Posted: 03/1998
Considering IP Voice
Packetized Service Offers New Alternative for Telecom Providers
Offering voice services that are carried over packetized, rather than the more conventional circuit-switched, networks is becoming a growing new option for network operators and long distance resellers alike.
Putting voice services over Internet protocol (IP) links allows carriers such as IDT Corp. to offer low-cost domestic and international phone services because--unlike standard voice networks--packet network operators don't have to pay high tariffs for an incumbent carrier to terminate their traffic. Handling voice on data networks also can be less expensive because it can be compressed and ride along with other traffic, rather than occupying set time slots on the network. IDT just this year began offering its Net2Phone Direct phone-to-phone Internet telephony services to consumers and small businesses for 5 cents per minute from New York City and Chicago to any telephone in the United States. The service is available in other cities for 8 cents per minute.
With an Internet gateway--the equipment that converts analog voice to data (packets) and owned or leased packet-based transmission facilities-- anybody can offer similar services. And because companies such as ITXC Corp., which provides peering and settlements between different IP gateway owners, exist, a provider doesn't have to have a ubiquitous network of gateways to offer widespread services.
Like standard long distance resale, however, offering IP voice services doesn't necessarily require the service provider to purchase and operate equipment. But an existing base of customers and a heavily trafficked web site doesn't hurt.
Long distance service providers can resell the services from IP voice network operators such as Networks Telephony Corp. and VIP Calling Inc., among others. Resellers and other providers can cut agreements to direct their customers to the web sites of these 'next generation telcos' to sign up for service. At the site, customers provide credit card and other information to receive codes to punch in before dialing their called party. Those codes instruct the public switched telephone network to direct the call to a point of presence in the network, where the call is then converted to digital to go over a low-cost packet link. The service provider that directs customers to the site to sign up for the service can get a cut of the proceeds from those calls.
If all this sounds enticing and you want to learn more about IP voice, take a look at the Sounding Board insert beginning on page 59. And if that whets your interest, fill out the subscription card in the insert to receive a monthly subscription to Sounding Board, which will launch as a stand-alone publication in May.
The new magazine will be dedicated to covering the migration of voice and fax services onto packetized networks including the Internet, carrier IP networks dedicated to voice and intranets as well as frame relay and asynchronous transfer mode networks.
Until next time,
Paula Bernier
Editor-in-Chief
