August 2008 | Volume 11/ Number 8
VoIPeering
VoIP Peering is Logical
The second positive effect of this news is that it shows XConnect (News - Alert) doing well and expanding its reach. This is a good sign for not only them, but VoIP Peering in general. I spoke with Kingsley Hill, VP of Strategic Federations at XConnect about the announcement and also VoIP Peering in general. He said, “Federation is getting closer to the top of the priority pile for VoIP network operators around the world every day. The key is staying with them until they’re ready and then executing.” Persistence certainly pays off and patience is worth its weight in gold. Federation is a term used by XConnect and others in the VoIP Peering world to describe a group of network operators and/or voice call end-point owners that utilize a central registry to map calls directly between sender and receiver, thus eliminating multiple networks, hops and additional costs. There are a few different ways to accomplish this technically and from a business/economic perspective, but essentially it is not only a method, but a way of thinking about calls as sessions in an IP domain that makes it a success. Some may believe that the only value VoIP Peering can bring is from end-point resolution, or on-net calling, which exists only to reduce costs. VoIP Peering does do that, but it can also enable much higher quality voice (and even video) sessions far beyond what the PSTN could have ever done. By enabling a better user experience value is created and new, more sustainable revenue can be generated. This is a much broader proposition than just free or lower cost calls. It may be difficult for some to comprehend, but it is quite logical and is already happening for many. Soon the “have’s” will gain a sizeable advantage over the “have-not’s” in features and economics and then market forces will dictate an accurate accounting of the true value VoIP Peering brings to the world. IT Hunter Newby (News - Alert) is the Chief Strategy Officer and a Director of a Special Purpose Acquisition Corporation focused on the communications industry. Reach him at [email protected] or visit www.hunternewby.com. Today @ TMC
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