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March 16, 2007
The VoIP Week in Review
By Patrick Barnard, Group Managing Editor, TMCnet
Welcome to another edition of TMCnet’s VoIP Week in Review. This week, the VoIP industry continued to focus on the “fallout” from last week’s Verizon vs. Vonage (News - Alert) VoIP Patent infringement case. As I’m sure you already know, an eight-member jury decided in federal court last week that Vonage must pay Verizon $58 million in past damages for infringing on several of its patents related to VoIP technology. The jury also declared that Vonage must pay a 5.5 percent royalty rate on any sales going forward. While still a far cry from the $197 million in damages sought by Verizon, Vonage shareholders saw the company’s stock price slip during the past week - so there is very real damage here beyond just the monetary settlement. Last Friday, Vonage issued a statement architected to quell investor jitter (pun intended), stating that it is “not going out of business” and furthermore that customers will not see any changes in their phone service.
“This issue has ramifications perhaps for the entire VoIP industry and is by no means the only set of patents requiring communications companies to pay royalties,” wrote TMC President Rich Tehrani in his article, “Verizon and Vonage Patent Dispute: What it Means to VoIP.” Indeed, many industry experts see this as a very serious threat to VoIP’s future (if not at least Vonage’s future). To hear what they’re saying, check the comments in Rich’s article, or check out the similar article written by TMC Editorial Director Greg Galitzine. Both offer the opportunity for readers to give their feedback on this precedent-setting, potentially landmark decision.
Despite the outcome of the court case, there was some positive news from Vonage this week: On Wednesday the company announced that it has teamed up with Motorola (News - Alert) to develop a new wireless router designed to make it easy for customers to use fax, telephone and Internet services all at the same time. The Motorola-built VT2542 wireless VoIP router includes a 4-port wired and 802.11 b/g wireless access point for home networking connectivity. The device, which is available at www.vonage.com, can connect up to two Vonage lines, including telephone and fax, through a high-speed Cable or DSL Internet connection. It also sports four Ethernet Local Area Network ports and an 802.11b/g Wireless port to support additional computers or other network devices.
“With the Motorola T2542, customers are able to use their Internet connection for the computer and the phone at the same time,” wrote TMCnet’s Susan Campbell in her article. “The router is positioned as being perfect for consumers seeking to get the added advantage of easily configuring a secure wireless network.”
In other news, VoIP solutions provider Cantata Technology on Monday announced the introduction of an enhanced version of its Excel Multi-Services Platform (MSP) 1010, which enables global service providers to rapidly and cost-effectively deploy revenue-generating applications as they transition to next generation networks.
“The enhanced version of the MSP 1010 includes the Sigtran M3UA protocol, allowing carriers to seamlessly deploy services and solutions in converged networks, where the connectivity is IP; yet internetworking is established through legacy SS7
protocols,” wrote TMCnet’s Spencer Chin in his article. “In addition, M3UA provides for increased bandwidth and reduced cost.”
Cantata also made news on Monday when it announced that it has added over 20 features to its IMG 1010 media and signaling VoIP gateway product, including support for ENUM and load balancing.
Also making a splash on Monday were the results of an Oracle-sponsored global communications industry survey, published by Economist Intelligence Unit, showing that about 68 percent of telecommunications executives worldwide believe VoIP services like Skype (News - Alert) are the main threat to fixed line revenues.
“Based on insights from 155 telecom executives in 36 countries, the survey warns fixed-line and wireless service providers to build up new revenue streams and continuously search for lucrative opportunities to preempt business decline,” wrote TMCnet’s Leo Blanco in his article. “In the survey, over 80 percent of industry executives believe voice calls will drastically decline and will no longer be the major source of revenues for communication carriers within six years. In addition, 60 percent senior executives predict this event will happen faster, within four years.”
“For communication carriers, the most effective strategy to negate declining voice calls is to introduce new services aside from price changes or marketing initiatives, according to 75 percent of executives in the survey,” Blanco added.
Although most of us knew about this trend this already (after all, it is self-evident, isn’t it?), it is still interesting to hear industry executives “measure” what the impact will be and to hear their plans for dealing with the anticipated changes in their business models. Now, wouldn’t it be really interesting to ask these same respondents if they think Vonage is as much of a threat as it used to be?
Also of interest on Monday was the announcement of a new partnership between VoIP connectivity solutions provider Kayote Networks (News - Alert) Inc. and South America’s carrier of carriers Internexa. The two companies are reportedly teaming up to bring VoIP to more of the millions of people who reside in the Andean Region. Specifically, Internexa, which has a presence throughout the region, will use Kayote’s existing carrier-grade global VoIP network to provide its partner carriers with the ability to deliver VoIP to their customers. The deal will enable Internexa to provide Kayote’s VoIP platform to its customers, which include the region’s leading service providers.
On Tuesday, Panasonic, traditionally known for its PSTN cordless phones, announced that had signed a deal with VoIP provider deltathree to make deltathree the exclusive VoIP service provider for Panasonic’s GLOBARANGE series of hybrid 2-line cordless phones. These two-line 5.8GHz and DECT phones allow users to choose between PSTN and VoIP for outgoing calls, thus enabling them to benefit from low cost long distance calling and the enhanced features of VoIP while retaining the benefits of the traditional landline experience for local calls.
“With joip, the GLOBARANGE handsets will arrive ready to use, without the need to download and install software or endure complex installations,” wrote TMCnet’s Erik Linask in his article. “In addition, the phones a variety of affordable add-on features offered by joip, like ringtones, text messaging, the joip community directory, call forwarding to multiple numbers, advanced do not disturb options, and email-based voice mail notification. Users can also use their joip softphone to make calls from a laptop while traveling.”
Also making the headlines on TMCnet was Thursday’s announcement that Junction Broadband, which provides digital telephone, Internet and business services in the Northeastern U.S., had signed an agreement with VoX Communications Corp., a wholesale and retail provider of VoIP services nationwide, to resell VoX’s VoIP service under the name “Junction digitalvoice.” Junction will offer the service as a standalone product - or it can be bundled with Junction Internet services for added savings.
On Friday, Britain’s IP communications giant, BT, announced the launch of its new managed (i.e. hosted) VoIP service, which enables cable providers and other service providers to resell BT’s flavor of VoIP to their subscribers. BT claims this new “service in a box” offering, called IP Voice Managed Service, is so easy to deploy that a new entrant “can become a communication provider overnight - without the cost and complexity of having to invest in expensive IT and network infrastructure.” The service offers advanced multi-layered security, including session border controller (SBC) functionality and VoIP firewall capabilities. A single web-based interface gives users an efficient tool to monitor call flow and control expenses. In addition it offers a flexible pricing model so that service providers can deliver just the features their customers want. The company claims it is targeting this product to service providers outside of the UK.
Also catching our attention on Friday was California-based a la Mobile Inc.’s announcement that it is launching a complete VoIP Linux system stack for WiFi (News - Alert)/GSM dual-mode phones. The company, which makes Linux-based platforms for mobile phones, said it is rolling out this solution in response to growing demand from handset makers for ready-to-deploy open source platforms.
a la Mobile’s “VoIP Made-Ready Linux Solution” is the first in its new Made-Ready Series of Linux software offerings. It is based on the company’s Convergent Linux System Platform (CLP) - which the company claims is the only complete operating system (OS) for mobile phones with an entirely open and configurable platform. CLP is also the first mobile OS platform that enables a single software stack in binary form to move across different handsets - even those based on processors from different manufacturers - without tedious and costly porting or modifications.
As I mentioned in my article, using open source code for mobile platforms gives handset manufacturers greater ability to choose the software components, functionality and device look-and-feel that are best-suited for their target customers. Furthermore, open source helps ensure interoperability and thus speeds time to market. a la Mobile’s new VoIP Made-Ready platform is a full and complete mobile software stack (from device drivers and Linux kernel to middleware and applications): integrated; tested; certified; supported; and maintained, giving manufacturers the peace-of-mind to roll-out new product families based on the Linux operating system.
Well, that’s about all I have say about VoIP for this week. Here are some more articles that might be of interest:
More on Samsung's Latest SMB VoIP Solution
“This issue has ramifications perhaps for the entire VoIP industry and is by no means the only set of patents requiring communications companies to pay royalties,” wrote TMC President Rich Tehrani in his article, “Verizon and Vonage Patent Dispute: What it Means to VoIP.” Indeed, many industry experts see this as a very serious threat to VoIP’s future (if not at least Vonage’s future). To hear what they’re saying, check the comments in Rich’s article, or check out the similar article written by TMC Editorial Director Greg Galitzine. Both offer the opportunity for readers to give their feedback on this precedent-setting, potentially landmark decision.
Despite the outcome of the court case, there was some positive news from Vonage this week: On Wednesday the company announced that it has teamed up with Motorola (News - Alert) to develop a new wireless router designed to make it easy for customers to use fax, telephone and Internet services all at the same time. The Motorola-built VT2542 wireless VoIP router includes a 4-port wired and 802.11 b/g wireless access point for home networking connectivity. The device, which is available at www.vonage.com, can connect up to two Vonage lines, including telephone and fax, through a high-speed Cable or DSL Internet connection. It also sports four Ethernet Local Area Network ports and an 802.11b/g Wireless port to support additional computers or other network devices.
“With the Motorola T2542, customers are able to use their Internet connection for the computer and the phone at the same time,” wrote TMCnet’s Susan Campbell in her article. “The router is positioned as being perfect for consumers seeking to get the added advantage of easily configuring a secure wireless network.”
In other news, VoIP solutions provider Cantata Technology on Monday announced the introduction of an enhanced version of its Excel Multi-Services Platform (MSP) 1010, which enables global service providers to rapidly and cost-effectively deploy revenue-generating applications as they transition to next generation networks.
“The enhanced version of the MSP 1010 includes the Sigtran M3UA protocol, allowing carriers to seamlessly deploy services and solutions in converged networks, where the connectivity is IP; yet internetworking is established through legacy SS7
protocols,” wrote TMCnet’s Spencer Chin in his article. “In addition, M3UA provides for increased bandwidth and reduced cost.”Cantata also made news on Monday when it announced that it has added over 20 features to its IMG 1010 media and signaling VoIP gateway product, including support for ENUM
and load balancing.Also making a splash on Monday were the results of an Oracle-sponsored global communications industry survey, published by Economist Intelligence Unit, showing that about 68 percent of telecommunications executives worldwide believe VoIP services like Skype (News - Alert) are the main threat to fixed line revenues.
“Based on insights from 155 telecom executives in 36 countries, the survey warns fixed-line and wireless service providers to build up new revenue streams and continuously search for lucrative opportunities to preempt business decline,” wrote TMCnet’s Leo Blanco in his article. “In the survey, over 80 percent of industry executives believe voice calls will drastically decline and will no longer be the major source of revenues for communication carriers within six years. In addition, 60 percent senior executives predict this event will happen faster, within four years.”
“For communication carriers, the most effective strategy to negate declining voice calls is to introduce new services aside from price changes or marketing initiatives, according to 75 percent of executives in the survey,” Blanco added.
Although most of us knew about this trend this already (after all, it is self-evident, isn’t it?), it is still interesting to hear industry executives “measure” what the impact will be and to hear their plans for dealing with the anticipated changes in their business models. Now, wouldn’t it be really interesting to ask these same respondents if they think Vonage is as much of a threat as it used to be?
Also of interest on Monday was the announcement of a new partnership between VoIP connectivity solutions provider Kayote Networks (News - Alert) Inc. and South America’s carrier of carriers Internexa. The two companies are reportedly teaming up to bring VoIP to more of the millions of people who reside in the Andean Region. Specifically, Internexa, which has a presence throughout the region, will use Kayote’s existing carrier-grade global VoIP network to provide its partner carriers with the ability to deliver VoIP to their customers. The deal will enable Internexa to provide Kayote’s VoIP platform to its customers, which include the region’s leading service providers.
On Tuesday, Panasonic, traditionally known for its PSTN
cordless phones, announced that had signed a deal with VoIP provider deltathree to make deltathree the exclusive VoIP service provider for Panasonic’s GLOBARANGE series of hybrid 2-line cordless phones. These two-line 5.8GHz and DECT phones allow users to choose between PSTN and VoIP for outgoing calls, thus enabling them to benefit from low cost long distance calling and the enhanced features of VoIP while retaining the benefits of the traditional landline experience for local calls.“With joip, the GLOBARANGE handsets will arrive ready to use, without the need to download and install software or endure complex installations,” wrote TMCnet’s Erik Linask in his article. “In addition, the phones a variety of affordable add-on features offered by joip, like ringtones, text messaging, the joip community directory, call forwarding to multiple numbers, advanced do not disturb options, and email-based voice mail notification. Users can also use their joip softphone to make calls from a laptop while traveling.”
Also making the headlines on TMCnet was Thursday’s announcement that Junction Broadband, which provides digital telephone, Internet and business services in the Northeastern U.S., had signed an agreement with VoX Communications Corp., a wholesale and retail provider of VoIP services nationwide, to resell VoX’s VoIP service under the name “Junction digitalvoice.” Junction will offer the service as a standalone product - or it can be bundled with Junction Internet services for added savings.
On Friday, Britain’s IP
communications giant, BT, announced the launch of its new managed (i.e. hosted) VoIP service, which enables cable providers and other service providers to resell BT’s flavor of VoIP to their subscribers. BT claims this new “service in a box” offering, called IP Voice Managed Service, is so easy to deploy that a new entrant “can become a communication provider overnight - without the cost and complexity of having to invest in expensive IT and network infrastructure.” The service offers advanced multi-layered security, including session border controller (SBC) functionality and VoIP firewall capabilities. A single web-based interface gives users an efficient tool to monitor call flow and control expenses. In addition it offers a flexible pricing model so that service providers can deliver just the features their customers want. The company claims it is targeting this product to service providers outside of the UK.Also catching our attention on Friday was California-based a la Mobile Inc.’s announcement that it is launching a complete VoIP Linux system stack for WiFi (News - Alert)/GSM dual-mode phones. The company, which makes Linux-based platforms for mobile phones, said it is rolling out this solution in response to growing demand from handset makers for ready-to-deploy open source platforms.
a la Mobile’s “VoIP Made-Ready Linux Solution” is the first in its new Made-Ready Series of Linux software offerings. It is based on the company’s Convergent Linux System Platform (CLP) - which the company claims is the only complete operating system (OS) for mobile phones with an entirely open and configurable platform. CLP is also the first mobile OS platform that enables a single software stack in binary form to move across different handsets - even those based on processors from different manufacturers - without tedious and costly porting or modifications.
As I mentioned in my article, using open source code for mobile platforms gives handset manufacturers greater ability to choose the software components, functionality and device look-and-feel that are best-suited for their target customers. Furthermore, open source helps ensure interoperability and thus speeds time to market. a la Mobile’s new VoIP Made-Ready platform is a full and complete mobile software stack (from device drivers and Linux kernel to middleware and applications): integrated; tested; certified; supported; and maintained, giving manufacturers the peace-of-mind to roll-out new product families based on the Linux operating system.
Well, that’s about all I have say about VoIP for this week. Here are some more articles that might be of interest:
More on Samsung's Latest SMB VoIP Solution
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Patrick Barnard is Assignment Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard’s columnist page.
