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French startup lets you call people on Skype without needing Skype

14 05 2009 – Now here’s something amazing. French telecoms startup Manifone has launched a service that lets you call Skype contacts directly, from any fixed line or mobile phone, with no Skype account, additional software, PC or handset required. They claim their Mani-Sky VoIP service is a first in the telecommunications industry, and by golly, I think they may be right.

Mani-Sky assigns alias telephone numbers, which they call ‘direct numbers’, to Skype contacts; these can be saved to your phone memory and called the usual way, at the price of a local call.   The catch is that it’s only the first three minutes of the call that are free.

Beyond that, the company’s business model kicks in; anyone wishing to place longer calls can opt for a six-month subscription that offers unlimited calls to Skype for $10. The company makes its money on the parts of the calls that are switched between fixed line and IP networks. Manifone is offering Mani-Sky free to all users in the 11 supported countries in Europe and North America for a promotional period.

On the face of it, the service is not all that different from SkypeIn or Jajah.Direct – the primary differentiator is that it opens up Skype, which, let’s face it, is still the market-leading VoIP service, in a way that Skype itself has yet to achieve.

Source: Techcrunch

French startup lets you call people on Skype without needing Skype

14 05 2009 – Now here’s something amazing. French telecoms startup Manifone has launched a service that lets you call Skype contacts directly, from any fixed line or mobile phone, with no Skype account, additional software, PC or handset required. They claim their Mani-Sky VoIP service is a first in the telecommunications industry, and by golly, I think they may be right.

Mani-Sky assigns alias telephone numbers, which they call ‘direct numbers’, to Skype contacts; these can be saved to your phone memory and called the usual way, at the price of a local call.   The catch is that it’s only the first three minutes of the call that are free.

Beyond that, the company’s business model kicks in; anyone wishing to place longer calls can opt for a six-month subscription that offers unlimited calls to Skype for $10. The company makes its money on the parts of the calls that are switched between fixed line and IP networks. Manifone is offering Mani-Sky free to all users in the 11 supported countries in Europe and North America for a promotional period.

On the face of it, the service is not all that different from SkypeIn or Jajah.Direct – the primary differentiator is that it opens up Skype, which, let’s face it, is still the market-leading VoIP service, in a way that Skype itself has yet to achieve.

Source: Techcrunch

Video: EU Caps Data Roaming

24 04 2009 – EU Caps Data Roaming, Skype upsets Telcos, T-Mobile outage disrupts Germany. Plus; Special Asia Report, Sunset over Silicon Valley and GSM Gardening Genius.

Source: TelecomTV

Video: EU Caps Data Roaming

24 04 2009 – EU Caps Data Roaming, Skype upsets Telcos, T-Mobile outage disrupts Germany. Plus; Special Asia Report, Sunset over Silicon Valley and GSM Gardening Genius.

Source: TelecomTV

Skype’s Business Strategy: Implications for the Unified Communications Market

23 04 2009 – An analysis of Skype’s business strategy and implications for the unified communications market.

Skype has taken a multipronged approach toward the market for business communications services and solutions. The company has maintained a consistent message, remaining true to its mission of providing free, or in the case of connecting to the PSTN, low-cost alternatives to traditional voice services. As Skype seeks to connect its proprietary voice network directly to SIP-based PBX systems deployed by SMBs, developers of communications solutions will find themselves face-to-face with the owner of the world’s largest peer-to-peer voice network. This report will examine the following questions:

  • What are Skype’s aspirations for the business market?
  • What are Skype’s business communications offerings and how are they distinct from one another?
  • What role will Skype play in the market for business communications solutions?
  • What threat does Skype pose to unified communications solutions developers?

Current Perspective

Last month, Skype introduced Skype For SIP, the latest in a years-long initiative to turn its largely consumer-based network service into a compelling offering for businesses as well. Skype, which had 405 million registered users worldwide at the end of 2008, has been very successful in building up vast amounts of international traffic. Skype has ramped up its revenues by selling services that let Skype users interconnect to the public telephone network at inexpensive rates. Skype is seeking to generate $1 billion in revenues by 2011, up from $558 million in 2008. Much of this increase will presumably stem from an increased level of revenues from businesses.

Skype has three distinct business offerings, each with the potential to impact the business communications solutions market in a somewhat different way. Details of each service and its respective effect on communications solutions follow. But Skype still has much work to do in building out a reseller channel and ecosystem of partners that are focused on advancing Skype business market aspirations. If Skype successfully executes its product strategies, providers offering SIP trunking services and startup developers of Skype-to-SIP gateways will be affected long before developers of business-grade unified communications solutions.

At present, Skype is more a force to be monitored, not a competitor for UC solutions developers to wage war against. Skype for Business: The granddaddy of Skype’s business strategy, Skype for Business provides all the same features of the consumer service: voice, video and conferencing calling, instant messaging (IM), group IM and a mobility client. Skype adds the Business Control Panel, a free Web-based tool that allows companies to allocate and manage SkypeIn numbers assigned to employees and monetary credits used to pay for multiple employees: $3 per month for Skype voicemail boxes, $0.9 per message for SMS, $18 per quarter for SkypeIn numbers, and Skype-to-PSTN (SkypeOut) minutes.

In the years since its launch, Skype for Business has posed a slight threat to PBX developers, since the service provides business users with a smattering of voice features associated with corporate communications solutions: call connection, voicemail, instant messaging, video conferencing, etc. Third-party developers like NETGEAR, Belkin and Philips have developed desk phones and WiFi handsets that connect directly to Skype. Compatible call recording, ACD, fax and desktop sharing software add to the appeal of Skype for Business.

Though the Skype for Business feature set does not have the long list of call features common to key systems, low-end PBXs and hosted voice services more commonly deployed by SMBs, PBX developers consider Skype for Business about as much a threat as any other network-based voice service that is offered as an alternative to a premises-based system.

Skype for Asterisk: Compared with Skype for Business, Skype for Asterisk represents quite a different approach on the part of Skype as it seeks to better establish itself as a credible provider of business communications services and solutions. Launched in late 2008, Skype for Asterisk provides driver software letting users of Asterisk-based PBX systems place, receive and transfer Skype calls from the PBX handsets currently on their desks.

Calls can be placed to and received from any user on the Skype network. With Skype for Asterisk, the Skype client software is integrated with the PBX, giving users access to PBX call control features and Skype IM, presence and peer-to-peer video conferencing, and so forth. The primary impact of Skype for Asterisk (as well as Skype for SIP, covered below) will be to reduce the costs associated with the traditional PSTN and IP trunking services that currently connect to a SMBs’ PBX services. (For a detailed analysis of this, see Skype takes on Telcos with SIP Trunking, March 30, 2009).

However, the ability to integrate the Skype client software with the PBX could also impact the way SMBs adopt unified communications solutions. Rather than depend on PBX developers’ client software to link telephony and IM feature sets, businesses could in time leverage the Skype for Asterisk client. Given the general dearth of SMB-oriented unified communications functions on the market, Skype has a genuine opportunity to create a wider-spread appeal for UC among SMBs.

However, such an initiative would more likely stem from developers of Asterisk-based PBXs rather than from Skype, which to date has shown no inclination of becoming a business-grade unified communications powerhouse. However, Skype for Asterisk remains in beta and it remains unclear when a commercially available version of the solution will be available to open-source developers, resellers and businesses deploying Asterisk-based PBX systems.

Skype for SIP: Like Skype for Asterisk, Skype for SIP is meant to provide interoperability between PBXs deployed on premise and the Skype network. As with other Skype services, businesses participating in Skype’s SIP trunking services buy their own Internet access to connect to Skype For SIP, and Skype for SIP is not intended as a lifeline replacement (i.e., it does not support emergency dialing).

At launch, the Skype for SIP beta code will be verified to natively integrate with Cisco UC 500 and Unified Communications Manager Express, Nortel Business Communications Manager 50 and Asterisk-based PBX systems supporting SIP. Ingate and Edgewater Networks SIP firewalls provide assistance with NAT traversal and aid the quality of service required for VoIP while Quintum, AudioCodes, and Mediatrix gateways can provide interoperability with legacy PBX systems not running SIP.

Skype is enhancing its Business Control Panel software to provide Skype for SIP configuration tools, PBX call detail reporting, and other management functionality. Despite their similarity in name and general purpose (proving an interface between PBX systems and the Skype network), Skype for Asterisk and Skype for SIP have quite a few differences. For instance, Skype for SIP cannot establish outbound calls between Skype for SIP users and existing accounts on the Skype network.

Also, Skype for SIP provides no integration of the Skype soft client with the SIP-based PBXs connected to the Skype for SIP service. And Skype for SIP is at present a considerably less functional service that will likely receive the less attention from developers since it will not be open to the large open-source community backing the Asterisk software. Lack of integration with the Skype software client, lack of telephony presence information displayed in the Skype UI, and the absence of native encryption all reveal Skype for SIP as considerably less mature than Skype for Asterisk.

In time, this functionality gap between the two could start to close, but only if Skype’s ceases to position Skype for SIP as merely an alternative communications channel for SIP-based PBXs and begins integrating its ubiquitous client software with PBXs in a manner similar to the Skype for Asterisk service. This means that in the long term, Skype for SIP could pose a threat to PBX developers’ unified communications strategies, but this is not presently the case. Like, Skype for Asterisk, Skype for SIP is presently in beta. General availability is expected later in 2009.

Lite Version of Skype and Skype for iPhone: Though not comparable to the previously mentioned business-oriented Skype service offerings, existing and upcoming Skype clients for mobile phones will have a direct impact on business adoption and use of Skype. The ability to run the Skype software on mobile devices will be critical to its adoption by business users. At this time there is no way for a Skype-attached PBX to treat the Skype clients running on Symbian, Windows Mobile and iPhone devices as PBX extensions. This could change over time, particularly as the innovative open source PBX community begins turning its attention to delivering a mobility solution interoperable with the Skype for Asterisk service. For the time being, however, the lite version of Skype and Skype for iPhone remain primarily consumer-oriented clients.

Skype-to-PBX Gateways: Skype for SIP and Skype for Asterisk will directly impact the niche market for PBX-to-Skype solutions that sprung up following the introduction of Skype for Business. Developers like Actiontec, Industry Dynamics, SipTheeSkype, VoSKY and Uplink have variously developed adapter software and gateway appliances that connect SIP-based PBX systems to the Skype’s proprietary network. Skype’s SIP and Asterisk services undermine these solutions, which involve hardware and/or software deployed at the customer premise. Skype for SIP is intended to do away with the need of deploying such products, handling protocol conversion in the network rather than on the customer premise. There will still be a market for third-party Skype-to-SIP gateways among mid-market and large enterprise, for example, since Skype will mainly target SMBs with its SIP service. These appliances and adapters remain more technically advanced than the still nascent Skype for SIP offering, are backed by better support programs, and are sold by VARs that understand and appreciate them. These third-party appliances and adapters will continue to enjoy cult popularity among businesses that are integrating existing communications networks to Skype.

Recommended User Actions

• Small businesses seeking a means of reducing their recurring telecommunications services costs should ask their resellers about Skype for SIP, Skype for Asterisk or independent developers’ Skype-to-SIP gateway products. Though these will not drastically reduce telecom expenditures, they could shave off a few thousand dollars a year compared with more traditional SIP trunking services.

• SMBs seeking sophisticated unified communications and mobility solutions should not count on Skype as a source for these features. Despite the company’s ability to deliver peer-to-peer voice services, voice mail, IM, IM presence and client software for mobile devices, Skype does not have a formal unified communications strategy suitable to business buyers. SMBs should continue relaying on their traditional converged and unified communications solutions developers for such capabilities.

• Enterprises supporting end users who are actively utilizing Skype for workgroup communications and collaboration should not expect a formal enterprise-grade offering to be immediately forthcoming from Skype. The company is more focused on building out a presence in the SMB market rather than targeting large enterprise accounts. However, VoSKY and other Skype-to-SIP gateway start-ups do sell into the enterprise space, so there are certainly options available for larger-sized businesses to begin integrating their PBX systems with the Skype network.

• Skype has no established network of channel relationships, and its low price means it can offer little financial incentive to get agents and VARs to promote its services. However, Skype is hoping to remedy this as its Skype for SIP service becomes generally available. Resellers serving the small business market should monitor the development of Skype’s channel program to determine how compelling it will be.

• Businesses considering Skype for SIP or Skype for Asterisk should demand QoS assurances and clearly defined SLAs. If the Skype network will be a business’s primary means of communicating with partners, suppliers and customers, the quality of the service must be extremely reliable and on par with traditional voice services.

Source: Current Analysis

With an IPO on Its Mind, Skype Shows Growth

22 04 2009 – Regardless of what happens to Skype — if it’s resold to founders, merged with another web giant or spun off via an initial public offering — one thing remains clear: The company is showing raw growth in both its revenues and registered user numbers. For the first quarter of 2009, the company reported revenues of $153.2 million vs. $145 million in the first fourth quarter of 2008.

It added 37.9 million new users during the quarter and now has a total of 443.2 million registered users. In comparison, the company ended 2008 with 405 million subscribers. In the previous quarter it added about 35 million new registered users. Skype, which has become the largest long-distance company, has been experiencing slowdown in its per-user revenues. The company logged 2.9 billion Skype Out minutes, or about 6.53 minutes per user.

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Source: Gigaom

Re-thinking Skype’s business model – again!

17 04 2009 – Over a year ago in February 2008 when there were rumours that eBay were looking to sell Skype we wrote an article on the opportunities to re-think Skype’s business model here. It’s still just as relevant today given the current news.

According to EBay, Skype is still growing traffic but revenues are “decelerating”. It made $126m in 2007-08, but that’s from about $600m in revenue; so it’s a gross margin of under 20%. Not that great. It also has the problem that the more users sign up, the fewer calls they need to actually pay for, because more of the people they call are likely to be on Skype – a sort of counter-Metcalfe’s law. The flip side of this is that Skype’s on-network activities are cost-free; an increase in user-to-user traffic as a proportion of the total reduces their requirement for DIDs and interconnection with the PSTN.

Mind you there’s some two-sidedness in this interview with CNN Money:

“As five-year-old companies go, this is in the upper echelons of success,” says Silverman, noting the company’s 51% revenue growth. “We give away something that costs us nothing. In exchange we get lots of customers for free and offer them a paid service.”

That would be Strategy Two as identified in this post. An interesting thought; one of Skype’s unique selling points was that it provided PSTN interworking out of the box, and in fact Skype as a business only exists to facilitate interworking between the Skype p2p network and the traditional telecoms world. It sells SkypeOut calls; it sells SkypeIn numbers and terminates calls to them. Everything else in the Skype world is user-provided, with the exception of the secure enrollment process and part of the mechanism by which an isolated Skype client discovers its local supernode.

What if Skype was to make this explicit, release the software to open source, and concentrate on being the best Skype-enhancer in town? It sounds wild, but it’s exactly what Sun did with Solaris, its flagship operating system – and Sun eventually decided that the open-source community version was better than the in-house one. And Skype doesn’t make any money from the rights to its software; at least, it doesn’t derive operating revenue from it. (The consequences for Niklas Zennström’s personal pocket of selling it to EBay are well known.)

Back last February, we thought the real opportunity for Skype would be in integrating with other new forms of voice and messaging and in helping to remove friction from other people’s business processes. We still think that; but we can’t help noticing that the action has moved on. Asterisk and CEBP platforms like Ribbit are now the glamour clubs. To its credit, Skype is adapting to this; it’s permitting SIP interconnect, and it’s also experimenting with Skype-Asterisk integration. However, if Skype and Asterisk get together, Skype’s role in this is just as a transport layer and as a provider of PSTN interconnection; the Asterisk side gets the value from the application. It’s an example of the old telecoms wisdom that, as we pointed out in the Voice & Messaging 2.0 report, signalling is what matters.

Source: Telco 2.0

Industry reacts to eBay’s move to spin off Skype

15 – 04 2009 – The news that eBay plans to spin off internet phone company Skype next year have been greeted warmly by many Silicon Valley observers, who have long criticised the auction website for spending $3.1bn on a company that it didn’t know what to do with.

• Web 2.0 blog Techcrunch welcomed the move, saying that “it’s obvious that eBay is doing what it’s supposed to do in a recession (and arguably, should have done long before): return to its roots as a pure online marketplace.”

• “It all depends on what kind of valuation they put on the IPO,” Hudson Square analyst Todd Retheimer told Reuters. He said that Skype had a better chance than some of its rivals, like the US voice-over-internet provider Vonage.

“It’s a much more international business… They have a more differentiated business than Vonage had… Vonage is trying to replace home phones in the US.”

• How much will Skype sell for? A note from JP Morgan‘s Imran Khan suggests that Skype’s revenue in 2010 is likely to be in the range of $740m, and earnings would place its value between $1.6bn and $3.1bn.

• Gregory Lundberg, an analyst with Commresearch, suggested that Skype’s financials – while healthy – were not necessarily enough to buck the recent trends in the stock market.

“The very first thing that I have to say is market conditions currently would not support an IPO of Skype in our opinion,” he said. “Something would have to change dramatically with Blackberry and iPhone for Skype to be able to come public… the issue is the iPhone itself won’t change that user base because AT&T won’t let it run on its network, only when it has connection to a Wi-Fi hotspot. That same sort of control is being exercised in Europe by some carriers and that’s a major barrier to uptake.”

Source: Guardian.uk

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Four years later, Skype’s founders looking to buy it back

13 04 2009 – Four years after Skype’s founders sold the company to eBay for $2.6 billion, the pair is now apparently looking for ways to buy the company back. The supposed “synergies” between Skype and eBay have not materialized since the original sale, making it all the more likely that eBay will sell—for the right price.

Four years later, Skype's founders looking to buy it backThe popular VoIP service Skype started out as an independent company, and it may soon end up the same way. Skype’s founders, Niklas Zennstrom and Janus Friis, are reportedly looking for ways to buy the company back from eBay, after having sold it to the auction giant in 2005. eBay may be open to such a deal too, as the two companies have had trouble meshing right from the start.

Zennstrom and Friis sold Skype to eBay in 2005 for US$2.6 billion in cash and stock, with the possibility of an additional $1.5 billion payout if certain financial goals were met. At the time, eBay planned to integrate Skype’s technologies into its online auction business, providing buyers with a “click to call” button on auctions so that they could ask questions and communicate with sellers. eBay also postulated that it could use Skype on its own customer support site, giving consumers a problem-solving option in addition to eBay’s Web interface.

Unfortunately, that was apparently the end of the good times for Skype and eBay as a joint entity. Not long after the buyout, eBay made a filing with the SEC in which it admitted that it would take $1.4 billion in charges thanks to Skype and that Zennstrom would be stepping down as CEO to become a nonexecutive chairman. A major Skype service outage only helped to highlight that things weren’t going well.

Needless to say, Skype has been bleeding money and the aforementioned performance goals were not met, so the current value of the Skype purchase ended up being around $1.1 billion. In addition, most of eBay’s lofty goals for incorporating Skype into its services never came to fruition, though a number of new features have been introduced to Skype in the meantime.

As we noted last year, eBay never actually seemed to put any effort towards integrating Skype into eBay’s services—the company seemed to have bought Skype and set it on auto-pilot (destination: nowhere) almost immediately. Then, in late 2008, eBay CEO John Donahoe mentioned during the company’s quarterly earnings call that it was time to finally “test synergies” or it could be the moment to send Skype on its way.

That brings us to where we are today: Zennstrom and Friis are supposedly in talks with private equity firms to raise $1 billion, which they’d add to their own resources in order to buy Skype back, according to sources speaking to The New York Times. It’s not clear right now whether the two have entered into talks with eBay as of yet, though some analysts believe that eBay would be willing to sell Skype back for around $1.7 billion.

At this point, if the two are able to get the financing they need, it seems like eBay would have no problem selling Skype back to them. To put it in business speak, the “synergies” have not been “strong” between the two companies, so almost any deal is likely to be fair game for the right price.

Source: Ars Technica

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iPhone Skype may be tip of the iceberg for carriers

08 04 2009 – Though mobile operators say they want more open phone platforms and are moving toward packet-based 4G networks, they are stuck between a future of being “dumb pipes” like DSL or cable operators and a present in which the bulk of their revenue still comes from the sale of voice minutes.

The arrival of Skype for the iPhone and BlackBerry platforms at last week’s CTIA trade show brought the issue to a head. The most popular VoIP (voice over Internet Protocol) platform, which claims more than 405 million users, has now made it on to two of the hottest smartphone lines. A free Skype application is available now from Apple’s App Store, and software for two BlackBerry models is set to become available next month in beta testing. Skype lets users make free calls to other Skype customers and inexpensive ones to traditional phones.

The announcements were met with mixed reactions from these carriers in transition. The future 4G technologies LTE (Long-Term Evolution) and WiMax are data networks, where everything is transported as a packet. Technically, that will make any pure 4G carrier with voice service into a VoIP provider. But operators are still trying to figure out how to shift their business models to that environment, as most of their money today comes from voice services that are vulnerable to competition from Skype and others. In 2008, data services still generated only 22 percent of U.S. mobile carrier revenue, according to the CTIA trade association, which sponsored last week’s show.
T-Mobile USA’s CTO, Cole Brodman, pointed out the carriers’ dilemma last month at the Dow Jones Wireless Ventures conference.

“By no means can we sit here and talk about an open platform … if I don’t also look at VoIP,” Brodman said. There are already VoIP applications available for T-Mobile’s G1 handset, which uses Google’s Android open-source operating system. But that capability raises concerns about T-Mobile’s business model, he said.

“How we make money, which today is voice plans, combined with data and messaging plans … has to evolve,” Brodman said.

Though AT&T is allowing subscribers to download and use the iPhone Skype application, it says the software is only for use on Wi-Fi networks and not on the much more widely available 3G system. (Deutsche Telekom went further, banning use of the application altogether for its subscribers.) Though AT&T iPhone users are required to sign up for a combination voice and data plan, carriers’ general fear is that subscribers could use Skype instead of paying for minutes. Asked about its policy, AT&T has said it expects its vendors, such as Apple, not to promote the services of a rival.

Carriers that sell BlackBerrys are likely to raise objections to the deal between Skype and Research in Motion, too, said IDC analyst Will Stofega. The open-Internet group Free Press last week asked the U.S. Federal Communications Commission to investigate moves by AT&T and others to apparently block the use of VoIP.

But 4G networks may transform the competition between carriers and third-party, “over-the-top” VoIP companies, because any voice service carried over these networks will take the form of IP packets.

Asked what it could do to counter third-party providers once it starts delivering VoIP itself, Verizon Wireless gave hints as to how it plans to approach data services in general.

“We have moved away from unlimited data plans,” Verizon Wireless President and CEO Lowell McAdam said at a question-and-answer session at CTIA. “The excitement of an over-the-top application like (Skype) in an unlimited environment means one thing to a customer. In an environment where you’re paying for every byte, that means something totally different.” McAdam said.

In addition to charging per bit, Verizon plans to tackle the business of mobile VoIP the same way it’s handling wired services: by making it part of a bundle that only the huge wired and wireless carrier can offer.

“The voice service will become part of something different, something larger,” said Ivan Seidenberg, Chairman and CEO of Verizon Communications. “It’s not that Skype’s doing anything wrong, but eventually they’re going to get outpaced,” he said.

By contrast, AT&T suggested it ultimately will rely more heavily on selling low-priced bits.

“The way the world is going, it’ll just be, ‘How much data do you want to buy?’ and you do whatever you want over that data,” said Ralph de la Vega, president and CEO of AT&T Mobility and Consumer Markets, during a media lunch at CTIA. Though he noted it was too early to talk about rate plans for LTE, which AT&T is not expected to roll out until 2011 or later, de la Vega said the nature of the technology will reduce the operator’s cost to deliver a given amount of coverage. For subscribers who aren’t comfortable with the idea of buying data, AT&T may have to devise rate plans that translate bits of data into minutes of use, he added.

Clearwire, the one mobile operator that is already relying on 4G, believes quality is the key to VoIP. It plans to make money partly by delivering that quality.

Clearwire already sells VoIP for use on WiMax home modems, and it may offer mobile voice through Sprint Nextel, using the cellular carrier as a mobile virtual network operator, said President and Chief Architect Barry West. Like Verizon, Clearwire plans to add value to its VoIP offering by bundling it with other services. But the company can also make money from third-party providers, West added. The company will sell access to the higher layers of its software stack, on a non-discriminatory basis, so VoIP companies can get the low latency they need for high-quality calls, he said.

Sprint Nextel officials weren’t immediately available for comment.

Yet for the mainstream carriers, turning voice into just another application on a packet-based network may still be years away.

To begin with, their 3G networks will stay in place as LTE is gradually deployed. Even Verizon, expected to be the first major operator to commercially offer LTE, said its EV-DO (Evolution-Data Optimized) infrastructure will still be around in five to seven years. Until LTE is available everywhere, handsets are likely to have two radios so they can fall back on 3G for voice.

In addition, several major network vendors have teamed up to develop a specification for handling VoIP calls like traditional voice traffic. The VOLGA (Voice Over LTE via Generic Access) standard will let carriers continue to use the MSCs (mobile switching centers) already in their networks to handle voice calls, said Steve Shaw, vice president of corporate marketing for Kineto Wireless. Kineto is a member of the VOLGA Forum alongside Alcatel-Lucent, Ericsson, Huawei, and other vendors.

MSCs are softswitches that are currently used with the circuit-based networks that handle voice calls for 3G. They are already tied in to billing, accounting and other systems, so carriers may continue to use them instead of migrating immediately to the service management platform for pure IP networks, called IMS (IP Multimedia Subsystem), Shaw said.

Over the next few years, the mobile operators may try several different approaches to the VoIP problem. Those could include relying on terms of service that prohibit VoIP use or using network management techniques to block the third-party services, IDC’s Stofega said. Alternatively, some carriers might embrace other companies’ VoIP services as popular products that drive more data use.

“If they’re smart, they’ll figure out a way to get around this,” Stofega said.

Source: Computer World