Things are really getting interesting in the broadband
telephony arena, as IXCs and cable and DSL service providers jump in and
jockey for competitive advantage in this nascent marketplace. Indeed, the
list of players reads like a service provider �who�s who.� Recently, cable
operator Cablevision announced a new �triple-play� offering for new
subscribers, which bundles digital TV service, cable modem, and phone
service in a package that prices each service at a flat $29.95 (or under $90
for the bundle). Comcast unveiled plans to offer cable telephony service to
their entire subscriber base in a couple of years. SBC countered with an
announcement that they will invest $6 billion over the next few years to be
able to offer video over their network. And we all remember, a little while
back, that AT&T threw its big hat in the VoIP ring to compete with Vonage
and the like. Now rumors swirl that MCI and Sprint will follow suit.
The broadband telephony feeding frenzy, while serving to
dramatically raise IP telephony�s public profile and overall industry
prospects, is also a double-edged sword: there are a number of hurdles in
the path to success, which while not insurmountable, have the potential to
restrain growth and curtail the current high-level of enthusiasm. If the
frenzy of �one-upmanship� continues without addressing things like
installation and troubleshooting issues, cordless capabilities, and network
infrastructure performance and QoS, uptake for these innovative, new
services will certainly take a hit.
It�s important to remember that there are currently slightly more than
100,000 subscribers to broadband telephony services � a mere drop in the big
telecom bucket � and that this 100K is probably the cream off the top of the
early-adopter crop. In order for broadband telephony services to truly
mainstream, and appeal to the average Jane and Joe subscriber, the services
must be designed to address usability and reliability concerns head-on.
Take the installation process. For the average consumer � even the
technologically adept user � networking remains something of a black art.
For someone faced with installing a home network � including WiFi � the task
is still a fairly daunting undertaking. Even experienced users are having
some serious issues: see Rich Tehrani�s column entitled �AT&T CallVantage:
Checking Under the Hood� (www.tmcnet.com/13.1). Although the process is
getting easier, it is still rife with pitfalls. (Consider such issues as
security, which something like 70 percent or more of home WiFi users do not
enable due to confusion and frustration). For broadband telephony services
that require the installation of a separate IAD, things can get downright
hairy � especially if Wi-Fi routers, hardware-based firewalls and the like
are being employed. Cablevision got it right by building a cable modem that
integrates telephony services, but the bottom line is the industry has to
figure out ways to simplify the whole process so that it approaches a near
�plug and talk� experience.
With respect to cordless capabilities, there is thankfully some great
progress occurring in the Wi-Fi telephony space � progress that I believe
will have a major impact on broadband telephony uptake. The home environment
is very different from the workplace when it comes to the ratio of cordless
to corded phone sets. Chances are that at least 90 percent of all homes have
cordless phones in use, as opposed to practically zero percent in offices
and workplaces. In order for VoIP to take off in the home, a practical
strategy to put cordless IP phones in the hands of users is critical. This
is where Wi-Fi telephony comes in. Motorola is set to sell a $300 phone by
the end of the year that can begin a call using a wireless network and let
it be automatically rerouted to a cell network if you move out of range of
the Wi-Fi network. Cisco is reportedly working on cordless phones that can
be used in any home with a broadband connection and Wi-Fi router, and Vonage
is reportedly planning to introduce a similar phone by the end of the year.
Finally, with respect to network infrastructure performance and QoS, much
needs to be done in terms of network assurance to provide the level of
quality and reliability the (hopefully) many millions of broadband telephony
users will demand. A new breed of Infrastructure Performance Management (IPM)
solutions are coming to market that will help service providers pinpoint
trouble spots and pave the way to trouble-free communications.
Having witnessed firsthand the IP telephony industry evolve from
single-port, analog gateways to full-blown Class 5 softswitches, I have no
doubt that such challenges as mentioned above will be overcome in short
order with characteristic ingenuity.
Marc has been involved in the telecommunications industry as a researcher
and analyst, author and publisher, and marketing executive and consultant
for more than 23 years. Marc recently served for five years as Vice
President of Publications and Trade Shows and Group Editorial Director at
TMC. Most recently, Marc launched a new marketing communications and
services company, Robins Consulting Group, offering an array of professional
services to the IP telephony industry. Contact RCG at 718-548-7245 or e-mail
[email protected]
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