II Puerto Rico/Net2Phone
"Businesses can enjoy greater benefits when using IP phones or softphones. Since voice and data are sent through a data network, people on both sides can exchange information, documents, and even images with the addition of an IP video camera," said Rivera. "For example, I can talk to and see the person I am calling while we both look at the document we need to discuss; we can even make changes to it from both sides. People in different locations can work together, regardless of their distance; this increases productivity."
VoIP also enables workers to stay connected when out of the office, even if in another country. Since IP phones are smartphones that allow users to log in from any other IP phone or softphone in the world, calls are redirected to wherever the person is–without interrupting the communication or having to go through a third person.
"The person is even able to pick up an IP phone, travel to another branch, and connect the IP phone to the network and log in. That person could be in Japan and nobody would know. Calls go through seamlessly, without interrupting the work flow," said Valero.
Users could also use their VoIP service wherever they may be traveling, as long as there is a high-speed Internet connection. The call would work the same as from their home or office.
"I can receive my calls, faxes, and any other communication when I am working at home," said Valero. "I just log into my computer’s softphone, which connects through the Internet, and that’s it. I am available to anybody who might need to communicate with me. I am able to work just as well as if I were in the office."
Added Santiago, "The advantages and uses of IP technology aren’t limited to one market. Businesses across the island and across sectors are taking advantage of the system. At the end, the needs of each business are the same."
"We are in a new generation of VoIP," said Cisco’s de la Mora. "We aren’t talking about a new type of PBX or the cost of calls. This is about doing something more with your communication systems, such as adding video or turning the IP phone into a point of sale.
"There is an increasing number of applications that are turning this type of system into a sales tool," he continued. "For example, I stayed at a hotel some time ago that had an IP phone in each room. The IP phone started to blink. When I checked, it was the hotel’s spa sending me a message about its offers. I could even set up an appointment on the screen if I wanted."
De la Mora said the hotel could also send messages about its room service, including the hours of operation and the menu. Guests could request the items and verify the total before sending the order for processing and delivery.
"Programmers for IP phones can develop programs to take advantage of the system. They can develop programs depending on the business’ needs and what it wants to achieve," said Santiago.
"In a recent study, [research firm] Gartner said the number of IP telephony lines will surpass the number of traditional wired lines by 2007," said de la Mora. "[The adoption of] VoIP for businesses in Latin America is increasing by 67% each year, while traditional services keep dropping.
"In Costa Rica and Panama, for example, more than 85% of the top 100 businesses are testing, implementing, or using IP telephony," he continued. "Sixty percent of those [testing or implementing VoIP] will have the system up and running in less than six months."
VoIP and the home user
Although VoIP had been limited to the Internet in Puerto Rico, it is now being offered to home users via cable modem or DSL. They can cash in on savings from packaged offers that include long-distance calls and can talk on the phone while surfing the Internet without interruptions.
"We are thrilled to give our customers a truly affordable choice for all forms of communication–voice, video, and Internet access–in one bundled package," said Liberty’s Alegria. "Before our launch [of VoIP], Puerto Rico consumers had limited choices for their communication services. With the rollout of Voice Links, customers who sign up for our complete bundled package can save more than $60 a month on their combined voice, video, and data services."
Customers subscribing to Liberty’s services only have to plug their regular (wireline) phone into the back of the cable modem. The company is offering a choice of five calling plans, with packages that include unlimited local calls, 9-1-1 service, and discounted long-distance calls.
Consumers will be able to use VoIP from PRT through a DSL connection. The company will give consumers advice on which equipment best fits their needs and lifestyle. The choice could be an IP phone connected to a DSL modem, a traditional phone connected to an IP adapter and then to a modem, or a softphone.
"Although we are aware there have been enterprises offering the new VoIP services, we haven’t been able to make enough tests of those services to conclude how good they really are," said PRT’s Perez Ducy.
"We have conducted several tests [to offer VoIP through cable modem]," said Centennial’s Pilar. "We are evaluating the possibility of working with Net2Phone, which is working with Liberty, and our own soft switch."
Net2Phone’s platform permits cable operators such as Liberty to deploy telephony services easily via a fully outsourced solution, enabling them to offer quality services to their customers, reduce churn (a measure of the number of subscribers who leave or switch to another carrier’s service), generate incremental revenue, and keep operating expenses at a minimum.
Net2Phone tracks and monitors voice quality and network performance from start to finish. Consumers benefit on two fronts: inexpensive stand-alone telephony when compared with traditional phone service and savings derived from the triple play of cable TV, high-speed Internet access, and telephone services.
Experts in the telecommunications and cable industries agree the best thing about these changes is they will mean more competition and, in turn, better pricing for consumers.
According to Pilar, although there will be more companies providing telephony services in Puerto Rico, PRT will remain the leader. "PRT still has a lot of power with the government, regulations, and pricing, as it has 1.2 million phone lines on the island," he said.
Regarding PRT’s ability to integrate VoIP into its network, Pilar said, "I believe VoIP services for PRT may not be the same, as almost its entire infrastructure is based on copper lines and not fiber optics. Although it is possible to use copper lines for VoIP, the bandwidth is limited.
"PRT’s fiber-optic lines are used mainly to connect its own networks," continued Pilar. "According to PRT’s financial statements, it has fiber-optic lines in 200 buildings in Puerto Rico, compared with our more than 1,300."
"We are very careful about when we introduce a service to the market," said Perez Ducy. "Although we are technologically capable of installing fiber-optic lines in every house in Puerto Rico, it would be too expensive for us and thus for the consumer. We have to have a balance between what it costs and what the consumer can afford. Fiber in every house isn’t going to happen in the next 60 to 80 years.
"However, we don’t reject the possibility of installing fiber-optic lines in places with high call volumes, which might justify the installation costs," he continued. "Our VoIP service through copper lines is going to be the same as what customers would receive through fiber. Copper lines can handle what home users will require without any problem. Only when video is added might greater bandwidth be needed."
"Once we install fiber in a home, our [phone companies] providing video is imminent, and that might be scary for cable and satellite companies," said Perez Ducy. "Telecommunications will be able to venture into that [video] market, merging the two industries."
In fact, Verizon has announced it is testing video services via fiber-optic lines in some parts of Florida.
Keeping up with the times
TLD, TData, PRT, and other telecommunication companies are preparing their networks for VoIP. Others, such as Sprint Puerto Rico and Centennial de Puerto Rico, have been offering VoIP services to businesses for several months. Yet, these companies may face their greatest competition from cable companies such as Adelphia and Centennial, which will follow on the heels of Liberty to launch their own IP telephony services and venture into telecommunications.
"It is time for VoIP to be presented to the market and to be added to our roster of services," said Perez Ducy. "PRT has been doing tests for some time with our network of employees representing the local market. PRT is studying every detail related to the service, including quality, security, confidence in the service, and equipment."
Perez Ducy said PRT will roll out VoIP service in the next few weeks. "We have been prepared to launch the service for some time, but our efforts have been concentrated on the reduction in calling zones and our DSL and wireless services," he said.
"Liberty and Centennial are working together to provide VoIP to Liberty’s customers," said Pilar. Centennial de Puerto Rico is the holding company of Centennial Cable TV, serving more than 38 municipalities in the west and south of Puerto Rico. "Centennial Cable TV is preparing to provide a two-way connection, whereby information can be sent and received, which is needed for cable modem and IP telephony services. Adelphia is sure to follow."
Adelphia is upgrading its infrastructure to add cable modem and IP telephony to its roster of services for its customers.
According to Pilar, Centennial Cable TV probably will launch its IP telephony services before year’s end. "At this time, Centennial Broadband is offering VoIP services for internal communication within business sectors," he said. "Centennial is associated with several companies to provide IP connections throughout the world. In Puerto Rico, we give PSTN services to companies such as Liberty. We receive calls into our PSTN for sending anyplace in the world."
"Although VoIP might be limited to voice now, Centennial is looking forward to
integrating all services within the same [network communication] pipe," added Pilar. "Depending on their bandwidth, businesses might be able to install a router that will manage not only voice and data but also video."
"We are very interested in VoIP technology, which is becoming a viable alternative to traditional analog voice service," said Pete Pizarro, CEO of TLD and TData in Puerto Rico. "In today’s increasingly competitive world, it has become clear there will be changes in the way telecom operators provide services to their customers. We are seeing some of these new technologies being rolled out in the U.S. and around the world with positive results."
He added, "We are studying the advantages of VoIP as a converged voice and data solution and its economic viability. As we move toward a more integrated service offering, the market in Puerto Rico is going to be a very important part of our business. We are looking at various scenarios that could position our company as a leading provider of integrated converged services. There is no doubt Puerto Rico will be at the forefront of this new trend."
"We are currently focused on testing and developing cost-effective strategies that will determine which of the trends in the industry will be most beneficial to our customers, such as VoIP," said WorldNet’s Rivera. "We are carefully studying how this new technology will provide an added value to our customers. We will determine the correct time to launch this product once we are sure it aligns with our company’s commitment to excellence."
VoIP or IP telephony basically works the same regardless of which company is providing the service. However, offers may vary between companies and between residential and business services. Business users might receive a wider variety of services and greater discounts, for example, than home users.
Advantages of VoIP
· Reduces the cost of long-distance calls.
· Allows companies to place calls using their data network instead of the public switched telephone network, reducing the overall cost of office-to-office calls.
· Allows companies to add or change phone extensions without having to wait for the installation of cables or devices.
· Allows users to move from branch to branch without risking lost calls.
· Increases the productivity of mobile workers, as they can work just as well in the office as outside it.
· Reduces the need to install different cable or network systems for data and voice.
· When used with IP phones, allows users to receive additional services such as conference calls, voice mail, and caller ID.
· Allows users to send and receive data, voice, and video over the same network.
· Allows users to send and receive calls anywhere in the world as long as there is a high-speed Internet connection.
· Allows users to have a phone number from Puerto Rico that can be used in other states.
Disadvantages of VoIP
· Internet voice services don’t work during power outages.
· Service provider might not offer backup power.
· Some VoIP providers might have difficulty seamlessly connecting Internet voice callers with the 911 emergency response center and identifying the location of such callers.
· There are no White Pages listings.
· Works only with a high-speed Internet connection.
· Number portability doesn’t apply to VoIP services.
· If there is a problem with the data network, the quality of Internet voice services suffers.
Glossary
Gateway: Computer that routes the traffic from a workstation or network to an outside network. At home, the Internet service provider acts as the gateway that connects the user to the Internet. The gateway is equipped with a router, to determine where packets are sent, and a switch, which provides the path for the packets in and out of the gateway.
IP adapter: Device that transforms voice into data packets to travel through an IP network, usually connected to an analog phone.
IP phone: Considered a smartphone, the IP phone transforms voice into data packets to travel through IP networks without the need for an IP adapter. In addition, the IP phone allows the user to move from one place to another without losing calls, as the user can just log in the extension number to receive any call sent to his or her desk.
IP telephony: Technology that allows users to send voice messages through the Internet and use telephony’s common features such as call transfer, call waiting, and caller ID.
Local-area network (LAN): A computer network that extends over a relatively small area, usually confined to a single building or group of buildings. LANs are capable of transmitting data at very fast rates, much faster than data can be transmitted over a telephone line. However, the distances are limited, and there is a limit to the number of computers that can be connected to a single LAN.
Packets: A piece of a message transmitted over a network, containing the destination address in addition to the data.
Private branch exchange (PBX): Private telephone network used within a business where users share a certain number of outside lines for making telephone calls.
Public switched telephone network (PSTN): Public or international telephone system based on copper wires that carry voice data.
Router: A device that forwards data packets through networks. Located at the gateway, the router is usually connected to at least two networks. It uses headers with information that precedes the packet and protocols to determine the best path between any two hosts.
Softphone: Application or software that allows computers to work as a telephone using VoIP. It can be used with a headset, a microphone, and the keyboard to dial the desired number. It can usually perform traditional telephone functions such as conference calls and call forwarding.
Switch: Device that filters and forwards packets between networks.
Voice over Internet Protocol (VoIP): Technology that uses hardware or software to make telephone calls via the Internet.
Wide-are network (WAN): A computer network that extends over a relatively large geographical area and contains two or more local-area networks (LANs). LANs are often connected to a WAN through telephone systems, leased lines, or satellites.
FCC advocates least interference in VoIP
The biggest controversy regarding Voice over IP (VoIP) might not be the quality and cost, but how it could affect the telecommunications industry and security in the U.S. if the Federal Communications Committee (FCC) doesn’t regulate voice services over the Internet.
The National Telecommunications Cooperative Association and other organizations have urged FCC Chairman Michael Powell to declare VoIP a telecommunications service that should be regulated under federal laws. Powell has resisted, however, claiming that not regulating the Internet is important to the nation’s economic growth.
In a written statement to the U.S. Senate, Powell said, "We should begin with the nonregulation of the Internet as the first article of faith, because limiting government intrusions–both at the federal and state levels–maximizes the potential for innovation and increases opportunity for the nation as a whole."
Powell said Internet-based services such as VoIP mean the creation of new jobs to develop broadband networks & applications and productivity gains as businesses and consumers tap into the power of broadband networks. "At the same time, we are creating opportunities for small businesses and entrepreneurs to enter previously prohibited communications markets at the applications layer of the network Internet," he said.
Powell added that any regulation of VoIP, or of any other Internet-based service, should be undertaken carefully because it could impair the growth of the Internet and therefore of consumers’ ability to receive better services and offers.
"Without a doubt, VoIP will revolutionize the way consumers work and play. The choice for us as policy-makers is to create the kind of environment where these changes can flourish," he said.
According to Powell, there are clear exceptions that will require the FCC’s intervention, such as when the security and general well-being of the nation and consumers are at stake. He said, however, "We must be sure such exceptions don’t become the rule."
The Federal Bureau of Investigation and the U.S. Department of Justice have already submitted joint comments expressing the importance of retaining the government’s ability to tap phone conversations for security purposes. They noted that most VoIP calls are encrypted to prevent tapping, creating a secure communication system for terrorists and other criminals.
"It is our understanding that law enforcement will soon be filing a petition requesting that the commission initiate a proceeding to help set standards by which the success of Calea [the Commission on Accreditation for Law Enforcement Agencies Inc.] with respect to earlier services can be extended to Internet voice services," said Powell. "The commission will devote the resources necessary to expeditiously and responsibly complete this task."
"In the interim," added Powell, "it must be emphasized that carriers, the law enforcement community, and the commission are working in partnership to ensure that law enforcement retains access to the information it has now and that it has the tools needed in this ever-changing environment." |
