April 1999
Services for Success: Proliferate, Differentiate,
Accumulate
The tremendous growth in the number of new entrants to the service provider marketplace
is a testament to the maturing industry we call Internet telephony. And, with all these
new service providers throwing their hats into the telecommunications ring, there is an
increased need for providers to differentiate themselves from one another by way of
providing unique services. Market conditions are increasingly ripe for new players to
enter this expanding field. Just think what Internet telephony technology has already
enabled during its short life span. Lower costs of ownership. Evaporating barriers to
entry. The ability to service niche markets. Lightning-fast return on investment. Indeed,
the lower cost of entering the market coupled with the current regulatory environment
makes it possible for some startups to get in the game while operating "under the
radar screen" of the various legislative bodies.
While many of these companies are laying the groundwork for next-generation service
provision, traditional service offerings, such as prepaid or toll bypass (i.e., ISPs
offering voice) are still an important piece of the puzzle, and therefore cannot be
overlooked. But how do new market entrants compete with established carriers when it comes
to providing such services?
Witness the long-distance bypass explosion courtesy of IP-based telephony technology.
The proliferation of lower-cost Internet telephony gateways, the ongoing work to build and
maintain intelligent networks capable of providing much greater bandwidth, and the
potential benefits (lower cost, easier maintenance) to end users are providing a base from
which new entrants to the service provider market can attack the incumbents and carve out
a niche for themselves.
This technology (IP Telephony) lowers the barriers to market entry. There is no longer
the pressing need to purchase and deploy expensive Class 5 switches. Small startups are
able to deploy systems, address a specific market niche, and put down roots - all
previously impossible, due to a prohibitive financial and regulatory environment.
Also, by utilizing CTI (computer telephony integration) technologies - for example, an
IVR front-end to an Internet telephony gateway - new market entrants can offer traditional
services such as toll bypass in the form of prepaid IP telephony, thereby giving end users
access to cheaper voice services.
But cheaper voice, by itself, is a limited opportunity. If everyone is offering 4.9
cents per minute phone to phone calling, how do vendors differentiate themselves? In this
new age of telecommunications, the value-add becomes mission-critical. In other words, in
order to differentiate oneself from the pack, it is necessary to provide some sort of
enhanced services offering.
It is specifically to address this rapidly growing market that we at INTERNET
TELEPHONY have decided to expand our coverage of traditional telecommunications
services, "next-generation" enhanced services, and the companies who provide
these types of services. While we have always paid close attention to the service provider
market, this expanded monthly feature will provide readers a one-stop shop for information
related to this burgeoning sector of the Internet telephony market.
SERVICE PROVIDERS
Who are the companies charged with providing customers the services designed to increase
efficiency and revolutionize our means of communications? Generally speaking, they fall
into a number of categories with at least some of the differences based on the type of
technology they utilize. Some of these service providers are CLECs (competitive local
exchange carriers), Next-Gen Telcos, Cable operators, Wireless providers, Internet Service
Providers (ISPs), and of course our old friends, the IXCs (inter-exchange carriers).
Adding to the confusion are some hybrid offerings and announcements from combinations
between two or more of the aforementioned company types. (Nobody said this was going to be
easy!)
LECs
In an all out effort to differentiate themselves from each other and the incumbent local
exchange carriers (ILECs) in the regions they serve, CLECs are turning to providing unique
service offerings as a way of signing up new customers and maintaining that customer
relationship. CLECs now operate in just about every major market and are slowly chipping
away at the incumbents' lock on those markets.
Next-Gen Telcos
Another relatively new type of player in the telecommunications market is the Next
Generation Telco, or next-gen telco. These vendors are mostly involved in prepaid services
and toll bypass, offering extremely competitive rates for long-distance voice calling. By
utilizing IP telephony technology, these companies are leading the convergence market by
offering very inexpensive voice over data networks, both public (the Internet) and private
(VPNs, managed networks). As the advantages and high margins of providing cheap
long-distance fade, these vendors will look to services to differentiate themselves form
all the other players. In order to avoid costly customer churn, next-gen telcos will need
to provide services to keep the customers who originally signed up based on price alone.
Cable
Cable companies aren't shying away from the opportunity to get involved in
telecommunications either. Recent mergers and joint ventures all point towards the cable
industry's desire to provide end users with a one stop shop for all their communications
needs. Voice, video, interactive gaming, what have you. Cable provides a rather
ubiquitous, high-speed, "fat" pipe to the homes of many consumers. These service
providers have a tremendous opportunity, and the rash of recent announcements support the
fact that cable companies will play a major role in the future of telecommunications.
Wireless
Wireless providers are aggressively courting customers with a wealth of services offering
convenience and ever increasing geographical coverage. They are also increasingly offering
traditional data services such as e-mail and Web browsing using a cell phone or telephony
enabled personal digital assistant (PDA). Adherence to existing standards is even enabling
worldwide roaming, which allows users the convenience of using their same cell phone in
the United States, Europe, and Asia. Industry heavyweights Motorola and Cisco have also
entered into an agreement focused on providing a wireless Internet.
ISPs
And, since we're talking about the Internet, it bears mention that ISPs (Internet Service
Providers) are well positioned to make a big play in the telecommunications space. It
seems that every day brings new word of ISPs forming alliances or implementing Internet
telephony technology to offer their customers telephony services. Of course, ISPs are as
wary of any activity relating to possible regulation as any other service provider, but in
today's environment of PC-savvy users, they stand poised to provide converged voice and
data services.
SERVICES
Enhanced services are finally on the cusp of achieving some level of respectability. As
recently as six months ago, consumers and analysts looked upon these services as pure
hype, but with bandwidth becoming more readily available, the continuing evolution of
networks, and a general sense of consumers' readiness to accept and purchase next
generation services, the outlook for enhanced services has never been brighter. The time
is ripe for service providers of all shapes and sizes to make good on their promise and
start delivering.
Some of the services we can expect to see - indeed we're already seeing some of these
being deployed - include:
- Unified Messaging: All of a user's disparate messages (e-mail, voice mail, fax)
will be accessible through a single, unified interface.
- Internet Fax: Service providers can deploy state-of-the-art fax services in
their networks, thus saving end-users tremendous amounts of money.
- Intelligent Message Handling: Users will be able to scroll through and
manipulate voice mail and e-mail messages utilizing next generation handheld devices.
Indeed, developers are beginning to make intelligent use of the LCD "real
estate" found on cell phones, allowing users to browse the Web (albeit with no
graphics), check e-mail, forward messages, etc.
- Billing/Provisioning: By providing a unified bill for all of a user's
telecommunications services, billing is becoming a service in and of itself. Some service
providers allow customers to view their bills online (real-time), as well as enabling them
to select and provision services on-the-fly. Do I need call waiting on my second line?
Point. Click. Done.
CONCLUSION
Of course, these are but a few examples of the types of services being offered. Who knows
what the application developers have in store for us in the weeks and months ahead?
As the field of telecommunications continues to get more crowded, it becomes
increasingly necessary for service providers to differentiate themselves from the pack.
This new section is designed to provide readers with all the news and events that will
shape the future of this rapidly expanding segment of the market. As always, I invite you
to learn more about this market. Do your homework. Call vendors, go to trade shows, check
this stuff out for yourself. In the meantime, if you would like to offer any input, feel
free to drop me a line. E-mail to ggalitzine@tmcnet.com
is always welcome.
- Greg Galitzine
Go to:
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The "Big 3"
-- Integrating Services The recent announcements by
"old-guard" (a relative term indeed), long-distance giants AT&T,
MCI/Worldcom, and Sprint serve as a testament to the need to expand service offerings to
compete with the new market entrants described in the accompanying feature. Faced with the
threat of eroding market share and lower margins on long-distance calling, these three
have announced a wealth of new integrated services, featuring data, Internet, wireless
connectivity and more - all aimed at reducing customer churn and increasing the bottom
line.
INC
AT&T's (www.att.com) Integrated Network Connection
(INC) is being billed as a way for customers to simplify their network management
headaches by providing a "plug and play" interface to the AT&T network for
all of their voice, data, and IP traffic. Another AT&T move, aimed at the consumer
market, is the AT&T Personal Network, which is a unified billing program for all of a
user's calls, be they wireless, wireline, local, long-distance, home phone, pay
phone
you get the idea. Other perks of the service include a single rate of 10
cents/minute, voice mail with text messaging, and caller ID at no extra cost.
ON-NET
MCI/Worldcom's (www.mciworldcom.com) offering,
On-Net, also blurs the line between local and long-distance for all of a business' voice,
data, and Internet needs. Again, a major feature of the service is a unified bill that the
customer receives for all of their services. MCI/Worldcom also offers customers the option
of e-Billing, a Web-enabled service that features all invoicing, payment, real-time
monitoring, and customer support online.
ION
Sprint's (www.sprint.com) ION (Integrated On-Demand
Network) caused quite a stir when it was announced in December of last year. One of the
greatest benefits of Sprint's ION offering is that business customers no longer need to
maintain and provision their own networks. As time goes on, Sprint plans to add integrated
Internet and data services (Frame Relay, ATM) expanded options for long-distance, local
service, customer self-provisioning through secure Web-enabled software, and value-added
services that support collaboration, e-commerce, and more.
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The New Crop of
Carrier-Class Solutions Over the last few months, a number of
companies have introduced large-scale platforms designed specifically for service
providers looking to carry voice and fax over an IP network. The wealth of features,
reliability, adherence to standards, and the scalability inherent in each of these
solutions highlights the rapid maturation of the Internet telephony market and serves as
further validation of the technology. In the space of a little more than two years, the
industry has witnessed an amazing progression from 4-port analog gateways to switching
behemoths capable of supporting millions of IP-based calls. So, watch for these great new
Carrier-Class solutions
Coming soon to a service provider near you
LUCENT'S PACKETSTAR
The PacketStar IP product line provides service providers a platform on which to build
robust differentiated voice and fax services over IP networks. The offering includes the
PacketStar IP Gateway 1000, PacketStar IP Gatekeeper, and PacketStar IP Manager. Notable
specifications include:
- Fault tolerance and NEBS Level III compliance.
- Dynamic voice and fax allocation on any port.
- Internal ATM switching fabric.
- 28 T1s per gateway (672 DS0s).
- 5 gateways can fit in a seven-foot rack totaling 3,360 DS0s per rack.
- Low latency (80 ms end-to-end).
- Support for G.729a and G.711 codecs.
- elemedia H.323 software and gatekeeper development toolkit.
- H.323 v2.0-compliant.
The PacketStar IP Gateway 1000 lists for $325 to $600 per port, depending on
configuration. The PacketStar IP Gatekeeper and PacketStar IP Manager list for $150,000
and $45,000, respectively, for the turnkey software and hardware solution. For more
information, visit www.lucent.com/dns.
CASTLE NETWORKS' C2100
Castle Networks' C2100 Services Mediation Platform (SMP) is a next generation central
office (CO) platform built from the ground up to switch both voice and data traffic. The
C2100 SMP unbundles voice switching from Class 5 equipment and allows service providers to
quickly expand into regional markets offering integrated voice and data services, while
providing a platform for peering with long-distance providers and efficiently feeding data
traffic to ISPs.
By applying the economies and efficiencies of data networking technology to the PSTN,
the C2100 SMP employs a distributed processing model that unbundles core voice switching
from the Class 5 mainframe, while still leveraging its feature-rich software. And, with
support for data inherent in its architecture, the platform takes advantage of the
ubiquity and reliability of the PSTN to migrate carriers and end users from today's
circuit-switched environment to tomorrow's converged networks of circuit, packet, and cell
technologies. Base system pricing starts at $101,500 and includes a chassis, SCE, CPE, and
channelized DS-3 trunk/access module (DXM). For more information, visit www.castlenetworks.com.
TRANSMEDIA'S MMS-1600
The MMS-1600 is a multimedia switch capable of integrating with a wide range of carrier
networks (PSTN, IP, ATM); media traffic types (voice, data, video); and transport speeds
(DS0 to OC-48). Located in the carrier CO or POP, the MMS-1600 system uses TransMedia's
patent-pending MultiPath technology and a high-density, scalable architecture to
intelligently switch voice and data traffic across packet-, circuit-, or cell-based
networks.
The TransMedia MultiPath technology provides the MMS-1600's range of media, network,
and speed functionality, performing media adaptation and switching in addition to
providing dynamic QoS traffic management. The programmable technology enables carriers to
offer differentiated voice and data services by using service level profiles, extended
traffic management based on QoS queues, and DiffServ and MPLS capabilities. The MMS-1600
provides direct connectivity to SS7 networks using the emerging IPDC and MGCP standards
and open APIs. List pricing for the MMS-1600 starts at $86,125. For more information,
visit www.trsmedia.com.
SONUS NETWORKS' IP TELEPHONY SUITE
The IP Telephony Suite includes the Sonus Gateway Switch (GSW), and the Sonus Open
Services Architecture, an open platform for IP telephony services development. The GSW was
conceived and built exclusively as a carrier-class solution, and provides the
interconnectivity, capacity, and quality to meet the most stringent demands of the public
carrier networks. Features include 99.999 percent availability with full redundancy and
hot-swap capability; high scalability (a single GSW shelf can support more than 8,000
calls, while a fully configured GSW can support more than 64,000 calls); SS7 signaling;
one-stage dialing; and toll-quality voice. For more information, visit www.sonusnet.com.
SALIX TECHNOLOGIES' ETX5000
The ETX5000 - based on SALIX' FleXchange Unified Switch Fabric - can fully integrate the
functionality of a CO tandem switch and an Internet telephony gateway. The ETX5000 is the
first offering in the SALIX Enhanced Telephony Xchange family of class-independent
telephony switches designed to enable service providers to offer customers high-quality,
next-generation telephony services and facilitate deployment of VPN services.
The SALIX Enhanced Telephony Xchange Architecture describes a new class of high-speed,
high-performance service-layer devices that will enable seamless connections both to and
between the PSTN and the Packet Data Network. The SALIX Enhanced Telephony Xchange is
designed to surround the core of a service provider's network, whether it is based on IP,
TDM, or ATM. The ETX5000 can scale up to 100,000 ports. For more information, visit www.salix.com
CISCO'S AccessPath-VS3
Cisco's AccessPath-VS3 is a fully integrated dial access system that merges universal
Internet telephony, switching, and high-speed backhaul routing into one scalable
architecture for quick and reliable transmission of toll-quality voice and fax services
over data networks. The system is equipped with assembled components and an easy-to-use
Web-based configuration tool for quick deployment. ITSPs and corporations can use
AccessPath-VS3 for intracompany phone calling and faxing, phone-to-phone communications
through PBXs and key systems, real-time fax to fax exchanges, and PC-to-phone
transmissions.
Other notable features include built-in CDR, an integrated H.323 gatekeeper; a 48- to
1008-port capacity for T1 configurations (60 to 1,260 ports for E1); availability of
99.99998 percent; and support for 42 to 168 ISDN Primary Rate Interfaces (PRIs).
Components include the Cisco AS5300 platform with voice/fax feature cards, Cisco IOS
software, routing and switching products, a system controller and fully tested system
configurations, and optional Cisco 3640 gatekeepers. For more information, visit www.cisco.com.
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SERVICES NEWS Orange
Appeals To Customers With Wildfire
UK wireless service provider Orange plc and Wildfire Communications, developers of the
Wildfire virtual assistant that uses speech recognition to manage telephone
communications, have entered the final trials of the service, which will involve over
5,000 customers of differing ages, gender and, critically, accents. The final trials are
intended to provide Orange with the information necessary to optimize Wildfire prior to
launch to its two million UK subscribers later this year.
No. 540, www.itmag.com/freeinfo
SBC, Williams Join For IP
In a 20-year agreement, SBC Communications plans to use Williams Communications' data
network and services business as it extends its delivery of long-distance voice and data
services. SBC also agreed to acquire up to 10 percent of Williams. In addition, Williams
expects to offer SBC technical and service support to help SBC roll out services to new
customers it expects to acquire as part of its purchase of Ameritech and SNET.
No. 541, www.itmag.com/freeinfo
AG Prepaid On Sun Platform
AG Communication Systems plans to offer its network-based INgage Wireless Prepaid Services
(WPS) solution on Sun Microsystems' scalable, carrier-grade Netra computing platform. The
combined solution can allow service providers to implement network-grade WPS applications
on a nontraditional, intelligent network platform for quicker time-to-market. INgage
incorporates Solaris and SPARC.
No. 542, www.itmag.com/freeinfo
Net2Phone Plans IP Shopping Portal
IDT's Net2Phone expects to launch one of the first Web shopping portals powered by
Internet telephony - EZSurf - designed to integrate voice, graphics, and eventually video
and push technology to enhance the online shopper's experience. Through Net2Phone and
Click2Talk services, visitors can contact retailers via real-time voice without having to
visit the retailer's Web site. EZSurf offers users value-added information needed to buy
products online.
No. 543, www.itmag.com/freeinfo
Nextel Unveils Online Developer Program
Nextel Communications has designed the Nextel Developer Program - designed for the Nextel
Online Service - to offer timely, accessible, and accurate technical information, testing,
and technical support to third-party hardware and software developers, systems
integrators, and VARs - all to facilitate the development of products and applications for
Nextel's network and suite of wireless services. Specialized applications can provide
flexible capabilities designed to interface with customers' various environments and
changing wireless data/Internet requirements.
No. 544, www.itmag.com/freeinfo
Hypercom Adds Call Supervision To Gateway
Hypercom Network Systems has designed its new IP.tel Call Supervision software suite to
allow its IP.tel 6000 IP Telephony Gateways to accurately detect when calls are answered
and dropped to ensure that customers are only billed for calls completed, not
busy/unanswered calls - all through answer supervision and disconnect sequence functions.
IP.tel can now detect when calls are dropped through dial tone, busy signal, recorder
tone, loop disconnect, or voice inactivity.
No. 545, www.itmag.com/freeinfo
UUNET Licenses Portal Software
UUNET has licensed Portal Software's Infranet customer management and billing software,
which can help UUNET achieve quicker time-to-market, support varied pricing options for
different market segments, and establish new ways of satisfying customer needs such as
"self-help" account information. The real-time solution helps service providers
introduce new business models and reduce customer service costs.
No. 546, www.itmag.com/freeinfo
Amdocs, VocalTec Plan IP Solution
Through a joint cooperation agreement, Amdocs expects to integrate its ensemble system
with VocalTec Communications' Ensemble Architecture to offer carriers and service
providers a comprehensive solution designed to support advanced, high-volume Internet
telephony services for both major/emerging telecommunications carriers and leading ISPs.
Amdocs' system can support convergent customer care and billing activities in
multiservice, fixed line and mobile environments.
No. 547, www.itmag.com/freeinfo
Lucent Messaging Platform Bridges Networks
Lucent has designed its AnyPath Messaging Platform for wireless, fixed line, and Internet
service providers to enable easier delivery of unified messaging, enhanced communications,
e-commerce, and IN messaging services portfolios to subscribers. The platform leverages
Lucent's voice messaging, speech processing, and communications networking with Sun's
Internet and networking computing and can allow subscribers to access/manage
messages/information from anywhere, at anytime, with any device on any network.
No. 548, www.itmag.com/freeinfo
I-Link Extends Enhanced IP
I-Link now offers telephone customers in the greater Seattle-Tacoma metro area local
access to its IP services, called V-Link, and its 4.9-cent-per-minute long-distance.
I-Link also offers its services and low long-distance rates to customers in 200-plus
cities in the Los Angeles/Orange County, Dallas/Ft. Worth, Houston, Phoenix, and Salt Lake
City metro areas and plans to activate its enhanced Internet telephony network in the New
York City, Chicago, Orlando, and Pittsburgh markets.
No. 549, www.itmag.com/freeinfo
NetSpeak, MIND CTI Integrate Solution
A combined solution of the NetSpeak Gateway Exchange and MIND-iPhonEX VoIP Billing System
is expected to be installed and implemented by phoneTec LLC of Baltimore, Maryland, and
USWeb/CKS of Santa Clara, California. Web-based customer care and subscriber verification
of real-time balance and call details are available with the billing system. NetSpeak is
implementing the MIND SDK as part of the joint solution.
No. 550, www.itmag.com/freeinfo
Wireless Launches Internet Access Service
Wireless has launched StarPort, a service designed to allow ISPs to offer Wireless Digital
Subscriber Line (W-DSL) Internet access to their business customers. StarPort can deliver
mission-critical applications, including e-mail, Web browsing, FTP, and VoIP and offers
"always on" Internet access with end user bandwidth at speeds up to 512 Kbps.
The package includes installation, maintenance, and 'round-the-clock monitoring.
No. 551, www.itmag.com/freeinfo
HomeRF WG Announces Spec Ratification
The HomeRF Working Group (WG) has announced the ratification of the Shared Wireless Access
Protocol (SWAP) specification 1.0 designed to offer an open platform enabling a broad
range of interoperable consumer devices for wireless voice and data communications in the
home. The HomeRF WG expects the first SWAP-based wireless devices to reach the market by
year's end. Member companies actively developing these products include such names as
Compaq, Microsoft, Motorola, and Symbol Technologies.
No. 552, www.itmag.com/freeinfo
PulsePoint, Leap Join For Enhanced Services
PulsePoint Communications and Leap Wireless International are working toward establishing
PulsePoint as the primary supplier of voice mail and unified messaging solutions for
Leap's new networks. The expected result is the pairing of the two with telecommunications
expertise and the charter to deploy networks and next-generation, enhanced services in
global markets. Leap and its operating companies plan to leverage the PulsePoint Enhanced
Application Platform designed to bring enterprise solutions into public networks.
No. 553, www.itmag.com/freeinfo
Motorola, Cisco To Build Wireless, Internet Networks
Motorola and Cisco Systems have announced the first phase of a strategic alliance to
develop and deliver a New World framework for Internet-based, wireless networks. The
expected result is one of the first all-IP platforms designed to unite different standards
for wireless services worldwide and introduce an open, Internet-based platform for
integrated data, voice, and video services over cellular networks. Both companies plan to
cross-license technology and develop complementary products.
No. 554, www.itmag.com/freeinfo
GTE Releases IP Fax, Call Waiting
Now available are GTE Corp's IP Fax and Internet Call Waiting offerings - the first in a
suite of enhanced IP services GTE is developing, designed to leverage its new, nationwide
high-speed, private fiber network to deliver high levels of reliability. Planned future
services include Unified Messaging IP Voice Mail, VoIP services, and Web Call Center -
developed by and to be brought to market throughout the year via GTE Internetworking.
No. 555, www.itmag.com/freeinfo
Interpath, NetCentric Prep Fax Network
NetCentric Corporation's FaxStorm Internet fax system has been selected for Interpath's
planned Internet fax network. Interpath expects to offer a wide range of outsourced fax
services utilizing NetCentric's enhanced services platform. Bill Willis, Interpath's vice
president of engineering, said NetCentric's system "has an open hardware architecture
that will let us deploy and grow our network quickly."
No. 556, www.itmag.com/freeinfo |
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