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IP voice has become a reasonable technological alternative to traditional PCM voice. VoIP gateways are in the late stages of development with regard to reliability, features, and manageability. Consequently, service providers wishing to deploy VoIP solutions have a number of options available to them. One is to accept the current state of the technology and deploy it today, while waiting for enhanced versions to arrive, knowing that while the product may not be 100 percent carrier grade, it will certainly be an acceptable solution. A second option is a variation of the first: Implement the technology that is available today, but make no guarantees of service quality. This approach is currently being used in Western Europe and in some parts of the United States as a way to provide low-cost long-distance service. The service is actually quite good, and while it is not toll quality, it is inexpensive. And since most telephony users have become inured to the lower than toll quality of cellular service, they are less inclined to be annoyed by VoIP service that is lower than they might have otherwise anticipated. Needless to say this works in the favor of the VoIP service
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provider. Furthermore, the companies deploying the service often have no complex billing infrastructure to support because they rely on prepaid billing models, thus they can keep their costs low. SkypeOut, for example, allows subscribers to buy credit online using a credit card.
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There is no question that VoIP is here to stay and is a serious contender for voice services in both the residence and enterprise markets. The dollars don t lie: Domestic revenues for VoIP will grow exponentially between 2004 and 2009, from $600 million today to $3 billion. From a customer s perspective, the principal advantages of VoIP include consolidated voice, data, and multimedia transport; elimination of parallel systems; the ability to exercise PSTN fallback in the event that the IP network becomes overly congested; and reduction of longdistance voice and facsimile costs. For an ISP or CLEC, the advantages are different but no less dramatic, including efficient use of network investments due to traffic consolidation, new revenue sources from existing clients because of demand for service-oriented applications that benefit from being offered over an IP infrastructure, and the option of transaction-based billing. These can collectively be reduced to the general category of customer service, which service providers such as ISPs and CLECs should be focused on. The challenge they face will be to prove that the service quality they provide over their IP networks will be identical to that provided over traditional, circuit-switched technology. Major carriers are voting on IP with their own wallets, a sure sign of confidence in the technology. As we observed earlier, the key to IP s success in the voice provisioning arena lies with its invisibility. If done correctly, service providers can add IP to their networks, maintaining service quality while dramatically improving their overall efficiency. IP voice (not to be confused with Internet voice) will be implemented by carriers and corporations as a way to reduce costs and move to a multiservice network fabric. Virtually every major equipment manufacturer including such notables as Lucent, Nortel, and Cisco has added SS7 and IP voice capability to their router products and access devices, recognizing that their primary customers are looking for IP solutions.
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