Contents - Connect-World
Contents - Connect-World
Contents - Connect-World
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VoIP<br />
VoIPNetworking for economic development in the Asia-<br />
Pacific region<br />
by Richard C. Grange, President & CEO, New Global Telecom<br />
Voice-over-Internet Protocol or VoIP is changing the worlds telecommunications. A<br />
VoIP company in the USA, Vonage, won the fight to keep VoIP regulation free and is<br />
growing rapidly. Skype, which offers free software and free computer-to-computer voice<br />
service, has millions of users worldwide. Large operating companies routinely use IP<br />
services to carry much of their long-distance traffic. Within the next few years, companies<br />
of all sizes and residences throughout the world will be using VoIP for low-cost,<br />
affordable, communications.<br />
Richard C. Grange began his telecommunications career in 1982 when he co-founded and served as<br />
Executive Vice President and chief executive officer of TMC of Colorado, a long-distance reseller. After<br />
TMC of Colorado was sold to TelAmerica, Mr Grange founded and served as President and Chief<br />
Executive Officer of Meridian Telecom International, a provider of international call termination and<br />
international operator services. Mr Grange served also as President of the Technology Resource Group,<br />
an international call back carrier. Mr Grange founded NGT in 1996 and has served as its President and<br />
Chief Executive since its inception.<br />
Voice-over-Internet Protocol, or VoIP,<br />
has been changing telecommunications<br />
around the globe. In the United<br />
States, a company named Vonage has<br />
led the charge with 10,000 new residential<br />
users per month.<br />
They boldly challenged—and won—the<br />
support of the Federal Communications<br />
Council (FCC) with regard to keeping<br />
the VoIP services regulation-free.<br />
Luxembourg-based Skype has created<br />
a stir by offering a free VoIP solution.<br />
Skypes free software has been downloaded<br />
over 32 million times since<br />
launch in August 2003.<br />
These are not isolated incidences—traditional<br />
phone companies, cable<br />
providers and Internet providers all<br />
expect to stimulate new revenue<br />
streams by implementing VoIP services.<br />
VoIP services are paving the way<br />
for rapid economic development as<br />
well as changing the manner and form<br />
of telecommunications around the<br />
world.<br />
How can service providers from within<br />
the Asia-Pacific region take advantage<br />
of VoIP services There are ten critical<br />
considerations that emerging VoIP<br />
service providers everywhere should<br />
take into account to participate in the<br />
VoIP revolution.<br />
Targeting markets<br />
Addressable market segments for VoIP<br />
services include residential; small<br />
office / home office; small and midsize<br />
businesses and enterprises.<br />
However, VoIP penetration is<br />
extremely low in all these segments.<br />
Today, we are still at the leading edge<br />
of the VoIP industry growth curve.<br />
Still, VoIP line shipments to the business<br />
sector will actually exceed TDM<br />
line shipments in 2005, indicating an<br />
enormous acceptance of VoIP solutions.<br />
In addition, local broadband access,<br />
DSL or high-speed Internet statistics<br />
are valuable for identifying potential<br />
markets since they are enablers for<br />
VoIP service penetration.<br />
The market segments chosen by any<br />
service provider will drive the development<br />
of a service value or sales proposition<br />
having the most appeal to that<br />
marketplace.<br />
For instance, there is a vastly different<br />
proposition for primary line residential<br />
service than for secondary line<br />
service; and a very different proposition<br />
for hosted PBX service to a business<br />
than for connectivity between an<br />
onsite PBX and the public network.<br />
Knowing your target market is central<br />
to effective product definition and<br />
development.<br />
Choosing delivery models<br />
Service providers can opt for a buildmy-own<br />
(i.e. self-provisioned) hosted<br />
VoIP services solution to address their<br />
markets, or they can utilise a managed<br />
wholesale option. This is the classic<br />
’build versus buy decision. Figure one<br />
reflects some of the most important<br />
factors (though by no means all of the<br />
factors) that figure into this decision.<br />
Capital cost avoidance (for instance, in<br />
relation to application servers) and<br />
operating cost savings (such as technical<br />
skill sets), in conjunction with<br />
access to IP (and legacy TDM) experience<br />
are sound reasons to consider a<br />
wholesale solution. Also compelling<br />
given the complexity and effort<br />
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