May 2004

Sidebar: IT Q&A

On March 8, 2004, Net2Phone unveiled a set of SIP-based telephony solutions for the global community of broadband service providers. Internet Telephony had a chance to catch up with Sarah Hofstetter, Senior Vice President, Corporate Communications at Net2Phone.

IT: Describe your recent announcement regarding SIP solutions for broadband providers.

SH: Our VoiceLine solution offers broadband providers the ability to offer their customers residential phone service that integrates with the service provider�s back-office systems while still providing full traditional telecom features and functionality. Complementing its existing PacketCable-ready solution, Net2Phone�s VoiceLine will now offer providers SIP-based hosted telephony services that can be sold to their residential and SOHO customers in a bundle with their existing product set.

IT: How does this affect Net2Phone�s existing cable telephony solution offering?

SH: Our VoiceLine SIP-based hosted solution complements our PacketCable offering, allowing service providers to choose the type of service they want to give their customers.

IT: How can cable companies benefit from the availability of these solutions?

SH: Cable operators now have a choice when determining how they go about rolling out phone service to their subscribers. Net2Phone is the only provider that can meet the needs of domestic and international cable operators with any DOCSIS standard networks, as well as metropolitan and remote customer franchises. By offering two tiers of service, Net2Phone can conform to any cable operator�s particular marketing, technical, financial, and operational needs.
Net2Phone�s PacketCable Managed Telephony solution empowers cable operators to provide their subscribers with a service that resembles traditional telephony in terms of service, quality, features, functionality, and reliability. Its accompanying network management toolset enables fully managed end-to-end VoIP cable telephony service, guaranteeing quality from call inception through termination. Throughout each point in the network � the local cable HFC network, the IXC segment, and the local termination � Net2Phone�s PacketCable solution delivers end-to-end guaranteed call quality, network availability, and service management.

Net2Phone�s VoiceLine utilizes SIP signaling, which empowers edge devices, such as multimedia terminal adapters, to establish and manage voice calls on all types of high-speed data networks. Net2Phone�s VoiceLine architecture centralizes the call management, CLASS features, billing and provisioning platform and enhanced services and distributes the infrastructure required for interconnecting onto and off of the PSTN network.

IT: Does this in effect allow cable companies to now compete head to head with other service providers, using for example, a similar model to a Vonage or Packet 8?

SH: Yes

IT: Is Net2Phone offering a primary-line replacement service, replete with E911 availability, CALEA compliance, etc�?

SH: Our PacketCable solution allows cable operators to offer replacement-line service, including E911, and compliance with most CALEA elements.

IT: What types of end-user devices is the solution designed to support?

SH: Our PacketCable solution enables cable operators to actually take over the wiring of the customer�s house, turning every phone jack into a cable telephony phone jack, routing all calls through the customer�s cable modem/MTA. Our VoiceLine solution uses a SIP adapter that plugs into a broadband Internet connection to provide dial tone to customers.

IT: What role does the rate of broadband adoption play in the success of VoIP?

SH: Clearly, extending high-speed Internet access into the home is a driver for more VoIP usage. The better the access, the better the quality of the call.

IT: In your view, what is the overall state of the cable telephony market?

SH: The larger cable operators have already made considerable strides in providing that the triple play of voice, video, and data generates additional revenue and is a proven customer retention tool. We hope to empower cable operators that have financial, technical, or operational constraints to gain the same benefit from bundling telephony as the larger operators.

IT: Do you see greater opportunity for VoIP over cable domestically in the United States or overseas?

SH: The opportunities are fantastic both domestically and internationally. We are focused on markets with the greatest broadband penetration.

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