Cost Research On IP Phone Based On The Internet Elements

In the recent years, Telecommunication service price is one of hotspots in the Information Industry and consumers. Also, the service cost is a puzzle researched by the experts in the industry all the time which has very significant to the service pricing and regulation.IP phone implements voice communication through Internet medium. However, most of IP phone providers in the market take advantage of the PSTN in some extent, so they are not complete IP phone. This thesis researches the complete cost of IP phone which fully uses the Internet technology and network 'from head to foot' according to the technology development trends.The thesis, based on the Internet cost proxy model, analyzes the technical principle and implementation of IP phone that is via the Internet totally, and studies the QoS's effect to the bandwidth occupied by the IP phone, and calculates the data of equivalent bandwidth through simulations. Finally, the thesis gets the cost ruction of IP phone and obtains the value of the cost of IP phone in per minute from calculating the fuction with actual data. Considering the technology innovation and the cost decreasing, the thesis also does sensitivity analysis on the cost of IP phone.According to the simulations, the outcome is that: the cost of IP Phone is around 23.8yuan per month in Beijing, and the China Telecom Ltd.'s synthesis ARPU is just 66yuan per month (including long-distance incoming) in 2007 . So the conclusion is that there is some cost decreasing by the fully provided IP phone , but no significant decreasing to the traditional phone without interruptive innovation . That means some IP phones with a lower price are hitchhiking the PSTN without paying for them.As for pricing, because of the exist of cross-subsidization which means if the broadband access services have enough competence to make profit, the price of IP phone should be made according to the lower rate of return; otherwise, the price of IP phone should be made according to the higher rate of return, so that telecommunication operators have money and enthusiasm to develop the broadband access services.