Converged Communications Services Quick Reference

Converged communications is the coming together, or convergence, of key communications services delivered over a single network. At Northwestern University these services, all of which are operated by Northwestern University Information Technology (NUIT), include 1) voice services, including local calling and long distance calling; 2) data and video services; and 3) messaging services such as voice mail, e-mail, and (in the future) Instant Messaging.

Converged communications provides the means to deliver multiple services in a "bundle" to all University faculty and staff members much the same as what is becoming available in the residential market, thus removing financial disincentives for using technology. However, converged communications blurs the definition of services that used to be delivered via separate technologies and makes traditional charging structures and methods illogical. For example, in a converged communications world, telephone services become Internet-based (often called IP-Telephony, Voice over IP, or VoIP). The marketplace is rapidly moving from charging for services on a measured or variable basis (i.e., charging for the amount of the services used) to charging on an access or fixed basis (i.e., charging for the right to use services). As a result, NUIT's current method of charging for many of these services on a measured basis is obsolete, and a new charging methodology has been developed.

We are in the midst of a technology revolution in the telecommunications industry, the effects of which will rival that of the 1984 breakup of the monolithic telephone network. Dramatic changes in underlying cost structures and the open market for services and software are forcing revision of how services are delivered and priced. The 1984 breakup was driven by regulatory changes and took many years to affect services and costs. In contrast, the Internet-based telephony revolution is driven by technology change and will be rapid. A second timing factor is that the telephone switching hardware operated by NUIT has reached the end of its useful life and the vendor has halted support of key components. A large capital investment in the telephone switches is necessary. At the same time, the technology and standards that enable converged communications have become available and proven. Extension and enhancements to communications will be built upon these new technologies. Facing the need to invest in the telephone switches, and after three years of testing, NUIT elected to recommend a technology platform that will support both the current TDM telephones and future VoIP services.

To deal with the technological and marketplace changes associated with converged communications services, we have created two classes of services: Core Services and Non-Core Services. Core Services are those communications services now required for faculty and staff to be functioning members of the University community. The basis for the Core Services charge is to provide access to all Core Services for all members of the faculty and staff of the University.

Total projected costs for Core Services during each fiscal year will be allocated to schools and departments via a Core Services Charge based upon their proportionate share of a weighted headcount calculation. The charge for the entire fiscal year will be billed during the first quarter of each fiscal year. No other charge for Core Services will be made during that fiscal year. Consequently, usage billings for services included in the Core Services Charge (e.g., local calling and domestic long distance) will no longer be made during the year. Because the cost of Core Services is allocated as a bundle, University members will not be able to pick and choose which Core Services they desire in order to reduce their allocation of costs. Costs for Non-Core Services will be charged to schools and departments as they are now, generally monthly (e.g., international long distance or calling card charges) or one-time (e.g., installation charges). Each year, NUIT will review and update the Core Services Charge and the charges for Non-Core Services, and will notify the University community of any changes.

Charges to some departments or schools for core services will be less than they were under the prior methodology. Others will be charged more than in the past. Therefore, Central Administration adjusted the centrally-appropriated budgets at the start of FY2006 to account for increased or decreased charges to centrally-appropriated budgets for core services. The adjustment amounts were incorporated into the FY2006 detailed budget preparation materials. Central Administration only expects to adjust centrally-appropriated budgets in this manner for FY2006. Future changes to these budgets will be driven by rate changes (e.g., if rates increase 2%, generally those budgets would be increased 2%), as approved by the Budget Planning Group.

NU affiliates will continue to be charged as they have been in the past. If they are interested in the new Core Services Charge and Non-Core Service Charge, they should contact NUIT.

SIP (Session Initiation Protocol) is an industry-standard protocol that facilitates the integration and delivery of telephony, audio/videoconferencing, call forwarding, and secure instant messaging services over Internet Protocol (IP) networks.

VoIP (Voice over Internet Protocol) allows you to make telephone calls using a computer network, over the Internet and is an industry standard alternative to traditional landline telephone connections. VoIP converts the voice signal from your telephone into a digital signal that travels over the Internet, then converts it back at the other end so you can speak to anyone with a regular phone number.

No. There are two ways to access VoIP: a VoIP telephone set or a VoIP computer-based soft-phone. A VoIP set is a piece of equipment that looks and works like a traditional telephone set and is connected to the IP network. If a VoIP set is used, a computer is not required. A VoIP soft-phone, also known as a soft-client, is a software application that enables a computer to function as a telephone set. If a VoIP soft-phone with a headset or a handset attachment is used, then a computer is required. NUIT is working to ensure that the VoIP soft-phones are compatible with NUIT-supported computers and operating systems. For most users, their existing computer will operate VoIP. As additional capabilities are added to the system, creating a more collaborative environment (e.g., video, Instant Messaging, desktop collaboration), the requirements of the computer will increase to take advantage of the new functionality. Generally, if the computer was purchased in the last four years there should be no issues in supporting a VoIP soft-phone.

You can use either a desktop phone or software on your computer (also known as a "soft client") coupled with a VoIP headset.

VoIP calling is a seamless process. You can make and receive calls just as you would with a landline telephone. However, you will not be able to use features such as videoconferencing or Instant Messaging unless the person you are calling is using the same type of VoIP client.

With new VoIP technology and increased bandwidth, a voice transmission now sounds as clear as a traditional analog phone line.

Quality of Service is a method for applications (like VoIP) to mark certain connections or data traffic for preferential treatment in times of congestion. VoIP is susceptible to delay or jitter (interval at which information arrives). When the network is especially busy, Quality of Service prioritizes voice calls above many other types of data as they are passed across the network. This provides protection against echo and "breaking up" of calls.

Soft clients allow you to conduct phone conversations and use other computer software at the same time.

Yes. VoIP telephone sets work just as TDM telephone sets and are fully 911-compatible. The issue for soft-phones is their portability. Initially, NUIT will not allow portability. NUIT is working with the appropriate regulatory entities to ensure full compliance with all legal requirements.

In the converged communications world, voice services are IP network based. Therefore, securing voice traffic on the Northwestern University network is just as important as, and very similar to, securing data traffic on the network. NUIT will continue to make security of all network-based services a top priority.

The applications will fall into three categories. Some of these are beginning to appear in the marketplace from smaller start-up companies; however, industry giants such as Oracle and Microsoft will begin to deploy services such as:

• Native real-time communication applications. Expect that multi-point desktop video, audio, whiteboard, application sharing will be built into leading software systems.
• Single point of management for communications. Expect that all communication methods, including e-mail and voice mail, will be accessible and transformed one to another as desired.
• Extended reach of communications. Through carrier-supported gateways, corporate networks will include cellular, WiFi, and residential end-points in all of these services.

No. Users may continue using the current TDM (Time-Division Multiplexed) service until it is ultimately retired. However, NUIT will deploy VoIP as the only voice service option in new buildings.

Yes. NUIT's planning and testing of VoIP has been described repeatedly in its Strategic Planning documents covering 2003-2005, 2005-2007, and 2006-2008, which are distributed to the University community. The planning, testing, and timing were discussed in the following venues:

• November 9, 2004: Provost's Planning Committee
• December 4, 2004: Information Technology Committee of the Board of Trustees
• February 18 and May 13, 2005: School technology leaders breakfast meeting
• May 17, June 14, and June 30, 2005: Information Technology Coordinating Council
• May 18, 2005: Bi-Monthly Meeting with Business Administrators

Yes, it is proven and widely-deployed. NUIT operations staff have been using VoIP as their sole telephone service for the past 18 months without difficulty. VoIP deployment is accelerating within North America. Major corporations, such as Boeing, and universities such as Penn State have deployed thousands of VoIP stations. In the residential market, VoIP-only providers have captured 5% of the total lines in the U.S. in the past two years.

The University has invested in equipment that will continue to power VoIP telephone sets for two to four hours during a power outage. This two to four hour time frame was established in consultation with those entities within the University responsible for life safety issues. The University is continuing to investigate the potential availability of computer-based soft phones in the event of a power outage.

If an existing telephone jack or unused data jack is available, NUIT will not need to install a new jack to accommodate the change of service. If no phone or data jack is available, one will need to be installed at the customer's expense.

Core Services are those basic converged communications services that are most commonly used by the University community. Following is a list of Core Services:

• Dial tone (basic telephone service)
• Traditional single line telephone set
• Local calling
• Domestic long distance calling
• Basic voice mail
• Data network access (including e-mail access)
• On-campus wireless access
• Secure remote access
• Voice conferencing
• Basic NUTV
• On-campus commodity Internet connectivity
• Access to national and international advanced research and education networks
• Host-based virus protection
• Network repair services and ordering assistance
• Central upgrades to the communications infrastructure
• NU's E-mail Defense System (coming in October 2005)

NUIT will add to the list of Core Services in the future. As Voice over IP (VoIP) is deployed throughout the University beginning in FY2006, Core Services will include "soft phones" and VoIP headsets. (A soft phone, also known as a soft client, is software that enables a computer to function like a telephone set, making a traditional set unnecessary.) Future planned Core Services include desktop videoconferencing and enterprise instant messaging.

Yes. Services such as departmental main numbers, fax lines, and departmental voice mail are now considered Core Services.

No, but all one-time charges still remain for any new installation. Schools and departments will continue to be responsible for any wire pull costs, data circuit activations and telephone installations. Once the data circuit is established, access to the data network is considered a Core Service.

Not at the present time. During FY2006, NUIT will begin a multi-year plan of upgrading the network to support converged communications services (including VoIP), and the associated costs are included in the Core Services Charge. However, that plan only deals with communications closets and the wiring between buildings. Wiring within buildings, CAT3 and CAT5, is not included. NUIT will be evaluating wiring within buildings over the next year and may address this issue as part of the FY2007 converged communications rate proposal.

No. Whenever NUIT launches a new service, it certifies that the technology will operate under particular infrastructure constraints. Category 3, Category 5 and Category 5e wiring, installed by NUIT throughout the University, will support Voice-Over-IP (VoIP). If there are instances discovered where wiring is an issue then it will be brought up to the then current standard. Once all communication closets within a building (or major portion of a large building) have been upgraded, then VoIP will be available to users in that space.

Yes. Voice mail will be supported. You will not need a VoIP phone to continue to access voice mail.

No. Students in residence halls will not be included in the voice mail option.

Non-Core Services will continue to be charged in addition to the Core Services Charge. They include:

• Installation and activation
• VoIP sets (including videoconferencing cameras)
• Traditional telephone sets for new installations or upgrades
• Additional line appearances
• International long distance calling
• Calling cards
• Enhanced voice mail (including Enhanced Call Processing)
• Telephone Answering Service (TAS)
• Automatic Call Distribution (ACD) and features
• Departmental firewalls
• Expanded NUTV

Service & Equipment Charge List (PDF)
Affiliates Service & Equipment Charge List (PDF)

Users will keep their existing telephones, and they will not be charged. NUIT does not plan to replace existing telephones unless there is a mechanical problem with them, or unless a physical space is renovated, at which point the infrastructure would be upgraded to include VoIP capabilities. At that time, users will need to determine whether to buy a new VoIP-capable telephone set or use a soft phone. Soft phones are included in the Core Services Charge; VoIP sets are charged separately as a Non-Core Service. Please note that NUIT does not plan to remove traditional telephone service University-wide over the next five years.

As NUIT deploys VoIP across the campuses over the next several years, transition costs of moving from traditional TDM (time-division multiplexed) voice services to VoIP services will be included in annual charges for Core Services. However, new services will incur normal installation charges. Depending on the configuration of existing services and the type of set selected by the user, there may be a one-time charge, as explained below:

• If a TDM phone and a computer with an active data circuit are present, then using a VoIP soft phone would incur no additional costs. If a VoIP hard phone is requested, there would be a one-time charge for the cost of the phone. The TDM phone wiring would be reused for the VoIP hard phone line.
• If a TDM phone only is present, using a VoIP soft phone would incur no additional costs. If a VoIP hard phone is requested, there would be a one-time charge for the cost of the phone. The TDM phone wiring would be reused for the VoIP hard phone line.
• If a computer with an active data circuit is present, using a VoIP soft phone would incur no additional costs.Using a VoIP hard phone requires a second active data circuit, for which the user would be charged normal installation costs and the cost of the hard phone. If there is not sufficient wiring available to the service location, then the user would be charged for wiring installation.
• If no services are present, the user would be charged for normal installation of an active data circuit and, if needed, wiring to the service location. Either a VoIP soft phone (at no additional cost) or hard phone (with a one-time charge) could be used.

Traditional single-line telephone sets are included in Core Services and are provided for new installations, and in the event of malfunction, at no additional charge. All other telephone sets (VoIP and traditional) are considered Non-Core. For new installations or upgrades to a set, there will be a one-time installation charge for the cost of the set. Costs will vary depending upon the type of set (display, speaker, etc.). As of September 1, 2005, users who have existing traditional telephone sets will continue to use them with no additional monthly charge. If the phone malfunctions, NUIT will replace it at no additional cost. If the set breaks as a result of misuse, a Non-Core Service charge will be assessed for a new one. As VoIP services are rolled out to the University community, there will be a one-time charge for the cost of a new VoIP set. The charge will vary according to the type of VoIP set. Soft phones do not carry an additional charge, as they are part of the Core Service Charge. Soft phones will be distributed with headsets that have earpieces and a microphone. NUIT is in the process of reviewing VoIP options and will determine offerings and prices later during FY2006.

Yes. There remains a one-time charge, per occurrence, associated with making user-requested changes to existing services.

A single data circuit can be used for both data and VoIP access, assuming that the user is using a soft phone. If the same user wants to use a VoIP set, a second data circuit would be required. If there is an existing voice service in the room, NUIT can use existing voice wiring for VoIP voice services. If there is no wiring in the room, NUIT will need to pull wire and charge for it accordingly.

If you have a traditional telephone set and you relocate offices in an existing building, your telephone set will go with you at no charge. If a new telephone installation is required, a Non-Core Service Charge will be assessed. If the new or renovated office location is in a new construction area and has been upgraded to VoIP, you will have the option to move from traditional telephone service to VoIP. Brand-new facilities (not including those currently under construction) will be VoIP-capable only.

Yes. Moving a VoIP set to a new VoIP-enabled location is not a transition cost.

Yes, additional lines associated with multi-line phones and VoIP service will be charged monthly as a Non-Core Service Charge. For new installations, there will also be a one-time charge for the cost of the multi-line telephone set itself.

Yes, there will be a one-time activation charge associated with setting up a new voice mailbox. There will be no charge to those who already have a voice mailbox.

Yes. Basic voice mail services include a voice mailbox large enough to save 15 total messages for 5 days; they are included in the Core Services Charge. Enhanced voice mail services (e.g., travel service) will carry an additional monthly Non-Core charge as detailed in the Service & Equipment Charge List. This charge covers the increased costs of providing larger storage capacity than is available via basic voice mail.

Headcounts are based on actual counts using Human Resources Information System (HRIS) records and Student Enterprise System (SES) records. The headcount includes full-time and part-time registered students, full-time and part-time staff (including temporary staff), and full-time and part-time faculty. Teaching assistants and graduate assistants are only counted once, as registered students. Temporary staff members are weighted at 25%; part-time students are weighted at 50%. All others are weighted at 100%. Contributed service faculty in the Medical School are excluded from the headcount.

No. Faculty members are counted once and are attributed to the headcount of the department that holds their primary appointment.

No. Only registered students are included in the headcount.

The headcount for FY2006 is based on a snapshot of HRIS data from June 2004, together with student registration data averaged over all of FY2004. In the future, NUIT will take quarterly snapshots of HRIS and student registration data and average them over the entire year. The headcount itself will remain retrospective; that is, the headcount for FY2007 rate planning will be based on current data from FY2005. This allows for actual, rather than projected, headcounts.

The Budget Office and NUIT will review and update the funding model each year as part of the Fiscal Year budget planning process, the results of which will result in rate recommendations to the Budget Planning Group. The annual charge for Core Services is a function of the cost of Core Services and the weighted headcounts of all departments over which these costs are allocated. Therefore, headcount increases or decreases alone will not necessarily translate into either increased or decreased charges for Core Services.

NUIT will charge Core and Non-Core Services to the accounts that currently receive charges through its existing billing system for voice services and NetID charges, unless otherwise requested by departments. Please call the NUIT Billing Hotline at 847-467-1000 or contact NUIT at it-billing@northwestern.edu to request any billing changes.

Object codes will be charged as indicated in the following table:

Object codes 6930, 6935 and 6940 will no longer be used.

The converged communications charge is not an allowable direct cost on a sponsored project and cannot be assigned to a sponsored account. The converged communications charge, by definition, represents the provision of multiple telecommunications and networking services in a "bundle." The benefit derived by and cost to be assigned to an individual sponsored project from any one of the services within the bundle cannot be readily determined, which is the essential criterion of the Federal government's definition of an indirect cost. In fact, most of the services (e.g., local telephone calls) had been designated as indirect costs to sponsored projects before their inclusion in a bundled format. In addition, the converged communications charge is allocated by person on a once-per-year basis, and not on the basis of usage. This further complicates the allocation basis for sponsored projects. By extension, as the converged communications charge is not an allowable direct charge to sponsored projects, it should not be included in sponsored project proposal budgets.

The following NUIT Non-Core Services that are provided, priced, and metered outside of the bundle may be assigned as direct costs to benefiting sponsored projects:

• International long distance calls.
• Domestic long distance calls made using a Northwestern calling card.

Questions regarding appropriate NUIT costs on sponsored projects should be directed to your designated grant and contract officer/administrator in the Office for Sponsored Research or Accounting Services for Research and Sponsored Programs.

No.

Authorization codes will continue to be used to help manage and control telephone use.

Local and domestic long distance calls are included in the Core Services Charge; however, departments will be able to receive usage reports upon request. Detailed usage reports will be available online through CONDUITS (Customer-Oriented Network Delivering University Information Technology Services), NUIT's new billing system, scheduled to be deployed during Fall Quarter 2005. Charges for international calls will appear on bills, as they are not included in the Core Services Charge.

Yes, students will need PBNs to be billed for local and long distance calls.

As part of the annual budget and planning process of the University, NUIT updates its three-year strategic plan. This plan, which has included the anticipated transition to converged services, is presented to the Budget Planning Group along with recommendations for charge back rates. NUIT also prepares and implements a one-year tactical plan for the president. The results of this implementation are reported to the president and the trustees at the end of each fiscal year.

Estimates of costs for converged services are based on a detailed and careful review of historical cost patterns for specific functions and activities as well as known and expected changes in costs resulting from the move to converged services. They will be updated annually.

A consultant specializing in telecommunications in the academic sector was engaged to help assess alternative funding approaches, which included charge back models and a centrally funded model. The Budget Office and NUIT worked together to estimate costs and determine the appropriate allocation bases to charge back core service costs to schools and departments. This included many iterations of alternative headcount approaches (which is the basis upon which core service costs are allocated to schools and departments). The Budget Planning Group approved the charge back funding model as jointly recommended by the Budget Office and NUIT.

Converged communications provides the means to deliver multiple services--such as voice, data, video, and messaging--to all University faculty and staff members much the same as what is becoming available in the residential market. The marketplace is rapidly moving from charging for services on a measured or variable basis (i.e., charging for the amount of the services used) to charging on an access or fixed basis (i.e., charging for the right to use services). Converged communications blurs the definition of services that used to be delivered via separate technologies and makes traditional charging structures and methods illogical. For example, in a converged communications world, telephone services become Internet-based (often called IP-Telephony, Voice over IP, or VoIP). As a result the previous method of charging for many of these services on a measured basis is obsolete, and a new charging methodology has been developed.