructure will be motivated by availability of new open access high speed local loops and competitive pressure from smaller ISPs seeking to differentiate themselves and the rise of an open source Instant Messenger killer application to replace ICQ as an Internet "presence" indicator." (Readers may turn to the Highlights section of about 3000 words or the full interviews totaling about 13,000 words.)

Global Crossing Completes Build Out

Moves to Focus on Value Added Managed Network Services and Virtual Private Networks Commodity Bandwidth Sale to Carriers No Longer its Primary Focus

LEC Division Sold to Citizens,

pp. 17 - 25

Like Level 3 and most of the other new green field carriers, Global Crossing is not doing well these days. We have not examined Global Crossing's debt structure because our interviewee, Dave Siegel, Director of IP Engineering did not have the all the facts and figures in his head necessary to speak to it. Although its stock price is battered, it does not appear to be in any worse shape than Level 3. Yet compared to Level 3's tri-partite business model of co-location facilities, managed modem softswitch services, and a huge fiber network best suited for being a carriers carrier, Global Crossing seems to be more focused.

While it does not have the in ground conduits that Level 3 has, it has similar fiber coverage in the United States and Europe. It has a far more extensive network of trans Atlantic and Pacific cables. Furthermore, it has cables to Singapore, India, and Latin America giving a much broader global reach than Level 3. [Snip]

Siegel also explains the core backbone architecture, the label switch path overlay and the RFC 2547 VPN overlay and VoIP strategy in some detail. For that readers must turn to the highlights section (2000 words) or to the entire interview (9000 words).

Who Controls Ethernet in the First Mile?

Copper Belongs to the LEC. What About Fiber? Half PON Suggested as a Low Cost Option for Open Access,

pp, 26 - 28

We publish a discussion from the EFM Mail List proposing a half PON solution.

In our introduction we say: For the first time standards are being created as a result of which Ethernet may be expected to run within the Public Switched Telephone Network. Ethernet in the PSTN is not the intent of the standards but it will be a likely by product. This means that unlike campus networks, where the owners and users are generally the same folk, Ethernet will be used in public carrier-owned networks where the owners of the network are NOT the end users. In such a situation, the owners (carriers) may find that they have an interest in pushing the technology in a direction like DOCSIS where the network owner can easily dictate to everyone else that the technology will be used on the terms that it establishes. [Snip]

Latest .biz Lawsuit May Help Define ICANN's Legal Status,

pp. 29- 30

We republish Michael Froomkin's analysis of Neulevel's declaratory judgment suit against Amazon.com published first on ICANN Watch. Herewith some context from the BWG list.

Lawyer 1: Whether the lottery [Editor: Neulevel has been sued in California for running an illegal lottery.] is mandated by the registry contract is less relevant than whether (a) it was in the TLD application, and (b) ICANN approved the application knowing it was in there. Neulevel would not be able to conduct the lottery but for ICANN's approval. If ICANN gave them the go-ahead, then they are a party to the lottery. They had 47 applications to choose among, and not all of them involved gambling.

Lawyer 2: Not to mention Louie's micro-management. I think there's a good chance if they lawyer it right they might prevail on the ICANN-made-me-do-it line.

COOK Report: Do I have the arguments right? If they prevail on the ICANN made me do it tack, then ICANN is a government entity and subject to due process?

Lawyer 2: No. If they prevail on "ICANN made me do it" then they get to ARGUE that ICANN is a government entity and thus they are (arguably) immune from this lawsuit.

COOK Report: But then what? People can sue ICANN for violation of due process rights?? How does this change the big picture?

Lawyer 2: Because a ruling here that ICANN is governmental enough to give immunity gets you 80% to due process. But it's not 100% - there is a precedent for immunity w/out due process. [Snip]

Froomkin concludes in his ICANN Watch article: "Indeed, the NeuLevel complaint suggests that ICANN is wholly a US government creature, that ICANN itself should partake of some form of sovereign or derivative sovereign immunity, and that this should flow down to NeuLevel itself.

Were NeuLevel to prevail on this argument, it's only a tiny step -- small, but not inevitable -- to finding that ICANN should be subject to US laws on due process as if it were an agency itself. And that blows the lid open on the whole process."

CA*net 4 Proposal and Supporting Documents Released,

P. 30

For Further Information Please see http://www.canarie.ca/advnet/canet4_rfi.html

Summary of IETF Working Groups on Multi Homing,

pp. 30 - 31

A summary by Elliot Lear of current IETF working groups focusing on problems of multi homing.

Censorship in action: Why I don't publish my HDCP results,

by Niels Ferguson,

pp. 31 - 33

Ferguson, a cryptographer states: "I have written a paper detailing security weaknesses in the HDCP content protection system. I have decided to censor myself and not publish this paper for fear of prosecution and/or liability under the US DMCA law." We republish his eloquent and important essay and pointers to further data.

How to Use New Features and Functionality Effective in This Issue of the COOK Report,

p. 33

Interview / Discussion Highlights,

pp. 34 - 39

Executive Summary,

pp. 39-42

How to Use New Features and Functionality Effective in This Issue of The COOK Report

We are listening to subscribers who, in the current flux of the industry, tell us they are more pressured and have even less time to read our comprehensive interviews. They want easier ways to reference the specific details.

While we don't intend to abandon the comprehensive interviews that are our principal market niche, we have we have taken advantage of the Adobe Acrobat publishing capabilities to increase their utility and value to our readers. From this issue onward we shall have a new section called Interview/Discussion Highlights. The Executive Summary section will retain the brief overview. But we have added a new section to which interested readers may turn for concatenated "juicy" quotes from the interview. Each "Interview Highlights" summary is about 20% of the length of the Interview and about three times as long as the Executive Summary of the Interview. A reader may begin with the Executive Summary and turn to the quotes or go on to the entire interview or article. We have been publishing the Executive Summary on our web site. From now on only Cook Report subscribers will receive the full Executive Summary, and a much shortened version will be available to non-subscribers on our web site and via the mail list: cookrepsum@compucomis.net.

Finally, we have found out how to both add internal links to the PDF version of the COOK Report and make urls into live web links. (Did everyone else know this?) Blue text is ether an internal "hot link" or a "live link" to a url. In your Acrobat Reader Version 4.0 you will observe the "Hand Tool". This is the fifth Icon across in the top menu bar, drawn in the shape of a hand. Click on the hand tool to activate it and then moving the tool to the PDF COOK Report page where you see blue headings or blue type click on them. You will be taken instantaneously to the destination just as though the link were an html "hot" link. Note that the page display will be a function of the size of the window in which you are viewing your COOK Report. In Acrobat Reader Version 4.0 there are three page size icons in the top menu bar. Clicking these icons will change the size of the page display. To use the live web links you must make and save a Preference change in your Acrobat Reader Version 4.0. Go to the file menu and chose Preferences. From the Preferences chose the Web Link menu. In the Web Link menu by following the instructions, create a link to the browser that you are using. Those using Version 5.0 will note that the menu bars have changed. Note especially that it appears that Version 5.0 will configure itself to automatically link with your default web browser when using the hand tool to connect to a "live" web link.

You will find that the "In This Issue" box on the lower right of page one now works as a true table of contents. You will also find that you can jump at will from the Executive Summary section to interview quotes to the interview and back again. We would very much appreciate your feedback and suggestions on our format upgrade, and of course, we always appreciate your good recommendation of The COOK Report to your colleagues.


The End-to-End Principles and Internet Policy

In "Rethinking the Design of the Internet" Blumenthal and Clark Pose Dilemma of Central Control vs Trust at Edge

We Ask Can an Analog of Error Checking Role of TCP Be Implemented in the Application Layers and Trust Moved to the Network's Edges?

pp. 1 - 5

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Marjory Blumenthal and David Clark have written an excellent paper Rethinking the design of the Internet: The end to end arguments vs. the brave new world, The paper, available as a pdf, is to be found at Rethinking

We have come to appreciate that there is really only one fundamentally basic and important thesis on which the Internet is founded. It is the end-to-end principal as expressed in the 1984 paper: J. H. Saltzer, D. P. Reed, and D. D. Clark, End-to-End Arguments in System Design, ACM Transactions on Computer Systems 2(4), November, 1984. The following URL will retrieve a copy of that paper. End-to-End

The TCP solution to the problem of a packet network that was prone to congestion, to error and indeed to 'packet loss' had profoundly revolutionary implications that were slow to be grasped. Even more than twenty years later their significance is not adequately understood by new generations of non technical Internet users. The location of a means of verification of correct transmission reception on each end user's machine rather than in the middle of the network made the transition from a single network to an INTERnetwork or network of networks possible.

Placing the TCP stacks on each user's machine ultimately meant placing trust and control in the hands of each user. Placing the stacks at the edge enabled end users to place applications directly on their machines ensuring the open and decentralized nature of the network. It also enabled end users to create and quickly replicate new applications like the World Wide Web because no central bureaucracy was needed to give approval.

In conversations with David Clark, David Reed (Reed is with Clark and author of the original 1984 End-to-End paper) and Einar Stefferud we focus on the issues of trust within the Internet asking whether there may be a means to do at higher levels of the protocol stack what TCP does.

Routing Infrastructure: Issues and Problems

Craig Partridge Finds that End of Era of Rapid Growth Provides Opportunity to Implement Fixes

pp 6 - 11

In an interview about the problems of Internet routing Craig Partridge, Chief Scientist at BBN, flays MPLS. He adds "BGP does need be replaced. The problem is you can't replace it in a vacuum. If you're going to head down this path, you will find BGP is just one part of a whole hierarchy of protocols that you have to begin to rethink. The problem right now is that we're creaking along with an aging infrastructure that has limitations in the ways in which you can dictate how your traffic is sent through the network."

"Never underestimate an existing technology. BGP, OSPF, and IS-IS can still run the Internet for another seven to 10 years. As time goes by, we will be increasingly dealing with their limitations and their challenges. We already are. The remaining mileage that we can get out of these areas keeps us from running off and doing something new. We will only do something new if that solves a whole class of problems that BGP, OSPF, and IS-IS do not.

Caspian Networks Bandwidth Study Questioned in Comments Prepared for COOK Report by Andrew Odlyzko

Larry Roberts Responds

pp. 12 - 17

With Dr. Lawrence Roberts (who as ARPA's Chief Scientist had in 1966 begun funding the work that gave birth to the Internet) as Caspian CTO and Chairman, Caspian, since its founding, has attracted much attention from a series of press releases that promised to deliver a very revolutionary product.

However, with the boom over and with the growth of the belief that there was a bandwidth surplus on the backbone, the founding rationale for Caspian Networks could be questioned. On August 13, 2001 Caspian released a study of bandwidth that claimed growth in demand was far stronger than believed. Unfortunately, since it was based on non disclosure data there was no way to obtain independent verification. We asked Andrew Odlyzko who with Kerry Coffman had done the most to debunk the earlier myths to look at Caspian's data and comment."

Odlyzko responded: "Although the Roberts study also comes in with growth rates far lower than the 8x or 16x per year that had been widely assumed, it makes a huge difference whether the true growth rate is 2x (as Kerry Coffman and I estimate) or 4x per year (as Larry Roberts claims). If 4x is the right growth path, then the Internet industry will soon see a huge increase in revenues, and this will feed back into huge increases of sales in equipment. However, if the growth rate is 2x per year, then the picture is much less cheerful, as technological progress, combined with competition and the overbuilding during the past couple of years, would keep revenue growth to modest levels for quite a while. In particular, which of our estimates is correct is likely to become very evident within a year or two, from watching what happens to the carriers' revenues."

Dave Hughes and the "Digital Divide"

25 Years of Building a Philosophy Assessing the Value of the Personal Computer and Internet as if People and Locally Controlled Grass Roots Economies Really Mattered

pp. 18 - 26

We began a long interview with Dave Hughes by asking: "There has been an unspoken assumption that computers are somehow better and that without too much thought, everyone can just apply them to speeding up the flow of everyday work. It seems to me there has been too little reflection about what should it mean to the economic political and social life of the community when you put the Internet and personal computers into the hands of the people. What have you learned in the nearly 25 years that you have been helping people make innovative adoptions of computer based communications? Is there any kind of methodology that you can apply to looking at these issues and to trying to decide how to chart a future course?"

Hughes: You have to start with the fact that nobody knows how to make a buck on the net. There is an article of faith that says if everyone were on the Internet, and went through the right steps somehow everyone could improve his or her economic situation . We really don't know to what extent this is true and it is certainly not clear that there is any one magic solution. When we talk about knowledge as the strategic resource of the so-called information age and the Internet as a means to move knowledge we are still groping for an understanding of how to apply these ideas in a marketplace economic model. And therefore there needs to be a little bit of skepticism applied to the assumption that if a community just goes through the "right steps" in hooking up everybody the effort will transform life there.

What people need to think about the basic kinds of economic transactions that can make a profit. Remember that electronic delivery of the knowledge product over the Internet can lower the cost of doing business more by that means than by other means for delivering a knowledge based product. And the cost will not always be just in dollars. But time spent - such as travel and meetings, Traditional activities that have a cost can be profitable via the Internet where rising costs affect more traditional ways of doing things.

The REAL ICANN Versus the Public ICANN an Essay by Dave Hughes and Gordon Cook

pp. 27 - 29


Postscript: Taking Advantage of the September 11 Attacks ICANN Moves Its Control Agenda to Front Burner

pp. 29 - 34

Mike Roberts September 14: Today, that idea [an at large membership] is out the window, along with a lot of other populist notions about any old terrorist around the globe getting to vote on how to run the DNS. When civilization takes a step backward, as it did last week, it usually means a period in which the people with the guns make the decisions.

On September 26, ICANN President Stuart Lynn announced that the planned agenda for the November annual meeting in Llos Angeles was cancelled and would be replaced with one on ICANN's role in protecting the security of DNS.

Roberts on Oct 26: But the legal date between the "old" Internet and the "new Internet was today, October 26, 2001,when President George Bush signed the anti-terrorism bill that was passed by the upper house of Congress yesterday with one dissenting vote.

This legislation brings the Internet and its developers, providers and users directly into the new war on terrorism. It extends extensive new power to law enforcement to find, capture, and punish those who use the network for terrorism or other criminal activity. It removes the previous barriers between foreign and domestic anti-terrorism investigations and establishes the principle that whoever you are, wherever you are, if you use the net for terrorism, you are in the sights of the FBI, the CIA, the NSA and their foreign counterparts.

Interview/Article/Discussion Highlights

pp. 35 - 52

Aproximately one third of the Clark Blumethal paper is included in this section.

Executive Summary

pp. 53 -54