DELIVERING THE VOIP PROMISE
Communications is moving towards an all-IP future, in which voice, video, messaging and data converge seamlessly on one network. For users, it promises easily integrated communications and cost savings. For Communications Providers it means rapidly expanding markets for new and innovative services.
At present, Voice over IP is driving much of the market development with increasing demand coming both from consumers and businesses.
In this article we look specifically at some of the latest trends in VoIP and the ways in which organisations are facing up to the challenge.
THE FUTURE IS HERE NOW
"VoIP is such an exciting market right now, although take-up is spread unevenly . According to Camille Mendler, a senior analyst at global connectivity experts Yankee Group.
Here in the UK, we’re confidently expecting 3 million consumer users by the end of next year – there are 2.4 million households who have already used VoIP according to Ofcom estimates. And according to Camille Mendler, "90% of corporates have already converged their voice and data and more than 60% of SMEs have gone the same way."
Smaller businesses are also enthusiastically buying into the proposition, hungry for the cost savings, convenience, flexibility and extra mobility that VoIP can offer, with as many as 48% having plans to use VoIP services by March 2008 (see the ‘VoIP demand forecast’ article in the last edition of Between The Lines).
By contrast, some medium-sized companies remain to be convinced of the benefits for them and they will be a key target market for growth.
MANAGING AWAY THE COMPLEXITY
But the complexity of interconnecting traditional and IP networks and running voice, data, video and messaging streams across them, is hampering providers in addressing these needs. Providers are also, of course, faced with the significant task of negotiating and maintaining commercial agreements with every other VoIP provider to underpin it all. "It’s not a trivial endeavour in terms of expenditure and in terms of management," says Camille Mendler, "but neither is it hype – it’s table stakes for doing business at all."
In a recent BT Wholesale ‘Engage Live’ webcast,
Camille highlights some of the complexities "We’re not just talking about delivering VoIP over fixed lines. Increasingly, it’s being delivered over mobile networks and there are over 700 of those worldwide. Then there’s the dominance of video content – over eleven billion video streams are being downloaded every month worldwide. To effect this transition to an IP environment – the services of the future – providers face some tough capital and operational expenditure challenges and they need help because the margins are incredibly thin."
Demand for VoIP services is going to increase and, it will become an increasingly attractive option to businesses as they recognise the cost and usage benefits of converged communications. The challenge to Communications Providers is offer the service in a way that is financially sustainable and technically resilient.
READ BETWEEN THE LINES
Wholesale’s solution is to create a ‘clearing house’ for VoIP and Video calls with unified access – a way for calls to be passed between Communications Providers easily, with clear and straight forward pricing and bill settlement services.
Developed specifically for the VoIP interoperability market, BT Wholesale’s IP Exchange allows Communications Providers to connect to a single hub that interoperates through VoIP, video and mobile gateways with other providers. IP Exchange provides a stable, resilient platform for providers to deliver VoIP services, with the potential to enhance earnings by increasing margins as IP Exchange removes an entire switching level.
BT Wholesale’s IP Exchange product seeks to remove the often complex and technical alignment of customers’ switches and replaces the need for negotiating and maintaining bilateral and multilateral agreements with a single contract. The BT Wholesale IP Exchange product will also, transparently and efficiently, handle financial settlements, offering incentives to providers who terminate IP calls on BT’s network. BT IP Exchange also offers a 999 service for UK end points, allowing providers to meet their 
Ofcom obligation to ensure that any VoIP service that allows users to make calls to ordinary phone
numbers must also offer access to 999. More information Listen to Camille discuss VoIP, convergence and BT Wholesale’s
IP Exchange solution on Engage Live
Our quarterly webcast serviceFind out more about IP Exchange on btwholesale-engage.com.‘
VoIP demand set to double as small businesses take the lead’