IP Telephony News Wrap-up for Jan, 15 2004

1. Five Star Telecom Unveils SOHO Media Gateway
Five Star Telecom has introduced earthphone 502, a 2-port SOHO media gateway that enables a regular phone or PBX system to support Internet telephony calls. The gateway supports multiple call scenarios including gateway to phone line, gateway to gateway, phone line to gateway to phone line, and line to phone. In addition to functioning as a gateway, the product can also be used form a 2-port switch hub or an IP sharing device.

earthphone featues call transfer, call block, call log and phonebook, secure remote login, QoS, auto NAT traversal, an integrated firewall, and configuration via web, phone or telnet.

The Linux 2.4.x based gateway includes a 100 MHz 32-bit microprocessor, 2 MB Flash to store progra, 16 MB SDRAM, a FXO interface for a telephone set, a FXO interface for a telephone line, a DSP chip, and a 2-port Ethernet switch.

The gateway can be monitored and controlled via DTMF codes commands, a web browser, or telnet.

Five Star Telecom, Inc.

3. TIA Releases Annual Study of Telecom Market
Telecommunications Industry Association (TIA) has released 2004 Telecommunications Market Review and Forecast, an annual study of the telecom marketplace that provides an overview of telecom’s interrelated market segments including network services, enterprise and consumer, mobile and wireless communications, and international markets.

According to the firm, total spending in the U.S. telecommunications industry rose 4.7 percent in 2003 to an estimated $720.5 billion. Double-digit increases in wireless services, services in support of equipment, specialized services (unified communications, video and audioconferencing and high-speed Internet access) offset decreases in equipment spending and local and toll-service revenues. The U.S. telecommunications industry will grow at a projected 9.2 percent compound annual rate 2004-2007, reaching $1 trillion.

A turnaround is in sight for U.S. telecommunications equipment spending. The network equipment market bottomed out in 2003 at $14 billion and a 2.3 percent increase to $14.4 billion is predicted for 2004. By 2007, network equipment spending will total $18.5 billion, climbing at a 7.0 percent compound annual rate from 2003.

The enterprise equipment market expanded 3.9 percent to $94 billion in 2003. In the enterprise, the shift to IP is boosting most segments of equipment spending. For instance, after declining in the previous three years, the PBX market bounced back in 2003 with a 12.0 percent increase, reaching $4.2 billion on the strength of growing IP-PBX sales. Videoconferencing was the fastest-growing segment, jumping 28.6 percent and reaching $900 million.

Spending on transport services was essentially flat in 2003 at $285 billion. Local exchange revenues went down 2.9 percent to $118 billion following a 3.3 percent decrease in 2002. Toll-service spending fell 8.2 percent to $78 billion, its third consecutive decrease as the shift from wireline to wireless in long distance traffic continued. Offsetting these declines in 2003 was a 14.3 percent increase in wireless services to $89 billion, surpassing toll services for the first time.

Spending on high-speed Internet access services (including cable modems, DSL, fixed wireless, satellite and fiber-to-the-home) reached $13 billion in 2003 and TIA expects growth to $25 billion by 2007. The overall specialized services category is expected to grow from $18.2 billion in 2003 to $34.7 billion in 2007.

The U.S. wireless market (transport services, handsets, infrastructure including Wi-Fi equipment and professional services) spending in 2003 totaled $134.5 billion, up 7.9 percent from 2002. The 2003 performance represents the first single-digit gain in the wireless market following years of double-digit growth, indicating that the market is approaching maturity. Wireless spending will grow at a compound annual rate of 9.1 percent 2004-2007, reaching an estimated $190.8 billion. Spending on Wi- Fi services is predicted to increase from $21 million in 2003 to $270 million by 2007.

International telecommunications spending (not including U.S. figures) is predicted to total an estimated $1.5 trillion in 2004, up 10.3 percent over 2003. TIA expects high-speed Internet access to be the principal driver of equipment spending. International spending on telecommunications equipment is predicted to increase by 5.4 percent in 2004 to $260.1 billion and then to grow at high single-digit rates through 2007. Overall international telecom spending is expected to reach $2 trillion in 2007, growing at a compound annual rate of 10.5 percent 2004-2007.

The report is available in hard copy for $1,150.00, as a single user PDF on CD-ROM for $1,295.00 or via a multi-user license for $7,500.00. TIA members receive discounted fees.

Telecommunications Industry Association

5. Powell Speaks Out Against VoIP Regulations
Speaking at the Consumer Electronics Show, FCC Chairman Michael Powell delivered comments in support of leaving the VoIP marketplace deregulation. Powell said that excessive regulations could hurt the emergence of broadband services including VoIP that could take decades to resolve. He stated the technology was not telephony, but instead a voice application.

The FCC is currently determing what level of regulations it will apply to VoIP providers.


7. Parks Associates Releases Study on Demand for Residential VoIP
Parks Associates has released, Residential Voice over IP: Analysis and Forecast, a 65 page study that analyzes demand for VoIP and predicts who will win and who will lose in the transition from circuit-switched. The report also includes profiles of current and future VoIP service providers and provides consumer survey data on the market. The study is based on a survey of 3,300 households.

The firm finds that half of all households that subscribe to an Internet access service are interested in VoIP services. Most of those interested had high monthly phone bills.

The report, available in a hard copy or PDF, goes for $3,300.

Parks Associates

9. Broadview Complete VoIP Trial Serving SMBs in New York City
Broadview Networks, a NYC based CLEC, has completed trials of its VoIP service, which offered data and local, long distance and international voice services to small to mid-sized businesses. Broadview’s service supports e911, CALEA and local number portability. One of the trial participants included Compulinx Managed Services, located in White Plains.

Broadview Networks

11. Vonage to Use TI’s Software for its VoIP Network
Vonage will use Texas Instrument’s software within its VoIP network and has commissioned the vendor to custom develop further IP-based technologies to support and expand its services.

Texas Instruments


13. Primus Launches Residential VoIP Services in Canada
Primus Telecommunications Canada has launched TalkBroadband, a residential local, long distance, and international VoIP service offered to broadband Internet users throughout Canada. Local calling with no calling features is offered at a flat rate of $19.95 per month. Local calling with call answer, call display, and call waiting is available for $29.95 per month. The provider is offering premium add-on features including call transfer and 5-way calling as well as the option to adopt an area code from Toronto, Ottawa, Hamilton, Montreal, Vancouver, Calgary or Edmonton.

Primus is offering a long distance package that includes 60 minutes of calling within North America for $2.95 per month or unlimited long distance calling for $20 a month. Long distance calls between TalkBroadband customers are free.

Primus provides VoIP customers with a residential VoIP gateway.

The provider’s service supports local number portability but does not support operator services or e911.

Primus Telecommunications Canada

15. Ionosphere to Use IP Deliver’s Managed VoIP Services
Ionosphere, a facilities based carrier providing international telecom services, will use IP Deliver’s managed services for international VoIP voice and connectivity.

Ionosphere is based in Greenville, South Carolina.

IP Deliver


17. Charter to Deploy Motorola’s CMTS for VoCable Services
Charter Communications will deploy Motorola’s BSR 64000 CMTS to deliver cable modem and VoIP services over its cable network. The announcement did not specify when and where Charter would deploy the technology or any further details regarding the agreement.

Motorola’s CMTS features DOCSIS 2.0 support, PacketCable support, redundancy, and advanced routing capabilities.

Charter Communications


19. NHC Unveils IP Service Management Solution for ILECs
NHC Communications has introduced ControlPoint, an IP service management solution for ILECs. ControlPoint, installed between an IP softswitch and legacy copper network, provides loop qualification, deployment and provisioning, fallback switching and service migration of voice and data services including DSL and T1/E1.

NHC Communications

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