VOIP : At the Dawn of Convergence

Convergence has been a big story for some time, and it's easy to see why.

Whether it's the coming together of communications and IT or of voice and data,

the result is a raft of opportunities for organizations to reduce costs, improve

efficiency and offer better services to their customers.

Now, however, the story has begun a new chapter. Major players such as Cisco,

Motorola, Microsoft, BT, and Nokia are planning to unite mobile telephony and

the Internet. The result will allow organizations to do something they have

wanted to do for some time-cut the cost of providing their employees with mobile

phones.

Several factors combine to make mobile phones expensive.

In part, it's because calls cost more than from fixed phones. That's not a

problem when people are working away from the organization's offices, as on such

occasions the ability to keep in touch delivers benefits that offset the

additional costs.

Increasingly, however, employees are using their mobile phones as their

principal means of making and receiving calls, whether or not they are in an

office where a lower-cost alternative is available. Unfortunately, it's a

convenience that comes at a cost. Over half the organizations contacted in a

recent survey expected the cost of mobile phone calls to rise between 2004 and

2007, some by as much as 25%.

Then there's the added cost of managing a 'fleet' of mobile phones. While

desk-based phone services are typically managed centrally, mobile phone services

are often bought locally-either by the individuals who need them or on a

country-by-country basis. This dilutes the organization's ability to use its

purchasing power to get the best deal and can result in the cost of supporting a

mobile user being up to three times that of a fixed-line user.

Net Benefit



Voice over Internet protocol (VoIP) has developed the point where it is a

real alternative for organizations wanting to provide phone services to

employees' desks.

A significant benefit of IP telephony (VoIP-based phone systems) is that the

costs of an organization's internal networks can be greatly reduced. Only one

set of cables is required, making it cheaper to equip new or refurbished

premises, and maintenance costs are also reduced.

Other benefits flow from the fact that, while the number of a traditional

phone is defined by the connection back to the exchange, the number of an IP

phone is programmable.

With conventional call center technology, for example, advisers need to be

based in a contact center with fixed line phones, but with IP telephony they can

just as easily work from home or in one of the company's retail outlets or

anywhere that a secure connection to the company intranet is available.

Cutting the Cord



Wireless LANs and cordless IP phones make it possible to deliver services to

people who frequently work away from a desk or in locations that are not easily

served by fixed cabling.

However, wireless networks tend to suffer more from jitter than wired

networks. Transmission delays can be longer when less bandwidth is available.

Together, these technical characteristics can negatively impact call quality and

increase the chance that calls will drop out mid sentence. Solutions to these

problems are being worked on but are not yet widely available.

Opportunities also exist for mobile workers to connect to the company's phone

system through public wireless hotspots in locations like coffee shops, airports

and railway stations.

Indeed, given the density of wireless hotspots in some locations, one can

imagine a future in which users could walk down the street and stay connected.

Converged Solution



The ability to roam between Wi-Fi hotspots can only be a partial solution

for mobile workers. Such hotspots will inevitably remain concentrated in urban

areas, so an alternative is needed elsewhere.

This is where the concept of fixed-mobile convergence comes in. Operators and

manufacturers are working toward a future in which people can roam freely across

different networks, using whichever is best for price and performance at each

location.

At the start of the day, they could connect over their home network to

synchronise their diary or check for messages. Driving to the station, they

could make voice calls over a 3G network, switching to the cheaper public Wi-Fi

connection available at the station. Later, they could keep in touch using 3G or

WiMax connections, answering emails and accessing files to prepare for meetings.

This is all technically feasible today but people have to use a range of

devices and have to reconnect every time they switch between networks. If the

vision of converged networks is to become a reality, devices and applications

must be easy to use and the complexity of the operation has to be hidden from

those using the service.

This is where the Fixed-Mobile Convergence Alliance, established by various

companies, aims to make an impact. It is defining technical standards that will

allow phones to switch between alternative wireless networks. An early example

of what will be possible is BT Fusion, the world's first combined fixed and

mobile phone service, which works like a mobile when out and about but, connects

via Bluetooth and the customer's broadband line when within reach of a wireless

home network.

NEC has launched a phone to roam from Wi-Fi to NTT DoCoMo's FOMA 3G service,

while Motorola has announced the CN620 VoWLAN compatible phone for countries

with GSM mobile networks. It is also developing an innovative approach with

Cisco to deliver a complete solution using wireless LANs within business

premises.

Where to Invest



The time is approaching fast for early adopters to start experimenting with

the new technology and explore its potential.

Let's be clear, though. With the recent announcements from major players, the

convergence of voice and data, fixed and wireless, is no longer a question of

if, but when. The technology has reached a key tipping point, so the time to get

ready to exploit it has arrived.

The best option, then, is for organizations to begin the migration of their

existing phone systems to IP telephony and to design IP telephony into new

premises. The case for investments in IP telephony is clear, and while it could

still be some time before wireless VoIP and converged fixed/mobile phone

services become the norm, investments in fixed IP telephony systems made now

will deliver good returns in the interim as well as paving the way for the

future.

Sudhir Narang



The author is the managing director of BT India


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