+

Telephony Fundamentals

© 2007 Avaya, Inc. All rights reserved. © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – general terms
Central Office (CO) - the telephone facility where telephone users’ lines are
joined together to switching equipment that connects telephone users to each
other.
Common Carrier - a company that must offer its services to all customers at
the prices and conditions outlined in a public tariff
LEC – Local Exchange Carrier - a company that makes telephone
connections to subscribers’ homes and businesses, and provides telephone
services. The terms LEC and RBOC (Regional Bell Operating Company) are
equivalent.
Local Loop - the pair of copper wires that connects a customer’s telephone
(system) to the LEC’s Central Office
Bandwidth - The total information-carrying capacity of a network of
transmission channel. For analog networks this is measured in Hz and for
digital networks in bps.
Technology Convergence - The same transmission lines and computer
switching systems carry voice, video, Internet traffic, and other data
communications.

© 2007 Avaya, Inc. All rights reserved. Page 2 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – local exchange functions

Analog - A signal transmitted as a pattern of continually changing

electromagnetic waves is referred to as an analog signal
Digital - Refers to a signal transmitted as a pattern of binary bits. Information
is represented as a series of 1’s and 0’s, high or low electrical voltages
Channel - A portion of the total bandwidth of a transmission path, used to
carry a single signal.
Demarcation Point (Demarc) - the connection between the private
telephone system and the PSTN (Public Switched Telephone Network). It’s the
physical point where the Telco’s responsibility ends and the customer’s begins.
DTMF - Dual Tone Multifrequency – Touch Tone
PSTN - Public Switched Telephone Network

© 2007 Avaya, Inc. All rights reserved. Page 3 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – telephone system hierarchy
Class 1: Regional Center
Class 2: Sectional Centers
Class 3: Primary Centers
Class 4: Toll Offices
Class 5: CO – Local Exchanges

Class 5 Class 5
Local Exchange Local Exchange
Talk
Talk Path
Path

Customers
Customers Customers
Customers

© 2007 Avaya, Inc. All rights reserved. Page 4 © 2007 NETGEAR, Inc. All rights reserved.
Customer Premises Equipment (CPE)
Key Telephone Systems – Provides multiple telephone extensions
access to a group of single telephone lines
– Lines are represented by LEDs on the phone
– “Red” LED means the line is in use; “green” LED means the line is free to
use
Hybrid Systems – A more advanced Key telephone system, incorporating many
features previously found only on PBXs
Central Office Exchange – Centrex – CTX – A telephone company
network service that provides sophisticated office telephone switching
features through a CO switch
– Customer purchases a block of numbers
– Allows for interoffice calling, outside calling, and direct inward dialing (DID)
PBX – Private Branch Exchange –
– Telephones are extensions off the PBX
– Trunks are pooled for incoming and outgoing service
– Equipment cabinet made up a main processor, network interface circuit card,
and telephone station circuit cards
– Calls typically answered at a central answering position (Attendant Console)

© 2007 Avaya, Inc. All rights reserved. Page 5 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – signaling
In Band vs. Out-of-Band Signaling
– In Band signaling shares a single transmission channel with the voice
conversation
• Analog (POTS) lines – i.e. Call Waiting Tone
– Out-of-Band Signaling is carried over a separate channel from voice
• ISDN-BRI: Uses 16 Kbps channel for signaling & 2 64 Kbps channels
for voice or data
• ISDN-PRI: Uses a 64 Kbps channel for signaling & 23 64 Kbps
channels for voice or data

© 2007 Avaya, Inc. All rights reserved. Page 6 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – signaling
Lines & Trunks are classified according to the type of
supervisory signaling the use. There are 4 main ways in
which supervisor signals are transmitted
– Loop Start: The CO switch detects electrical current that flows through a
local loop when the user lifts the telephone handset
– Ground Start: The CO switch detects electrical current that flows through a
trunk when a PBX system grounds one side of a wire pair
– Wink Start: The CO switch and the PBX signal to each other by briefly
changing the electrical polarity of the trunk
– Digital Signaling: On digital trunks and lines, digital signals travel on one
channel set aside for out-of-band signaling

© 2007 Avaya, Inc. All rights reserved. Page 7 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – trunks, lines and loops

A loop, or local loop is the physical connection that links the

Demarc at the customer premises, to the telco CO switch
A line is generally understood as the transmission path that
connects a CO to an individual customer
A trunk specifically describes the connection between
switching systems. For example a trunk connects 2 COs, a
CO and a PBX (Private Branch Exchange), or 2 PBXs
– Trunks are classified according to 3 major charactertics
• Direction – Incoming, Outgoing, or Two-way
• Capacity – Quantity of information the trunk can carry
• Transmission Type – Analog or Digital

© 2007 Avaya, Inc. All rights reserved. Page 8 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – transmission methods
Analog – The signal is carried as a pattern of continually changing waves.
Example of an analog line is a POTS line

Frequency refers to the number of times the wave swings back and forth in a
cycle. High frequency (closed spaced) creates high-pitched sound. Low
frequency (loosely spaced) creates a low-pitched sound
Amplitude refers to the height of the wave. This describes the loudness of
the signal

© 2007 Avaya, Inc. All rights reserved. Page 9 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – transmission methods

Digital
– Newer technology
– Signals are transmitted in the form of binary bits
• Information is represented in the form of 1s and 0s.
– Bits have two values: On or Off
– The information carrying capacity of a digital line or trunk is expressed in
the number of bits it can transmit in a second.
• i.e. – A DS1 channel transmits at 64 Kbps.

© 2007 Avaya, Inc. All rights reserved. Page 10 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – special access trunks
Tie Lines - A TL is a dedicated circuit, connected through a CO, that links
two PBXs, without having to dial a telephone number. A 4-wire circuit (1 pair to
transmit and a second pair to receive)
Private Lines - Private lines creates and end-to-end, on-all-the-time
connection between two locations
Foreign Exchange Lines - By foreign this means the line originates in a
non-local CO. It gives companies the appearance of having a local telephone
number in an area that is not local to their office
Ring Down Circuits (manual or automatic) - Is a special
telephone line that rings a particular destination telephone as soon as the caller
picks up the handset. It’s a type of dedicated line that permanently connects
two telephones. (i.e. Courtesy phones, Brokerage houses, hotline phones)
Direct Inward Dial (DID) - A type of trunk, along with DID lines, that give
the end user the appearance of having a direct dial number, when in fact they
don’t have a dedicated line. Works on PBXs

© 2007 Avaya, Inc. All rights reserved. Page 11 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – digital line services
Digital transmission makes it possible to combine or
multiplex different types of signals on a single local loop
between the user’s location and the telephone network.
This can be voice, data, and video
T1 Lines
– Was developed to carry 24 digitized voice conversations over 2 pairs of
copper wires
– A bandwidth of 64 Kbps is needed to digitize one voice conversation
– For 24 conversations you need 24 X 64= 1,536 Kbps of bandwidth
– Additional 8 Kbps required for call control
– A full T1 provides a total bandwidth of 1.544 Mbps
– T1s can be ordered as full or fractional
– Voice Services available on a T1 include two-way calling, DID, TL, and data
services

© 2007 Avaya, Inc. All rights reserved. Page 12 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – digital line services
ISDN – Integrated Services Digital Network
– A switched service that offers all the capabilities of a voice telephone line
as well as data services. International standard
– ISDN uses 2 types of channels
• B (Bearer) Channel carries the voice & data signals. Each B channel
carries 64 Kbps of bandwidth. An ISDN line may have either 2 B
channels (BRI) or 23 (PRI).
• D Channel carries the control information. Each ISDN line has 1 D
channel.
• Two types of lines:
– PRI (Primary Rate Interface) – 23 B Channels, 1 D Channel
– BRI (Basic Rate Interface) – 2 B Channels, 1 D Channel

© 2007 Avaya, Inc. All rights reserved. Page 13 © 2007 NETGEAR, Inc. All rights reserved.
Basic Telephony – Voice over Internet Protocol
(VoIP)
Voice transmitted over a digital network (Corporate, Private,
Public, Cable, and wireless)
Runs over Ethernet LANs.
Converts voice communications into data packets.
Utilizes packet switched technology for communications
– IP devices have IP or network addresses
– VoIP packets include sender’s & receiver’s IP addresses
– Packets traverse the LAN

© 2007 Avaya, Inc. All rights reserved. Page 14 © 2007 NETGEAR, Inc. All rights reserved.
Simply Put...
VoIP is ‘converging’ voice and data into one ‘pipe’
Your voice call is carried over the same connection as your
internet

Why have 2 sources when

you can have one?

© 2007 Avaya, Inc. All rights reserved. Page 15 © 2007 NETGEAR, Inc. All rights reserved.
The Benefits of “Convergence”

9Combine Internet AND Voice calls

9Cut down call charges
9Reduce monthly recurring
charges

9Easy to manage Multiple sites

9Drive down operating cost.

9Your customers can progress

to new technology easily
whenever they are ready…

© 2007 Avaya, Inc. All rights reserved. Page 16 © 2007 NETGEAR, Inc. All rights reserved.
Definitions
Convergence
– The delivery of multiple media (voice, fax, video, data) over a single
network. Typically this network is considered IP-based as in the Internet or
a company’s Intranet
Voice Over IP (VoIP)
– The ability to “packetize” voice into data that can be recognized and routed
over a data network
IP Telephony
– The ability to provide full business telephony features and functionality in a
converged environment with all the scalability and reliability that business
end users have come to expect from legacy telephony networks

© 2007 Avaya, Inc. All rights reserved. Page 17 © 2007 NETGEAR, Inc. All rights reserved.
LAN (Local Area Network) Telephony

Branches

Mobile
Workers

Customer
Headquarters Regional Offices Contact Centers
SOHO

Global
Operations

LAN Telephony - describes the networking

infrastructure and wiring on a single site

© 2007 Avaya, Inc. All rights reserved. Page 18 © 2007 NETGEAR, Inc. All rights reserved.
 LAN (Local Area Network) Telephony

Branches

Mobile
Workers

Customer
Headquarters Regional Offices Contact Centers
SOHO

Global
Operations

WAN Telephony - describes the networking

required to connect Multiple sites together
anywhere - even around the globe
© 2007 Avaya, Inc. All rights reserved. Page 19 © 2007 NETGEAR, Inc. All rights reserved.
WAN Telephony
Definition: connecting multiple sites using service provider
data services to carry video, data, voice and voice
networking traffic.
Typical applications:
– Toll bypass for intra-company calling
– Centralized administration & management
– Networked applications between sites:
• Uniform dial plan (4-digit dialing)
• Centralized Operator and voice mail
• Hot desking and Remote access for home workers

© 2007 Avaya, Inc. All rights reserved. Page 20 © 2007 NETGEAR, Inc. All rights reserved.
Benefits of VoIP - operational efficiency
Employee Productivity:
– Better collaboration through conferencing, IM, webinars, etc.
– Consistent telephony capabilities minimize re-training
– Ability to leave or forward voicemails between remote locations
– Business continuity through remote worker support and hot standby
system
Increased Customer Responsiveness:
– Customer driven call handling
– Various ways (fax, email, calls) to communicate with customers

© 2007 Avaya, Inc. All rights reserved. Page 21 © 2007 NETGEAR, Inc. All rights reserved.
Benefits of VoIP - operational efficiency
Lower Costs:
– Reduce long distance expense through toll bypass
– Consolidates voice & data networks
– Self service options automate customer transactions at peak times
– Reduce capital costs through centralized applications
– Eliminate duplicate wiring in greenfield locations
Simpler Network Management:
– Reduced staff
– Central management for MAC (Moves Adds and Changes)
Easily Scaleable and Ready for Growth:
– Distributed network capabilities
– Reuse existing communications hardware (analog, digital, IP sets)

© 2007 Avaya, Inc. All rights reserved. Page 22 © 2007 NETGEAR, Inc. All rights reserved.
Benefits of VoIP – investment protection
Widespread Interoperability of IP-Enabled Equipment &
Services
– The ubiquitous presence of IP makes it the protocol of choice for network
and application service consolidation
– Every PC produced includes support for IP
– Hand-held computers and wireless devices support IP
– IP expertise is widespread and application development companies are
numerous
– IP is the standard for data transactions – everything from e-mail to Web
browsing to e-commerce
Contrast This With Circuit Switched (Voice) Technology
– Based on proprietary designs
– Limited integration choices with other vendor equipment

© 2007 Avaya, Inc. All rights reserved. Page 23 © 2007 NETGEAR, Inc. All rights reserved.
Reduce Calling Costs - SIP services
Cut calling costs by half!
– Implementing VoIP or SIP reduces the monthly recurring cost of separate
PSTN & data circuits
Number portability and virtual numbers
– Move premise and still appear local!

Optional PC PSTN
Local Web
based Management Avaya Quick Edition
on 4610SW and/or 4621SW IP telephones

Half the Price

Avaya G11 PSTN 24-channel T1:
Gateway
~$600-$700
LAN

SIP Trunk 24 SIP Trunks:

NETGEAR PoE Switch NETGEAR
WAN ~$350
FS728TP Firewall/VPN
FVS338

© 2007 Avaya, Inc. All rights reserved. Page 24 © 2007 NETGEAR, Inc. All rights reserved.
Sample cost savings

Small Business 30 Employees

POTS and DSL 2 x T1 (24 lines) VoIP or SIP

•14 Analog lines •T1 for Local and LD •Shared T1 for

Voice (14 channels)
•12,500 local •12,500 local and Data (Internet)

•12,500 LD minutes •12,500 LD minutes •12,500 local

•DSL For Internet •1 x T1 for Internet •12,500 LD minutes

MONTHLY MONTHLY MONTHLY

$2145 $2414 $1120

© 2007 Avaya, Inc. All rights reserved. Page 25 © 2007 NETGEAR, Inc. All rights reserved.
IP Telephony – real world example
Avaya A10 Analog
Telephone Adapter

Analog phone/device
Optional PC PSTN
Teleworker Local Web
Avaya 4610 Phone based Management Avaya Quick Edition
via VPN Home Network on 4610SW and/or 4621SW IP telephones

Avaya G11 PSTN

Gateway
NETGEAR
Firewall/VPN
FVS338 LAN

Internet
NETGEAR NETGEAR PoE Switch
Firewall/VPN FS728TP
FVS338

SIP Trunk
WAN

Avaya NETGEAR
Quick Edition VoIP VPN Firewalls: FVS338
phones and gateways POE switch: Smart Switch (FS728TP)
© 2007 Avaya, Inc. All rights reserved. Page 26 © 2007 NETGEAR, Inc. All rights reserved.
 Challenges of VoIP
Issues Affecting Broad Use of VoIP - Voice
communications have different requirements than data, for
successfully getting through a network. Issues affecting
broad utilization of VoIP have included:

Latency or delay
Jitter
Packet Loss
Features
Scalability

© 2007 Avaya, Inc. All rights reserved. Page 27 © 2007 NETGEAR, Inc. All rights reserved.
 Challenges of VoIP
Many businesses have significant investments and
functionality in circuit-switched (traditional equipment), in
which many traditional telephony systems are “closed” or
proprietary

• Cost of Implementing VoIP

• Re-wiring
• LAN/WAN equipment Upgrades
• Power issues
• Investments in circuit-switched
equipment
• Interoperability with Multi-Vendor
Equipment

© 2007 Avaya, Inc. All rights reserved. Page 28 © 2007 NETGEAR, Inc. All rights reserved.
What does this mean for your customer?

Customers decide what they need to do

without worrying about the technology behind it

Does your business need to reduce its infrastructure costs?

Do you need to share information between offices?

Do you need to provide internet access to your staff?

Do you need to reduce the cost of calls between sites?

Does it make more sense for you to manage things centrally?

Then moving toward voice and data

convergence could help!!
© 2007 Avaya, Inc. All rights reserved. Page 29 © 2007 NETGEAR, Inc. All rights reserved.
Reduce the challenge of managing separate voice
and data networks
• Single point of configuration across
the network

• Simple moves and changes

• Easy to use management interface

• Operators can work across multi sites

• Improved resource management

• Centralized voicemail

Using the same lines to carry your voice

and data calls can reduce variable costs
Using the same equipment to route your
voice and data traffic can reduce fixed costs

© 2007 Avaya, Inc. All rights reserved. Page 30 © 2007 NETGEAR, Inc. All rights reserved.
Understand the underlying challenges for small
businesses
Selling into Small Businesses in today’s environment
has become an art
More than 85% of Small Businesses plan to either
increase or maintain their IT spending level
Small Businesses make purchasing decisions for
new technology solutions differently because they:
– Likely are unaware of new technology solutions
– Must immediately discern the value of a new technology
– Often need assistance developing Return On Investment (ROI) and
Total Cost of Ownership (TCO) for new solutions

© 2007 Avaya, Inc. All rights reserved. Page 31 © 2007 NETGEAR, Inc. All rights reserved.
Winning in the small business market
You need a basic understanding of:
– IP Telephony
– Business Enhancing Applications
– Mobile Solutions
Why do sales people fail during the sales process?
– Because they talk about the virtues of technology rather than listen to
the issues their customers are struggling with

Small businesses buy solutions from vendors

that demonstrate how their solutions
solve challenges.

© 2007 Avaya, Inc. All rights reserved. Page 32 © 2007 NETGEAR, Inc. All rights reserved.
 Typical solutions for key small business needs

Business IP Telephony
Customer Benefits
Need Application

One wire run for voice and data

Easy moves, adds and changes (MACs)

IP Telephony
Improve inter-site communication to simplify information
Reduce Networking
exchange and enhance customer service
Monthly
Costs Centralize services (e.g. operator, voicemail) as well as
management and administration to reduce costs

Speed deployment of remote offices—respond more quickly to

market demands

Reduce costs of collaboration by bringing conferencing and

Conferencing
webinars in house

© 2007 Avaya, Inc. All rights reserved. Page 33 © 2007 NETGEAR, Inc. All rights reserved.
 Typical solutions for key small business needs

Business IP Telephony
Customer Benefits
Need Application

Enhance productivity with applications like single number

reach, one mailbox for all message types, sending message
alerts to your cell phone, and email read over voice mail
Work anywhere - Give your employees all the communications
capabilities they have at the office whether they are working
Improve
Remote Worker from home, a hotel or a remote office
Productivity
Be more reachable, regardless of location. Makes life simpler
for customers who only have to know a single number

Increase customer satisfaction through more effective call

handling

© 2007 Avaya, Inc. All rights reserved. Page 34 © 2007 NETGEAR, Inc. All rights reserved.
 Typical solutions for key small business needs

Business IP Telephony
Customer Benefits
Need Application

Improve customer relationships—get the call to the right

person as quickly as possible
Work anywhere - Give your employees all the communications
Increase capabilities they have at the office whether they are working
Revenues; from home, a hotel or a remote office.
Contact Center
Improve
Service Be more reachable, regardless of location. Makes life simpler
for customers who only have to know a single number

Increase customer satisfaction through more effective call

handling

© 2007 Avaya, Inc. All rights reserved. Page 35 © 2007 NETGEAR, Inc. All rights reserved.
 Solutions must be tied to business needs

“How can solutions vendors make (voice-data)

convergence more relevant to your business?”
(% Respondents)

Small Businesses Develop better understanding of our unique business requirements

expect you to: 52%
Develop more applications that meet a real business need
–Understand their 49%
business-specific Improve Security for IP Networks
requirements 48%
–Deliver solutions that Reduce the cost of the underlying technology
47%
meet business needs Provide more information on the value of convergence
45%
Improve voice quality on IP networks
42%
Simplify implementation for IP networks
38%
Improve the reliability of IP networks
Source: EIU, June /04 36%

0% 10% 20% 30% 40% 50% 60%

© 2007 Avaya, Inc. All rights reserved. Page 36 © 2007 NETGEAR, Inc. All rights reserved.
 +

© 2007 Avaya, Inc. All rights reserved. © 2007 NETGEAR, Inc. All rights reserved.