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VOIP: King of New Services

Light Reading
News Analysis
Light Reading
9/14/2004

NEW YORK -- VOIP's taking the marquee position among new telecom services taking shape, according panelists and speakers at Light Reading’s Next Generation Services (NGS) 2004 Service providers, analysts, and equipment providers gathered here Monday to talk about which new services promised to deliver the telecom industry's recovery. And while broadband services, video, and triple-play all came to mind, the discussions kept circling back to VOIP.

Some speakers said service providers could ignore VOIP at their own peril.

”Voice is a uniquely powerful communication medium,” said keynote speaker Andrew Odlyzko, director of the University of Minnesota’s Digital Technology Center. “There is much more that can be done with voice. Skype is doing it. Toll-quality voice is pretty lousy. With IP, you can play with voice." In fact, if anything, Odlyzko says that in examining new opportunities, service providers should be careful not to ignore voice. He believes service providers may be wasting too much time trying to build complex networks that serve up the new “killer apps," when in fact it's voice -- the application they've been serving for years -- that generates the most excitement.

“ATM, RSVP, multicasting, streaming real-time media, 3G: these are all technical successes, but failure in the marketplace.”

In the panel sessions, however, evidence of reality came to light. Conference participants said that equipment providers and service providers alike can easily get bogged down in complexity in designing their VOIP networks and developing common architectures that work together.

“Quite a lot of equipment doesn’t interoperate,” said NGS conference Chairman and Light Reading Founding Editor Peter Heywood. “If you’re trying to build a multi-vendor softwitch network, you’re asking for trouble.” Surveys of service providers by Heavy Reading indicate that the technology is not yet viewed as mature, says Heywood.

Equipment vendors, of course, say they’re just trying to get the highest quality product to market in the most efficient amount of time. “VOIP techology is proven and it’s out there and deployed today,” says Rob Scheible, senior marketing manager for carrier VOIP for Nortel Networks Ltd. (NYSE/Toronto: NT). “The smaller companies will move first, they can take a higher risk. Across the board you will see high deployment."

So what exactly goes into a VOIP network? As defined by panelists, the foundation of a VOIP network is built using three new categories of equipment: softwitches, media gateways, and session border controllers (see Session Controllers Storm Chicago, The Softswitch Name Game, and Tried & True? Not for VOIP).

The glue that's going to hold VOIP networks together is likely the SIP protocol, say some analysts. “SIP is becoming more pervasive, it is the foundation of any of these new services,” says Kevin Mitchell, analyst at Infonetics Research Inc..

Mitchell says the drivers of VOIP technology are the fact that it’s cheaper to deploy, including both initial capital spending and longer-term costs of ownership. He also says service providers are plunging ahead because they need the new revenue streams.

But hold on before you starting counting down to that IPO: even if VOIP's popularity is undeniable, the business case remains murky at best.

"The utility value to consumers is very high, but the prospects of making money in the long run is very difficult," pointed out attendee Ravi Bhagavan, managing partner with the Merton Group and former vice president of business develpment of VOIP provider Zephyr Communications.

— R. Scott Raynovich, US Editor, Light Reading

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dljvjbsl
dljvjbsl
12/5/2012 | 1:16:56 AM
re: VOIP: King of New Services
The discovery at this conference that people will pay money for services that they find useful must have been quite startling. That the industry should pay as much attention to customer value as to technical virtuosity is a lesson that this industry seems to find difficult to master.

The conference discovered:

- that 3G and other similar "services are useless because they solve no known problems
- that 3G providers and others are going bankrupt and taking their equipment providers with them because people will not pay money for useless services
- that "voice" is a uniquely valuable service that people will pay for
- that "voice" is not just transmission but a complex network of protocols and services
- that "voice" is technically very difficult
- that "voice" requires sophisticated and ongoing R&D
- that there is money to be made in "voice" but it requires a keen understanding of both technological possibilities and user value

Maybe with these startling discoveries this industry will finally start to concentrate on the end user value.



urwonderfull
urwonderfull
12/5/2012 | 1:16:49 AM
re: VOIP: King of New Services
Dear Friends,

In the above article Peter Heywood, Chairman and Light Reading Founding Editor , is quoted as saying GÇ£Quite a lot of equipment doesnGÇÖt interoperate,GÇ¥

I wish to call attention to AVOP a system that does interoperate.

While there are other Voice Exchanges out there that offer similar service, AVOP is the only one that automatically and intelligently handles routing management, settlements, billing and administration in real time. In addition, AVOP is the only system that provides each customer with the ability to:

http://biz.yahoo.com/iw/040830...

a person of oneness,
Dean Hedges
ind inv in NTTL.OB
delivering $5 of Free International Long Distance Calls From Any Phone
http://biz.yahoo.com/iw/040901...
HeavyDuty
HeavyDuty
12/5/2012 | 1:16:33 AM
re: VOIP: King of New Services
<< "The utility value to consumers is very high, but the prospects of making money in the long run is very difficult," pointed out attendee Ravi Bhagavan..." >>

If the customers agreed that the utility value of VoIP was so high it wouldn't be so hard to make money selling said service.
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