August 2006 Archives

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We’re doomed.
 
To those poor misguided souls who share my profession, I offer this advice: Run! Run hard and run fast and run far, and whatever you do - don’t look back.
 
The robots aren’t coming… they’re already here.
 
An article in Sunday’s Daily Herald (that’s Snohomish County’s Online News Source, by the way) told of a new service from Thomson Financial that issues articles generated by computer software, using templates and a “rich” thesaurus.
 
Quoting from the article:
 
Two types of stories are currently being produced.
After a company issues its quarterly earnings report, a human types in the raw data, and the computer compares the information with analyst forecasts compiled by Thomson Financial's First Call service. Software then produces a story stating whether earnings exceeded or fell short of expectations.
Software also monitors minute changes in analysts' outlooks on various companies and can generate articles based on company or industry trends, Meagher said.
 
All is not lost fellow scribes. Apparently after the news items are published, humans — that’s us — can expand on them with phone calls and additional analysis. Presumably the phone calls will be placed by humans to other humans. (Please no comments from the predictive dialer crowd.)
 
All I can say is “biddi… biddi… biddi…”

Acme Packet Expands SBC Offering

August 29, 2006 7:28 AM
 
I was reminded of one of my favorite old jokes this morning. The great explorer Johnson was very curious to find out the real cause of Mozart’s death, and after much political wrangling, he received permission to unseal Mozart’s crypt and exhume his body for an autopsy. Well, you can imagine his surprise, when, upon opening the crypt, he saw Wolfgang Amadeus himself, sitting at a table, furiously erasing reams and reams of musical notation.
 
“My Lord!” cried Johnson. “What in heaven’s name are you doing?”
 
“Why my dear Mr. Johnson… Can’t you see? I’m decomposing!”
 
 
OK, now that you’ve all let out a collective groan… What brought this up was the fact that Acme Packet today announced several new session border control configurations of its Net-Net product family. These configurations feature subsets of Acme Packet’s Net-Net OS software technology used by Acme Packet’s integrated session border controller (SBC), the Net-Net Session Director (SD).
 
The configurations, which decompose the SBC into separate signaling and media control systems for SIP sessions, include the Net-Net Border Gateway (BG), Session Controller (SC) and Signaling Firewall (SF). Supported on both the Net-Net 4000 and 9000 series hardware platforms, they provide Acme Packet’s distribution partners and service provider customers with increased flexibility and scalability in implementing next-generation IMS and derivative service architectures such as ETSI TISPAN, MSF and PacketCable.
 
I asked Brian Partridge, Senior Analyst, Communications Network Infrastructure, Yankee Group, what he thought the significance of Acme Packet’s decomposition announcement might be. Partridge told me “The decomposed model for SBC configurations (and their corresponding mapping to NGN/IMS architectures) will be the one that is favored by most tier one operators over time for peering IP networks so they can benefit through independent scaling of signaling and media control.
 
“While the technical reasons for doing so are still academic at this point,” Partridge continued, “there are compelling business reasons, such as network size scales way up and increased OPEX savings because you wouldn’t have to deploy as many signaling control elements if they are separate.”
 
With over 2,500 systems deployed (of the integrated variety) Acme Packet is not changing their religion. They are however being asked by their larger customers to provide an alternative design, and today’s announcement shows that they are willing to work with their partners to deliver the functionality they need, in the form factors they desire.
 
According to an Acme Packet news release, there are two architectural options for implementing the session border control function — integrated and decomposed. An integrated SBC integrates signaling and media control in a single hardware-based system. Alternatively, session border control may be implemented using a decomposed architecture using physically separate signaling and media control systems.
 
According to Seamus Hourihan, Acme Packet’s vice president of product marketing and product management, “At the end of the day we want to provide our customers choice.”
 
When I asked Partridge if he thought decomposed solutions would increasingly replace the more traditional integrated deployments of session border controllers, he replied, “It will be the way of the future in the Tier One operators, below that we'll see integrated SBC solutions remain in favor, I believe.”
 
Acme Packet stated that any of the configurations may be software upgraded to different configuration should border requirements change.
 

IT EXPO EAST Speaker Deadline!

August 28, 2006 8:19 AM
Attention all Conference Speakers!
 
It’s time again to submit your speaking abstracts in order to speak at INTERNET TELEPHONY Conference & EXPO, 2007 in Fort Lauderdale.
 
The event takes place January 23 –26, 2007 at the Broward County Convention Center, Fort Lauderdale, FL, and it promises to be the largest IP Communications event on the East Coast, since… well… ever!
 
Time is Running Out!
If you are interested in speaking at the event, now is the time to submit an abstract. The deadline to submit a proposal is September 1, 2006. That’s this week, so hurry up and send in your proposals!
 
Please send the following materials by e-mail to callforpapers@tmcnet.com
 
  • A short abstract (several paragraphs should do it). Please include a working title.
  • Contact information, including:
Name/Title, phone/fax numbers, e-mail and mailing addresses of the proposed speaker
     AND
Name, phone/fax numbers, and e-mail address of the PR contact or speaker’s assistant.
  • A biography of the proposed speaker.
 
As always, the INTERNET TELEPHONY Conference & EXPO conference program will focus on topics that are important to everyone who wishes to learn about and stay up-to-date with the latest technologies, regulatory issues, essential issues, and trends in the IP Communications industry. We are particularly interested in the following subjects/topics:
 
  • E911/Regulation Topics
  • Service Provider IP Telephony
  • VoIP Peering
  • Conferencing/Collaboration
  • SIP
  • Hosted IP Telephony/IP Centrex
  • IMS
  • Fixed/Mobile Convergence
  • VoIP Security
  • Large-Scale Enterprise IP Telephony
  • Small/Medium Business VoIP Solutions
  • Government IP Telephony
  • WiFi Telephony
  • VoIP Development Trends
  • Open Source
  • Triple Play
  • IPTV
  • Peer to Peer VoIP
  • ENUM
  • The Business Case for IP Telephony
  • Cable Telephony
  • Voice Communities
  • The Role of VoIP in the Military
  • IP Telephony in the Contact Center
  • Trends and the Future of VoIP
  • VoIP Security
  • Network Management and QoS
  • VoIP Mobility
  • Net Neutrality
  • Billing & OSS/BSS
  • IP Communications & Rural Markets
  • Internet TV
  • Video
 
So remember… If you want to be considered for a speaking opportunity at the first major IP Communications event of the year, then submit your proposals now. The deadline for speaking proposals is September 1, 2006. Don't delay!

Inter-Tel Rejects Mihaylo Bid

August 25, 2006 4:58 PM
Reuters is reporting that Inter-Tel has rejected a bid led by Steven Mihaylo, its founder and largest shareholder, to buy all company shares he does not already own for $23.25
 
The company will instead continue to explore strategic options.
 
Earlier this week, TMCnet reported that Inter-Tel shareholder Millenium Management LLC was applying pressure to the company to sell quickly in order to obtain the higher bid.
 
According to the report, last Monday, Mihaylo raised the offer from $22.50 per share, provided Inter-Tel publicly commit to selling itself within 30 days. But Inter-Tel said the higher bid is not "sufficiently attractive" to warrant an end to the strategic view.
 
Mihaylo in April publicly began efforts to buy Inter-Tel, two months after the company announced his resignation as chief executive. Inter-Tel shares closed up 3 cents at $21.71 on the Nasdaq Friday.
 
Whew! That was close. In danger of having to actually charge customers less due to the expiring Universal Service Fund fee, Verizon has discovered a new fee to charge their DSL customers.
 
Verizon is imposing a new surcharge on its DSL high-speed Internet service just as the Universal Service Fund fees are expiring.
 
Coincidence? I think not.
 
According to an AP report, in a recent notice to customers, the telecommunications company said it would begin imposing the surcharge for all new digital-subscriber line customers, and on current DSL customers with monthly plans. Customers on an annual plan will start paying when their plan expires.
 
The surcharge will initially be $1.20 a month for customers with service up to 768 kilobits per second and $2.70 per month for customers with faster DSL service, effectively the same as the USF fund that is being phased out.
 
Bobby Henson, a Verizon spokeswoman, cited "new costs that we've developed over the past year as we've been developing and delivering this standalone DSL service. That service doesn't have the benefit of the revenue that was coming in from voice."
 
Right… USF out; New fees in.
 
And the costs of rolling out the network just happened to spring up all of a sudden now that the carrier could no longer charge a USF fee.
 
Gordon Gecko would be proud.
Those folks at Private Equity Week apparently know their stuff.
 
In a July 21 article, editor-at-large Dan Primack wrote that Motorola was close to acquiring television-on-demand company Broadbus, Inc. for approximately $186 million in cash, and that that move would set of a flood of M&A activity in the space.
 
Several days later it came to pass that Motorola scooped up Broadbus.
 
People started talking about what moves Cisco might make to counter that acquisition by one of its main rivals. At the time, conventional thinking held that Cisco would partner with or flat-out acquire Arroyo Video Solutions, a Pleasanton, California-based provider of solutions for the burgeoning video on demand (VoD) market.
 
Well, it appears that the good folks at Private Equity Week must have an uncle in the M&A business.
 
Late Monday evening, Cisco announced an agreement to acquire Arroyo for approximately $92 million in cash.
 
Arroyo creates video networking software designed to intelligently pool and load balance servers based on industry-standard hardware to deliver unlimited network scalability and non-stop service availability at the lowest total cost.
 
Arroyo has a global assortment of service provider customers, including U.S. cable giants Comcast, Time Warner Cable, and Charter.
 
Cisco’s Mike Volpi, senior vice president and general manager, routing and service provider technology group, hopes the integration of the Arroyo platform into their IP-NGN (Next Generation Network) architecture will help carriers accelerate the creation and distribution of network delivered entertainment, interactive media, and advertising services to any device in the ever growing array of media-capable endpoints, including televisions, PCs, handheld devices, and the like.
 
“The entertainment industry is going through a major shift while consumer desire for personalized on-demand service is on the rise,” said Volpi. “The industry is quickly evolving from pure video-on demand to anything-on-demand with any content delivered to any end device.
 
“With the addition of Arroyo’s innovative software, which offers flexibility in content delivery, service providers will be in a position to serve content how, when, and where consumers want it.”
 
Upon close of the transaction the Arroyo team and product portfolio will be integrated into the Cisco Cable & Video Initiatives Group, within the Service Provider organization led by Volpi.

Missed Connexion

August 18, 2006 10:07 AM | 2 Comments
 
 
Looks like those who thought they would be able to make Skype calls, send instant messages or e-mail from high above the mid-Atlantic will have to wait.
 
Upon completion of a detailed business and market analysis of their in-flight Internet service — Connexion — Boeing announced that they have decided to exit the high-speed broadband communications connectivity markets.
 
Boeing reportedly spent about $1.5 billion over six years to provide in-flight Internet service to passengers.
 
According to an article in the Chicago Tribune, Boeing's service cost passengers $29.95 per flight for unlimited Web access and live television through their laptop computers. The charge had been reduced to $26.95. Foreign airlines, including Singapore Airlines, Japan Airlines, All Nippon Airways, Deutsche Lufthansa and El Al Israel Airlines, installed Connexion on some aircraft. It also was used by maritime and corporate aircraft customers.
 
Peter Pollack, blogging on ARS Technica, believes there still may be hope:
 
“That's not to say that the concept of surfing the 'Net from an airplane is dead. Far from it: Boeing's own new 787 design will almost certainly be delivered prewired for WiFi and Internet. American Airlines — the largest US carrier — once invested in Connexion, but has been seeking other vendors lately. Finally, rumors are still floating that the skeleton of Connexion itself may be picked up and turned into something profitable by another company.
 
Waiting in the wings for just such an opportunity, ASI Entertainment’s wholly owned subsidiary, ASiQ Pty Ltd, announced today that the recent decision by Boeing to close down the Connexion by Boeing Internet Service, creates more opportunities for ASiQ's low-cost alternative.
 
Ron Chapman, ASiQ's President, stated, "Connexion were too far ahead of their time. There is no comparison with the technology available today to what they launched with back in 2000.”
 
The new ASiQ package comprises an Inmarsat broadband link, with WIFI access and is compatible with the aircraft's existing onboard network. ASiQ is offering airlines a new Internet platform over a five years lease from as little as $15 per flight. For narrow body aircraft the lease could be as low $5.00 per flight. This, combined with ASiQ's low access fees and Freemailconnection, will make the system even more attractive to airlines.
 
To keep up-to-date with the latest advances in VoIP, WiFi, and what it means to the Transportation sector, register to attend the Internet Telephony Conference in San Diego this October 10–13 and attend the VoIP in Verticals session on Transportation.
 

Making Sense of Reuters

August 17, 2006 9:59 PM
Earlier today I had the occasion to find myself in Times Square, and I took advantage of the opportunity to learn something new. Now Times Square has changed a lot since I was in my early teens and I had the opportunity to learn new and interesting things then. I digress…
 
The purpose of today’s jaunt into the city was to visit with representatives from Reuters. And so in the course of the first few minutes of the meeting I learned two new things: one was the term “infobesity,” the other thing was that news or media makes up only 10% of Reuters business.
 
A quick note on infobesity. Whenever I met a new term, I look it up online. By far the best definition was contained in a great blog entry on the Learning Curve Circuits Blog.
 
I quote that source unabashedly for you now:
 
the deleterious effect of excessive data consumption on the fitness and agility of individual and corporate minds. With the volume of new data being produced doubling every three days (vs. every three decades a few generations ago), Infobesity will become dramatically debilitating, though it will stimulate the growth of technology filtering tools. Those who master infofiltering will jog confidently through the fog, while those who don’t will keep staggering into lampposts.
 
The reason for going to see Reuters was to discuss their Reuters Messaging product. Many people didn’t know that Reuters was primarily a financial services firm. In the course of serving their customers it became clear that the end users needed a professional alternative to the consumer-friendly Instant Messaging fare that was being used.
 
Enter Reuters Messaging. This product is not necessarily ‘new’ having been launched in 2005 to connect the financial community in real-time to MSN Messenger and AOL Instant MessengerTM (AIM) services, effectively opening the service up to an expanded community of over 200 million people.
 
Here are some of the features:
 
  • Instant messaging. Communicate quickly and securely with the financial market community.
  • Create financial communities. Build superior teamwork across organizations using persistent chat rooms.
  • Communicate more broadly. S\Keep in touch with financial professionals who are using AOL Instant Messenger or MSN Messenger directly from Reuters Messaging.
 
The meeting was certainly eye-opening to me. In fact, so much so, that I can promise you, you’ll be hearing more from Reuters in the days ahead, and what their plans are for the IP Communications sector.

Retail VoIP Subs Up 83%

August 16, 2006 6:58 AM
According to a just released study from Point Topic, the number of subscribers to retail VoIP services rose by 83% during 2005, from 10.3 million at the beginning of 2005 to over 18.7 million subscribers worldwide by the end of the year.
 
The study points out that Japan, France, and the USA continue to dominate the VoIP market in terms of subscriber numbers. But other European nations, notably Germany, the Netherlands and Norway are poised to post strong growth.
 
According to John Bosnell, Senior Analyst at Point Topic, "Although Japan has the highest number of VoIP subscribers at the moment current growth rates are slowing and there are other markets coming up," Bosnell adds. "The U.S. is very strong and France is the leader in Europe by some distance."
 
"The retail VoIP market in China has yet to develop however" continues Bosnell, "there are government restrictions and some observers think fixed line revenues are being dented which may affect the regulatory environment there.
 
For more information, visit Point Topic online.

Quintum Announces Survivable Tenor

August 15, 2006 5:06 PM | 1 Comment
In a special edition of the company’s newsletter Tenor Notes, Quintum Technologies today announced the launch of a new Survivable Tenor to support all legacy equipment, local PSTN connectivity, and survivability of all VoIP endpoints of the local IP telephony network. It’s designed for enterprises deploying VoIP in IP-PBX branch offices, or service providers deploying hosted IP-PBX services CPE and IP Centrex CPE.
 
If you wish to subscribe to Quintum’s product newsletter, it’s as easy as clicking here.
Dittberner today released their Quarterly Multiservice Switch and Router Market Analysis, and Cisco remained at the head of the pack with a quarterly increase of 13% in revenues. Most of Cisco’s growth was driven by success in the cable space and IPTV deployment.
 
The report points out that “...all market categories grew, notably the Service Provider Edge Router segment, which remained the fastest growing, with a 20% quarter-over-quarter change. Cisco leading the pack increased its Edge Router revenue by 24% over the last year. This increase was due partly to the success of Cisco’s MSO customers’ VoD services which require a great deal of bandwidth. Cisco’s customers IPTV deployment and network transformation needs also contributed to the increase in Edge Router sales.”
 
According to the report’s author, “The Multiservice Switch market segment showed slow growth in comparison and saw Alcatel pull even with perennial market leader Nortel. Lucent, Ericsson, Siemens, Ciena and Avici all posted strong revenue increases in the quarter. Revenues were driven largely by continued build-out of wireline broadband networks, wireless backhaul networks, network transformations and DSL overbuilds.”
 
For more information on this research, visit Dittberner online.

Leaving San Jose

August 10, 2006 6:36 PM
By now everyone’s aware of this morning’s sobering top news story and the widespread reports of airline passengers experiencing massive delays at the nation’s airports.
 
For what it’s worth, I just arrived at San Jose’s Mineta Airport and truth be told I didn’t need to wait very long at the security lines at all. Airline personnel told me that earlier today, the lines were indeed very long — up to 90 minutes or more, and they cautioned that as this evening’s flight schedule neared, they expected the lines to grow longer than they were when I got here (3:00pm).
 
//////////
 
Part 2 of the story, the very reason I find myself traveling at this time, is that today marks the end of VoIP Developer Conference 2006. By all accounts the show was successful, and as always I was glad to be a part of the experience. I have to admit that the VoIP Developer events are among my favorite conferences of the year.
 
With that I leave you with these final thoughts as I prepare to take off from San Jose: Travel safely! I look forward to seeing you at future TMC events. Our next show is Internet Telephony Conference & EXPO West, October 10–13 in San Diego, CA.
 
 

VoIP Developer Thursday Keynote: Intel

August 10, 2006 4:32 PM
Kicking off the keynotes this morning, Michael Stanford, Director, VoIP Strategy, Digital Enterprise Group at Intel began by addressing the issue of yesterday’s acquisition of Intel’s media and signaling division by Canada’s Eicon Networks.
 
His presentation was constructed as a timeline of the past 12 months in review, ending with yesterday’s sale of the division.
 
He clarified what exactly goes to Eicon: the (former) Dialogic voice boards, the Host media Processing solutions, and Intel’s complete line of SS7 technologies (former DataKinetics) and PBX integration and gateway solutions (from the VTG acquisition).
 
Stanford reiterated that, “We (Intel) are still very much in the VoIP business.”
 
Intel maintains several VoIP related business lines, including network processors, and supporting components as well as solutions based in the modular communications products division (CompactPCI, ATCA, and rack mount servers).
 
Stanford spoke of three trends that he feels have been developing over the past 12 minths. Among those he named the following:
 
  • Unified Communications are being woven into every application and Web site.
  • The “Webification” or better stated, the “Web-2-ification” of voice communications, and
  • The advent of regulation coming to the Internet
 
Stanford spoke of the theory of “architectural franchising,” a term coined by Charles H. Ferguson in his book Computer Wars.
 
To his point, Mr. Stanford pointed out the efforts that Microsoft has been making recently in the unified communications space, including the highly touted announcement of their unified communications strategy, and subsequently announced deal with Nortel, which looks to accrue to $1billion over the next four years.
 
Furthermore, Microsoft’s plan to combine their real-time collaborations group together with their Office group, further points out the value the company has placed on the space, and underscores their oves to establish dominance and claim architectural franchising over the market area.
 
Who else has an eye on an architectural franchise of VoIP?
 
Well, let’s see what else transpired over the past year. eBay bought Skype. Skype announced their API roadmap at an eBay Developer conference, making it easy to create plug-ins to the Skype platform, and embed Skype into third-party apps and Web pages
 
Skype took the complexity upon themselves, making it easy for users to use. They added best-of-breed codecs, from Global IP Sound, as well as QoS elements making the product better still. The company then took advantage of the so-called network effect or Moore’s Law, by announcing free Skype In/ and Skype Out, which makes the application available to the global voice network (read: 3Billion endpoints).
 
It’s clear that this company is making a move on the architectural franchise of consumer VoIP. And the developers in attendance at VoIP Developer Conference should be concerned with issues such as interoperability, peering, and developing applications that can take advantage of the success of the platform.
 
Skype even delivers handsets, which allows consumers without PCs to feel comfortable using their service.
 
Stanford touched upon IMS and carriers desires to converge network assets and embrace faster service creation and delivery. He also covered some ground regarding regulation, specifically wiretapping (FCC, CALEA) and network neutrality (S.2686, HR.5252).
 
All of these different currents that have been churning through our industry these past 12 months serve to create turmoil. And that’s what the development community should be looking for. For where there is turmoil, we can often find opportunity.

Intel Sells "Dialogic" to Eicon

August 9, 2006 4:16 PM
Eicon Networks has agreed to purchase Intel’s Media and Signaling business.
 
According to the press release:
 
“The acquisition is expected to allow Eicon to become a leading player in the media processing and signaling market segment. The sale will enable Intel to focus its investments on its core communications and embedded businesses, including Intel Architecture and network processors, modular communications platforms and optical modules. The transaction is expected to close in approximately four to six weeks and is subject to regulatory review and normal closing conditions. Financial terms are not being disclosed.
 
“Intel's media and signaling business includes all of the product lines from Intel's Dialogic acquisition, as well as Host Media Processing (HMP) software and HMP-enabled blades. Intel's complete line of SS7, PBX integration and gateway solutions are also included in the sale.
 
“With Eicon's complementary Diva Server line of products, it is anticipated that the acquisition will enable Eicon to provide enhanced enterprise and service provider offerings to current Eicon and Intel customers as well as future customers. Eicon plans to continue to work closely with Intel as an active member of the Intel Communication Alliance.”
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