Category: VoIP

Products and service that carry voice over an Ip connection

VoIP Threatens Traditional Telcos Revenue

It comes as little surprise that a new report from Analysys, global advisers on telecoms, IT and media, reports that over 50 million broadband users in Western Europe could potentially be using private Voice over Internet Protocol Applications (PVAs) by 2008. As a result, the impact on traditional telephony providers’ revenues could reach 6.4 billion euros (~$8.23Bn, ~£4.47Bn) in 2008, representing 13 per cent of the residential fixed-line voice market.

VoIP technology – used in excellent applications such as Skype – works by digitising voice in data packets, sending them over the Internet using TCP/IP networks, and then reconverting them into voice at the destination. As well as offering a ‘free’ alternative for voice conversations compared to traditional fixed lines, you can also compress voice packets, route them, convert them to a new better format, and so on – bypassing the existing PSTN network.

Digital signals are also more noise tolerant than analogue ones – a feature appreciated by users communicating overseas. With VoIP, you can also talk all the time with every person you want (as long as the other person is also connected to Internet at the same time) for no call charges. And, in addition, you can talk with multiple people (conference call) at the same time.

Analysys advises that incumbent public switched telephone network (PSTN) operators are highly vulnerable and should assess the weaker segments of their market and create targeted packages to retain valuable customers. They also advise that service providers should also make subscriptions the core of their service packages.

“The recent rapid take-up of Private Voice Applications (PVAs) using free downloadable software from providers such as Skype raises the possibility of the appearance of a critical mass of PVA users that could unleash a significant structural change in the voice market by the removal of a large proportion of PSTN revenues,” says report co-author Stephen Sale. “In the residential market, PVAs are typically used to make longer calls to friends and family, the core telephony business of fixed-line incumbents. In combination with increased mobile usage, this could render the PSTN subscription worthless for many broadband users. Fixed-line voice would face not only mobile substitution, but PVA substitution as well.”

The report, Voice Communications: From Public Service to Private Application, examines the potential impact of these applications on the residential voice market. It uses new market models to show that, given favourable future regulatory and other conditions, the rapid adoption of PVAs could generate direct revenues of over 3.5 billion euros (~$4.5Bn, ~£2.44Bn), the bulk (about 85 per cent) stemming from subscriptions, not call charges.

This emphasises the huge importance that the subscription element will have in a future multiservice mix and in establishing PVAs in the mass market. Further research from consultancy firm Mercer has suggested that Internet-based phone services could be in use by up to 30 per cent of homes in the UK and the US in the next three years.

The report is available to purchase online at http://research.analysys.com/stor, priced at £1,700 (approximately 2,500 euros).

BT helps small businesses join the VoIP revolution

BT has seen its fixed-line base erode steadily over the past few years, while tariffs have fallen, making it hard for it to increase revenue. But it looks like BT is grabbing the nettle rather than shying away from it.

That means sniffing around for new market opportunities in a rapidly changing technological landscape. And in the case of BT, instigating the first Internet phone service specifically for UK SMEs, and launching next year the Bluephone, which will allow you to make VoIP, mobile or landline calls from the same handset.

Small businesses across the UK now have access to Voice over Internet Protocol (VoIP), with the launch of BT Business Broadband Voice. Subscribers simply plug BT’s Broadband Voice box into their high-speed Internet connection and then use a standard telephone handset to make calls, rather than having to connect via a computer. This means that Internet calls can be made from anywhere that has a broadband connection, enabling employees to keep the same number, whether they’re working from the office or remotely.

It can’t be easy for a lumbering giant having nimble little gnat-like competitors such as Carphone Warehouse and Centrica’s OneTel snapping at it haunches, especially if you lost about half a million fixed-line customers during the July-to-September quarter to some of those competitors. Only last week, Ofcom said that Carphone Warehouse and Centrica’s OneTel, had expanded their customer base to 4.2 million at the end of September from 3.7 million at the end of June.

BT’s proposed Bluephone acts like a mobile, but it has better reception, better voice quality and is cheaper to use than a mobile, because it operates over BTs fixed line network. When you use it near your home or office, the call is routed using your landline connection, if you are out and about it will use the mobile network, and if you are within a Wi-Fi hotspot it will automatically use VoIP to route the call.

Ofcom reported the number of UK broadband connections passed the 5 million point during September, with around 50,000 new subscriptions added every week. So, while fixed voice telecoms use continues to decline slowly, broadband uptake continues apace, which might start to mean more of a shift rather than a loss in business for telcos who grasp the nettle.

BT Broadbandvoice.

WiFi – it’s Everywhere … and Now With Voice

My local coffee shop and corporate America have one thing in common – they are adopting wireless. WLAN hotspots today are as exciting as the record store of the 1950’s. 

There are lots of players in the market and already some of them are joining forces to increase their chances of success, small operators needing the resources of bigger players.  The enterprise community needs wireless for its notebook wielding road warriors, and consultants Frost & Sullivan expects total subscription revenues in the European WLAN hotspots market to rise from around € 18 million (~$22,664,522) in 2002 to in excess of € 1 billion by the end of 2006.

Frost & Sullivan’s study indicates that the key to success lies in selecting the locations most frequented by business travellers, and it would seem that a marriage of convenience between WiFi and VoIP would be very beneficial.

Boingo Wireless, a CA-based Wi-Fi hot spot operator and aggregator, have just done deals with KPN HotSpots in The Netherlands and The Public Network (TPN) in Switzerland, adding 290 Wi-Fi hot spots in key travel locations in these countries to the Boingo Roaming System. With these new additions, Boingo’s worldwide network includes more than 11,000 hot spots with 5,600 locations in Europe.

Boingo have also set up shop with Vonage Holdings Corp., a leading broadband telephony (VoIP) provider in North America, in an effort to simplify voice over Wi-Fi services and make them more accessible to customers. This move is the first phase of their VoIP strategy, whereby mobile travellers using the Xpro from Xten, can access the Vonage service from almost any Internet connected personal computer.

Boingo and Vonage will conduct a trial before the end of the year and the proposed bundle will include a Xpro SoftPhone from Xten and a headset that will allow the user to communicate over the Internet from any of the Boingo hot spots.

Frost & Sullivan
Boingo
Vonage

Ofcom Confirms 056 Numbers for VoIP Services, Begins New Consultation

Ofcom, the UK’s telecoms regulator has confirmed that voice over IP services will use the 056 prefix, first reported here in February.

The new prefix will give all VoIP users a fixed number, so will be able to place calls with subscribers who have signed up for different VoIP services. It will also allow non-VoIP subscribers to make calls to VoIP numbers.

Ofcom are leaving the assignment of numbers down to VoIP providers. 056 numbers will not be geographic, as was originally feared, meaning that subscribers can be contacted wherever they are. Having a geographic VoIP number makes about as much sense as a geographic mobile number, and we’re glad someone saw sense.

Stephen Carter, Ofcom Chief Executive said “Broadband voice services are a new and emerging market. Our first task as regulator is to keep out of the way.” In this spirit, Ofcom has begun a new consultation to receive input on what needs to be done to protect the users of this nascent industry. Traditional telephone companies have number of regulations to comply with before they can offer a service to the public, such as ensuring access to the emergency services, and Ofcom wishes to explore what subset of these obligations should be applied to VoIP providers.

New Voice Services – A Plain English Summary

The DTI and ENUM

The Department of Trade and Industry in the UK is considering a public database that will link IP numbers to phone numbers. ENUM will be a searchable database of an individual’s domain names, email addresses, IM identities and telephone numbers.

Stephen Timms, Minister of State for Energy, E-Commerce and Postal Services (now that’s a portfolio of three entirely unrelated remits if ever I saw one), said “ENUM is a system that links telephone numbers to Internet names and destinations, increasing the flexibility of electronic communications. It is one of a number of developments that will allow us to operate more easily and effectively in the converging worlds of telecommunications and the Internet. The UK has been one of the foremost players in developing the ENUM concept and the Government wishes to continue to stimulate further development in this area.”

ENUM would enable users to access internet services from a telephone, and vice versa. All telephone numbers would essentially become like IP numbers.

Voice over IP services will benefit greatly from a service like ENUM, but some analysts are concerned about individuals’ privacy. The DTI recognise this from the outset: “ENUM may become an important element in the process of convergence between the traditional telecommunications world and the Internet world. The arrangements for ENUM necessarily include at least one unique registry function and therefore particular care needs to be taken to prevent abuse. The proposed arrangements have been defined by an open group of interested UK parties. DTI is seeking confirmation that the arrangements meet the needs of an open competitive market and adequately protect the interest of all participants and safeguard the public interest.”

The DTI’s consultation on ENUM

FCC Votes to Wiretap VoIP

The Federal Communications Commission has voted 5 – 0 to subject voice over IP communications to the same laws that apply to eaves dropping over conventional telephone calls.

Whilst VoIP is cheap alternative to making standard telephone calls, especially over long distance, it is rather difficult to tap. The vote means that VoIP is now subject to the 1994 Communications Assistance for Law Enforcement Act (CALEA), and that assistance is basically a requirement that your VoIP chat has a back door in it so that federal law enforcement agencies can listen in without telling you.

FCC chairman Michael Powell said: “Our support for law enforcement is unwavering. It is our goal in this proceeding to ensure that law enforcement agencies have all of the electronic surveillance capabilities that CALEA authorizes to combat crime and terrorism and support homeland security.”

The FCC’s statement

Wanadoo Broadband Home Gateway

Wanadoo, owned by France Télécom, will launch a broadband gateway for home subscribers in August, featuring a unit called Livebox.

Livebox is essentially a router, and its initial selling point will be to allow home users to set up a wireless network easily – but the box has other uses lurking inside. For example, the UK£80 (€120) box is Bluetooth enabled and will soon offer a phone service that will compete with BT’s own Bluephone.

Wanadoo will offer VoIP calls using Livebox from next year and once the local loop is unbundled then they’ll be able to offer fatter broadband pipes – and then video on demand. Subscribers will then be able to watch TV on demand on PCs around their home, wirelessly. Livebox is not a set top box, so will not be muscling in too far on Sky+ territory.

BT are still doing their “yes we are, no we’re not” dance with regards to being a broadband content provider, and have talked down their broadcasting ambitions in the last couple of weeks.

Wanadoo

BT Launch Communicator Residential VoIP Service

BT have launched new VoIP service called Communicator – bundled with Yahoo Messenger they claim that it makes calling from your PC easier. It certainly won’t make it cheaper as BT will bill you at exactly the same rate they bill for calls from your home phone, despite giving a clear warning on their site that PC calls aren’t as good. So, I have to ask – what’s the point?

BT are selling the service on convenience – the subscriber’s PC becomes an all-in-one communications centre with instant messaging, email, voice calls, and call management integrated into one product. Additional features include internet call barring and waiting – allowing you to block calls to your PC, and to notify you’ve got someone else waiting to speak to you when you’ve got a call. Never ones to miss a trick, these two extras cost UK£1.75 (€2.62) a month each, if you don’t already have them on your usual line.

BT also use the quality issue as an opportunity to recommend upgrading to a broadband connection: “The quality of calls made with BT Communicator may not be as good as the quality of traditional phone calls. BT Communicator call quality may be better on a broadband connection.”

People registering now get a free month of calls – after that, the service is charged like a normal phone service, with calls showing up on your normal bill as “Clic2call” items.

BT Communicator

Skype – free internet calls

Qwest to Launch VoIP Service to Boost Internet Telephony

Qwest Communications are to launch OneFlex, a new voice over IP (VoIP) service, in July. The product is aimed at both business and home consumers, and will require VoIP phones to use. OneFlex has conference calling, voice mail and other added features, all controlled from a web interface.

Qwest are looking to roll the service out to 20 US metropolitan areas by the end of the year, but is launching in Boise, Denver and Phoenix. It uses the Qwest iQ Network and is intended to appeal to customers who want to get their broadband and telephone service from a single source, and is of course cheaper than standard long distance.

VoIP is facing a slow start in the US – a recent survey from Ipsos-Insight revealed that 50% of public did not know what VoIP was, and some 60% of the people who did know were confused about how it actually worked.

About Qwest