IP Telephony News Wrap-up for Sep, 09 2004

1. Adelphia to Use AT&T’s CallVantage for VoCable Offering
Adelphia, the fifth largest cable operator in the U.S., will market and resell AT&T’s CallVantage service to its cable modem subscribers. Details of the deal including the financial arrangement and length of the contract were not disclosed. < AT&T now offers VoIP service in 170 U.S. markets. Adelphia provides service in 30 U.S. states and Puerto Rico. AT&T


3. Yankee Group Releases Study of U.S. Consumer VoIP Market
The Yankee Group has released Despite Uncertainty, Leading Telephony Industry Players Commit to Mass Market VoIP Deployment, a study that examines the growth of the residential VoIP market in the U.S. and projects which providers will prevail.

According to the firm, residential VoIP subscriptions will grow from 131,000 at the end of 2003 to nearly 1 million by 2005, then to 17.5 million by 2009. Cable MSOs are projected to achieve a 56% market share by 2006. Alternative providers such as Vonage are projected to have their 66% market share in 2003 decrease to 19% in 2005.

In cable telephony, VoIP subscriptions are projected to surpass circuit switched subscriptions in 2006. By 2008, the firm expects cable MSOs to have nearly a 10% share of the overall local telephony market in the U.S.

Yankee Group

5. TheGlobe.Com to Acquire Direct Marketing Firm
TheGlobe.Com, provider of a primary line residential VoIP service known as VoiceGlo, has acquired SendTec, a direct marketing firm. TheGlobe.Com plans to use the company to promote its VoIP service. Terms of the acquisition included $6 million in cash plus stock and warrants. SendTec expects to achieve revenues of $35-$40 million this year.




7. Motorola Enhances Cable Modem & VoCable Provisioning Solution
Motorola has released version 2.0 of Motorola Advanced Provisioning System (MAPS), an automated, DOCSIS and PacketCable-based service creation, activation, management and billing solution for cable operators offering IP based voice and data services. The new version includes:

* Added flow-through provisioning

* Billing gateway feature that enables custom

integration between MAPS and a cable op’s

front and back office systems

* Dynamic configuration file generation


* Support for static IP addresses

* Open Adapter Framework that enables the

development of custom interfaces to switches,

gateways, email, and web packages

* Support for batch data input and data


MAPS includes a service provisioning module (SPM), an IP management module (IPM), and a device provisioning module (DPM).

The SPM, developed by Interactive Enterprise, is an end to end broadband OSS service activation and provisioning solution that supports multiple provisioning models including provisioning through a CSR, customer self provisioning, and retail provisioning. The module manages interfaces with external applications, manages the activation and maintenance of content services, and communicates to the DPM the configuration parameters for CPE devices.

The IPM, developed by Incognito, provides automated provisioning and management tools such as DHCP, DNS, TFTP, and a ToD server.

The DPM, also developed by Incognito, auto provisions CPE – adding, deleting, or modifying MTA or cable modem configurations based on information provided by the SPM, IPM and external customer care and billing systems.

MAPS has been deployed by more than 20 broadband operators.


Interactive Enterprise


9. Infonetics Releases Quarterly Study of Enterprise Router Market
Infonetics Research has released its Q2 update of Enterprise Routers, its quarterly study of the global markets for wired broadband gateways and standard and secure high-end, mid-range, and low-end/SOHO routers. The report provides forecasts and market share projections. Companies tracked include 3Com, Adtran, Allied Telesyn, Cisco, D-Link, Enterasys (bad choice for a company name), Huawei, Juniper, Linksys, Lucent, Netgear, Nortel, Siemens, Tasman, and Vanguard.
The firm finds:

* Worldwide enterprise router revenue dropped 10% between

Q1 and Q2 of this year, after an 8% increase between Q4

of ’03 and Q1 of this year.

* Annual market revenue is expected to reach $4 billion

by 2007

* There is an increased demand for enterprise routers

with VoIP support. Vendors now offering routers with

integrated VoIP support and security include Cisco,

Nortel, Enterasys, and Vanguard

* Cisco leads the market with more than 75% of worldwide

revenue shares. Linksys is the 2nd top leader (owned

by Cisco), followed by D-Link

* Linksys and D-Link are the leaders in unit market

share, each with just over a 25% share.

* The total enterprise router revenue is divided as

follows: high-end routers (49%), mid-range routers

(39%), wired broadband gateways (9%) and low-end/SOHO

routers (3%)

* Based on geography, the total enterprise router revenue

comes from North America (46%), EMEA (around 30%), Asia

Pacific (nearly 20%), and CALA (less than 5%).

Infonetics Research

11. Frost & Sullivan Survey Financial Industry About IP
Frost & Sullivan has completed an Internet survey of 176 decision makers employed by small to mid-sized companies in the financial services industry to determine end-user interest in deploying VoIP technology. The survey prompted end-users to measure the importance of performance of solution, quality, reliability, scalability, security, bandwidth consumption, ease of use, productivity, and initial price and cost of ownership. Respondents also provided feedback on what network or calling features, such as messaging and conferencing, were must have versus nice to have.

The survey also asked participants to rate specific companies based on the company’s customer service, ROI, innovation, customized industry focused solutions, customized business size solutions, secure solutions, scalable solutions, openness and integration, and product training. Participants were provided with a long list of companies to comment on including 3Com, Alcatel, Altigen, AT&T, Avaya, Bell South, Cisco, Ericsson, Interactive Intelligence, InterTel, MCI, Mitel, NEC, Nortel, Panasonic, Qwest, SBC, Sphere, Shoreline, Siemens, Sprint, Verizon, and Vertical.

The only finding revealed by the firm from its Enterprise Communications End User Survey for the Financial Services Industry is that 43.8% of the respondents were already testing VoIP, with intentions on deploying the technology within the next 12 months.

For information on obtaining the results of the survey, contact Dustin McVey at dmcvey@frost.com with your full contact information.

Frost & Sullivan

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