8x8 Inc., whose Packet8 service is considered the low-cost leader in residential VoIP, is reaching out to the business market and readying a low-cost videophone.
As mentioned in xchange’s March story, “VoIP Providers Reach Out to SMB,” an increasing number of VoIP service providers have recently begun focusing on small and medium businesses. Among the others new to the SMB VoIP space are Broadview Networks, Inflexion Communications and Vonage Holdings Corp.
While Packet8 previously offered plans on its Web site for business VoIP, Chairman and CEO Bryan Martin says those were basically penalty plans for those with very high usage, but that those plans offered no special features.
However, the new Packet8 Virtual Office, which is targeted at businesses with no more than 20 extensions, enables customers to group Packet8 lines into a virtual PBX, which can be manned by an auto or live attendant, Martin says. With Packet8 Virtual Office, each extension may have its own direct dial telephone number (which can be any telephone number currently available on the Packet8 network) regardless of geographical location, reachable thorough an included auto attendant. The service also includes unlimited extension-to-extension dialing anywhere in the world; business-class voice mail; music on hold; various enhanced calling features; as well as a conference bridge. Each Virtual Office extension also includes a business 390 screen phone and network terminal adaptor.
Customers of the service still receive unlimited calling in North America, 2-cents-per-minute service to Europe and 3- cents-per-minute voice to the Far East. But the permonth charge for Packet8 Virtual Office will be a little higher than the company charges for residential users, says Martin. Virtual Office monthly fees are $49.95 per extension, per month, with a three-extension minimum. But even at that, says Martin, it’s far more economical and feature-based than the $69-to- $79-per-month plans incumbent providers are offering to this group of users.
In other news from 8x8, the company expects to unveil a new, low-cost videophone called the DV326 in the SUPERCOMM time frame, Martin tells xchange. 8x8 developed the DV326 in cooperation with Taiwan’s Leadtek Research Inc., which manufactures the device and sends it to 8x8, which then adds the software load.
Founded in 1987, 8x8 got its start providing fabless semiconductors to the video conferencing industry. 8x8 divested itself of the semiconductor business, but in 1996, the company launched its own line of consumer videophones and has since sold about 150,000 of the phones through retail channels. “We’ve sold more videophones than anyone,” says Martin. The company already sells the DV324 Desktop Videophone, a videophone for analog phone lines; the DV325 IP Videophone, a voice and video phone for IP networks; and is working on a VoIP phone.
Pricing for the upcoming DV326 has not been announced; however, 8x8 tells xchange that the product will cost substantially less than the company’s previous videophone, the DV325, which sells for $599. The company intends to offer the DV326, which works over 64kbps to 640kbps connections, as a consumer product suitable for residential applications.
The DV326, which Martin says will deliver 20 to 30 frames per second of video, will also have improved video quality. 8x8 is using newer processor technology in this device and as a result expects to gain as much as 25 percent better video quality over the DV325 at the same bandwidth. The new version also will offer improved speakerphone performance with remote microphone technology. And the DV326 will support every audio feature available from Packet8 — including three-way calling.
The phone is not tied exclusively to the Packet8 Virtual Office service, but 8x8 may do some marketing tying its new business VoIP service to the DV326, says Packet8’s Martin. “We see traditionally video conferencing has been a business application,” he says. “So we can run specials that if you sign up for Virtual Office, you can try our videophone for free for a certain number of days.”
While all of Packet8’s services, which run over Level 3 Communications Inc.’s Internet backbone, are best-effort, Martin says video codecs in its products have various mechanisms to conceal missing and lost packets without a noticeable change in the quality of the video.
