VoIP is on the Rise

Today there are over 120 million Voice over Internet Protocol (VoIP) customers around the globe, and that number is only expected to rise in the years ahead.

Last year in 2010, Voice over Internet Protocol grew an impressive 12.6%, and there is no shortage of headroom left for it around the globe. According to research conducted by Point Topic, they predict that the fixed-line Voice over Internet Protocol industry worldwide will hit an estimated annual $40 billion by 2015.

Senior analyst at Point Topic, John Bosnell, characterized the growth as “bumpy but shows signs of acceleration.” Bosnell went on to say that Voice over Internet Protocol has all the attributes of a traditional replacement service, wherein customers “look at the service that is delivered by a new product and decide that it meets, or exceeds, the service they are currently receiving,” then when the service is priced suitably for them they switch from one service to the next.

One market that many people are keeping their eyes on these days is France. In the past decade, France has seen a dramatic swing away from the Public Switched Telephone Network (PSTN). In fact, in 2010 over half of France’s telephony traffic originated on fixed networks that began on a Voice over Internet Protocol phone.

While Point Topic’s Bosnell said that by the end of 2015 they expect to see “more than three-quarters of a billion fixed-line broadband subscribers,” which hypothetically would all be targets for Voice over Internet Protocol, any value and size projections should be taken with a grain of salt.

At this point, the developmental stages of the Voice over Internet Protocol market contain such a great number of variables that anticipated models could be off by a considerable margin. For instance, a growing number of customers are foregoing fixed line telephone services completely and choosing instead to rely on mobile.

So far, Point Topic’s Voice over Internet Protocol study concentrated mainly on fixed line services. Internet telephony, however, is a more mysterious market, and includes services such as Skype, a software application that allows users to make voice calls over the Internet.

Bosnell explained that Internet telephony is highly disjointed and commonly served by businesses that either do not or will not report consistent revenues or statistics. That said, Point Topic believes that the generated revenue is a great deal lower, with 9 million users generating a monthly average of $8 at the end of 2010.

Sprint Actively Opposes AT&T Acquisition of T-Mobile USA

Earlier this week, Kansas-based Sprint Nextel Corp. filed a 337 page petition with the Federal Communications Commission opposing the $39 billion AT&T/T-Mobile USA merger. According to Sprint, simply requiring divestitures or imposing conditions will not solve the acquisition’s detrimental effects on competition.

If the merger is approved, AT&T and Verizon Wireless would control most of the nation’s wireless market. In the public filing, Sprint stated that the acquisition would make AT&T the biggest wireless carrier in the United States with 43% of the postpaid market and 118 million subscribers. Sprint went on to say that alongside Verizon Wireless’s 39% of the postpaid market and over 94 million subscribers, it would produce “a Twin Bell monopoly” with more than 78% of all wireless revenues, 82 percent of post-paid subscribers, and 88 percent of all wireless operating profits.

Currently the nation’s third-largest wireless provider, Sprint finds it difficult to believe one of AT&T’s chief justifications for the merger – the need for spectrum – declaring that among all carriers AT&T holds the largest licensed spectrum holdings and does not face network capacity restraints for existing and future escalating demand. Moreover, Sprint says that AT&T has the same opportunity as any other carrier to meet customer’s demand for spectrum, but they simply just made the conscious decision not to.

AT&T defended the acquisition in a series of blog posts, one of them addressing the spectrum issue specifically. AT&T disputed Sprint’s claims that AT&T is the industry leader in regards to spectrum, calling it “odd” considering the fact that Dan Hesse, the CEO of Sprint has continuously bragged that his company “has the best spectrum position in the industry.”

Claiming the acquisition would suppress innovation, Sprint argued that it would give AT&T and Verizon “far greater leverage to demand exclusive arrangements or rights of first refusal” in regards to handset manufacturers partnering with other wireless providers.

The Federal Communications Commission will examine the merger to ensure it is in the public’s best interest. Sprint is confident it won’t pass that test, saying that the proposed takeover would do more than fail to fabricate any cognizable benefits in the public’s interest – it would give rise to severe anticompetitive problems that could not be resolved via conditions or divestitures.

Additional Resources
To find out more about Sprint and AT&T services that can save your company money while increasing productivity, give one of our professional account managers a call today!

Cloud Computing via Ethernet Over Copper

Cloud computing is on the rise and is expected to bring with it an ever-increasing need for bandwidth. According to Markets and Markets, a global market research and consulting company, world-wide spending on cloud computing will more than triple today’s current rate in 2015, bringing it to a whopping $121.1 billion. Given the continued economic frailty, the majority of companies will be on the hunt for the most scalable and economically efficient solution possible. Thankfully, Ethernet over copper fits the bill.

Leading carriers, including TelePacific Communications and PAETEC have already sold more Ethernet over copper circuits in the first quarter of this year than they did in all of 2010. XO Communications and MegaPath are seeing a dramatic rise as well, with MegaPath expecting its Ethernet over copper sales to match T1 sales this year.

While they can’t completely contribute the higher numbers to cloud deployments, the carriers do expect their Ethernet over copper revenue to flourish as more companies house data archives, communications solutions, software apps and more in the cloud. That’s because – when compared to the alternatives – Ethernet is much less expensive, averaging between 40% and 50% less than bonded T1s, but still provides the high-quality transport needed for cloud-based services.

Moreover, escalating throughput simply entails adding an additional copper pair.  TelePacific’s senior VP of strategy, Ken Bisnoff, has said that for a mere fifty dollars per month, “a 3Mbps T1 Internet access customer can double bandwidth to 6 Mbps.”

The popularity of Ethernet over copper for cloud connections continues to climb as it is capable of supporting more and more bandwidth. To put it in perspective, for the price of bonded T1s offering 3 Mbps, a company that employs Ethernet over copper can receive 40 Mbps. What’s even better is that greater speeds are on their way. At the beginning of May, PAETEC announced its network had been enabled with 100 Mbps Ethernet over copper that will be available for customers provided the distance between their location and the local service office is not too great.

PAETEC’s president of fiber services and national accounts, Clint Heiden, is excited about everything Ethernet over copper has to offer – especially an expanded customer base. According to Heiden, locations that previously maxed out at 20 Mbps circuits – or couldn’t get service at all – “can now support up to 40 Mbps at shorter distances.”

In addition to the above mentioned benefits, Ethernet over copper is easy to install (with turn up possible in as few as 20 days), and can be used for several legs of a network because it works with fiber counterparts.

Expansion is in the Air!

Many leading communications service providers are expanding their networks, and network offerings to meet the needs of both domestic and international customers. Take a look at what’s been going on lately:

Global Crossing Expands Enterprise Network Security Features
Last week, New Jersey-based Global Crossing instituted an enhanced portfolio of enterprise network-geared security capabilities. The new security features include web content filtering, intrusion prevention service, antivirus and anti-spam capabilities as well as a firewall.

Today’s businesses are facing an ever-evolving number of network security threats. Global Crossing’s chief marketing officer, Dave Carey, reported that “Global Crossing recognizes the need to address – in a holistic manner – the entire spectrum of these potentially revenue-impacting attacks.”

In addition, Global Crossing is also employing a new Event Management and Security information platform that generates and posts reports to the customer portal, and offers consulting services that include vulnerability evaluations, penetration testing, security assessments and audits.

TelePacific Expands Ethernet Network
Due to an increasing demand for additional bandwidth, TelePacific Communications is expanding its Ethernet network. The California-based Competitive Local Exchange Carrier (CLEC) plans to more than double its current 52 Ethernet-over-copper (EoC) wire centers to reach a total number of 120. TelePacific’s VP of marketing, David Zahn, believes that expanding TelePacific’s EoC services is “a great way for us to meet that demand.” In addition to EoC offerings, the expansion will make Ethernet over T1 and Ethernet over DS3 available in every market TelePacific serves.

TelePacific’s comprehensive portfolio of Ethernet transport provides enterprise customers service speeds ranging from 1 Mbps to 1 Gbps – and almost any increment in between. Depending upon the distance from the serving wire center, TelePacific EoC deployment offers data, voice and Internet access speeds that vary from 1 Mbps to 10 Mbps.

XO Expands World-wide Network Services
XO Communications is expanding its international network services capabilities to better address the needs of its growing domestic and international customer base. According to XO, this will include European IP/MPLS IP-VPN nodes, and access to 48 countries throughout Europe, North and South America, Asia/Pacific, and US territories of the Virgin Islands, Puerto Rico and Guam.

The expansion will enable XO to provide carrier and enterprise customers Dedicated Internet Access, MPLS IP-VPN, Private Line and Ethernet services to more locations worldwide. On an international level, it will allow XO to provide more comprehensive universal network coverage for an extensive array of WAN and connectivity solutions.

AT&T/T-Mobile Merger – What it means for SMBs

Since 2007 AT&T’s mobile data volumes have increased an astonishing 8000% – more than any other wireless provider. In addition to adding thousands of cell sites, purchasing spectrum in the open market, and a number of other measures, AT&T acquired T-Mobile USA in a heavily debated $39 billion cash and stock deal earlier this year in order to keep up with the astronomical demand on its mobile networks.

The FCC filing that sought permission for AT&T to purchase T-Mobile USA from Deutsche Telekom reported, “The network synergies of this transaction will free up new capacity – the functional equivalent of new spectrum – in the many urban, suburban, and rural wireless markets where escalating broadband usage is fast consuming existing capacity.”

AT&T defended the merger, stating reporting that if the capacity constraints for both AT&T and T-Mobile USA are left “unaddressed, [it] would translate into more dropped and blocked calls, slower speeds, and access to fewer and less advanced applications.” In addition, the acquisition enables AT&T to deploy fourth-generation LTE mobile services to approximately 55 million people – roughly 97% of Americans.

Great news! The multi-billion dollar merger will strengthen AT&T’s position in the small and medium-sized business market. According to AMI-Partners, (which specializes in Internet, IT, telecom, and business services strategy, venture capital and market intelligence) T-Mobile will help AT&T – specifically among businesses in particular vertical industries, such as construction, and companies that employ less than 10 staff members.

Those who opposed the merger believe that it will create a dualopoly in the mobile operators market. According to AMI-Partners, AT&T and Verizon Wireless currently control three out of four customers in the SMB market. Prior to the merger, AT&T had control over 28% of the market, T-Mobile controlled 8%, and Verizon Wireless came in with the largest share at 32%.

AMI-Partner’s manager of SMB Cloud Services, Brian Galgay, says the acquisition “creates differentiated SMB sales for AT&T and has an enormous upside potential… Compared to AT&T or Verizon, these T-Mobile SMB customers reported greater interest in adopting hosted services from a service provider, as well as indicating greater interest in purchasing multiple, adjacent SaaS applications.”

Galgay explained that what initially attracted significant sectors of the SMB market to AT&T were the specialized mobile workers and early adopters of technology that benefited from iPhone technology. Annually, AT&T and Verizon Wireless SMB customers spend around the same amount; however, AT&T SMB customers are said to be more “IT-savvy, focusing more budget on newer technologies beyond smartphones, such as … tablets.”

TelePacific Ethernet Network Expands – Adding 120 EoC Wire Centers

By the end of the first quarter in 2011, Los Angeles based TelePacific Communications had plans to add an additional 120 Ethernet-over-Copper (EoC) wire centers to their current 52 wire centers online. As a result of the expansion, TelePacific Communication’s Ethernet over Copper, Ethernet over DS3 and Ethernet over T1 offerings available in all of the markets that TelePacific serves.

Depending upon the distance from the serving wire center, TelePacific’s Ethernet over Copper deployment offers data, voice, and Internet access speeds ranging from 1 Mb per second to 10 Mb per second. Furthermore, TelePacific’s comprehensive Ethernet portfolio allows for service delivery speeds that span from 1 Mb per second to 10 Gb per second – and just about any increment in between – to enterprise customers. Ethernet services provide a multitude of benefits for their customers, including scalable bandwidth, higher performance, improved productivity, ease of use, and increased cost-efficiency.

TelePacific Communication’s Vice President of marketing, David Zahn, believes that the increase in wire centers and Ethernet over Copper services will help the growing demand for increased bandwidths. According to Zahn, “TelePacific has enhanced our entire portfolio of Ethernet offerings in 2010 – just one more way we are meeting our commitment to provide our customers with the products and services they need to be successful.” In addition, to ensure uptime and resolve any issues that arise quickly, TelePacific also provides network monitoring around the clock.

More about TelePacific Communications
TelePacific Communications is the largest Competitive Local Exchange Carrier competitor in major network areas to CenturyLink, Verizon, and AT&T. A private company that originated back in 1998, TelePacific was designed around providing solutions for small and medium sized businesses, and is now one of the leading providers of phone services in California and Nevada.

All of TelePacific’s services run on their own network infrastructure and switches, and they are supported by 40 regional call centers and offices with over 1,100 employees. For decades, TelePacific’s leadership team has been in the public eye. Among providers private phone services, TelePacific ranks number one, putting them in an enviable financial position. To maintain this high ranking, TelePacific conducts governance meetings monthly and employs an audit committee that includes former California Governor, Pete Wilson.

Additional Resources
To find out more about TelePacific provided services and how they can help improve your business, contact one of our professional account managers today!

CenturyLink Inc./Qwest Merger: It’s Official

Roughly two weeks after the controversial $39 billion AT&T/T-Mobile merger, CenturyLink Inc. is announcing their acquisition of Qwest. The tax free, stock-for-stock transaction was valued by the Dow Jones valued at $22 billion, and unifies the current 3 seed and 4 seed companies, making CenturyLink Inc. the nation’s third largest telecommunications provider with over 5 million broadband connections, 15 million access points, and customers in 37 states.

The deal did not come without a price, however. After months of waiting for regulatory approvals, many states required both companies to make investments in broadband infrastructure before giving the okay. The FCC stated both companies were heedful of fostering competition and shielding customers and recently approved the acquisition with enforceable conditions, one of them being the introduction of a low-income consumer broadband program that concentrates on connecting millions of customers in the combined company’s territory – to which the companies agreed. In addition, the merger terms state that Qwest stockholders will receive 0.1664 shares of CenturyLink stock for each share of Qwest stock they possess at closing.

According to CenturyLink’s President and CEO, Glen F. Post, III, the acquisition of the two companies will “bring greater broadband availability to customers and serves the public interest by allowing us to offer a wider variety of services than either company could offer alone.”

Collectively, Qwest and CenturyLink Inc. produced a combined revenue of $18.6 billion on a pro forma basis in 2010. Debt ratings agency Moody’s Investor’s Services, noted that the merger “brings a strong enterprise business service offering to CenturyLink,” and added that the revenues will grow to almost 40% of total revenues, in contrast to under 25% prior to the merger.

Monroe, Louisiana based CenturyLink is an S&P 500 company that is recognized by key technology industry analyst firms as a leader in the network services market. As a provider of wireless, voice and broadband services as well as voice, data and managed services via their multiple data centers and high-quality advanced fiber optic network, CenturyLink serves businesses of all sizes – from home offices in remote areas to Fortune 500 companies.

Before the merger, Denver, Colorado based Qwest was a leader in Internet-based image, data, and voice communications. With more than 30 million customers around the world, Qwest reportedly carried 600 emails and 240 million phone calls daily in its 14 state local phone service area alone. Qwest’s broadband network boasted over 1,800 access points of presence, including TeraPOPs, and spanned an notable 173,000+ global miles.

Another Customer Switches to Verizon Small Business DSL

Not long ago, our team at EasyT1.net was contacted by a successful local business. They were looking to lower the cost of their Internet services without sacrificing essential features or security. After discussing their requirements and desires, our professional account managers suggested they employ Verizon Small Business Digital Subscriber Line (DSL) service.

DSL technology divides your phone line’s bandwidth into two parts – voice is carried over the low-frequency band and Internet data over the high-frequency band. This allows you and your colleagues to conduct calls while browsing and doing business on the web.

Features include:

  • Easy installation
  • Verizon Internet Security Suite
  • Technical support available 24/7
  • 10 email accounts @Verizon.net
  • Verizon Online Sharing and Backup
  • 1000s of hotspots with free nationwide Wi-Fi access

Simple installation
Getting Verizon Small Business DSL up and running for your business is as easy as a phone call.

Verizon Internet Security Suite
The Verizon Internet Security Suite shields your confidential data from malicious network traffic while providing protection from “Trojan” programs, worms, and viruses. Verizon’s all-in-one package packs all the protective punch needed to keep you and your company safe 24/7 while conducting business online, including automatic malware updates, pop-up blocker, firewall, anti-virus, content management, and anti-spyware services.

Technical support available 24/7 – because the Internet doesn’t close
Verizon understands that despite all the preparations and precautions you might take, sometimes things just don’t happen the way they were planned. Any time you experience an issue the Verizon’s small business technical support team is available 24/7 to help you get back on track and running at full speed.

10 email accounts @Verizon.net
As soon as your business has a secure connection to the Internet, you can communicate and conduct business with partners, employees, and customers over the web via your 10 allotted Verizon.net email accounts for you and your staff

Verizon Online Sharing and Backup
If you’ve ever experienced a computer crash then I’m sure you know how devastating it can be to a business. To combat this, Verizon Online Sharing and Backup keeps your files safe by storing copies of your data online. So in the event of a crash, your business can get back up and running in a flash.

1000s of hotspots with free nationwide Wi-Fi access
With access to countless nationwide Verizon Wi-Fi hot spots Verizon keeps you connected wherever you are – airports, hotels, libraries, you name it – so you can conduct business outside of your office as well.

 

New Edge Networks MPLS Over DSL

After three months of successful testing, New Edge Networks rolled out its MPLS over DSL service. New Edge reports that the new MPLS over DSL will be offered in most areas where DSL is available.

Until recently, data prioritization and tagging with CoS (classes of service) was only available on pricey T1 lines with MPLS. New Edge Networks MPLS over DSL service permits the prioritizing and tagging of traffic over DSL with as many as 5 MPLS CoS – a first for any US telecommunications operator.

New Edge Networks VP of marketing, Greg Griffiths, has high hopes for MPLS over DSL, calling the service a breakthrough that “helps small and midsize businesses avoid network congestion problems due to the convergence of communications applications, such as VoIP phone calls and other latency-sensitive services, over DSL access.”

In addition, a recent press statement noted that New Edge Networks also provides an option for businesses that do not yet have the funds justify the expense of a T1 line (which typically starts at around $500 and goes up from there depending upon the location) and therefore chose to defer implementation of productivity applications as well.

New Edge Networks MPLS over DSL service closes the vast pricing difference between conventional enterprise-class DSL and a T1 line. According to Griffiths, it also permits companies with DSL-based networks to add supplementary applications without the possibility of “compromising performance.” Pricing for the new service consist of a $100 payment on top of the price of a fully managed DSL-based private network (roughly $140 per month depending upon the location). This includes as many as 5 CoS with bandwidth optimization over DSL access, a Cisco router upgrade, and improved service level guarantees.

To put it into perspective, the average cost for a full T1 line starts around $500 – depending upon the location and distance from the carrier. A number of carriers only provide T1 network management and MPLS classes of service as added options.

Why New Edge?
New Edge Networks offers a host of high-speed, business-class solutions with first-class customer care available 24/7 for businesses of all sizes – and a nationwide footprint capable of servicing almost any business address in the US. As a single-source provider of private managed networks, New Edge Networks eliminates the complexity and inconvenience of managing multiple carrier relationships – giving you one provider, one point of contact, and one bill.

The Advantages of Business-Class Telephone Systems

Your company’s telephone system not only affects your staff’s productivity, but can also be a potential client’s first impression of your business. For this reason, having the proper phone system can help your business get on the right path to achieving their goals.

All too often business owners – especially small start-ups and home-based offices – think that they can make do with their existing telephone system because they are not a major corporation. The truth of the matter is that no matter the size or location of your business, it should behave like a business. That’s where business-class telephone systems come into play. Business-class telephone systems provide:

Basic Business Lines Business Lines offer clear, reliable connections for voice, fax or voice-grade modem traffic to the Public Switched Telephone Network (PSTN). This service offers a host of productivity-enhancing optional features—a la carte or in convenient feature packages—that make it easy to save more when you buy more. Business Lines are a great solution for small offices. With over 24 features to choose from, XO Business Lines offer the functionality you want and need.

  • A professional image – business-caliber telephone systems offer features that traditional home-based telephone systems don’t. For example, XO’s Basic Business Lines provide features (such as call forwarding, transfer and waiting, selective call acceptance, forwarding and rejection, as well as countless other features) that show your customers and potential clients that you run a competent, systematic business.
  • Flexibility – a business-class telephone system server is capable of handling a large number of phone lines and extensions. In the event that your business needs to reposition itself in a more formal office locale, simply take your server with you, plug it in and you’re ready to go!
  • Decreased calling costs – a business-class telephony system lets you use the Internet to make national and international calls for considerably less than traditional home-based telephone systems.
  • Increased productivity – advanced features, such as on-hold music, caller ID, custom menus, web-based system administration, computer integration, email message delivery, etc. can significantly improve your productivity levels.
  • Enhanced customer service – in order to provide the best service possible for your customers, it is important to be available to them as much as possible. Features like computer integration let you bring up a caller’s information instantly and therefore cut costs by reducing the amount of time spent on each caller.
  • Simplified management – modern business-class systems usually have intuitive interfaces that simplify your ability to adjust your settings to keep up with your business’ needs.
  • Quality and durability – business-class phone systems generally offer superior versatility, reliability, and scalability over traditional consumer phones. These attributes lead to greater quality and performance, which in turn provides you with a professional image for your business and allows you to recoup the higher cost of a business-class system faster.
  • Improved mobility – today’s business phone systems give you the ability to integrate your PDA or cell phone for receiving calls and other system features when outside of the office.

Additional Resources
To learn more about how a business-class phone system can help you achieve your company’s goals contact one of our professional account managers today!