reseller channel: Under New Management

By Khali Henderson

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An irony of VoIP is at the same time it represents a collapsing or combining of voice and data network functionality, it complicates the quality provision of both services. This, in turn, creates an opportunity for resellers to offer enterprises that are disinterested in or illequipped to tackle this new challenge a range of managed VoIP services that extend from LAN to WAN.

To be fair, the definition of a managed VoIP service can vary depending on who you ask.

Traditionally, it has meant the management of CPE, such as an IP PBX, routers or gateways, at the customer’s premises. However, it’s also used to describe VoIP in the WAN where a network service provider offers more than a best-efforts service (e.g., one that does not traverse the Internet). Then there’s hosted IP telephony.

Some would argue it also fits under the managed-services umbrella because the equipment required to run the service is under control of the service provider.

“We look at it as ‘managed’ means that somebody is managing the system on behalf of a customer,” says Jim Greenway, vice president of marketing for Kagoor Networks, offering support for the holistic view. “You do that a couple of ways. You can totally host it on your network or the customer can have the equipment or even own it and still hire someone to manage it. And there are all kinds of permutations to these models,” he says.

Karen Ayotte, IP telephony solutions manager for managed services provider Vanguard Managed Services, concurs. “Managed is really versus do-it-yourself,” she says.

Because VoIP services still are maturing, delivery options remain fluid. One of the better illustrations of these options comes from BellSouth Corp., which succinctly maps its service-delivery evolution from TDM to IP and from CPE to managed network services in a 3×3 grid (see matrix below). Ultimately, it is up to the customer what strategy to take. Typically, experts say, larger enterprises are more likely to have the capital to purchase gear while smaller companies will seek a hosted solution.

Accordingly, resellers must choose their targets. Fortunately, wholesalers are coming to the table with a range of managed services offers that cover LAN and WAN and even CPE.

Covad Communications, for example, offers its PBXi and vPBX, managed CPE and hosted IP telephony solutions, respectively, on a wholesale basis. It also plans to release voice-optimized access services throughout its DSL footprint by the end of the year, says Lisa Graham, director of product marketing for Covad.

Both voice offers are a result of Covad’s recent acquisition of GoBeam. While vPBX is a hosted PBX-replacement service, PBXi puts existing PBX equipment under Covad’s care and on Covad’s network, eliminating the need for a separate local service provider and ISP.

Covad adds Cisco 2400 Series media gateway to the customer premises to connect legacy equipment to its converged network. In addition to consolidating voice and data services, it enable free calling between sites in a multilocation business. A single business can run seamlessly with PBXi and vPBX sites.

In another example, PointOne Communications Inc., has invested $100 million in covering 75 percent of the U.S. population with a privately managed IP network, which it says ensures end-to-end network performance rivaling the PSTN. It also launched this summer StarPoint IP Home and Office IP telephony services and is poised to offer StarPoint IP Business. StarPoint IP Business is a hosted IP solution for enterprises that want to replace, or curtail further investment in PBXs. In addition to providing an alternative to PBXs for new companies, StarPoint IP Business provides a migration path for companies that previously invested in PBX switches but need to expand their capacity. It allows customers to keep an existing PBX system in place and integrate with PointOne’s solution to accommodate additional line demand.

New Global Telecom (NGT), similarly, offers 6DegreesIP, a managed wholesale product suite.

Release 3.0, announced in August, moves the product suite toward a turnkey solution for service providers in part by adding VoiceConnect and VoiceSelect origination and termination services.

VoiceConnect provides direct-to-IP origination and termination services, including local calling, domestic and international long-distance termination, support for 911, LNP, directory assistance/ directory listing, 700/800 calls. It is available on a flat-rate seat basis and per-minute in more than 1,000 rate centers. VoiceSelect provides ` la carte origination and termination services, including local calling, domestic and international long-distance termination, but not 911.

It can be used with cross-border number assignment to make U.S. DIDs available to foreign users for reduced long-distance costs. The service is available in 2,400 rate centers.

In September IPtimize Inc. launched Voice Pilot, a managed VoIP service based on the 6DegreesIP product and targeted at smaller businesses.

IPtimize combines the service with consulting to make sure the customer’s internal network and ISP connection are voice-optimized, particularly for those that want to bring their own broadband. Jeff Veres, IPtimize COO, says the service is flexible enough that it can be added one desktop at a time and co-exist with a customer’s current telephony system. After implementation, IPtimize can remotely manage not only the VoIP infrastructure but also the company’s data network Level 3 Communications Inc. also offers WAN-based VoIP services as well as hosted IP telephony options for its partners, which number about 100 to date.

Lightyear Network Solutions LLC, for example, is relying on Level 3’s managed VoIP to deliver Lightyear XSTREAM, a new suite of VoIP and broadband products for business and residential customers. The business-class products include VoIP, DSL, Local PRI, dynamic T1, IP Centrex and hosted PBX. The residential service includes DSL and voice services.

Lightyear purchased Level 3’s (3)VoIP Enhanced Local service, which enables companies like Lightyear that operate their own switching infrastructures to launch IP-based local and long-distance services via any broadband connection. (3)VoIP Enhanced Local service provides network trunking, local numbers, local number portability, E911, operator assistance, directory listings and directory assistance.

Lightyear also uses Level 3’s (3)VoIP Local Inbound service to support toll-free VoIP telephony applications with the ability to dial locally and terminate nationally over circuitswitched equipment.

Pac-West Telecomm Inc. is reselling Level 3’s hosted IP telephony service by joining the Level(3)Enabled Partner Program. Pac-West’s VoIPpro solution, built on Level 3’s (3)Tone Business Service, enables geographically dispersed companies to connect multiple locations and teleworkers while saving capital and operating costs over traditional business communications systems. VoIPpro users can access and manage all of their communications services in real time from any Internet access method through a Web-based interface.

Additional reporting by Suzanne Sanders.