News Highlights for June 15, 2006
Here are some newsworthy happenings of note in the aslt day or two -
Recent news stories about legislation, VoIP and wiretapping flood the scene. There have been adverse reactions and comments everywhere -
VoIP tapping policy slammedOther entries include:
A number of experts have slammed US government efforts to require VoIP providers to permit police to tap into internet phone conversations.
A new report says that a rule to require VoIP wiretapping by May 2007 would result in enormous costs to the industry and new cyber security problems to the internet.
Organised by the Information Technology Association of America (Itaa), the study argues that wiretapping VoIP calls would prove more complicated than those of traditional phone lines because VoIP providers have little control over how calls are routed across the net.
In addition, the internet would be exposed to new vulnerabilities if ISPs were required to respond in real time to requests for them to record VoIP calls.
Internet Leaders Caution Against Broad Surveillance for VoIP Calls
CALEA ruling could open can of worms for VOIP
Internet Pioneers Warn of VoIP Wiretapping Problems
Cerf: Wire Tapping VoIP Will Kill Innovation
Net Godfather: VoIP-Tapping Law Opens Big Security Holes - Networking Pipeline
VoIP Tapping Policy
Court rules for wiretap - Is Business VoIP doomed?
I'm not altogether convinced it's as massive a headace as all these stories portend, but it does complicate things significantly.
Friend and colleague Martin Geddes, who participates in the VoIP ThinkTank efforts, is right in the middle of something new and exciting.
Telco 2.0 InitiativeThe traditional telco industry is floundering, and in many cases doesn't even realize it. Maritn and his colleagues in this venture will add great value not to just the traditional telco players, but to VoIP service prvoiders looking for success with VoIP services, fixed mobile convergence, the IMS value and an array of business ideas. They're an innovative team with some incredible brainpower.
IP is changing the game. The lines between industries are blurring and everyone is after the same consumers. This is causing disruption in the telco industry, for operators and their partners.
‘Telco 2.0’ is an initiative supported by leading players in the industry for defining roadmaps for success for all players in the value chain. The initiative includes:Why does it exist?
- Market Studies
- Industry Brainstorm 2006
- In-house Workshops
- Real-time analysis (blog)
- Advisory Services
- Telecom (including mobile) is one of the worst-performing sectors in most stock markets in recent years.
- The vertically integrated business model in under attack from all sides: tougher regulation, new technology (most notably VoIP and open spectrum), disintermediatory new entrants, and advancing customer expectations.
- P/E ratios suggest little investor belief in this improving. They have low confidence in “converged” or triple/quadruple-play bundles providing high returns.
- Operators are making investment decisions in Network & IT, Products & Services, and Mergers & Acquisitions without a clear view of the future.
- 92% of respondents to STL’s recent online survey said that ‘re-thinking the strategic role of the operator in a world of IP-based convergence’ is a key priority.
- Our recent Telco 2.0 Market Study shows that there is an urgent need for telcos to review their business model.
We get a couple of stories overstating VoIP impact on residential customers -
From silicon.com we read -
The home phone as we know it is deadThen on vnunet.com we see -
Not greatly exaggerated at all
By Jo Best
The landline as we know it is all but extinct, according to telco industry analysts.
Two reports by JupiterResearch have found the traditional PSTN phones currently sitting comfortably in most UK homes are soon to be replaced by VoIP and mobile, as users seek greater flexibility from their telecoms.
The research found that 27 per cent of consumers are keen to use their mobile phone in place of their home phone on a regular basis, while 17 per cent of users would consider switching to a more expensive broadband package if they can save money on calls with VoIP.
VoIP sounds death knell for home phonesGiven the numbers, both stories are probably relying on the same JupiterReseraach report. Between mobile service and VoIP offerings, it is clear that tthe traditional POTS line is on the way out. But neither of these technologies will clearly dominate, and both will grwo their user base. There are still a large number of older telephone users who won't migrate to either mobile or VoIP services, and I think projection numbers are too often wild guesses.
Voice over IP wielding the knife, says analyst
IP technology spells the end of traditional home telephone numbers, according to an industry analyst.
A study by JupiterResearch claims that the rise in fixed/mobile telephone services appeals strongly to Europeans, and that location will cease to be important for either making or receiving calls.
The report said that 27 per cent of consumers are already interested in regularly using their mobile phone in place of their home telephone.
Something new -
Linksys ships its first Wireless-G IP PhonesWireless IP phones remain a real weak point in VoIP usage. The products that are out there are weak, flawed and feature-poor. Every entry like this into the market raises the bar incrementally as manufacturers work toward what what users really want.
Linksys®, a division of Cisco Systems Inc., the recognized leading provider of voice, wireless and networking hardware for the consumer, Small Office/Home Office (SOHO) and small business customer, today announced the immediate availability of its WIP300 and WIP330 Wireless-G IP Phones.
And two stories reiterating a theme I've talked about a lot.
Oracle Acquires Telephony@WorkOracle has been making great strides and remains very focused on the integration of CRM/ERP solutions and VoIP services. The stories hit the news, but generate little conversation, yet Orackle forges ahead. Watch this trend.
With its latest acquisition, Oracle is bringing together its on-demand and on-premises customer relationship management software with a stable of integrated telephony components.
Oracle announced June 13 the acquisition of Telephony@Work, a company that provides IP-based software infrastructure for call center services. This is Oracle's 21st buy in the past two years.
And this one from SerachCIO.com gives us a new phrase to consider -
CIO DECISIONS 2006: EASING GROWING PAINS WITH A CRM-VOIP COCKTAILA CRM-VoIP cocktail is becoming a more and more common among both CRM and ERP vendors. They recognize the value of application integration with network services. At the moment, that's VoIP, but fixed mobile convergence advances will drive them toward mobility integration as well. This is a space in the industry to watch closely. Real-world convergence and integration is underway in this part of the application space.
When several mergers left a large agricultural lender with countless silos of data and applications and a mishmash of communications, an IT executive converged voice and data to leverage the full value of a CRM solution, drive up revenue and earn a 100% return on investment.
Greenstone Farm Credit Services is a $3 billion agricultural lender based in East Lansing, Mich. From 1999 to 2003, mergers with four other organizations strengthened Greenstone's market position but also saddled it with a disparate collection of legacy systems at its 37 branches in Michigan and Wisconsin.
One last story for this wrap-up of the news -
Return on investment from VoIP a long way offIt's an interesting story out of Ireland, and maybe the projections are right for them. I disagree with those ROI projections for here int he states and have seen some much more favorable numbers. But ROI depends in large part on how effectively you determine return. Changes in business process, improvlements in productivity and other sublte changes are hard to quantify and don't lend themsevles to traditional ROI thinking.
Businesses investing in internet telephony or VoIP-enabled (voice over internet protocol) systems will still be relying on traditional PSTN lines for at least two to three years until the local loop unbundling (LLU) problems are resolved, a telecoms expert has warned. The expert also revealed that businesses are discouraging employees from making mobile calls due to excessive costs.
Brendan Moran of telecoms brokerage MinuteBuyer told siliconrepublic.com that he is seeing increasing evidence of Irish companies encouraging employees to take a message and ring back on a landline rather than on their mobiles.
Technorati Tags: VoIP tapping, CALEA, Telco 2.0, residential VoIP, VoIP, Linksys, convergence, integration, CRM, VoIP ROI

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