CHAPTER ONE

1. TELECOMMUNICATION IN ETHIOPIA
The introduction of telecommunications services in Ethiopia dates back to 1894, seventeen years
after the invention of telephone technology in the world. Like many modern technologies, it was
Menlike II, the king of Ethiopia, who introduced telephony technology to the country around
1894, with the installation of 477 km long telephone and telegram lines from Harar to Addis
Ababa (the capital city of Ethiopia). However the first Ethiopia pioneer of telephony was his
cousin ras Mekonnen who came back with telephone apparatus in 1889 after his visit of Italy.
Gradually ,the technological scheme was proved to contribute to the integration of the Ethiopia
society when the extensive open wire line system was laid out linking the Ethiopia capital city
with all the important administrative of the country.
The company was placed under government control at the beginning of the twentieth century,
and was later brought to operate under the auspices of the beginning of the twentieth century, and
was later brought to operate under the auspices of the ministry of post and communications. In
1952, telecommunication services were separated from the postal administration, and structured
under the ministry of transport and communications the imperial board of telecommunication in
Ethiopia which becomes the Ethiopia telecommunication authority (ETA) in 1981 after several
change of names, has undertaken a number of development projects and was in charge of both
operation and regulation of telecommunication service in Ethiopia. It is obvious that
telecommunication service had made a major change of technological advancement in
telecommunications sector ranging from automatic to digital technology.
The Ethiopia telecommunication authority was also replaced by the Ethiopia telecommunications
corporation (ETC) by regulation number 10/1996 of the council of ministers to which all the
rights and
obligations of the former Ethiopian telecommunication authority were transferred to the
corporation ETC then has taken a responsibility to operate as a public enterprise with the
principal duty of installing telecom infrastructure facilities and expanding telecommunications
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services in the country by the proclamation 49/1996, and providing domestic and international
telephone ,telex and other communication

services under the supervision of Ethiopia

telecommunication agency(ETA), which is a separate regulatory body , with the objective of

promoting

the development of high quality , efficient, reliable and affordable

telecommunication services. In this respect, it is currently deemed by the regulation that ETC is
the sole operator of any telecommunications related services, including the provision of internet
and public phone in Ethiopia. ETC is the oldest public telecommunications operator (PTO) in
Africa. Nowadays the name ETC replaced by ethio telecom by some managemental and
structural modification since 2010.
Today the backbone network is constituted from a variety of microwave, satellite and fiber optic
links. International access is provided by the PANAFTEL terrestrial microwave network,
connecting Ethiopia to the rest of the world via links of some neighboring countries. For its
international traffic links and communication services , ethio telecom mainly uses its earth
station at sululta which transmits and receives to and from both the Indian ocean and the
Atlantic ocean satellites making it easy to reach all over the world.
As of 2007, IP based next generation network of fixed telephone lines, third generation network
(3G) of mobile service based on wideband code division multiple access (WCDMA), code
division multiple access (CDMA) and dense wavelength division multiple (DWDM) based
optical fiber transmission have been introduced in Ethiopia.

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1.1 Main products and services of ethio telecom

Our Products and Services ethio telecom offers a wide range of products and services tailored
made for Enterprise customers. We offer fixed wire line and wireless services, mobile services,
Internet and Data services as well as 3G services like WCDMA and CDMA through the newly
deployed Next Generation Networks. Owing to our nationwide huge capacity we provide
Enterprise customers a reliable and affordable Internet and data services which facilitate their
business and increase their productivity by connecting them to local and international partners
and other services available for business customers include:

Mobile Data / EVDO

IP Services email
Domain name
Web hosting
Interconnection
International roaming

1.1.1 FIXED LINE

Fixed Line phone
Fixed Wireless CDMA
Fixed Line Value Added Service (VAS)
There are different packages of fixed line value added services which are very important for both
enterprise and residential customers.
CLIP/ Caller Line Identification Presentation, Call Waiting, Call Barring, Call Divert, Fixed Hot
line, Call-Conference, Short number call and so on.
1.1.2 MOBILE SERVICE

GSM Mobile (prepaid/ postpaid)

WCDMA
GoTa (Global Open Trucking Architecture)
Mobile Roaming service

1.1.3 INTERNET AND DATA

Broadband internet (Wired broadband internet, Wireless broadband internet),Broadband
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 Data (MPLS- VPN) :(Multi-Protocol Labeled Switch-Virtual private network)

Internet VAS (Domain Name, Internet Protocol (IP) address, Graphic Scanning, Counter
Service and Web hosting.

1.2 The main customers or end users of its products or services

ethio telecom provides the services for:
I.
II.

Every Individual
Households

III.

Government organizations

IV.

Business organizations

V.

Public institutions (schools, hearth centers, Universities & others) and to different
companies

VI.

Private organizations

1.3 Overall organization and work flow of ethio telecom

The Ministry of Post, Telephone and Telegraph had difficulties to meet the growing demand for
improved and increased telecommunication services. The shortage of trained personnel was
acute and funds extremely low. Hence, a complete reorganization of the telecommunication
administration in Ethiopia became an urgent necessity. The desire was to create an autonomous
body efficiently organized, suitably staffed with financial autonomy to plan and operate the
pressing telecommunication needs of the country.
The purpose of the Board, as stated in its establishment charter of article 5 is as follows. To
rehabilitate, extend, repair and maintain the telecommunication facilities of Ethiopia and to
engage in the business of telecommunication for profit. To act as an agent for the Imperial
Ethiopian Government in all matters relating to the provision of telecommunication services in
Ethiopia and elsewhere. And to establish appropriate training procedure and a training
Institute for present and future board personnel. The formation of organization structure enables
the company to control and manage branches, departments, workgroups and individuals easily.
There are thirteen structures or divisions in ethio telecom. Among those divisions network

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division takes great place or play great role in the company. Network division is divided into
six departments as follows:

Project management office

Network engineering
Fixed access network
Project rollout
Network, service and IT and management
Engineering

Fig.1.1organizational structure of ethio telecom

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Fig.1.2 network division structures

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CHAPTER TWO
2. INTERNSHIP EXPRIENCE
2.1 How do we get into the company?
According to the curriculum of Wollo University Kombolcha Institute Of Technology all under
graduate students of engineering must have one semester or 4 month of internship program on
industry level. As it is known Wollo University Kombolicha Institute of technology has an office
called UIL (University industry Linkage) just for the purpose of linking students and industries.
On the last weeks of our fourth year program in Wollo University Kombolicha Institute of
Technology the UIL office told us on coming summer to find suitable company to work in
internship program. After searching for about two month, unfortunately we and most of our
classmate couldnt find any company better than ethio telecom. Considering our situation at the
end of our first semester of fifth year after so many ups and downs, the UIL office facilitates our
internship placement program. Then according to our first choice the UIL office gave us the
opportunity to work with ethio telecom with preconditions, in Addis Ababa for about four month.
After all this procedure the ethio telecom reported to the UIL of university as they are ready to
accept UIL students from five universities. Following this we enter into the ethio telecom
company on October 21, 2013, Addis Ababa. On this day we take one day program training
about all the ethio telecom company background, mission and vision. As well as some guests
from different offices are attend this training program. Few of them are manager of ethio telecom
Company and head of university industrial linkage from ministry of education. Those guests
introduce us why governments adopt this new curriculum to under graduate courses of
engineering student and the aim of it. At the end of the program they arrange all students who
come from five different universities (Wollo University, Debre Birhan University, Haromia
University, Mekele University and Arbaminch University) into different departments. With
another day we visit NNOC (national network operation center), legehar call center and sarbet
enterprise shop.

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2.2 The section of the company we have been working in

As the result of our chances the section we have been assigned was network division. This
section is one of the divisions of ethio telecom that includes other sub section such as, network
project Roll out, network project management, network operation and

maintenance, fixed

access network, network engineering and network service and IT management. But we have
specifically work on the section network project Roll out and network project management.
Network project management section: is one of the departments of network division
that includes other sub section such as: tender specification, special project, network
procedures, network strategy, and budget control. And
Network project rollout section: is also the departments of network division that
include subsections like: fixed network, transmission, wireless core, internet protocol
(IP), RAN, logistic and power and environment. But we have specifically work on the
sections tender specification and internet protocol (IP).

2.3 Tender specification

In this section there are one manager and two supervisors. The two supervisors assigned one for
fixed network elements and the other one is for mobile network elements. But we worked in both
network elements by specific tasks: specifying the objectives, scopes and launching dates of
network elements like small enterprise router, large enterprise router, EPON, GPON, battery
cabinet, battery charger, echo canceller, optical fiber and optical splitter in the form of power
point for the user departments: Operation and Maintenance (O&M), Engineering, Fixed Access
Network (FAN) , Project rollout (PRO) etc...

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2.4 Internet protocol (IP)

In this section there are one manager and two supervisors. The two supervisors assigned one for
project implementation and the other one is for technical implementation. But we worked in
technical implementation by specific tasks
Understanding networking: next generation network concepts, Mini DSLAM
optimization concepts, IP sub netting and network devices applications for network
design.
Practicing: router configuration, switch configuration and other CISCO devices
configuration on packet tracer software.
Observing: routers, switches, interface cards, network cables, servers, Mini DSLAM and
other end devices.
2.4.1 Ethiopian Next Generation Networks Topology
The next-generation network (NGN) enables the deployment of access independent services over
converged fixed and mobile networks The NGN is packet based and uses IP to transport the
various types of traffic (voice, video, data and signaling).In the growth of telecom services
traditional telephone services and data services are integrated in to a uniform network, which is
called the Next Generation Network (NGN), .As an integrated Network the NGN has an open
network architecture that can provide voice, data and multimedia services. NGN combines the
public switched telephone network (PSTN) and Integrated Services Digital Network (ISDN),
creating a single multi-service network. It is the convergence of service provider networks that
includes the public switched telephone network(PSTN),the data network(the internet),servicedriver network, separation of call and service ,separation of call control bearer ,based on
IP(internet protocol) including voice, fax, data, video, multimedia and in some instances, the
wireless networks as well.
Ethiopian Next Generation Networks topology is based on four layers: Access layer, Core layer,
Control layer and service layers.

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Fig.2.2 Ethiopian Next Generation Network topology

Access layer: The edge access layer refers to various access gateways and new types of access
terminal devices related to the current network. It implements interworking with the existing
various types of communication networks and provides access of various communication
terminals.
Transport layer: The transport layer refers to a packet switching network composed of
backbone transmission equipment such as IP router or broadband ATM switch, which is the
bearer basis of a soft switch network.
Control layer: The control layer refers to soft switch control units which completes integrated
control processing functions such as call processing control, access protocol adaptation
interconnection and interworking and provides an application support plat form for the entire
network.
Service layer: The service layer provides a network with various applications and services
client-oriented integrant service functions that can be used services and services customization.
The services layer offers elementary service function that can be used by service providers to
build more complex or comprehensive services.
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2.4.2 Mini DSLAM Optimization

ZTE Corporation has taken the contract to deploy the NGN (Next Generation Network)
throughout Ethiopia since 2007 at different project phases. The first phase of the deployment
covered limited part of the country like: the regional state Cities, the administrative cities, and
relatively big cities of the country. After the completion of phase one, phase two part B
deployment started. Hence, Mini-DSLAM installation was part of the second phase of the project
to cover remote areas of the country. This Part B of the second phase contains 464 miniDSLAMs installation at different relatively remote sites. These sites were made be connected to
IP Core network through Microwave E1 Links.

I. The Need of mini-DSLAM optimization

There are numerous performance and operational problems related to the old Mini DSLAM
network. Every old mini-DSLAM is connected to the core IP bearer network via microwave E1
link through two additional routers performance mini DSLAM site. Packet coming from every
Mini-DSLAM with Ethernet frame format and converted to E1 format in the first E1 modular
router and the second router receives this E1 format packet and reconverts back to Ethernet
frame when delivering it to IP bearer network. These conversion and reconversion of packet
during transmission resulted in performance drop off. In addition, the following are other
problems related to performance and operational cost:
These two routers add point of failure
Operational cost will increase due to power consumption of these two routers
Microwave E1 links by nature have small bandwidth capacity
Maintenance cost for these two routers added per site
As it is mentioned above, most of these mini-DSLAM sites are far from the big cities and which
consequently means far from IP Core Network. Therefore, ZTE Corporation proposed
microwave E1 link as a sole means to connect those sites to the bearer network.

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Actually, some of those sites have fiber FE (fast Ethernet over fiber transmission) to the IP Core
network. Since microwave E1 link has capacity and performance limitation, it should be replaced
by better medium of transmission if possible. So this paper contains proposed changes that
should be made to improve the performance, throughput and operational and maintenance cost
required of mini-DSLAM network.

Fig.2.3 interconnection of Mini DSLAM

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II. Benefits of the optimization

If the link is replaced from microwave E1 link to FE fiber for those sites which have FE
fiber link, ethio telecom will have faster and broad uplink.

Microwave equipment replaced by the FE capacity link can be used for new sites or as a
backup for some similar functioning devices. Hence, resource utilization is achieved.

Microwave E1 resources will be available for any other function required

Overhead and delay added due to the two routers will be removed

The number of point of failure will be reduced

E1 modular Routers used to link IP Core network and Mini DSLAMs will be saved for
other purpose

Operation and maintenance cost required for the above hopes will be put aside.

2.5 The work flow in the sections

2.5.1 Work flow in Tender specification section

Fig.2.4 Work flow in Tender specification section

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2.5.2 Work flow in IP section

Fig.2.5 Work flow in IP section

2.6 Tasks we have been executing

We have done a lot of tasks in project management and project roll out department such as
specifying the objectives, scopes and launching dates of network elements like small enterprise
router, large enterprise router, EPON, GPON, battery cabinet, battery charger, echo canceller,
optical fiber and optical reader in the form of power point for the user departments: Operation
and Maintenance (O&M), Engineering, Fixed Access Network (FAN), Project rollout (PRO) etc..
in project management department and some projects on internet protocol in project rollout
department. At the beginning we have a good motive to do a lot of things and we asked our
supervisor what expected from us and what we can refer for further information. Then our
supervisors give us hard copy and soft copy manual of all the section included under the
departments. After we read more and more, especially the procured materials in tender
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specification sub section and IP addressing and sub nettings in project rollout .we ask our
supervisor what is complex with us. Additionally they show us what it looks like practically or in
real world. Due to this strong support we think out of the box and propose mini project with the
title: Implementing VOIP for ethio Telecom Company.

2.7 Procedures we have been using while performing our tasks

Procedure that we have been used in program management department to specifying the
objectives, scopes and launching dates of procured materials; firstly we read written documents
from the given documents and internet; then crosscheck the requesting letter or POR (purchase
order requesting) documents about the materials and contracts from the given documents. After
that we submit to our supervisor.
In project rollout department procedure that we have been used to perform our tasks: firstly we
read written documents from the given documents and internet especially CCNA documents in
networking. Then observe networking devises physically and ask our supervisors what is
complex with us.

2.8 How good we have been in performing our tasks

On practical problem we were very interested and we were to ask our supervisor as well as to
read from manuals and internet. Due to this reason we were good when we were performing.

2.9 Challenges we have been facing while performing our tasks

In program management department more obligations are theoretical. Due to this to fulfill

our practical knowledges we face challenges.

Many tasks that are performed by project roll out department are out door tasks. Due to
this we have shortage of budgets to observe or follow the admens on field works.

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2.9.1 Have taken in order to overcome these challenges

To solve our challenges we go through many processes. To overcome shortage of practical skills
in program management department we negotiate with our supervisors and finally they permit to
observe implementations in project rollout department. And also to solve the problem in project
rollout department: we told the problem of shortage of budgets to our supervisors and they asks
higher bodies but its impossible. To overcome this problem they show to us networking devices
inside the department and we practice packet tracer software.

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CHAPTER THREE
3. BENEFITS OF INTERNSHIP
Benefits of internship

are arrangements in which university students lend their talents to

companies in return for an opportunity to develop practical skill and gain exposure to work
environment they receives real practical skill experience and an early opportunity to impress
potential employers.
Generally the overall benefits of internship program are many. The following pages are all
describing about the benefits of the program Benefit of Internship.

3.1 Benefits gained in terms of improving practical skills

The telecom company has a lot of huge equipments and gives different services for customers.
According to this we have gained a big practical knowledge about next generation network, how
we can assign IP address and sub nettings. The working experience is somewhat similar to
laboratory class in such way that in both cases you get orientation and theoretical knowledge
while you are practically observes the equipments. But, the working experience has wider
proportions and it is industrial size and also more challenging. Beside we have got a lot of
practical skill in our daily activities.

3.2 Benefits gained in terms of upgrading theoretical skills

We felt that we have left a lot of things to learn about communication it is wise technology. Also
we was Interested with every things those have in telecom company. It is very interesting
because every time the system invite as to study more to reach the new one. We have gained the
knowledge about multi-service in ethio telecom, IP addressing and sub nettings and how legal
procurements are process. Almost all things were the revision of our previous knowledge and
also a lot of new things we got in addition with previous.

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3.3 Benefits gained in terms of improving personal skills

This was the big thing we gained at last four months. We develop our communication skill very
well so this helps us for many things. the main things we gained by developing our
communication skills are; we got a lot of knowledge by asking our work mates as friends, we
spent a good time with them and we adapt the work area, we were happy when we were with
them, it helps us to compare the difference of being student and Worker, it helps us to think about
our future and what we would be in every direction. During the last 4 - months of the internship
program we believe we have improved our interpersonal communication skills. Especially, when
we were on field work and when some of our work partners was on another station and when
they were communicating by telephone. There were always things to discuss and argue about and
also the ability of understanding other persons perspective and trying to prove our point were
always inevitable. We have also had a friendly relationship with all our work partners. We had
tea and lunch time, at that time we were a good communication with them.

3.4 Benefits gained in terms of improving team playing skills

As we mentioned above in work time mostly we were with our work partners and we spent a
good time with them. Many Eyes see much deeper than single. This proverb is to mean that a
team of persons come up with different ideas to find and to solve the existing problems. As a
team member we contribute a lot with them in many ideas and in our region most of the branch
office workers are youngs that gave me a good opportunity to play more with them, it does
mean not saying it is difficult to plays with others. By this reason our team playing skills are
increased highly and we become more sociable than before. Now for us it is easy to be with any
one in anywhere. Generally this internship helped me to improve our team playing skills which
helps us for our next life. That mean we already adapted now the condition; so it is easy to be as
them after graduation.

3.5 Benefits gained in terms of improving leadership skills

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During our internship program we havent worked as a leader, we have learned a lot of
leadership skills from the people that have been in a leading position for some time in the last
four months; we had good persons those thought us what leader would be.
They are good leaders and they show the good respect for the lower stage workers and also they
have a good ethics. They are responsible for their section as well as for the company and from
them we learnt a lot of things. Generally a person who is in the position of leadership seeks
optimal solution to problems and should be smart enough to manage those individuals whom
he/she is leading. The leader must also inspire his/her workers into higher levels of teamwork all
the time. By this side the above mentioned persons are good examples for others. Our closest
leader as well as our supervisors thought us that a good leader must be strong to carry his/her
workers and must be a responsible for everyone. Not only about the health of the company but
also he/she should have to care for the health of the workers. From them we learnt a lot of things
it never been lost from our mind.

3.6 Benefits gained in terms of understanding Work ethics related issues.

By itself the word work ethics is a strong word, we mean every person should have to know what
does mean work ethics. Work ethics is a cultural norm that advocates being personally
accountable and responsible for the work that one does and is based on a belief that work has
intrinsic Value. The first thing which mentioned in the family of work ethics is punctuality. Every
employee should be present on time; in this side our staffs were more punctual. We learnt from
them that all the time reaching to office the same time with them. Also respecting each other,
giving the big attention for the company equipments as individual. Doing on everything
punctually as well as on time. We got this all from the employees and from daily activity in our
last four months. Generally we have understood ethics like getting properly, respecting your
work partners; time management, Attitude and etcwe have also come to understand the
negative impacts of corruption on our society and how much of attention the government has
given to tackle this problem. We will be a good ethical employee at the next because we
understood its negative and positive impact.

3.7 Benefits gained in terms of Entrepreneurship skills

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We have been gained creativity and the ability to solve a problem following the rules like, Risk
management, Self-confidence, Innovative skills, Market understanding ability, developing
Educational background with practical skill and develop confidences for proposing solution able
ideas for big companies.

CHAPTER FOUR
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4 PROJECT WORKS
4.1 Title; Implementing VOIP for ethio Telecom Company
Before proposing the idea of Implementing VOIP (voice over internet protocol), we develop the
idea that how can control illegal VOIP. Unfortunately the idea of Implementing VOIP (voice
over internet protocol) is outshine because we understand legal implementation of VOIP better
than controlling.

4.2 Introduction
Voice over Internet Protocol (VoIP) is a methodology and group of technologies for the
delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks,
such as the Internet. Other terms commonly associated with VoIP are IP telephony, Internet
telephony, voice over broadband (VoBB), broadband telephony, IP communications, and
broadband phone service.
The term Internet telephony specifically refers to the provisioning of communications services
(voice, fax, SMS, voice-messaging) over the public Internet, rather than via the public switched
telephone network (PSTN). The steps and principals involved in originating VoIP telephone calls
are similar to traditional digital telephony, and involve signaling, channel setup, digitization of
the analog voice signals, and encoding. Instead of being transmitted over a circuit-switched
network, however, the digital information is packetized and transmission occurs as Internet
Protocol (IP) packets over a packet-switched network. Such transmission entails careful
considerations about resource management different from time-division multiplexing (TDM)
networks.
Early providers of voice over IP services offered business models and technical solutions that
mirrored the architecture of the legacy telephone network. Second generation providers, such as
Skype; have built closed networks for private user bases, offering the benefit of free calls and
convenience, while potentially charging for access to other communication networks, such as the
PSTN. This has limited the freedom of users to mix-and-match third-party hardware and
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software. Third generation providers, such as Google Talk have adopted the concept of federated
VoIP which is a departure from the architecture of the legacy networks. These solutions
typically allow dynamic interconnection between users on any two domains on the Internet when
a user wishes to place a call.
VoIP is now central to the business strategies of many operators and service providers in both
developed and developing countries. For example, incumbent PTOs in Bangladesh, Fiji, Ghana,
Sudan and Tunisia all use VoIP to transmit international traffic. By 2007, VoIP accounted for an
estimated 23 per cent of international voice traffic. This was projected to reach 25 per cent in
2008. While the consulting firm Maravedis noted that in the wired domain, the transition is
nearly complete, networks based on public switched telephone network (PSTN) architecture
and those based on IP will most likely continue to co-exist for some time yet.
Beyond the distinction between wholesale and retail operations, VoIP is not a single, uniform
service. Rather, it comprises a range of services over different network platforms, including:

Business VoIP;

VoIP transit;

VoIP over PSTN, cable, mobile; or

VoIP embedded in web pages or online games.

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4.3 Problem statements

The economics of ethio telecom can be compelling for an illegal Internet operator in
Ethiopia. When most people think of VoIP, they associate people speaking through a
computer. This is but one technique, and possibly the least lucrative. ethio telecom losses
millions of birr due to illegal VOIP (voice over internet protocols) especially with fraud
calls.
Expensiveness of international and national calls in ethio telecom tariffs, due to
expensive venue of PSTN expansion, high bandwidth of PSTN networks and the high
costs of maintaining legacy networks.

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4.4 Objectives
4.4.1 General objectives
As we know ethio telecom is big and profitable company in telecommunication sector
throughout Ethiopia. This company provides many services to Ethiopian people and
organizations. But now a day the illegal network providers challenges ethio telecom by using
VOIP (voice over internet protocol) for international calls. The question is why ethio telecom
uses or changes his traditional systems to IP based systems? Our general objective is giving
solution able analysis to replacing its traditional system by IP based system; the company
implements VOIP system legally and it shall provide VOIP for its customers.

4.4.2 Specific Objectives

To analyze VOIP (voice over internet protocol) implementation in ethio telecom and giving
recommendation for ethio telecom Company.

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4.5 Methodology

We study the problem of ethio telecom company according to the missions and visions.
Specify which problems are needs solutions currently.
We send request letter for host company ethio telecom, to give us additional supports.
We collect documents about VOIP and we contact persons who support us.
Prepare a proposal to solve the problems.

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4.6 Literature review

Voice over IP (VoIP) is the technology allowing voice and multimedia transmissions as data
packets over a private or a public IP network. Thanks to the benefits that it may provide, the VoIP
technology is increasingly attracting attention and interest in the industry. Actually, VoIP allows
significant benefits for customers and communication services providers such as cost savings,
rich media service, phone and service portability, mobility, and the integration with other
applications. Voice over IP (VoIP) has been prevailing in the telecommunication world. As a new
technology transporting multimedia over the IP network.

4.6.1 VoIP: Acceptance and Growth

What are the forces driving the transition to VoIP? In a few words, they are cost and market
liberalization. This section explains how these powerful drivers have turned VoIP from a niche
market to a newfound status of acceptance and growth in many economies.

4.6.2 VoIP Benefits

The key benefits of the VoIP technology are as follows: Cost savings: The most attractive feature of VoIP is its cost-saving potential. Actually,
for users, VoIP makes long-distance phone calls inexpensive. For companies, VoIP
reduces cost for equipment, lines, manpower, and maintenance. For service providers,
VoIP allows the use of the same communication infrastructure for the provision of
different services which reduces the cost of services deployment.
Provision of new communication services: In addition to the basic communications
services (phone, fax), the VoIP technology allows users to check out friends' presence
(such as online, offline, busy), send instant messages, make voice or video calls, and
transfer images, and so on.
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 Phone portability: VoIP provides number mobility; the phone device can use the same
number virtually everywhere as long as it has proper IP connectivity. Many
businesspeople today bring their IP phones or soft-phones when traveling, and use the
same numbers everywhere.
Service mobility: Wherever the user (phone) goes, the same services will be available,
such as call features, voicemail access, call logs, security features, service policy, and so
on.
Integration and collaboration with other applications: VoIP allows the integration and
collaboration with other applications such as email, web browser, instant messenger,
social-networking applications, and so on.

4.6.3 The Cost Factor

The high costs of maintaining legacy networks are a key force driving the growing adoption of
IP-based networks, alongside the need to upgrade to intelligent networks with inherent
monitoring and adaptive capabilities. Transmission over IP-based networks can cost as little as a
quarter of equivalent PSTN transmission. Moreover, it can save 50-60 percent in maintenance
costs, because an IP call can require just 10 percent of the bandwidth required for a PSTN call.
As they review these cost advantages, many operators realize that they have to respond to
competitors (domestic and foreign) and position themselves in a truly global communication
industry. IP-based networks often appear to be the best foundations for business-critical
applications, as operators integrate voice and data networks. Consumer VoIP applications can run
over a range of devices, offering flexibility in the first step towards seamless communications.
For some operators, IP-based transmission is the first step in implementing an NGN strategy,
although true NGN is a broader concept that involves specific QoS guarantees and generalized
mobility not offered by most types of VoIP.

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4.6.4 VoIP Growth Takes Off

In response to the drivers of cost and liberalization, VoIP has been gaining ground steadily. In
2004, VoIP was explicitly legalized in 46 countries mainly in Europe, North America and Asia.
VoIP was also broadly permitted in another 57 countries for example, countries where there
was no explicit regulatory framework or licensing for VoIP. Between these two categories, just
over half of all countries permitted VoIP in 2004. By mid-2009, the proportion of countries
where VoIP was tolerated had risen to two-thirds, with 92 countries having legalized VoIP and a
further 39 countries tolerating it. Meanwhile, the number of countries where VoIP was banned
shrank from 80 in 2004 to 49 in 2009, or about a quarter of all countries for which data exist.
Currently, the number of countries where VoIP was bund shrank more significantly.
Some consultancies still produce estimates of VoIP subscribers. Infonetics Research estimated
that there were some 80 million VoIP subscribers worldwide by the end of 2008. Similar
researches estimates of 87.8 million commercial VoIP subscribers by the fourth quarter of 2008,
and 92.2 million by the first quarter of 2009. More recent projections of VoIP subscribers usually
exceed earlier predictions by large margins.
In different researches estimate that international VoIP traffic 94.8 billion minutes in 2008,
accounting for about a quarter of the worlds international telecommunication traffic in that year.
A 2008 estimate projected that by the fourth quarter of 2009, there would be more than 135
million consumers using VoIP. Meanwhile, the popularity of VoIP for business use continues to
grow.
In reality, the most remarkable thing about VoIP is not its growth, but the way it is transforming
existing business models and rewriting the economics of providing telecommunication services.
VoIP is changing the industry irrevocably by opening up new markets and bringing different
players into competition. Converged technologies are boosting facilities-based competition. VoIP
lets broadband, cable modem and wireless service providers compete directly with each other. It
also promotes service-based competition by enabling new service providers to compete without
owning their own network infrastructure. The entry of new service providers could result in new
and improved services and greater incentives for domestic and foreign investment.
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After initial problems with quality of service (QoS) and availability, VoIP has now gained broad
market acceptance among service providers, consumers and businesses alike. The traditional
perception of VoIP has been as a vehicle for new market entrants to compete with traditional
public telecommunication operators (PTOs). Increasingly, however, the reality is that most
incumbent PTOs are now using wholesale VoIP to carry international traffic over their networks,
as the transmission of traffic over IP-based networks can yield tangible cost savings. Many PTOs
are also deploying VoIP in their access networks in ways that are not always evident to end-users.

Fig.4.1 International VOIP and Time Division Multiplexing (TDM) growth, 1997-2008

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4.6.5 Regulatory and legal issues

As the popularity of VoIP grows, governments are becoming more interested in regulating VoIP
in a manner similar to PSTN services.
Throughout the developing world, countries where regulation is weak or captured by the
dominant operator, restrictions on the use of VoIP are imposed, including in Panama where VoIP
is taxed, Guyana where VoIP is prohibited and India where its retail commercial sales is allowed
but only for long distance service. In Ethiopia, where the government is nationalizing
telecommunication service, it is a criminal offence to offer services using VoIP. The country has
installed firewalls to prevent international calls being made using VoIP. These measures were
taken after the popularity of VoIP reduced the income generated by the state owned
telecommunication company.

4.6.6 VoIP: Impact of Not Deploying It

There is also evidence of substantial grey market activity. Budded Research estimated in 2007
that at least 10 per cent of international calls in virtually every country in Africa were still carried
by unlicensed grey market players, because many operators are not yet passing on the full cost
savings from VoIP to their customers -- allowing arbitrage opportunities to persist. For example,
in Sudan, the operator reported that incoming international calls using grey-market VoIP
represented a significant percentage of total incoming international traffic.
According to Balancing Act Africa, in those countries where VoIP was illegal, grey market
operators were subject to varied enforcement treatment, from raids on their premises and the
confiscation of equipment, to the filtering of traffic for VoIP calls. In some countries, including
Ethiopia, jail penalties even applied for making VoIP calls. Even so, the grey market continued to
flourish in many countries, to different degrees, depending on the severity of legal sanctions.

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4.6.7 VoIP Architecture

One of the main features of the VoIP technology is that it may be deployed using a centralized or
a distributed architecture. The majority of current VoIP systems are deployed using a clientserver centralized architecture. A client-server VoIP system relies on the use of a set of
interconnected central servers known as gatekeepers, proxy servers, or soft-switches. The central
servers are responsible for users registration as well as the establishment of VoIP sessions
between registered users. Figure 1 shows an example of a VoIP system deployed using the clientserver architecture. As it is illustrated in the figure, each central server handles (registers,
establishes a session with a local or a distant user, etc.)

Fig.4.2 VoIP network architecture

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4.7 Analysis of the project

4.7.1 The Way Forward
Defining VoIP is central to any regulatory approach, as well as to measuring the growth of the
service in any given market. The basic question for regulators is whether VoIP can be viewed as
an alternative to PSTN telephony or not. The service is the same (voice transmission), but the
method of transmission (the technology) is different. All forms of VoIP involve the digitalization,
conversion, and compression of recorded voice signals into data packets, which are transmitted
over an IP-based network, to be reassembled and converted back into audio communications at
the other end of the network. The packets may then be transmitted over either the public Internet
or a private network, or both.

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In practice, a broad range of regulatory definitions is used for VoIP. A vital part of regulators
work is to establish a relevant definition of VoIP, as it applies to their market. Regulatory
definitions of VoIP and VoIP providers have major implications, not only for regulation, but also
for the development of the market, as well as competition and innovation. Common regulatory
criteria that define VoIP (often used interchangeably with Internet telephony, IP telephony or
voice over broadband) include:

Degree of transmission over the PSTN This is one of the most commonly used
criteria to define VoIP. That is, definitions may vary according to whether the service is a
phone-to-phone, PC-to phone (or vice versa), or PC-to-PC offering. This can also be
expressed as a service that is either on-net, inbound, outbound or bi-directional.

VoIP as a voice or data service Some countries view VoIP as a voice service, while
others view it as a data, value-added or information service. For example, Bolivia,
Czech Republic, Egypt, Jordan and the United States view VoIP as data, while Ethiopia
calls it voice.

Nomadic or non-nomadic services This establishes whether the service can be

accessed in more than one fixed location. This definition implicates geographic
numbering allocation and is applied in some European countries;

Technology or Service-- Whether VoIP is viewed as a technology or service has

implications for technology-neutral licensing and regulatory frameworks.

Telephone or electronic communication service In Europe, where regulatory

frameworks for VoIP are well advanced, countries have widely differed in their
classification of VoIP, with significant consequences for regulation.

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Thus, the regulatory body under Ministry of Information & Communication Technology should
start its regulatory function from defining VoIP services that are going to be developed in
Ethiopian context.

4.7.2 Adapting Regulatory Frameworks for VoIP

Adapting regulatory frameworks to accommodate the transition to IP-based networks takes time,
considerable resources and, quite often, repeated attempts. The countries where a clear and wellestablished framework exists for the provision of VoIP services have only achieved this through a
process of regular and repeated consultation. And even when such a framework is in place, the
difficulties may only be starting.

Network management and anti-competitive practices are emerging as issues even in countries
with established regulatory models. The regulation of VoIP is an ongoing process that requires
regular attention as new issues emerge. According to ITUs latest data, countries VoIP
regulations differ widely. Hence, detail analysis has to be done on different country trends in
order to get profound benchmarking regulatory concepts.

4.7.3 Phased Approach Deployment

VoIP service can be can be majorly classified in to: VoIP transit/trunking, Business VoIP and End
User VoIP services.

a) VoIP Trunking
VoIP trunking is transportation local and international long distance voice traffic through the IP
network. This will make the voice to be changed to voice packet and this will help us to use
different compression techniques on the voice packets. If there is a voice compression, it will

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help to reduce bandwidth required for transporting the long distance voice traffic between
nationwide PSTN switches and incoming/outgoing international calls.
This phase of implementation will help the cost of transporting local and international long
distance calls for the service provider so that it can decrease the long distance voice traffic tariffs
for the customers. This deployment can also help service provider like ethio telecom regain
revenue of incoming international calls and getting back incoming international calls from
unlicensed grey market.
VoIP trunking should be a first step for the way forward to get in to VoIP services. Even it should
not be linked with other VoIP services which may need regulatory actions.
b) Business VoIP
This is a VoIP service given as value added or a bundled service for corporate/ enterprise
customers on top of their VPN (Virtual Private Network) interconnection service that they are
getting from ethio telecom. This can be taken as a second step to get in to the VoIP service
deployment. This may need some basic regulatory lows to be set.

4.7.4 End User VoIP Service

Mobile VoIP; VoIP over PSTN, cable; or VoIP embedded in web pages or online games are all
categorized in end user or home user VoIP services. Before starting all such services the
regulatory body should set defined regulatory lows for handling and controlling the services.
4.7.5 Procedural implementation
Forming committee:-the committee analyses the marketing, security and other
confidential of ethio telecom
Designing the network:-engineering department designs the appropriate VOIP networks
for selected sites.
Implement the design: project rollout analyze the design and implement the project.

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CHAPTER FIVE
5. CONCLUSION and RECOMMENDATION
5.1. Conclusion

A source indicates that ethio telecom was established before hundred years ago and its the
biggest and well organized governmental company in Ethiopia.
As we have got more information in this Internship period ethio Telecom is the back bone for the
transformation by the side of communication and to facilitate every movement in market, offices,
Schools and etc. Also the services of telecom are very wide and basic for our country
development. As we specify and observe network elements in our last four months in tender
specification sub section and IP sub section.
We better conclude what we really observe during our entire internship period, we have got so
much important knowledges as well as awesome experiences. The internship program have
great role on shaping our future goal and vision. Also the internship is better for knowing the
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external work environment, solving challenges that face during work times; developing good
inter personal communication skills, entrepreneurship skills, necessity of work ethics and also
developing our practical and theoretical knowledge.
The internship is very important for engineering students by every direction to develop the
interest to learn more at the next time and to be having a good vision about future and make us to
develop new ideas. We got a good knowledge and we decide to do more on communication to be
the next generation strong worker. We can conclude that nothing is impossible if you try more
and more as we have done on our project we can analyze "Implementation of VOIP for ethio
telecom. In this project the economics of ethio telecom can be compelling for an illegal Internet
operator in Ethiopia and Expensiveness of international and national calls in ethio telecom tariffs
are the problems in ethio telecom that hinders from achieving its objective and mission in its
current performance.

We also have seen VOIP acceptance &growth, VOIP benefits, the cost factors of VOIP, VOIP
growth takes off, regulatory & legal issues, VOIP impacts of not deploying it and VOIP
architecture. Finally we analyze VOIP is the recent technology that makes our communication is
simple and easy. And also it is better technology than PSTN technology.
If this project is implemented officially we hope it will decrease illegal VOIP suppliers and the
national &international calls tariff.

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5.2 Recommendation
First of all we would like to recommend the company of the current status, the main and core
problem on proper assigning of internship students and VOIP implementation.
To transform practical knowledges ethio telecom shall assign internship students in
practical sections.
ethio telecom shall form a responsible committee and the committee analyses the
implementation of VOIP according to the marketing, security and other confidential
aspects of ethio telecom.
The enterprise market of VOIP is rapidly growth throughout the world and Ethiopia. Also
most countries recognize VOIP to be legal. So controlling of VOIP is logically difficult
but by translating its network IP based and by implementing VOIP in ethio telecom we
can attract the customers to use VOIP by ethio telecom network.

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REFERENCES
http://uneca.org/aisi/nici/country_profiles/ethiopia/ethiopap3.htm ,Access date: October
30/2013
http://en.wikipedia.org/wiki/Transmission_%28telecommunications%29, Access

date:

November 07/2013
Fundamentals of Telecommunications: Access date: November 15/2013
http://en.wikipedia.org/wiki/cisco Access date: November 22/2013
Telecom Manual, Fault maintenance handbook: by Staff Members Access date:.
November 28/2013
http://en.wikipedia.org/wiki/Telecommunication. Access date: December 04/2013
IP core engineering Mini DSLAM Optimization manual. Access date: December 10/2013
Booth, C (2010). "Chapter 2: IP Phones, Software VoIP, and Integrated and
Mobile.Access date: December 16/2013
VoIP". Library Technology "Carriers look to IP for backhaul". Telecommunications
Online. Access date: December 22/2013
"Mobile's IP challenge". Total Telecom. Access date: January 01/2014
Michael Dosch and Steve Church. "VoIP in the Broadcast Studio". AxialAudio. Access
date: January 07/2014
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 Callahan, Renee (December 9, 2008). "Businesses Move To Voice-Over-IP". Forbes.

Korzeniowski, Peter (January 8, 2009). "Three Technologies You Need In 2009". Forbes.
Access date: January 17/2014
"Skype for Business". Skype.com. Access date: January 27/2014

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