VoIP the vehicle for convergence

How can companies incorporate convergence applications on their data networks? The Internet is the emerging business tool of the future and the world market is definitely heading towards the IP (Internet Protocol) scenario. IP technology is largely accepted as the vehicle for convergence, especially since Internet bands and data networks are becoming a very popular convergence source. As far as voice-over IP (VoIP) technology is concerned, it`s no longer a pipe dream, but a reality. The industry has already begun using VoIP technology and is putting voice over IP networks.

How mature is VoIP technology really?

Interest in IP telephony is fueled by promises of lower total cost of ownership and increased return on investment, but research done by BMI-TechKnowledge shows that IP phones and infrastructure do not yet provide clear cost savings or ROI against traditional analogue and digital PBX systems. Additionally, VoIP technology does not yet boast toll-quality speech, although the quality of speech is at an acceptable level. Samsung has a seven-year VoIP strategy going forward, which is geared to integrating PBX systems into a one-cloud network.

What are the most important priorities companies must consider when investigating a VoIP system?

Capex (capital expenditure) is undoubtedly the most important priority. Before implementing VoIP technology, companies should first analyse their network and their PABX on the network. Determine whether the bandwidth on the current system needs to be upgraded, then do a retrofit on the system.

Irrespective of what Capex is involved, essential criteria for a VoIP system would be that it is least cost routing-enabled. Communications costs - moving data, voice, faxes, closed circuit TV, video conferencing - are spiraling, and we need to find the most efficient form of moving this information over the most cost-effective medium. Consequently, the ability to show savings to the customer now is critical, and VoIP is a way of achieving this objective. As new technologies emerge, so more players will enter the market, and the Internet and possibly VANs will play an increasingly significant role in the future.

Do companies have to throw out their existing PBX systems before implementing VoIP technology?

Gateway technology has made it possible for the PBX to evolve with VoIP, which means companies are now able to take advantage of the best of both worlds. There are two approaches to implementing VoIP technology. The forklift approach advocates replacing the entire company network with an IP telephony system, which demands enormous capital expenditure. This is totally unnecessary. Instead, the existing network can be seamlessly integrated into emerging VoIP technology using a media gateway. This can be done at a fraction of the cost and with minimal disruption to the organisation. Additionally, Capex is minimised, and turned into manageable operating expenditure.

What is a media gateway?

A media gateway converts PABX protocol into Internet protocol. The system incorporates integrated VoIP trunks, which allow it to function as a "gateway" to the Internet. This feature can provide voice communications via the Internet or over any existing IP-based LAN or WAN. Additionally, the use of open international standards ensures that the gateway is compatible with equipment located at other sites.

What are the advantages of installing a media gateway?

By implementing a gateway, companies can IP-enable their existing equipment, and thus derive all the benefits of IP telephony, including substantial cost savings because calls are now made over the Internet. Additionally, the system is fully interoperable with any new technology that is released over the following five to seven years. Should any PBX phone reach the end of its life cycle during this time, it can be replaced with an IP phone, thus the company always remains at the forefront of emerging technology. If a company`s PBX system and router network are functioning optimally, there is no need to replace them. Simply link the two with a gateway, which will give the organisation all the IP functionality it requires, at an affordable price.

What are the disadvantages of running VoIP over the Internet?

In South Africa, it`s currently illegal to run VoIP outside the company network. Secondly, the current Internet does not have the required speed and until ITSPs are formed we will need gateways, gatekeepers and billing systems to cater for this need. Australia, the US and Korea are already using the Internet as gateways and talking perfectly. In South Africa Internet is mature enough for VoIP, but ongoing legal and licensing issues are impeding our progress.

How can users guarantee quality of service (QoS) on their VoIP system?

VoIP is a network protocol and still under development, while voice has been around for many years. While you cannot achieve toll quality (the voice quality currently enjoyed on PBX systems) on the VoIP system, the QoS will be acceptable, bearing in mind the savings that will be achieved.

How far away is the market from adopting a single standard and what will it be?

The market is still fairly from away from adopting a single standard. The investment infrastructure forces the market to go through a product life cycle and only once we reach the end of the product life cycle, we will be closer to adopting a single standard. I believe there will be one cloud that moves all data and voice; all media will be in some form of data. The worldwide web will become a very important communication tool. A single standard will emerge, albeit the Internet, or open standard between the new technologies and telco`s.

What should companies do in the mean time?

Companies should be very careful of how they choose their equipment, because they can incur huge unnecessary costs. We recommend they explore the media gateway option, which will enable them to upgrade their network for a fraction of the cost of a forklift approach. By using their current infrastructure and Capex, they can move cautiously through media gateways into the VoIP future. As they grow their central office they can upgrade the system to one that incorporates IP functionality. The media gateway can be re-utilised at the branch offices to bring about additional cost savings.

Companies that decide to forklift their entire network can prepare themselves to spend millions on their investment. A phased approach is definitely the way to go.