February 2005 Archives

So, here I am, back in the office after a full week away at Internet Telephony Conference & EXPO. And what a full week it was. So full, I was unable to blog with any consistency, and thus ended up not blogging at all.

I flew in to Miami late on Sunday, and after quickly checking in to my room, I hustled off to catch up with my colleagues who had flown in earlier that day for some dinner. Little did I know that was the last time I would have to relax for the rest of the week. Rather than bore you with the minutiae, suffice it to say that the TMC reactor was running at well over 100% from start to finish.

The show was a success from all perspectives: The exhibit hall was constantly flooded with buyers and people seeking information to make purchasing decisions. The conference sessions were often standing room only; such was the level of interest in learning about our industry.

As one of the folks responsible for creating the conference program at the event, I took great interest in listening to comments from the attendees and the speakers. There were a couple of suggestions for next time, and I want to let those folks know that I take those suggestions seriously.

However the single best statistic that sums up the conference experience at Internet Telephony Conference & EXPO Miami 2005, is this:

Exactly ZERO people found the need to take advantage of our 100% conference guarantee, which stated:

If after attending the conference you do not feel the sessions you attended made you better prepared to tackle your VoIP project than you were when you arrived, simply stop by the registration counter at the show and we'll issue you a free pass for any future INTERNET TELEPHONY conference.

Nobody felt the need to ask for a credit. Not a single attendee felt that what they spent on the VoIP education in Miami was in vain.

And to the speakers without whom the conference experience would be impossible I offer my humble thanks. I look forward to working with you on the next Internet Telephony Conference & EXPO in Los Angeles.

Level 3 is defending itself against comments made in an advertisement placed by the United States Telecom Association.  I received a release on the matter this morning:

The following statement is attributable to Bill Hunt, vice president of public policy at Level 3 Communications, Inc.

"On February 23, 2005, the United States Telecom Association placed a highly misleading advertisement in Communications Daily regarding the forbearance petition Level 3 has filed with the FCC on Voice over IP. The ad accuses Level 3 of attempting to 'skip out on its bill' and avoid paying 'what it rightfully owes' when it exchanges VoIP traffic with incumbent local carriers.

"As the USTA well knows, Level 3's forbearance petition merely asks the FCC to reaffirm that VoIP calls be exchanged using reciprocal compensation rates, rather than access charges. IP-Enabled calls have been exempt from access charges for more than 20 years. Instead of spreading misinformation, the USTA should be explaining to consumers why they want to raise the rates consumers will pay.

"Level 3's petition would enable all carriers to be fairly compensated for the use of their networks while also ensuring that consumers aren't forced to continue paying hidden fees that pad the pockets of incumbent carriers.

"We understand that VoIP and other revolutionary changes in communications technology may be disconcerting to entrenched monopolies and their outmoded network systems. Still, we believe that public debate on the important of intercarrier compensation should be conducted without hyperbole and distortion."

There will be many news announcements made this week at the Internet Telephony Conference & EXPO here in sunny south Florida. One of the first releases to cross my transom is the news that Pingtel is expanding their global reach by launching a worldwide channel program.

Already over 20 vendors have signed on to promote Open Source SIP solutions to the global marketplace. The news release appears below.

Pingtel aggressively Expands market reach with launch of worldwide channel Program for Solution Providers

So here we are. Miami. Internet Telephony Conference & EXPO. You can almost hear the orchestra tuning their instruments as the last-minute preparations are underway. I'm looking forward to the VoIP Peering Summit, which promises to be one of the more compelling tracks on offer today. I'm also excited about moderating the IP Contact Center Shootout this afternoon. After spending the better part of the past few months preparing and shaping the conference program, it all comes to fruition today starting at noon.

And so as we dot the I's and cross our T's we eagerly await the arrival of nearly 5,000 attendees to what has become known as the world's largest VoIP marketplace. Hopefully I'll see you here. Travel safely.

Well, after months of planning and hard work, it's almost time to tidy my desk and set off for Miami. I'm looking forward to next week's Internet Telephony Conference and EXPO, which is shaping up to be one of the biggest and most exciting VoIP events ever.

I'm especially looking forward to several of the conference sessions, most notably the P2P VoIP discussion being moderated by our own Tom Keating. That's what I like most about this conference: we're always breaking new ground and presenting the top minds in the industry. For example, the P2P session will feature:

Niklas Zennström, CEO & Co-Founder, Skype Technologies
Dmitry Goroshevsky, President and CEO, Popular Telephony
Mahshad Koohgoli, CEO, Nimcat Networks
Peter Sisson, President & CEO, Teleo
and
Gary Hermansen, President and Chief Executive Officer, Global IP Sound

That's quite a powerful lineup. And that's what we offer our attendees. 

Mostly however, I look forward to meeting with the magazine readers and the conference attendees to get their take on VoIP, to hear what they have to say as they share their excitement, their trepidation, and their views on the technology.

To everyone who will be in Miami, I wish you safe travels. I'm looking forward to seeing you at the show!

ABI Research takes a look at the burgeoning Telco TV market in their latest research report Telco TV Infrastructure & Service Integrator Opportunities.

The study examines the trends, market values, and penetration of the emerging medium of Telco TV, the infrastructure enabling it, and the main vendors in the space.

Top 3 Companies In The Space
According to analyst Michael Arden, “ICTV is number one: they have announced deployments that are significant, and they appear to have an aggressive sales force that is doing a good job. Their ICTV technology isn’t as good as the runner-up’s, but they hit all of the main requirements of a VOD system, and their product scales well to provide a cost-effective solution to any size service provider.”

nCUBE claims the number two rating. The company has a strong record in the CATV industry and should be able to draw on past customers for future sales. It also has a proven technology, giving it a strong score on the Innovation side of the equation.

Microsoft ranks number three. It has the benefit of the brand name and a huge sales organization. “Their technology/innovation aspect is not as proven, because they are new to the market,” says Arden “However, they have announced some big customers and are teamed up with strong companies, so their future in the market is promising.”

According to ABI, the report answers the following questions:
 

• How will IPTV measure up against CATV and DBS?
• Where are the hottest markets for IPTV, and what services will be offered?
• What technologies will enable IPTV?
• What degree of demand exists for IPTV headend equipment?
• How quickly will carriers deploy IPTV services?
• How will the regulatory environment impact development of the IPTV market?
• What business-model assumptions are IPTV service providers making, and what are the drivers for them to take action?
• What VOD platforms best address the market’s needs?
• Which systems integrators have a head start in the IPTV market?

The Finns are coming! The Finns are coming!

Well, they’re coming to test your VoIP networks at the very least.

According to the news release on Nethawk’s site, the Finnish provider of mobile network testing and measurement tools, has signed a Letter of Intent with ipNetfusion, a network simulation and load testing systems, concerning the purchase of the shares of the latter.

According to the letter of intent, NetHawk will acquire the shares of ipNetfusion by the end of April.

Lance Armstrong confirmed today that he would take part in this year's Tour de France.

Armstrong announced his initial 2005 racing schedule, which includes the Tour de France, next month's Paris-Nice classic, the Tour of Flanders and the Tour of Georgia in the United States.

Mar 6-13 — Paris-Nice
Apr 3 — Tour of Flanders (Belgium)
Apr 19-24 — Tour de Georgia (USA)
Jul 2-24 — Tour de France

This is exciting stuff. I’m glad Lance decided to ride in this year’s Tour, rather than put it off until 2006, when he would have had an even more difficult time defending his streak of six consecutive wins. No longer sponsored by the U.S. Postal Service, Lance's team now competes as the Discovery Channel Pro Cycling Team.

The Paris-Nice race will be an indication of early season fitness and will also serve to show which riders are the biggest threats to Lance in July. Last year, only Ivan Basso proved to be a contender, with would-be challengers like Jan Ulrich and Tyler Hamilton essentially falling flat.

This year’s Tour de France will feature two stages in Germany, continuing the long-standing tradition of having at least one segment of the 3,500 km race in a country outside of France. As for the difficulty of the race this year, I personally can’t imagine anything tougher, but the experts seem to agree that this year’s course will run slightly easier than in 2004. Here’s an excerpt from a report I found on Bicycling.com describing this year’s course:

The race route […] is more spread out and diminishes a large emphasis on one or two stages. The result:  [2005] could be hard-knock fight for any single team or rider to control, placing a pricey premium on team strategy and tactics.

The race kicks off in the western Vendee region with a 19-kilometer time trial before beginning a clockwise loop around the country. The time trial, instead of a short prologue that is traditional Tour protocol, will likely allow pre-race favorites to make their mark early.

Riders will also see more climbing stages. The peloton will zoom in the Vosges Mountains in the eastern Alsace region during Stage 9, climbing the historic Ballon d'Alsace 100 years after the same climb became the first official mountain pass in the Tour.  

This climb does not rival the Alps or Pyrenees in terms of difficulty, however its narrow sinuous roads are deceptive and tricky. In 1969, Eddy "The Cannibal" Merckx took control of the race here, winning his first ever Tour stage on the way to his first of five Tour victories. And in 1997, climbers Richard Virenque and Marco Pantani put yellow jersey leader Jan Ullrich into a panic with a surprise attack. 

Organizers have also added a final climbing day in the Massif Central only four days from the finish with a stage leading to Mende. It was here in 1995 that Frenchman Laurent Jalabert scared Miguel Indurain, another five-time winner, with a long breakaway on the steep climb towards the town airport for a stage victory.  

But while the early time trial and moderate mountain stages promise to provide diversity, the emphasis on the Alpes and Pyrenees as well as time trialing will be slightly eased. 

Only one other significant time trial, a 55-kilometer affair on the penultimate day of the race, is scheduled. Three stages will end with mountain-top finishes in the Alps and Pyrenees. 

"This year's race will be dense, with difficulties more spread out," said Jean-Marie Leblanc in his overview. "The course is such that it should be animated practically every day. We wanted to open up the battlefield so the favorites could take more initiative." 

And, while Lance Armstrong has to be the favorite (it’s tough to bet against a guy who’s won six of these things in a row) riders to watch this year — if they’re able to stay healthy — are folks like Alexandre Vinokourov, the ever-present Jan Ulrich, Ivan Basso, Levi Leipheimer, to name but a few.

I might just cancel my Cablevision service and get a satellite dish instead; at least this way I can watch some of the cycling season on Outdoor Life Network. (OR MAYBE CABLEVISION WISHES TO START CARRYING THAT CHANNEL???) Side benefit: I would be able to sign up for Cablevision’s triple play (VoIP, digital cable, high-speed data) as a new customer after three months, thus getting the full triple play pricing advantage that’s currently unavailable to me.

You knew I’d work VoIP into this article all along, right?

Peter Eisenhut is Principal, Eisenhut & Associates, and a member of the Society of Telecommunications Consultants. Here's his take on the subject of Verizon/MCI...

What will be the impact of the purchase of MCI by Verizon, and the purchase of AT&T by SBC ??  Anyone who has the answers could either become very rich or locked up for lunacy. Neither is likely in my case, but I do have some questions:

• If the deals go through, SBC and Verizon will have bought up most of the competition they had for local exchange service.  At the same time, the requirement for SBC and Verizon to provided unbundled network elements (UNE-P) at discounted prices to competitors (CLECs) is also evaporating. Can we expect higher prices for traditional phone service as a result? Will consumers look elsewhere for service?
• Who will large enterprises go to if they want national service?  Won't Verizon and SBC try to lock each other out of the other's territories?  If you are a Verizon-MCI customer in the East, will it take forever for you to provision local loop connections for your offices in the West? And vice versa?
• Will Verizon and SBC focus too much on beating each other, thereby ignoring the real competition? Without UNE-P, competitors will begin to provide service in ways that are cost effective for them.  This may mean more competitors that provide voice over Internet protocol (VOIP), especially where they can use existing data facilities such as DSL, T1, or cable, independently of the underlying local facility provider. Will the national carriers of tomorrow be companies like Vonage?

Michael J Thurston, Sr., is Vice President, Director of Operations at North American Communications, INC and he is a member of the Society of Telecommunications Consultants. Here’s his take on the Verizon/MCI deal:

Verizon’s Acquisition of MCI

One Consultant's View

I believe Verizon acquiring MCI will be a great step for customer service. This has nothing to do with the everyday user, but this will have a great impact in Corporate and Government agencies. For any consultant that has spent hours trying to explain to these vendors their responsibility to the demarcation point, bringing the old Bell System guys back into the business should solve this. Being someone that worked for the old Bell System, I think this is great.

I expect this acquisition to start putting the breaks on all of this VOIP talk. We have no laws in effect to protect customers from the dangers of having every call share the same wire. The same way information can be stolen over the World Wide Web is the same way voice calls can be stolen over the World Wide Web (VOIP). The Bell Companies used to call it a Party-Line. The same companies that build technology to encrypt calls are the same companies that build technology to decrypt calls. There are laws in effect that still protect a single call over a single wire.

I see Sprint as the next long distance company to merge with a former Bell company. I see this happening within the next year.

If you have read the latest news out of DC, the big debate is about cable companies getting into the telephone business. To me this is the main reason the phone companies are starting to lay new fiber to possibly add TV services. The bottom line we are still a wired nation. He who controls the wire pretty much controls everything.

Sony Ericsson is dusting off the Walkman, adding dial tone, and setting its sights on the mobile music market. I was but a young lad when I got my first Walkman. It was awesome. I should have bought stock in Duracell at the time too. As a full-time commuter from my home in Queens to lower Manhattan (for school) and upper Manhattan (for work) I burned through batteries at quite a clip. But I have to say, playing Kitaro at a ridiculously high volume was an awesome stress reducer. Of course, that Walkman was multipurpose in the sense that I could play many different types of music (and I listened to plenty of heavier fare) or toggle between cassettes and radio, but I certainly could not have reached out and touched anyone from that device. 

Sony Ericsson is not alone in this realm. Nokia announced yesterday that they are working together with Microsoft to allow consumers to enjoy music from the newly launched mobile music solution offered by Nokia and Loudeye to wireless operators on both Nokia handsets and on Windows XP-based PCs. 

The Sony Ericsson release can be found here.

Just thought I’d address a different kind of convergence for a change.

As regards any major news impacting our industry, I try to reach out and solicit commentary from insiders and people who make a living thinking about telecom. Mike McCue of Schooley Mitchell Telecom Consultants is a member of the Society of Telecommunications Consultants. Here's what he had to say on the announced Verizon/MCI deal and its effect on VoIP:

During a recent client engagement I contacted Verizon to order some service changes.  During that process and the discussion about contract options, I asked about Verizon's IP Centrex plans and if their current contract would allow a mid-term transition to that service.  The customer service rep assured me that their VOIP service was not a reliable product and should be avoided.  Further discussion of the service made clear that she did not have any experience or training on VOIP products.

Will the acquisition of MCI by Verizon impact VOIP?  I expect the current trend to continue; profitable Telco's will offer it as a me-too product with limited availability and even more limited sales/support capability.  Meanwhile the greenfield companies (Vonage, Packet 8, VoicePulse, etc.) will build and refine this market then be acquired in a future consolidation.

Well, I guess it’s official. Verizon has acquired MCI for $4.8 billion in equity and $488 million in cash (total: $5.3 billion). The transaction also encompasses a special dividend payable to MCI shareholders, bringing the total to $6.7 billion for the number 2 long-distance carrier.

The main play here is Verizon expanding into the enterprise market and keeping pace with sibling SBC, who recently purchased AT&T. MCI brings with it a host of government contracts and such large customers as HP.

Throw in MCI’s UUNet assets and Verizon is in great shape to offer services to a truly global audience. I blogged earlier about the possibility of running Verizon’s VoiceWing VoIP service over a network like MCI’s. I guess we’re going to see how that works out after all.

According to a press release issued today from MCI:

The transaction adds new strength to the telecommunications services both companies provide. It ensures that consumers and businesses will have a supplier with the financial strength to maintain and improve MCI’s Internet backbone network, which is the largest in the world based on company-owned points of presence.

The transaction will also mean better service for Enterprise customers by enhancing Verizon’s ability to compete for and serve large-business and government customers with a complete range of services, including wireless and the most sophisticated IP (Internet Protocol) based services.

The Boards of Directors of both companies have approved the agreement.

“This is the right deal at the right time,” said Verizon Chairman and CEO Ivan Seidenberg. “We have been evaluating a transaction with MCI for some time, and now we have the opportunity to reach an agreement at the right price that works for both companies and at a time when MCI is gaining momentum. It is a natural and logical extension of Verizon’s strategy to transform our company to serve growth markets and offer broadband technologies.

“This acquisition builds on and accelerates Verizon’s growth plan in the Enterprise market, and it facilitates our becoming a major provider in that market sooner and less expensively than if we had continued on a path of organic growth. The acquisition will significantly enhance our customer service and competitive positioning by giving us a global reach, a suite of IP-based and value-added services, and a powerful, broad base of large-business and government customers.”

“With our heritage of innovation, global network and world-class Enterprise capabilities, MCI is the right partner for Verizon,” said Michael D. Capellas, MCI president and CEO. “Combined with Verizon’s financial strength and record of operational excellence, we will accelerate delivery of next-generation services, broaden our product portfolio and better serve our customers.”

Teleo, a San Francisco-based VoIP provider, unveiled its new software and service at the DEMO@15! Conference in Scottsdale, AZ. The software targets mobile professionals and those who rely on cell phones and e-mail as primary communication vehicles.

Teleo is a personal, portable VoIP system that lets customers use their cell phone, regular phone, or PC to receive VoIP calls. Unlike location- or device-centric telephony, Teleo is a free-floating service that can be used anywhere there’s an Internet connection. It features patent-pending technology that safely traverses firewalls without changing settings, so calls can be made over WiFi or inside corporate environments. When Internet access is inconvenient, Teleo calls can be made or received on a cellular or regular phone.

Because Teleo is SIP-compliant, it works with enterprise VoIP systems and other VoIP networks. Teleo offers Microsoft Outlook and Internet Explorer integration, facilitating “click to call” for any telephone number on the screen; it includes call forwarding and will soon offer voice mail.

Teleo’s voice quality is powered by GIPS VoiceEngine technology. Account management is facilitated through Teleo’s Web site. Users can set an inbound calling number, change voice mail and call forwarding settings, and view call detail records for PC-to-PC calls and calls to regular telephones.

The Teleo service is priced at $4.95 per month; a free 30 day trial can be downloaded here.

I’ve just returned from the Voicecon trade show, where I met with a number of vendors serving the enterprise VoIP space. Among the many themes discussed this week, two seem to bubble up to the top: mobility and security.

In an earlier post, I wrote about the formation of the VOIPSA, or VoIP Security Alliance. In the first week of its existence, the total number of member companies has doubled to 50 and over 1,500 people have signed on to the mailing list.

Without sounding like Chicken Little and claiming that the sky is falling, I think it’s fair to say that VoIP security is an important issue, and the founding of an alliance such as this one to address it is welcome to say the least.

As for mobility, Research in Motion made some news this week in regards to partnering with 3Com and Nortel for extending those vendors’ enhanced IP PBX features to RIM’s Blackberry 7270 devices. These Blackberries operate on 802.11b networks and incorporate both voice and data capabilities. The BlackBerry 7270 is the first BlackBerry handheld to feature VoIP and WLAN support.

“Leveraging both companies' respective strengths, the 3Com-Research In Motion alliance enables businesses to deploy standards-based, world-class IP telephony and wireless solutions in order to provide their campus employees with seamless access to time-sensitive information,” said Dave Hattey, 3Com vice president and general manager, enterprise solutions.

According to Malcolm Collins, president, Enterprise Networks, Nortel, “Together, Nortel and RIM plan to take mobile communications to an entirely new level. Both companies have embraced wireless standards and SIP in the development of enterprise solutions, paving the way for the integration of our technologies and vision. Today's announcement of our efforts to mobilize on-campus workers with profoundly powerful communications is an important first step that will bring enhanced business capabilities to customers.”

Research in Motion also announced a deal with Verizon whereby the carrier will offer Blackberry 7250 Wireless Handheld devices in all Verizon Wireless stores as of tomorrow (February 11).