Voice over DSL
The Next 'Killer App'
Robert T. Hale, Jr.
Posted: 01/2000
 Robert T. Hale, Jr. |
Having evolved from a long distance reseller to a provider of local, long distance and data services on its own facilities, Network Plus Inc. (www.networkplus.com) has always looked for better ways to serve its target market, the small and medium-sized businesses, and to decrease their costs.
Most recently, the company announced the next step in its evolution with voice over DSL (VoDSL), a revolutionary technology that can take both voice and high-speed data services and bundle them in the same application to produce a faster, more reliable connection that costs 20 to 30 percent less than having those services on separate connections. Network Plus expects its implementation of VoDSL will become the "killer app" for small and medium-sized business telephony.
Network Plus is investing millions of dollars in VoDSL technology to lower the cost of solutions for customers with voice and data needs. This technology presents a win-win situation for anyone looking to increase bandwidth to the Internet while saving on voice communications expenses. VoDSL allows customers to combine voice and high-speed continuous data service at speeds up to a full T1, or 1.5mbps, over a single copper loop, without the expense of purchasing dedicated equipment. Since standard dial-up modems can only handle up to 56kbps, customers instantly increase their speed of connecting to the Internet. More importantly, they can do this at a fraction of the cost of purchasing a dedicated T1 connection.
Because the company offers the same functionality at a much lower price than competitors, VoDSL is a fantastic opportunity for Network Plus. By adding additional DSLAMs to existing collocations and voice gateways to switch centers, the company can cost-effectively use VoDSL technology to decrease operating ex-penses and extend the savings to customers.
Initial market studies indicate strong demand for integrated VoDSL service, which Network Plus offers at $599 per month for eight lines of local and long distance service with fractional T1 speeds to the Internet. As the first provider in the East to provide VoDSL commercially, Network Plus expects to lead the conversion of customers to VoDSL.
The model the company used for product development of VoDSL was one of its typical customers: a small or medium-sized business customer with six business lines and a desire to participate in advanced Internet functions such as e-commerce. Previously, the only options were to purchase dial-up connections and modems for all of the terminals, or, for faster bandwidth, invest in expensive dedicated equipment and enabling a T1.
The first alternative limits bandwidth, reaching speeds of only up to 56kbps, and is not an always-on connection. Also, the customer must pay the per-line charges applicable for each of those connections.
The second scenario provides a dedicated, always-on alternative, but costs nearly $2,000 per month. Because VoDSL uses one single copper bundled loop for transmitting voice and data traffic, the customer gets the high bandwidth of a dedicated connection while reducing costs by eliminating extra lines.
Network Plus designed its infrastructure to be able to offer a true bundled telecommunications package to customers and deliver on the promise of being a one-stop shop for voice and data telecom service. DSL is the last piece of the bundled puzzle. VoDSL is the next-generation technology that takes that bundled offering and makes it even more cost efficient.
With the company's recent fiber acquisitions and partnerships, as well as its existing vendor relationships with AccessLan Communications Inc. (www.accesslan.com), Lucent Technologies Inc. (www.lucent.com), and Jetstream Communications Inc. (www.jetstream.com), Network Plus has been able to actively sell and deploy this technology in its markets, reducing customers' costs while retaining margins.
Existing customers are already beginning to embrace VoDSL as a low-cost, high-speed alternative for voice and data needs. By using VoDSL, the company realizes a greater potential from each copper pair by providing more service with the same underlying cost structure. With the addition of more DSLAMs to existing and future collocations, the company expects to offer VoDSL to more than 4 million potential business customers.
VoDSL is the beginning of affordable and fast data and voice connectivity for the small and medium-sized business marketplace, allowing them to actively participate in the e-commerce revolution.
Robert T. Hale, Jr. is president and CEO of Network Plus Inc. (www.networkplus.com). He can be reached at 800-552-5254.
