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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Stephen B. Temple who wrote (1889)	11/11/1998 12:09:00 AM
From: Stephen B. Temple	Read Replies (1) of 3178

Interesting substitute for a voice switch in competitive carriers' networks at a fraction of the cost. Start-up switch targets carrier costs November 10, 1998 Network World : Westford, Mass. At its coming out party this week, well-funded start-up Castle Networks will outline its vision of what carrier services will look like in the not-too-distant future. The carrier equipment maker's vision includes allowing roaming cell phone customers to join videoconferences and enabling users to configure T-1 channels without carrier assistance. Castle also sees a time when carrier networks will be anchored by relatively inexpensive data network gear that will enable carriers to offer services at lower prices than they can via their current networks. Castle, armed with $18 million in venture funding, is working on a switch for local carriers that will act as a mediator between traditional circuit-switched voice networks and packet networks. Castle plans to introduce the switch in January. Company officials say the Castle switch will be able to translate signaling and management information as well as traffic between voice and data networks. So, for example, customers buying IP phone service will be able to get features such as caller ID because the Castle box will be able to access intelligent calling features that are part of the current public switched voice network. Such sharing of features between networks is not possible today. "Just try making a 911 call from your PC. It can't be done. That's because the [911 intelligence] is up there in the circuit-switched world," says Frank Dzubeck, president of Communications Network Architects in Washington, D.C. The Castle box will substitute for a voice switch in competitive carriers' networks at a fraction of the cost. Castle's switch will cost $150,000, while a Class 5 voice switch typically costs more than $1 million. That kind of savings will make it possible for new carriers to offer less costly services, says Steve Kelly, Castle's executive vice president. From their website> castlenetworks.com ST

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