US long-distance fixed-line operator AT&T Corp has added to the optimism surrounding VoIP with the announcement that it will begin the roll-out of its consumer broadband internet telephony service in March. The company expects to have 1 million business and consumer VoIP customers by the end of 2004. At the moment, Vonage is the leading broadband VoIP service provider in the US, with 100,000 customers. It charges $35 a month for unlimited local and long-distance calls. The announcement was however was tempered by the news that AT&T is planning to cut 8% of its workforce, or about 4,600 jobs, this year. The phone company told analysts it wants to transform itself into a networking company, moving data into homes and businesses over high-speed internet connections, but said first it must face declining margins in its long-distance business, which still accounts for more than half of its revenues.
February 2004 Archives
"Voice over IP is following the classic technology growth curve: an initial burst onto the scene followed by a lull. [But] now it's heading towards a steady, positive growth," says Dana Gardner, a research analyst for Gartner. "The reason it's now gaining momentum is that the technology and the management tools have matured." A number of IP-telephony vendors are rolling out new products that offer the best in converged voice, data and video applications and hardware. Driving some of these leading products is Session Initiation Protocol, or SIP, an emerging standard that supports this convergence. "Companies looking at this technology should realize that the next wave of communications will be based on SIP," Elizabeth Herrell, an analyst with Forrester Research told CRM Daily. "SIP is making possible [greater] new levels of connectivity than the existing standards could ever possibly do." At its most basic level, the newer standard facilitates the integration of many technologies and devices onto a single platform, which then streamlines the management of these various channels and reduces their complexity. more..
Sorry for the lack of input lately but gaining access to a Intenet connection was impossible in small villages in Mexico. I am back and you can be sure there will be plenty of news coming your way. -Erik
It would seem as though things are heating up on the Packet Cable front in regards to actual implementation of the next version of the technology. The new version of the technology offers burstable bandwidth for specific applications like Video Conferencing. In concept it would allow a Video Conference to pull a great deal more bandwidth to provide near 30 Fps [real-time video] for this speciic purpose. Stay tuned to hear more on this and news from the major cable providers moving towards this new standard. -Erik
EDISON, N.J. -- Vonage, the broadband phone company, today announced the activation of 100,000 total lines on its network, thus doubling its subscriber-base in less than five months since it reached 50,000 lines in service. With the addition of more than 15,000 lines to its network during January, Vonage's active line base has reached 100,000, further defining it as the leader in the broadband Internet telephony industry. Over the life of the service more than 130 million calls have been completed across its SIP network and call volume continues to grow at an exponential rate. "Activating 100,000 broadband telephony lines is a milestone for Vonage and a landmark for the industry," said Jeffrey A. Citron, chairman and CEO of Vonage. "With over 4,000 lines being added every week, the rapid influx of customers is a testament to the validity of broadband telephony and proves that consumers are ready for Vonage's low-cost, flat-rate, feature rich residential and small business calling solutions."
The migration of private line services to VoIP will kick in after the end of this year, according to a report from In-Stat/MDR. The market research firm predicts that by 2008 private line services spending will plunge to about 22 percent of 2004 levels, because of the move to Internet phoning. Even T1 won't escape: In-Stat says T1 service is likely to experience a long and slow decline similar to the downsizing agonies currently being experienced in long distance and local telephoning. "Traditional T1 providers may be able to manage the erosion through innovation " i.e., step up plans to offer integrated T1 lines, and by focusing on specific segments of the market, like mid-sized businesses with 100 to 999 employees," said In-Stat chief market strategist Kneko Burney in a statement. In a survey that included T1 users, In-Stat found that companies of mid-range size were more likely to hang onto traditional service than smaller and larger firms, which were more likely to switch from T1 to integrated T1, cable, or VDSL technologies. As for spending, the survey found that the small business market is already cutting back while spending levels in mid-level and enterprise markets are expected to decline by 2005. more..
