Contents - Connect-World

VoIP
required to create an end-to-end serviceis
increased speed-to-market and
access to tested systems for smooth
delivery. At the same time, a managed
wholesale solution may not offer the
same degree of network control and
flexibility in voice product packaging
as the build-my-own alternative. A
thorough assessment would consider
these and other important, aspects of
product development, deployment and
support for each particular service
provider.
Whichever delivery model is chosen,
service providers will want to ensure
they have a solid position in the market,
relative to competitive alternatives.
In the business market, competing
head-to-head with IP PBXs and
other hosted services, solutions need
to effectively counter IP PBX limitations.
ˆ Technology obsolescencePBXs
require ongoing investment to maintain
state-of-the-art features and technical
capabilities, indeed most IP PBX
manufacturers issue dot releases
monthly and major releases every six
to 12 months, which can require
expensive hardware upgrades;
ˆ Technology limitationsIP PBXs
cannot generally interface to third
party software or other vendors equipment,
has limited resale value and
often uses outdated technology;
ˆ Challenging interfaceThe system
interface is often not user-friendly and
may require 10 to 15 days training;
ˆ Security issuesAny breach of security
from external sources jeopardises
the integrity of your customers LAN
network.
Maximising customer
acquisition
Creating a compelling long-term sales
proposition is critical to customer
acquisition. While creating appeal for
the early-adopter user can lead to
some short-term success, VoIP is going
to become a mainstream servicevery
likely attaining primary line service
status in homes and businesses across
the country. So, creating a proposition
that is focused on all the market hot
buttons holds the most promise of
continued appeal. The choice of distribution
channels is critical from the
perspective of rapid customer acquisition.
Since retail distribution can
account for 20 per cent of your operating
expense, it is also critical from a
financial viewpoint. A direct sale is the
highest cost approach. Indirect channels,
agents, can be difficult to manage
in a pre-mass adoption market.
These channels need to learn how to
sell VoIP services in the most timeeffective
way. Regardless of your chosen
channel, you will need a well-constructed
set of marketing support
tools, including high-impact communications,
benefit / cost demos, product
functionality demos, easy-to-use
post-sales materials and so on.
Educating your target market, despite
the flow of information from the large
operators, is an important part of the
communication process. Once
prospects understand the power of
VoIP services in addressing their
needs, the excitement level risesthe
challenge lies in making that power
quickly and visibly effective.
Accelerating ROI
Service providers can buy market
share through low ball pricingbut as
tempting as this might be in the shortterm,
it is not a sound financial strategy
and will not maximise Return-On-
Investment. The market is likely to
respond very positively to prices 10 per
cent to 30 per cent below the pricing of
comparable legacy (TDM) service, so
that should be the target range for
price-positioning. In fact, 72 per cent
of SMBs express interest in VoIP services
with just a 15 per cent cost savings.
As figure 2 indicates, 69 per cent of
service providers agree on a target
range for cost savings of 10 per cent to
30 per cent. Cost reductions afforded
by IP technology make this price positioning
profitable and we believe, sustainable.
The ability for VoIP services to attract
new customers and to retain existing
ones, is strengthened tremendously
through product bundlingfor
instance, with Internet accessto create
a one stop offer. This is perceived
by consumers and businesses as being
much more interesting and compelling
than buying VoIP service on its own.
As with all sound product strategies,
creating positive financials means
ensuring you are delivering the value
that customers want and will pay for.
VoIP offers a wide range of exciting
functionality that meets real consumer
and business needs; this is the key to
maximising long-term margins and
ROI for service providers.
Will the solution actually work
IP technology has been deployed for
several years as a means of achieving
compressed transmission in long-haul
backbone carrier networks. But, VoIP
as a front-line voice service is relatively
new, as are the plethora of products
being deployed to enable VoIP services.
So, first and foremost, a wise step is
to request a demo account that permits
thorough trialing of any product or
service you might be contemplating.
This will help you answer the does it
work question and will allow you to
understand capabilities and limitations.
In addition, consider all the proactive
tactics a network vendor or platform /
software vendor can utilise to ensure
reliability of their offering, and to give
you a degree of comfort. These can
range from physical network redundancy
and active network testing procedures,
to rock-solid SLAs (Service
Level Agreements) and Network
Operations Center coverage. Processes
and procedures have to be tailored to
the unique challenges of an IP network
consisting of disparate, decoupled
elements.
It is important to understand plans for
testing and extending the line of
supported equipment, including
media gateways and customer
premise equipment (CPE)the
marketplace will continuously try out
and adopt new equipment.
The challenge of moving
from testing to live
implementation
This is a big leap, requiring internal
expertise and vendor support. IP networks,
by nature, are unlike consoli-
Figure 1: Self-provisioned VoIP service solutions.
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