Recently in telecommunications Category

8x8 tried the Granny Vid-Phone for a while. (Demo is here). At dinner at IT Expo, we were talking about Video Calling and Scott Wharton's name came up because he is rolling out video calling with VidTel.

A name that didn't come up was Nathan Stratton who is at BlinkMind. The BlinkMind service uses the Grandstream GXV3000 Video Phone, which VidTel also uses.

It will be interesting to see where this goes because of the upstream bandwidth necessary for video telephony to work well.

"Videl is initially providing a plug-and-play, out of the box videophone solution built around GrandStream's GXV3000 video phone - the phone supports SIP, H.264, bandwidth from 32 Kbps to 1 Mbps, has a 5.6 inch TFTP LCD screen and VGA camera. [FierceVoIP]

I have tried services like Oovoo and SightSpeed with some disappointment. They are actually half-duplex - only one side can talk at a time. The video is choppy even on my BrightHouse 7MBx1MB connection.  Maybe I expect more at this point in time.

I would like to point out that many, many VoIP services that overlay on a Broadband connection have jitter, latency, low-quality service. And that's just audio, so I don't know what video will be like.

Also, since Oovoo is free and so is Skype - both of which do not require a $200 handset nor a separate monthly service - I have to wonder about the viability of the business model. Making it stupid easy for people to use and understand would certainly go along way in adoption though.

It's a Party! SUTUS, Megapath and Polycom are hosting a seminar about their combined offering on Feb. 24 in San Jose. (Email me for an invite!)

What offering? Well, you know about Polycom's IP Phones, even the HD Voice models. SUTUS offers a piece of hardware that is an office-in-a-box, which is more than just an on-premise IP-PBX. 

"The functionality includes wired and wireless networking, file server, email, VoIP PBX, auto attendant, voice mail, internet router, security and access to managed services. The Business Central 200 is designed to meet the needs of companies with 25 or fewer employees."

The third party is MegaPath, the merged DLEC of Metifice, DSL.net and Megapath. The company has had a string of announcements since it completed its $11M purchase of DSL.net. "It has achieved Cisco® Powered Managed Service designations for its Managed IP Trunking and MPLS-VPN offerings, " according to a Feb 2 press release.

"MegaPath relies on Cisco's high-performance routing equipment to deliver managed services that enable businesses to consolidate all applications onto a single private network.... Multiprotocol Label Switching (MPLS) virtual private network (VPN) service provides private IP networks with high-quality, high-security, and any-to-any connectivity. The service is based on the Cisco IP NGN architecture, MPLS and Cisco Design and Implementation Guides. The service delivers appropriate levels of latency, jitter and packet loss to help ensure the successful concurrent handling of multiple types of traffic, especially voice and video, from customer site to customer site."

MegaPath rolled out a Voice and Data bundle over T1 and SDSL in its network footprint of 340 Central Offices this month. The voice service called DUET comes in 3 flavors:

Whether you have standard analog phones, a Key System, a digital PBX, or an IP-PBX, Duet can work for you with one of the following products:

• Duet : Use your existing equipment and phones.
• Duet PRI: Use your existing digital PBX equipment and phones.
• Duet SIP Trunking: Use your existing IP-PBX equipment and phones.

The IP Trunking service is a Session Initiation Protocol (SIP)-based trunk delivered by Broadsoft and Acme Packet.

Agents can not only sell the bundle, but can also sell MPLS-VPN and Managed Security. MegaPath offers a network-based firewall to keep it simple for small businesses. The voice service is delivered over the providers MPLS network. It is apparent that MegaPath has grow past its roots of being a straight DLEC (data CLEC based on DSL). In fact, th ecompany told me at the IT Expo that it no longer aggregates BellSouth DSL via RBAN. I guess they have grown their own network with ADTRAN DSLAMs, Cisco routers and switches, Acme Packet session border controllers, and Broadsoft's softswitch platform. Now MegaPath is throwing a party to announce its inter-operability with SUTUS and Polycom. It completes the package. See you in Vegas.

It's a busy Expo. Full house this morning for the Service Provider Round Table with Broadvox, 8x8, InPhonex, MagicJack, Telefonica, and TW Telecom. It seemed like they would all like their ILEC associated costs to drop so they can drop their prices even lower. (I won't even rant about theMagic Jack deal).

8x8 made a statement about not wanting to collect communication taxes on its service. He sells POTS replacement. Cities and counties need the tax revenue from communications services. It's in the tens of millions of dollars. To want to shirk that responsibility just grates me.  If the ILEcs didn't collect taxes, their bill would be lower too.

Video hasn't really hit mainstream yet, except as consumer entertainment in the form of pirated movies, Hulu and YouTube. As a communications medium such as video email, video phone and video conferencing (including tele-presence), it has not taken off yet.

When talking with consultants, coaches, and other work-at-home types, not a one of them wants to do video calling. They don't want to get dressed for it. The office space is too cluttered to be in the background. It isn't as easy as it sounds. The broadband connection isn't up to speed most of the time.

How does that translate into a communications tool?

Cisco and VidTel (as well as Grandstream and some other hardware players) are big proponents of video communications. Even MLM companies like EyeJot and Talk Fusion with a push from former Tampa Bucs Mike Alsott, couldn't gain video email traction.  As I explained to a few, I get mega amounts of email daily - not a one has been video thus far.

In an article on Vnunet, a study points out both pros and cons of video conferencing, especially for tele-workers: "The study found that, compared to traditional voice or text-only communication, video can help to reduce the effects of culture and personality clashes. However, it can also heighten anxiety and self-consciousness, meaning that businesses need to help employees develop the right skills to make the most of these too."

Many SMB's just don't have the policy or skill or understand of technology in order to leverage it properly for productivity or efficiency gains. (This holds true for most technology and social media use.) That's the barrier.

Small Business wins as Sutus announces new lower pricing for  'Office in a box' technology

All-in-one Telephony and Data Communications vendor announces SOHO-grade pricing for award-winning Business Central device

January 27th, 2009, Vancouver, B.C. Sutus Inc., the company behind the Sutus Business Central™, a unique all-in-one device that combines all the Telephony, data and networking features required to run a modern-day office, today announced pricing that dramatically reduces the TCO (total cost of ownership) for small businesses. The new pricing opens the door for any small business, from start-ups to established, mature companies, to leverage the benefits of enterprise-grade advanced telephony and networking technology.  The pricing, which makes the Business Central the most competitive small business solution on the market, starts from a MSRP of $2199 (USD). 


The Sutus Business Central™ has been developed specifically for businesses of up to 25 employees and comprises a wide array of advanced telephony, data and networking functions.  It includes a business-class phone system, file server, email server, router, firewall, wireless access point, VPN remote access server, and automated backups. It has the ability to simultaneously support both standard phone line and VoIP connections and comes with an array of business productivity features.

Shawn Chute, EVP of Sutus, said, "Now more than ever, small businesses need an affordable, reliable solution that meets their IT and communication requirements and can grow with them.  Sutus has always been the "all-in-one" solution that is easy to install, use and manage, added to these advantages now is the fact that we have the most affordable all-in-one IT and communications product available for small businesses."

The Business Central also performs the tasks of a gateway or edge device, enabling both Sutus and its business partners to seamlessly deliver a wide range of turnkey hosted services, such as remote device management, VoIP, back-up and disaster recovery.

Sometimes known as an 'office-in-a-box', the Business Central is a Multi-service Business Gateway.  InStat qualifies Multi-service Business Gateways (MSBG) as hardware which combines phone systems with other mission-critical components like routers and servers, and has estimated the market at US$615 million in 2007 and projected to rocket to US$2.6 billion by 2010.

SUTUS is looking for Agents and VAR's to offer its product to small business. Do you understand that the Business Central box handles all of the functions of a pile of blue boxes and services? See SUTUS at the Miami IT EXPO EAST next week. Or contact Mike Cassidy at SUTUS at 925.274.1380

There are so many applications that you can add to cell phones to allow for some form of calling. For the life of me, I can't figure out how these would be mainstream - and how there could be a demand for hundreds of them.

Are people now trading in all of their calling cards for an app? All the penny pinchers that were using calling cards have a data plan on their phone that allows them to make VoIP calls?

I get that landline usage is way down as folks move to not only cellular only, but pre-paid cellular. But how much International dialing is being done on cell phones? Wouldn't the majority be migrating to Skype?

Even look at that market: the PC-to-PSTN market. Pulver's FWD was in the marketplace first (and won an FCC ruling with his name on it). Yet it seems that only Skype is left.

Leads me to think that when these mobile VoIP apps are being marketed, you need to be very specific about what the benefit is. And you need to make it stupid easy.

More Broadband Stimulus Bill (and here at TMC) info from Stephen Ronan on the CyberTelecom listserv.  (probably in response to the volume of comments from Tom Keatings blog!)

Can anyone provide a pointer to the bill at issue?

• text of bill
• House Draft Report

The summary of the principal broadband provisions below:

1) $2.825 billion for loans, loan guarantees and grants to be administered by the USDA's Rural Utilities Service Distance Learning, Tele-medicine and Broadband Program. .... Those funds are for "open access broadband infrastructure in any area of the United States." However at least 75 percent of the area to be served by each funded project must be in "a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture." ... Priority is given to projects "that provide service to the most rural residents that do not have access to broadband service" and to project applications from (or including) borrowers or former borrowers under Title II of the Rural Electrification Act. .... 50% percent of the funds are to be awarded not later than 9/30/2009 .... "No area of a project funded" by these funds may also "receive funding to provide broadband service under the Broadband Deployment Grant Program" (see below).

In addition to that USDA program:

2) $2.825 billion for "Wireless and Broadband Deployment Grant Programs" to be administered by the National Telecommunications and Information Administration (in the Dep't of Commerce), of which $1 billion shall be for Wireless Deployment Grants and $1.825 billion for Broadband Deployment Grants (though NTIA would be able to transfer up to 20% of the funds from either program to the other). The grants are intended for "the non-recurring costs associated with the deployment of broadband infrastructure in rural, suburban, and urban areas..." ... Of the $1 billion for Wireless Deployment grants, NTIA is instructed "to the extent possible" to provide 25 percent for wireless VOICE service and 75 percent for "advanced wireless broadband service" (3 megabit per second down by 1 megabit up) to under-served areas. ... And of the $1.825 billion for (presumably non-wireless) broadband, 25% are to be awarded for provision of "BASIC broadband service" (5 megabits per second downstream by 1 megabit upstream) to underserved areas and 75% for ADVANCED broadband service (45 megabits per second downstream by 15 megabits up). .... Services are to be provided on an "open access basis" (that's to be defined by the FCC within 45 days of enactment) and adhere to the FCC's 8/5/05 statement on net neutrality (05-151)

"Factors in grant award decisions by the NTIA will include public safety; state reports on priorities; increases in affordability and subscribership; service enhancement for health care delivery, education, or children; enhancement of computer ownership and computer literacy; and state or local matching funds."

States are required to provide up front to NTIA a report indicating which geographic areas of the State should be considered to have the greatest priority for service (can't represent in aggregate more than 20% of the population or geographic area).

VoIP originally was sold as the answer to the next wave of cost savings for consumers and especially for small business. Business phone lines have always cost more than residential lines because, in theory, businesses use the phone line more often. (I guess, if you have 2 teenagers then that equals 1 small business).

Now that businesses are looking for ways to cut costs, analysts are predicting a rise in VoIP sales. Maybe. Define VoIP.  Hosted PBX certainly offers an attractive ROI, but to take full advantage of it, there is an upfront CAPEX (capital expenditure) that includes: IP Phones, cabling, POE switch, and some form of IAD or QOS Router like an Edgewater.   A lease could alleviate some of this, but Voxilla agrees with me on the CAPEX question.

If we are talking about the myriad apps that offer VoIP on the cell phone, I have to ask, why? These apps don't work on every handset. These apps either use up minutes (on callbacks) or data. It seems that it would be cheaper to bulk up the minutes than go through the trouble. But Gary Kim writes that the small business segment will move mainly to cellular IF the iPhone can become like the desk phone. I guess people like to ask, "Huh? What? you cut out there." Or more likely they aren't paying attention any way so don't care about call quality, dropped calls, or dead batteries.

VoIP mainly makes sense when there is a lot of inter-branch calling. Or when there is a virtual office, tele-workers, or other location varied need.

While SIP Trunking is the new buzz word, it is sold primarily as a PRI replacement, which makes no sense to me.  TDM and PRI are tried and true. You might save 10%, but so what? SIP Trunking isn't a standard so it may or may not work with your PBX IP card, depending on carrier and implementation. And how much cheaper do you think long distance will be on a SIP Trunk versus a PRI?

If the SIP Trunk is a means to extend the life of a IP-PBX as well as add SIP overlay features, that would be a better offer, but that isn't the "I'll save you 10%" deal that most folks tout. 

Overall, cellular will probably win for the mobility.

Tech Data and Fonality Inked a distro deal.The bloggers like VAR Guy made it sound like Tech Data was going into managed services under the whole UC umbrella. It's just one more set of SKU's for Tech Data's IP PBX category.

New Edge Networks announced Voice Connect as an extension of its MPLS service to deliver VoIP to end offices with QOS. "Voice Connect services include Hosted IP PBX, SIP Trunking and enterprise class features, with a variety of service options for locations requiring only a few voice lines to supporting the needs of large corporations."

Grandstream's GXE502X IP PBX and AireSpring's SIP Trunking Services Achieve Interoperability. Inter-Op is key because SIP Trunk is a spec not a standard. SIP trunks can be delivered various ways unlike a PRI which basically has 2 configurations available off a class 5 TDM switch.Note how specific the model number is for Grandstream. I feel sorry for the office with GXE502 or GXE501X.

After spending much of 2H09 campaigning for ILEC Forbearance because he claims that the CLEC model has failed in the US, American Fiber Systems' Dave Rusin is interviewed by TMC's Rich Tehrani (video).

My problem with Dave is that he acts like he is CEO of a major telecom company. But according to Inc., AFS is only a $40M company with about 150 employees. It's a fiber only company. No voice. Transport and re-sold IP. No copper. Nothing complicated at all. (He sticks to his knitting, which is good). It's a high-asset, large CAPEX network operation, meaning it costs a lot to get a customer lit with fiber, long ROI, low cash flow, but fiber is an asset once trenched (which is what he often blogs about). Fiber is the diet of telecom kings. (pun intended)

AFS is more like Looking Glass, Progress Telecom, and OnFiber - all companies that were swallowed up a couple of years ago. It is nothing like his first company Frontier, which has more in common with PAETEC than just the city of Rochester.

AFS has network in 9 cities - Atlanta, Boise, Cleveland, Kansas City, Minneapolis, Nashville, Reno, Salt Lake City and Vegas. A press release states, "AFS has deployed over 90,000 miles of high-capacity, high-bandwidth metropolitan fiber optic cable since 2000....AFS has over 400 capacity enabled on-net buildings." That's 44 buildings and 10,000 route miles per metro. Many of the lit buildings are Central Offices and data centers. So I am guessing that AFS has about 500 customers.

In 2006, AFS received $25M in financing. That's $25M to get to $40M in revenue. I told you it was capital intensive. But the claim is that "AFS' unique metropolitan fiber optic network footprint supports an addressable market tele-density of over $9 billion in annualized telecommunications services." It's a $9B market and you have $40M of it? And you pick on Paetec and XO? That's like RC Cola debunking Dr. Pepper.

Rusin states (in the video) that he prices below the ILEC rates. From my experience that isn't the case, but if the plan is to price below the ILEC, then how is your marketing and sales approach different than PAETEC? That isn't selling on the value of being a focused, single minded network operator; it's taking orders on price.

After that interview, I have to wonder (again) what the campaign for forbearance is all about. Two thoughts: it is messing up his capital market and AFS needs capital to grow and add buildings to its network OR AFS is looking for an exit strategy (i.e., PR to get bought).

All in all, I do like reading his blog because it usually makes me write something. Thanks, Dave!