Ethnocentrism. I know I've been guilty of it, but it seems only natural
to focus on one's own country when covering a technology like Internet
telephony, for which a lot of activity and development is happening right
here in the US. The technological revolution knows no national boundaries,
however, and research and development for voice over data spans the globe,
reaching faraway places as unlikely as China -- which once outlawed forms
of telecom that threatened the national monopoly. And while we in the US
have certainly embraced the economical and social changes brought on by
advancements in the telecom market, other countries are taking an extra
step to stay ahead in the race. And it's only benefiting the Internet
telephony market.
When I once thought of the small, quiet nation of Scotland, the words
"technology hotbed" didn't immediately come to mind. And that's
a shame, because technology has become a major focus in the Scottish
economy, driven by government initiatives that connect education and
industry to attract new and expanding businesses to this lovely country.
As a matter of fact, Scotland already boasts production of nearly 80
percent of Europe's workstations, 32 percent of branded PCs, and 51
percent of Europe's notebook computers. Not bad for a nation whose total
population is less than that of Greater London. Many technology companies
have located or set up divisions in Scotland in recent years, and this is
largely because of the efforts of Locate in Scotland,
part of the country's economic development agency, Scottish Enterprise.
A SHIFT TO TECHNOLOGY
According to Andy McDonald, North American director for Locate in Scotland
(LIS), the country decided in the 1980s to move away from heavy industry
into electronics, biotechnology, and healthcare. Major companies like IBM,
Motorola, Hewlett-Packard, and NCR had already made investments there, and
these companies were viewed as a core magnet for attracting additional
technology investors. A high quality of life, skilled and educated
workers, and attractive business incentives have all been factors in
drawing technology, and most recently Internet telephony companies, to
this part of the United Kingdom. And let's not forget that the largest
concentration of chip manufacturing and design companies in Europe, known
as Silicon Glen, is located in central Scotland, encompassing the Glasgow
and Edinburgh metropolitan areas. The Glen is home to major companies like
Sun, Agilent, Microsoft, IBM, Mitel, 3Com, Compaq, and Oracle.
"One of the other major benefits we have in Scotland is the ability
to support rapid startup of business in what is a very fast-moving
sector," said McDonald. "On the access point, we have a very
competitive telecoms environment, with BT (British
Telecommunications) and Thus, for example, providing
major bandwidth support for Internet applications." The vast Thus
umbrella includes the popular Demon brand of Internet services as well as
traditional telco services through Scottish Telecom. And in a major move toward global expansion in December, Thus
became the first UK company to implement a multi-protocol label switching
(MPLS) network through an agreement with Lucent Technologies. IP Navigator MPLS technology lets networks label and
prioritize traffic, enabling services like Voice over IP (VoIP), virtual
private networks (VPNs), and IP multicast.
STARTING AT THE BASE LEVEL
Scotland's technology development is not only focused on services, and
quite a bit of research and development on system level integration is
being performed there. The Institute for System Level Integration
was formed in 1998 to undertake commissioned research of electronic
design. An academic partnership of four major Scottish universities, the
Institute focuses on studies of electrical/electronic engineering,
computing science, and informatics (information science). The institute is
part of the Alba Centre initiative, designed to bring together research and education with
industry and development. Many leading companies are beginning to locate
research arms within the attractive Alba campus, including Cadence Design
Systems, and Epson.
The Virtual Component Exchange (VCX) is the other important part of this
initiative. The exchange facilitates trading of intellectual property
related to chip design for the development of mobile phones, personal
digital assistants (PDAs), and digital cameras. Companies already involved
in the initiative include Siemens, Motorola, Toshiba, ADTRAN, and Cadence.
Cisco Systems decided to take advantage of Scotland's
skilled workforce in 1998 and hired a few engineers to work out of the
company's sales office there. Edinburgh's reputation for initiatives in
data networking lead the company to open a permanent office there last
year, Cisco's largest research and development center outside of North
America. John Harper, director of IOS engineering in Europe for Cisco,
says the company's Scottish office is working on the same technology
developments as its U.S. branches. Cisco's IOS Software is the platform
for intelligent networking and applications that runs on the majority of
the company's networking equipment. Some of the Edinburgh research
activities include VoIP, the IPv6 standard, and high-performance
switching.
"I guess Scotland is no different from anywhere else from a software
development perspective," said Harper. "It's probably less
competitive than Silicon Valley itself, since there are far fewer
companies, but it is equally conducive to research and development."
Another initiative designed to bring together academic and development
environments is the Cisco Academy Training Centre, the first of its kind
in Europe, opened at Edinburgh University in 1998. The academy is designed
to teach students about data networking environments.
GROWTH OF A MARKET
Internet telephony services and the hardware that powers them play an
important role in the Scottish economy, just as they are gaining
prominence here in the States.
- Analog Devices is a leading developer of DSPs, which
are commonly used on VoIP boards. The company acquired Edinburgh Portable
Compilers last year, a developer of software compilers for embedded
applications. Compilers are an important tool for working with DSPs, and
can simplify the design challenge for developers using advanced Analog DSP
architectures.
- Atlantic Telecom has seen a good amount of
growth over the past few years. Founded in Glasgow in 1996, the company
offers fixed radio access (FRA) -- an advanced frequency hopping radio
technology -- in four of Scotland's cities. The company offers business and
home services utilizing the technology, provided by InnoWave.
- KSCL a telecom management software provider headquartered
in Edinburgh, offers the Jupiter system of convergent billing and customer
care. The company recently announced the Jupiter Solutions Alliance, a
series of partnerships that will enable KSCL to offer other vendors'
solutions to its customers under the Jupiter name. Next-gen billing
solution companies involved in the alliance include Alcatel,
Applix, and XACCT.
Other leading companies in the Scottish Internet telephony/telco space
include Edinburgh-based Dolphin Software Systems, a custom developer of software solutions for the CTI
industry; Pentland Voice Technology, developer of the DSCRIPT voice processing
application; and Blue Sky Technology, a reseller of
the INDeX voice and data platform from Lucent. Internet telephony gateway
vendor Oki Electric Industry Co. also has a facility in
Glasgow, mainly for the manufacturing and assembly of fax and printer
products, as well as automotive electronics.
Andy McDonald believes that while Internet usage in Scotland and the rest
of the UK is not as prevalent as in the US, the UK still leads Europe in
its use of Internet services. "While corporate use of Internet
telephony is becoming more commonplace, it is probably true to say that in
the UK in general, the fact that we are only now moving toward the
provision of free access to local calling or fixed price unlimited hours
programs has had an impact. However, the technical research and
development of the technology has moved forward with significant pace,
both in the commercial and academic sectors."
Esther Dyson, interim chairman of the Internet Corporation of Assigned
Names and Numbers (ICANN, www.icann.org), recently commented that many
international governments fear American imperialism, particularly when it
comes to the Internet. Two-thirds of the world's Web traffic comes from
the US, and most Web sites are in English. If the recent technological
growth in Scotland is any indication (as well as the analyst reports that
predict that the number of international Web users will eventually surpass
U.S. users), more international surfers and Web sites are on the way. And
the active role the Scottish government is taking in attracting and
retaining research, development, and manufacturing of technological
products bodes well for this small but emerging segment of the
international market.
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Poland Seesaws On VoIP
Regulation
Poland became the latest nation to enter the Voice-over-IP (VoIP)
limelight in January, when Telecoms Minister Maciej Srebro said the
country's leading mobile phone operator, PTC, was routing calls illegally
over the Internet. PTC, a subsidiary of Elektrim and Deutsche Telekom, has
been sending international calls over IP instead of state-controlled
operator TPSA's network, cutting rates by as much as 50 percent.
According to current legislation, VoIP service is illegal, and infringes
on TPSA's international calling monopoly. The Telecoms Minister's office
said the VoIP service should be discontinued, and has threatened to take
PTC's license away. But PTC has other plans, and said it will appeal the
decision in court, possibly taking an appeal to the state's high court,
the NSA (Supreme Administrative Court). The company had not decided
whether it would shut down services at press time.
And now Srebro's office is saying VoIP can expand the country's
telecommunications market, and it may allow such services if they are
regulated by the government. Just a few days after reprimanding PTC,
Srebro said the country is beginning deregulation of the telecoms market,
with a goal of lower Internet access costs as well. The government will
now allow Internet access providers to operate without permits, but will
continue to require licenses for those offering data transmission
services.
The Telecoms Ministry will also create a new department for Internet
development strategies, which will bring together telecommunications
providers to discuss regulated VoIP services in Poland. However, other
government efforts may slow down the speed of adoption, and regulations
are not expected to impact international calling until a new telecom law
is passed. The Polish Parliament has been debating a law that would allow
an independent telecom regulator to implement a plan for international
telecom deregulation -- but changes are not expected to take effect until
2003 at the earliest.
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