& cplSiteName &

The IP Transition's Real-World Impact

Brent Mello
5/1/2014
50%
50%

Out of curiosity I Googled "IP transition" and got back four pages of news results from the last month alone. So what's all the chatter about? Right now much of it circles around what the FCC will or will not do with various writers and industry experts parsing and reparsing statements.

Bandwidth.com General Manager Steve Leonard covered that topic in a recent post, but I'd like to take a look at what the transition to IP means to you, me, and other people who use a phone for business and personal communications. Here are some thoughts... (See Successfully Managing the IP Transition Is a Tall Order .)

A telecom coupling trifecta: In recent years, we have seen the success of coupling hardware and software -- Apple Inc. (Nasdaq: AAPL) created a whole new business model when it launched the iPhone along with the extremely successful App Store. The transition to IP sets the stage for the next evolution where tightly coupled hardware and software begin to leverage IP-based telecom services too. We've already seen this with the Amazon Kindle (hardware) leveraging the Android operating system (software) to deliver communications through Talkatone's calling and texting app (telecom services).

While currently fragmented across three different companies, we could see more Internet players integrate similar innovative offerings internally as an alternative wireless service. Demonstrating the point, rumors of an Amazon phone are resurfacing .

Combining hardware, software, and telecom services will create a new breed of service providers, and a great opportunity for innovation in both the consumer realm and for business communications, as companies selling unified communications platforms, for example, continue to expand. By coupling a UC provider's hardware and software with the ability to send or receive calls through an over-the-top (OTT) voice path, the notion of a standalone phone company for small and medium business could be turned on its head.

Fast disruption of traditional telecom models: The transition to IP lowers the barriers to entry for new OTT services. We're already seeing promising adoption of innovative apps such as the Talkatone example above, and hybrid WiFi calling from companies such as FreedomPop . Telecom is evolving, and leading providers who take advantage of innovative VoIP capabilities -- software-based capabilities that do not require a telecom infrastructure for support -- will be at the forefront of growing their customer bases by unlocking new value in communications services.

Farewell desk phones: As disruptive communications technology penetrates the workforce, clunky desk phones will begin to disappear from office environments. The industry has experienced a dramatic drop in landlines in homes across the country. The IP transition also makes it possible for the ultimate elimination of desk phones within the enterprise. Companies will begin to realize the cost-benefits of scrapping their traditional desk phones and embracing the innovation available through mobile-only business plans and OTT VoIP applications targeted at enterprise users. Businesses will cut the carrier cord, forcing service providers to rapidly innovate to stay relevant in the workplace.

A re-imagining of 911: The US's 9-1-1 infrastructure was built decades ago on a model that assumed every 911 call would come from a fixed-line TDM-based phone. With the transition to IP, that model is no longer sustainable as a 911 caller is now more likely to be mobile, and the call will most likely not be placed from a TDM-based phone. In fact it may not be a call at all, and instead it might be a text message. Telecom innovators, from application developers to OTT VoIP providers to more traditional providers of dial tone services, will embrace this change. And the transition to IP will give them a more robust technical sandbox to work from in securing their users' access to emergency services.

The IP transition is an exciting time to be a part of the telecom community. As services continue to evolve, the next great innovation is always just around the corner. The communications industry is at a crossroads; to succeed, providers must rise to meet consumer expectations by innovating relevant, engaging services and experiences. Those that continue to operate according to the status quo will suffer.

The biggest impact from the transition to IP will be measured in our ability to re-imagine communications and meet the demands of the marketplace for innovative, next-generation services, making the status quo obsolete.

— Brent Mello, Vice President, Origination & Messaging Services, Bandwidth.com

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Infostack
50%
50%
Infostack,
User Rank: Moderator
5/4/2014 | 9:18:04 PM
What IP transition really means
There are a couple of ways of looking at IP transition and they are all correct.

 

First, it is the horizontal datanetwork model vs the vertically integrated telco model.

 

Second, it is about implementing settlement exchanges and models which IP lacks.  The IP stack doesn't have efficient supply/demand clearing north-south (app to infrastructure) or east-west (network to network or content/app provider to end-user).

 

To me the Comcast/Netflix disupte, IP transition and interconnect proceedings are all about where the WAN/MAN demarc in layer 2 is.  Edge access providers want it closer to the core and away from the edge.

 

But the cloud necessarily has to move to the edge.  We shouldn't be talking about IP transition (since that train left the station 10-15 years ago), rather we should be talking about the business models and policies which make 4K VoD, 2-way HD collaboration, seamless mobile BB and IoT universally accessible and inexpensive.

All of these require fundamental increases in capacity (particularly upstream), lower latency (proximity), QoS, redundancy and security in the last mile.

 

The core is doing just fine.  Since we didn't deal with the edge in 1996 effectively, we're forced to deal with it now.  The math (arbitrage) is pretty simple and stark: $0.0000004 vs $0.001 per voice minute; WAN vs MAN.  Google fiber has demonstrated moving the decimal place 2-3 places to the right in the MAN and can probably get another 1-2 places.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
5/1/2014 | 3:57:14 PM
That desktop phone
Today, many CLECs and managed services companies are building a lot of their business around the fact that, to date, desk phones haven't disappeared in the business world. While consumers are much quicker to drop their voice lines, businesses are looking for greater efficiences in combining voice with other communications methods, which P certainly enables. 

Some of those business plans are obviously evolving - Microsoft Lync is emerging as one platform that communications services providers are looking to -- and there are others. 

One reason the FCC's actions are important in this realm is that they obviously need to set the stage for the next generation of e911 services but also the way in which the all-IP network is regulated, the future of network interconnection and even Net Neutrality play into this new world of services. Those most fearful about Net Neutrality would say that without strong rules, broadband ISPs can make it impossible for OTT players to further cannibalize their services. I don't think that is likely, it's the kind of behavior that will get regulators crawling down your throat, but it is a concern for many. 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
5/1/2014 | 3:37:14 PM
OTT
The IP transition apparently has real potential to help carriers compete more effectively against OTT vendors. 

I googled "IP Transition" and got this article on the first page of results. So that's good. :)

More Blogs from Column
Today's telcos and communication service providers are more vulnerable to large-scale DDoS attacks than ever.
But this story will take years to write.
A few myths have emerged about microservices that need to be addressed, says Ciena's Abel Tong.
New and exciting methods of automation – whether virtualization, the cloud, IoT or even best practices like network segmentation – tend to emphasize innovation over visibility. As such, networks develop blind spots that mask network problems and even faulty devices.
Unlicensed spectrum will help the 3GPP's 5G specification proliferate.
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Infinera's Sales Director Paints Tech's Big Picture

6|21|17   |   4:14   |   (1) comment


Shannon Williams, Infinera's director of sales, shares how she achieves work's many balancing acts -- between her role and the broader company, today and tomorrow's tech and more.
LRTV Custom TV
SD-WAN Innovation & Trends

6|20|17   |     |   (0) comments


Versa CEO Kelly Ahuja discusses with Carol Wilson the current status and trends in the SD-WAN market, Versa's innovation around building a software platform with broad contextualization, and the advantages that startups can bring to the SD-WAN market.
LRTV Interviews
Ovum's Dario Talmesio on 5G in Europe

6|20|17   |   02:16   |   (0) comments


At 5G World 2017, Dario Talmesio, principal analyst and practice leader on Ovum's fixed and mobile telecoms European team, explains the emerging trends amongst European operators as they prepare for 5G.
LRTV Custom TV
Putting Power on a Pedestal

6|19|17   |     |   (0) comments


ARRIS's John Ulm says a major accomplishment of SCTE•ISBE's Energy 2020 program is increased focus on power cost and consumption, including inclusion of energy requirements in operators' RFPs and RFIs.
LRTV Custom TV
Gigabit Access: The Last-Mile Pipe for All Future Services

6|19|17   |     |   (0) comments


A Gigabit access platform being deployed today must be able to deliver all types of services to an increasing number of devices. A non-blocking architecture is necessary to support the ever-increasing growth in bandwidth demand. The Huawei Gigabit access solution is based on a distributed design that is fully scalable to deliver a unprecedented performance.
LRTV Custom TV
Key Factors to Successfully Deploy an SD-WAN Service

6|19|17   |     |   (0) comments


As service providers transition their SD-WAN solution from trials and limited deployments into production at large scale, there are important considerations to successfully operationalize these solutions and realize their full potential, without adding complexity, introducing uncertainty or disrupting current business operations. Sunil Khandekar, CEO and Founder ...
LRTV Custom TV
IoT Solutions: Rational Exuberance

6|19|17   |     |   (0) comments


IoT solutions are morphing from hype into viable business opportunities. Huawei has the platform and ecosystem support to help carriers successfully address new business opportunities in the IoT space.
LRTV Custom TV
Realizing ICN as a Network Slice for Mobile Data Distribution

6|19|17   |     |   (1) comment


Network slicing in 5G allows the potential introduction of new network architectures such as Information-centric Networks (ICN) as a slice, managed over a shared pool of compute, storage and bandwidth resource. Services over an ICN slice can benefit from many architectural features such as Name Based Networking, Security, Multicasting, Multi-homing, Mobility, ...
LRTV Interviews
Ovum's Mike Roberts on 5G Uptake

6|19|17   |   04:08   |   (0) comments


Mike Roberts, research director for Ovum's service provider markets group, explains why he has boosted his 5G subscriptions forecast.
LRTV Interviews
AT&T's Hubbard on Intersection of SD-WAN & MPLS

6|15|17   |     |   (0) comments


Rick Hubbard, SVP of Network Product Management for AT&T Business Solutions, discusses how AT&T's approach to SD-WAN fits in with its overall virtualization strategy, explains how SD-WAN can improve enterprise customers' use of the cloud and addresses the intersection of SD-WAN and MPLS.
Telecom Innovators Video Showcase
Keep Connected IoT Devices Under Control With Allot

6|15|17   |     |   (0) comments


Allot AVP of International Pre-Sales, Daniel Keidar, explains how communications service providers can protect infrastructure and service availability from flooding attacks caused by malfunctioning or bot-infected devices connected to their network.
LRTV Custom TV
ZTE 5G World Highlights

6|15|17   |     |   (0) comments


ZTE showcases its leading 5G innovations at 5G World in London.
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Verizon Warns of $500M Hit From Yahoo Deal
Iain Morris, News Editor, 6/16/2017
Netflix's Lesson in Culture Expectation Settings
Sarah Thomas, Director, Women in Comms, 6/21/2017
Kalanick Steps Down as Uber CEO
Sarah Thomas, Director, Women in Comms, 6/21/2017
BT Tech Chief Makes Plea to 5G Chip Vendors
Ray Le Maistre, International Group Editor, 6/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.