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Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
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Softswitch Economics
Table 11-46 Worksheet for comparing long distance to acquiring VoIP gateways in frequently called LATAs
Monthly cost to call local calling area A Monthly cost to call local calling area B Monthly cost to call local calling area C Monthly cost to call local calling area D Subtotals Federal, state, local taxes Totals $__________ VoIP gear for local calling area A VoIP gear for local calling area B VoIP gear for local calling area C VoIP gear for local calling area D
11
$__________
$__________
$__________
$__________
$__________
$__________ $__________ $__________ $__________
$__________ $__________ $__________ $__________
Table 11-47 Worksheet comparing long-distance costs to leasing VoIP gateways in various LATAs
Monthly cost to call local calling area A Monthly cost to call local calling area B Monthly cost to call local calling area C Monthly cost to call local calling area D Subtotals Taxes Totals
$______ Monthly lease for VoIP gear in local calling area A $______ Monthly lease for VoIP gear in local calling area B $______ Monthly lease for VoIP gear in local calling area C $______ Monthly lease for VoIP gear in local calling area D $______ $______ $______
$______ Monthly savings to call local calling area A $______ Monthly savings to call local calling area B $______ Monthly savings to call local calling area C $______ Monthly savings to call local calling area D $______ $______ $______
$______
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Softswitch Economics
Softswitch Economics
Implications for Developing Economies
As business is communications, a robust telecommunications network is probably the most important element of economic development. Teledensity is the number of telephone lines per hundred persons. The United States enjoys a teledensity of 66 percent. Mexico, in comparison, has a teledensity of 13.7 percent with government initiatives to almost double that by 2006.16 Softswitch technologies will be critical in achieving that goal. In the past, teledensity had been constrained by the extreme expense of Class 4 and 5 switch technologies both in acquisition and OAM&P. Softswitch technologies, given their lower costs, simplicity of operation, and ease of integrating custom services, will accelerate teledensity in developing economies around the world. An excellent case in point is Protel, a Mexican ISP and long-distance company. Protel has built an IP backbone that links the major population centers of Mexico. On that IP backbone, Protel routes VoIP long distance at about five million minutes of voice traffic monthly. Protel will expand this service to 35 cities by 2003. When Protel decided to build out its VoIP network, it originally focused on reducing the cost of long-distance services for its commercial subscribers. Today Protel is expanding its IP network to offer customers enhanced services such as dedicated Internet access, wholesale dial, virtual private networks (VPNs), Multiprotocol Label Switching (MPLS) VPNs, and long-distance VoIP. By rolling out this extensive long-distance network, Protel has introduced competition into the Mexican long-distance market. This inevitably has driven down the cost of long-distance services. Lower long-distance costs spur greater trade within the 35 cities served by Protel. Greater trade is a boost to economic development in Mexico. The Protel network includes Cisco AS5300 voice gateways and Cisco SC2200 signaling controllers (in essence, a softswitch) for SS7 interconnections with the Mexican PSTN throughout Mexico.17 Although these platforms
16 Comisi n Federal de Telecomunicaciones. Communications Sector Program 2001 2006. A planning document from the Mexican government, 2001. Available at www.cft.gob.mx/html/ presidencia/communicationsectorprogram.pdf. 17
Cisco Systems. i-Next, first IP multi-service network in Latin America, expands its reach with Cisco VoIP networking equipment. A press release available at http://newsroom.cisco. com/dlls/corp_082701.html.
Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.
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