ATS Network & Billing Update

   August 22, 2002


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Executives Agree on Needs at "Signaling for VoIP" Summit

Leading technical officers from key service providers acknowledged the strengths of voice over Internet protocol (VoIP), noting the promises of new customer services and reduced costs. They also cautioned that they need to ensure quality, security and reliability of the VoIP network. Their comments were delivered during the ATIS two-day "Signaling for VoIP" Summit held August 13-14 in Washington, DC.

The summit, itself, indicates the inroads VoIP is making. However, the road to IP will not be smooth according to a recent Frost & Sullivan report projecting this market will decline more than 20 percent in 2002 compared with 2001. This drop is in line with overall capex reductions from carriers, but going forward, Frost & Sullivan Industry Analyst Jon Arnold expects VoP (voice over packets) to resume a healthy upward trend. "Our view is that global growth trends in telephony adoption as well as usage of next-gen services will outweigh the forces currently holding back VoP. Furthermore, we expect competition from wireless and cable will become a factor starting in 2003, which will drive all service providers further along the migration path to IP."

"Service providers view VoIP as a platform from which new services can be built, however, carrier grade service and reliability are critical," said William L. Smith, Chief Product Development and Technology Officer for BellSouth. "VoIP represents an important transition for the industry and Standards Development Organizations (SDOs) need to develop standards for quality of service, reliability and security that will be compatible in this new environment."

Smith served as moderator for the "Service Provider Vision," panel and was joined by Eva Low, VP of New Technology Introduction for SBC Communications, Eberhard Wunderlich, Director of Connectivity and Network Services for AT&T, and Dennis Francis, VP of Technology Development for Nextel Communications. "SDOs play a critical role in the promised vision of realizing VoIP," said Ms. Low. "A total solution for VoIP needs to be delivered for all service providers so the transition from legacy networks to VoIP net works is graceful."

The panelists stressed the need for SDOs to focus on developing communications standards that integrate the disparate pieces of public and private networks; achieve end-to-end quality of service; achieve reliability, scalability and security in the VoIP network; provide tools and systems necessary for troubleshooting; and are consistent when implemented among service providers and vendors. The two-day Summit featured key domestic and international SDOs and forums interested in coordinating communications standards and other requirements relating to VoIP.

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