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Softswitch not so Soft

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VoicenData Bureau
New Update

T he last few years have seen the emergence of Next Generation Networks (NGN)

not only to cater to high growth in data/packets, but also to bring down opex

and improve service offering. At the center of this have been ‘softswitces’.

The sharp industry slowdown and the so-called Internet bubble burst, have

adversely affected many carriers around the world. It has made the industry

over-cautious with the new technological trends, driven especially by data or

packet growth. One would believe softswitches to be one of them.

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Despite challenging economic conditions, many alternate carriers/service

providers, with sound business models and well positioned for market success,

have continued to invest in softswitch architectures to secure their position in

a competitive environment and ensure future growth. In addition, many incumbent

carriers/PTTs and wireless operators are aggressively moving forward, with plans

to deploy packet-based voice solutions by leveraging softswitch technology.

Global deregulation and government-based policy strategies have committed many

nations to privatize their national telephony operators, creating economic

incentives to remain competitive with NGNs using ‘softswitch’ solutions, but

the softswitch will not be so soft in the times to come.

Reduced capital equipment budgets will dampen the investments in new technologies like softswitch, but can’t overlook savings that they

promise

FROM

MY CELL



NIRAJ K GUPTA

According to Cahners In-Stat/MDR, the softswitch market is in the very early

stages of a long growth period, as the public switched telephone network (PSTN)

is getting transformed into a packet-switched network capable of supporting

voice, data and video. They predict that softswitch will be a key component of

this transformation, as it controls media gateways, IP phones and integrated

access devices in the packet-switched network, and provides inter-working with

the traditional circuit-switched network. Reduced capital equipment budgets will

dampen the investments in new technologies like softswitch. However, it cannot

be overlooked that softswitches and related technologies can reduce cost and

provide for increased service revenue.

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The

Softswitch Terminology
A

softswitch, short for ‘software switch’, is a generic term for any

open application program interface (API) software that is used to bridge a

traditional PSTN and VoIP, by linking PSTN to IP networks and managing

traffic that contains a mixture of voice, fax, data and video. It

separates call control functions of a phone call from the media gateway

(transport layer). Softswitches are able to process signaling for all

types of packet protocols. Softswitch is a software-based switching

platform based on open systems as against traditional proprietary

hardware-based switches. Softswitch is also called media gateway

controller, call agent and gatekeeper.

Functions of a softswitch have been

categorized into four different layers:

  • Applications and features
  • A service-creation environment
  • Call control or a call agent
  • Protocol mediation enabling

    devices, such as gateways using different protocols

Market Growth



As the VoIP market continues to attract the interests of carriers, the

worldwide softswitch market for 2006 estimates ranges from In-Stat/MDR’s $1.32

billion (representing a CAGR of 60.2 percent over the forecast period 2001-

2006) to $4.1 billion (a CAGR of 119 percent) on the other end. The market will

continue to experience strong growth beyond 2006. Allied Business Intelligence

reports "While North America is leading the charge in softswitch

development, it is the Asia-Pacific region targeting at the highest

growth". The firm cites the region’s readiness to accept technology and

its use of VoIP for long distance toll arbitrage. It predicts that softswitch

will act as an anchor within the next-generation network in the coming years,

and the circuit switch market is expected to decline over the next few years.

Companies competing in the softswitch market include traditional telecom

equipment providers like Alcatel, Lucent, Nortel, and Siemens, as well as a new

breed of companies with a strong IP/computers heritage like CommWorks, VocalTec,

Cisco, Sonus, Clarent, have emerged among the dominant players. As the carriers

are opting to cap investments in legacy technologies by leveraging softswitch

solutions, most of the legacy switch vendors have recognized this fundamental

shift in technology, and have realigned their development resources towards

packet-based softswitch solutions.

NIRAJ K GUPTA



www.telecombynirajgupta.com

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