IP Communications and Technology

Internet Traffic to Quadruple by 2015

Wed, 01 Jun 2011 19:20:38 -0500

Today Cisco predicted that Internet traffic will quadruple by 2015. The implications are huge for service providers, network equipment manufacturers and regulators.

The prediction is confirmation that there is a major transformation happening in the way that we access information and entertainment. The trend will lead to even more innovation. Canadians must ensure that our Government does not allow Canadian service providers take advantage of our limited competitive environment to stifle innovation, limit competition and protect dying business models.

Cisco Closing Flip - Shrewd?

Mon, 02 May 2011 19:43:11 -0500

In this widely quoted article by Electronic Products and Technology it is being said that Cisco's decision to close its Flip camcorder group was a shrewd decision. Other posts have called the decision courageous. Was it really? I don't think so. In my view it was simply time to come to terms with a bad investment decision and to cut their losses.

Cisco is convinced (and I agree) that video is an increasingly important aspect of communications technology and human interaction. Cisco's TelePresence and its acquisition of Tanberg are prime examples of Cisco's innovation and vision relative to the market impact of video.

However, Cisco seemed to overlook the fact that video capabilities are integrated into many multi-function consumer devices. My camcorder has been in the closet for at least a couple of years. The video capabilities built into smartphones, point and shoot cameras, SLRs and tablets have made single-purpose consumer video recording devices obsolete.

While Cisco's insight, product development and marketing of products for enterprise is second to none, products like the Flip and ūmi suggest that the company can do a better job at gauging trends and demands in the consumer space.

Rick McCharles

RIC Services

Usage Based Billing (UBB) coming to Western Canada

Tue, 26 Apr 2011 21:33:50 -0500

It appears that TELUS and Shaw have decided to implement UBB later this year. Once again the justification is being spun as fairness. The average user should not have to subsidize the very small minority of Internet usage hogs. It’s the same excuse that Bell used to convince the CRTC to allow UBB to be forced on to Bell’s Internet wholesale customers (currently under review).

The problem with that spin is that its just not true. The fact is that the majority of Internet users are morphing into heavy users. It’s not because we’ve all suddenly decided to download copyrighted movies and music. Rather our Internet consumption is going up because of the rich content that is now available. It has nothing to do with being greedy Internet pigs. Business and consumers are simply making the most of the resource and we are all (as individuals and society as a whole) benefiting as a result.

In my view the reason Canada’s large ISPs want UBB is to maximize profits and to protect dying business models. However, UBB threatens to stifle innovation and to leave Canadians at a competitive disadvantage.

There’s no stopping the evolution of the Internet and its countless benefits. It will continue to create and change business models with or without Canadians’ participation.

If you’re concerned about this issue, stay informed and get involved.

Rick McCharles

RIC Services

SIP Trunking Update

Mon, 18 Apr 2011 14:20:45 -0500

One of the most popular posts in my blog was an article I wrote on SIP Trunking in November of 2007. In the post, I listed the differences and advantages of SIP Trunking over PRI. I also indicated that there would be “very few, if any, new PRI circuit deployments in Canadian urban locations, within five years”.

Well, it appears that at least in Canada, I may have to add another five years before my prediction becomes reality (even that may be too optimistic). In the US, there has been healthy market growth and there are many service providers. In Canada, the adoption of SIP Trunking has been minimal. Why? For the same reason that Canadians pay among the highest rates for mobile phone and broadband Internet services: a lack of competition.

The Incumbents have been reluctant to roll out SIP Trunking since these services would cannibalize their highly profitable traditional PRI revenues. More SIP Trunking service providers are beginning to emerge and by the end of 2011, all of the Incumbents will be offering some form of the services. However, I don’t expect to see aggressive pricing any time soon which will further limit Canadian market growth.

While the immediate recurring cost savings may not be dramatic when compared to traditional PSTN circuits, Canadian enterprises should still consider the benefits associated with SIP Trunking. Here is the comparison from my original article with some updates:

	PRI	IP Trunks
Circuits & Hardware	Physical connections: Each circuit requires physical connection and costly termination hardware.	Connections are virtual: Number of available trunks is a function of available bandwidth, not physical termination hardware or circuits. Depending on your requirements and the type of service offering, Session Border Controllers (SBC) may be required for security. SBCs can be a significant cost consideration.
Scale / Growth	Scaling up requires the installation of new circuits and additional termination hardware at specific increments. In the case of PRI the increment is 23 voice channels.	Scales up or down easily and quickly (a software configuration change) and can offer automatic and on-demand burst capabilities. While the technology accommodates these advantages not all service offerings will provide them.
Backup / Redundancy	Providing sufficient backup circuits to remote sites in an IPT-distributed architecture can negatively impact the ROI. Only way to accommodate loss of hardware or facility where PRI’s terminate is to build-in excess capacity with associated cost impact.	Automatic IP re-routing capabilities allow practical geographic distribution of PSTN connectivity to sites with limited or network redundancy. Can be designed to retain PSTN reachability and capacity in the event of the loss of terminating hardware (or even an entire office location) without the need to build in excess capacity.
Cost	Cost is usually per circuit per month. If you require one, or a few, more voice channels than the fixed increment, the cost model for PRI is inefficient.	A variety of pricing models (i.e. usage based) are likely to emerge, including on-demand capacity. Relative to PRI circuits and the associated supporting hardware, IP Trunking costs are likely to be significantly lower. Unfortunately, in Canada the pricing models have not been compelling to date. However, competition is increasing so hopefully that will begin to change soon.
Capacity Planning	Additional capacity must be planned well in advance since considerable lead time may be required for the ordering and installation of new circuits and termination hardware.	While capacity planning is still important, adding additional capacity can be as simple as a software change. Additionally, providers are likely to offer burst capabilities to accommodate brief periods of higher than anticipated utilization.
Disaster Recovery / Business Continuity	While possible, diverting calls to alternate locations can be complex and expensive. Diversity across service providers is usually cost prohibitive.	The technology allows for automatic call rerouting to pre-defined locations should the location go offline (a huge business continuity benefit). Can accommodate diversity across service providers much like is done today with Internet access via BGP.

Canada will ease restrictions on telecom foreign ownership

Wed, 03 Mar 2010 22:37:47 -0500

In yesterday's pre-budget Throne Speech, the government announced that it will allow greater foreign investment into Canada's regulated telecom sector.

The Harper Government had already signaled its intentions when it allowed Globalive to launch its WIND wireless service despite the fact that most of the investment behind the product came from an Israeli company.

The move will likely increase competition and may result in mergers and acquisitions. Perhaps we'll even see another attempt to merge Telus and Bell.

Personally, I think its positive new for the industry and Canadian consumers.

Bell and Telus Upgrading Network to 3G

Fri, 29 Aug 2008 08:05:41 -0500

According to an article published by the Financial Post this morning, Bell and Telus are about to announce that they will be jointly upgrading their cellular networks to 3G.

The Post states that multiple telecom industry sources have said that Bell Canada and Telus intend to share the cost to upgrade to the next-generation wireless network and that the announcement will be made next week. It is estimated that the cost of the upgrade will be approximately $1 Billion and that it will take one year to complete.

If true, the Nokia Siemens Networks' provided upgrade will allow both companies to compete with Rogers by offering popular mobile devices such as Apple's iPhone 3G and Research In Motion's Black-Berry Bold.

When combined with the recent spectrum auction and the entry of new wireless competitors such as Quebecor, Shaw, DAVE Wireless and Globalive, the 3G announcement will contribute to significant change in the Canadian Wireless marketplace over the next couple of years.

Great news for Canadian consumers in my view.

BroadSoft Acquires M6 Product from Genband

Wed, 27 Aug 2008 16:39:36 -0500

BroadSoft announced today that it has acquired the M6 Communications Application Server from Genband. The M6 was originally developed by VocalData which was acquired by Tekelec.

The acquisition could be good news for Hosted IP Telephony service providers who questioned Genband's commitment to further development of the M6 platform. BroadSoft will gain access to new customers; especially in Canada where most Hosted IP Telephony services for business are based on the M6 application server.

http://www.broadsoft.com/Newsroom/Press2008/broadsoft-acquires-genband-m6-communication-applications-server.htm

Toshiba Announces VoIP System for 200 to 1000 Users

Tue, 05 Aug 2008 06:29:31 -0500

Toshiba Strata CIX1200 VoIP Business Communication System Brings Toshiba Quality, Reliability and Affordability to 1,152-Port Market

IRVINE, Calif., August 5, 2008 — Toshiba America Information Systems Inc., Telecommunication Systems Division (Toshiba — www.telecom.toshiba.com) today announced the launch of its new Strata® CIX™1200 VoIP business communication system, bringing Toshiba quality, reliability and affordability to medium-to-large companies. Supporting up to 1,152 ports, the Strata CIX1200 is designed for 200 to 1,000 users and delivers networked applications for as many as 128 sites.

“The new Strata CIX1200 expands Toshiba’s reach in the medium-to-large market segment, giving enterprises a robust Toshiba solution at nearly double the port capacity of our Strata CIX670,” said Brian Metherell, vice president and general manager. “As with the entire Strata CIX family, the new Strata CIX1200 gives users Toshiba’s legendary quality and reliability in an affordable VoIP system that can be networked with up to 128 sites. The CIX1200 can be customized using Toshiba’s FeatureFlex® adapatability tool, and provides a smooth migration path from smaller Toshiba systems.”

Strata CIX1200 Is the Only 1,000+-Port System to Offer User Customization

Toshiba’s Strata CIX1200 is the only system of its size to allow the user to adapt capabilities to their specific needs. Using FeatureFlex, Toshiba’s feature adaptability and customization tool, the system can be tailored well beyond its standard system features, administrative options and programmable features. It allows enterprises to create user-definable features companywide, by department, or for individual users. Existing features can be modified, and new ones can be created, including features in CIX call processing, as well as blended features that work between all system applications and resources.

“FeatureFlex allows users to customize their own individual features to help them be more efficient with their communications solution,” said Shahin Hatamian, vice president of Product Management. “FeatureFlex makes the resources of the system available to create new or blended features and applications.”

The CIX1200 contains the same feature-rich functionality as existing Strata CIX communication systems.

Strata CIX1200 Can Be Networked up to 128 Sites

Strata CIX1200 can be networked with other Toshiba Strata CIX systems, from other CIX1200s all the way down to the small 40-port Strata CIX40. It can be networked for up to a total of 128 sites to accommodate larger capacity or distributed configurations.

“The Strata CIX1200’s networking capabilities make it a perfect solution for a headquarters site that is networked to small or remote offices or retail/restaurant locations,” said Bob Lerche, product manager.

Easy Migration to Strata CIX1200 From Other Toshiba Strata CIX Systems

Toshiba has retained its renowned migration path with the Strata CIX1200. Users of other Toshiba Strata business communication systems can easily migrate their systems to the new Strata CIX1200. Telephones and almost all system interface cards may be re-used as well as voice mail systems and the Strata MAS with resident applications. Providing a smooth migration path gives users the ability to retain much of their original investments, while they gain the benefits of the larger system and its additional capabilities.

All Applications on a Single Server Delivers Clean Integration, Affordability

Toshiba Strata CIX1200 and all other Strata CIX models are compatible with Toshiba’s Strata Media Application Server (Strata MAS), which delivers value-added application processing. Strata MAS is one of the first application servers to use Host Media Processor (HMP) technology resources as an alternative to Dialogic boards in the server. HMP is more cost-effective and does not require card slots, making the server more compact and potentially trouble free.

Strata MAS integrates all value added applications such as voice mail/unified messaging, IVR, ACD and reporting, Video Conferencing and Collaboration, Web-based Personal and System Administration, and FeatureFlex™ customization tools all on one platform. This provides better application integration and significant cost savings over designs that require separate servers for each application.

New Large-Capacity Voice Processing System Also Introduced

For voice mail/unified messaging applications requiring more than 32 ports, a new IP-based voice processing system called Stratagy ES96i will soon be available to provide 96-port capacity in an industrial-grade rack-mount server with an Intel Xeon processor and dual redundant power supplies standard. RAID1 or RAID5 hard drive redundancy options are available in addition to the other value-added applications, which include Fax Integration, Interactive Voice Response, Automatic Speech Recognition, Text-to-speech, FeatureFlex™ adaptability tools, Network eManager™ system administration and My Phone Manager™ personal administration.

Features in the Strata CIX1200 include:

· Strata Net Networking — Strata CIX1200 can be networked with all of Toshiba’s Strata CIX family, including the CIX40, CIX100, CIX200, CIX670, and other CIX1200 systems. This allows large companies to use the Strata CIX1200 for their main sites, and smaller Strata CIX systems for branch offices or other remote locations, as well as allows smaller companies to expand as they grow.

· Virtually All Features to All Toshiba Users, on Fixed or Mobile Devices — Strata CIX1200 and the other Strata CIX models have been designed to deliver virtually every feature to every user, regardless of the type of Toshiba endpoint being used, whether they are fixed or mobile. The system supports IP telephones, IP wireless telephones, IP soft phones on notebook and tablet PCs, and digital (TDM) and analog telephones.

· Choice of Endpoints — Strata CIX1200 and all Strata CIX systems are compatible with Toshiba’s IP and digital telephones, including Toshiba’s new IP5000 IP telephones, Attendant Consoles, Toshiba SoftIPT® soft phone for laptops and PDAs, and third-party SIP telephones (as tested by Toshiba).

· Traditional Business Telephone Features in an IP System — Strata CIX1200 delivers virtually all the features and functionality of Toshiba’s traditional digital business telephone systems, taking advantage of decades of experience serving enterprises with voice solutions.

· Ability to Mix and Match IP and Digital on a Single System — Unlike many competitive IP systems, Strata CIX1200 can be TDM-enabled, giving users a choice of running a pure IP system or a mix of IP and digital TDM. This allows users to choose how they will maximize their systems and migrate existing equipment.

· Strata Media Application Server (MAS) Compatibility — Multiple applications can be combined on a single media application server platform. Applications include Auto Attendant, Voice Mail, Unified Messaging, Fax Integration, Automated Speech Recognition, Text to Speech, Interactive Voice Response, Automatic Call Distribution and Reporting, Web-based Personal and System Administration, Web-based Telephone Applications, FeatureFlex™ adaptability tool that allows users to customize and add features, and other third party applications. Strata MAS comes standard with Toshiba’s Voice Processing/unified messaging solution, My Phone Manager™ personal administration tool, and eManager™ system administration tool.

· Video Communication Solution (VCS®) Compatibility – Toshiba’s VCS provides affordable point-to-point video conferencing, desktop/application sharing, file transfer and message board capabilities for up to three parties.

Pricing and Availability

Retail prices of Strata CIX systems are set by Authorized Toshiba Dealers who sell to end users. Dealer pricing may vary, but the estimated average retail price per station starts from $400 depending upon configuration, applications, telephone models selected, and size. Customers can contact an Authorized Toshiba Dealer for more detailed pricing information. To find an Authorized Toshiba Dealer in your area, visit the Toshiba website at www.telecom.toshiba.com.

About Toshiba America Information Systems Inc. (TAIS)

Headquartered in Irvine, Calif., TAIS is comprised of four business units: Digital Products Division, Imaging Systems Division, Storage Device Division, and Telecommunication Systems Division. Together, these divisions provide mobile products and solutions, including industry leading portable computers; projectors; imaging products for the security, medical and manufacturing markets; storage products for automotive, computer and consumer electronics applications; and telephony equipment and associated applications.

TAIS provides sales, marketing and services for its wide range of information products in the United States and Latin America. TAIS is an independent operating company owned by Toshiba America, Inc., a subsidiary of Toshiba Corporation, which is a global leader in high technology and integrated manufacturing of electrical and electronic components, products and systems, as well as major infrastructure systems. Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 198,000 employees worldwide and annual sales surpassing US$76 billion. For more information on Toshiba's leading innovations, visit the company's Web site at www.toshiba.com.

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© 2008 Toshiba America Information Systems, Inc. All product, service and company names are trademarks, registered trademarks or service marks of their respective owners. Information including without limitation product prices, specifications, availability, content of services, and contact information is subject to change without notice.

Canadian Wireless Spectrum Auction Tops $4B

Mon, 23 Jun 2008 20:32:00 -0500

Surpassing most expectations, bidding on Industry Canada's wireless spectrum auction now exceeds $4 billion.

Here are the totals as of 4:00 pm today:

22.31%	Rogers Communications Inc.	$903,046,000
19.56%	TELUS Communications Company	$791,476,000
17.50%	Bell Mobility Inc.	$708,268,000
14.39%	9193-2962 Québec Inc.	$582,575,000
10.68%	Globalive Wireless LP	$432,346,000
15.55%	Other	$629,520,920
Total		$4,047,231,920

Supreme Court Rules Against BCE Bondholders

Sat, 21 Jun 2008 06:56:34 -0500

Yesterday, the Supreme Court of Canada ruled that the BCE takeover by the Ontario Teacher' Pension Plan could move forward overruling a previous Quebec court decision in favour of the BCE bondholders. The bondholders have been opposed to the deal arguing that the high price tag and heavy debt burden associated with the deal will dramatically decrease the value of their bonds.

Now, the focus will shift back towards the financial aspects of the takeover. Market conditions have changed considerably since the initial conditions of the deal were put together. The odds that all of the original players who are putting up the cash and financing the debt will proceed with the original terms are slim. Look for many more twists and turns before this deal finally closes.

Telus and GSM - Context is key

Thu, 19 Jun 2008 16:13:17 -0500

Last week, Light Reading quoted Ibrahim Gedeon the Telus CTO as saying that Telus would not entertain the idea of converting its wireless network to GSM and would instead wait for LTE. Well context is everything and Ibrahim sent the following note to Light Reading to clarify his comments:

Our discussion was of a technical nature, including my references to 2G GSM. Unfortunately, your summary of my comments has led to some confusion for those that tend to commonly associate legacy 2G GSM and 3G HSPA as one and the same.
When we spoke, I did indicate that TELUS would not implement 2G GSM as we are not giving serious consideration to alternative legacy wireless technologies. The TELUS network already covers approximately 80% of the Canadian population with high speed wireless on our 3G EVDO Rev A technology platform. To be clear, we continue to evaluate the complex issues of alternate 4G wireless technology evolution paths.

Also, as mentioned, scale is important to a Canadian wireless operator such as TELUS within the greater North American or global context. Given this, we are of course watching moves by our large U.S. peers in terms of their 4G technology paths. However, this does not necessarily preclude TELUS from the option of pursuing a particular technology evolution path at any point in time regardless of the timing of technology decisions of any U.S. peer.

So who knows, perhaps GSM will play a role at Telus at some point.

Telus to Skip GSM: Next Stop LTE

Wed, 11 Jun 2008 07:45:20 -0500

In an interview with Light Reading, Ibrahim Gedeon Telus' CTO, has indicated that Telus will not be converting its CDMA network to GSM. In addition, the article suggests that Telus will skip an interim 4G step and move directly to LTE.

Ibrahim suggested that Telus won't begin the technology conversion until Verizon, by virtue of its purchasing power, steps up and makes the technology affordable "Telus alone is too small to define a market," he says.

Net Neutrality Rally on Parliament Hill - May 27th

Mon, 12 May 2008 05:38:23 -0500

Canadians, fed up with the tactics of some Internet Service Providers are starting to organize and are becoming more vocal in support of Net Neutrality.

A Net Neutrality Rally on Parliament Hill is planned for May 27th.

The early list of participants includes:

Michael Geist - http://www.michaelgeist.ca/
Charlie Angus - http://www.charlieangus.net/
CIPPIC - http://www.cippic.ca
Campaign for Democratic Media - http://www.democraticmedia.ca
TekSavvy Solutions - http://www.teksavvy.com
National Union of Public and General Employees - http://www.nupge.ca
National Capital Freenet - http://www.ncf.ca

For those of you interested in learning more about Net Neutrality, why Canadians are concerned, and what action you can take visit Campaign for Democratic Media!.

In a truly competitive market, consumer demand would influence the quality and cost of Internet services. If Internet Service Providers introduced traffic shaping or volume based pricing models, competitors would offer an alternative to which consumers would switch. The ISPs would have no choice but to modify their anti-competitive practices. Unfortunately, that is not the situation we are have in Canada. For many Canadians there are few, and in many situations, no alternatives. Canadian society allows monopolies because the benefits usually outweigh the resulting lack of choice. In return, the monopolies have a responsibility to consider the wishes of their Canadian consumers. If ISPs arrogantly flaunt consumer demand, then it is the responsibility of regulators to prevent the monopolies from imposing anti-competitive and anti-innovative tactics.

Vonage Results - Revenue Up - Growth Slows

Fri, 09 May 2008 06:11:07 -0500

Vonage announce yesterday that its revenue had grown 15% for Q1 2008 and that customer growth was 30,000 compared to 56,000 for the previous three months. The company narrowed its loss to $9 Million for the period.

Vonage also announced a deal with Covad that will allow Vonage to sell broadband services.

I maintain that in order for Vonage to thrive, that it must enhance its telephony service with complimentary and innovative services that will makes its offerings more compelling and their customers more loyal.

Telus Revenue up 7%

Fri, 09 May 2008 05:41:07 -0500

Telus Corp.is reporting a 7% increase in revenue in its first quarter. Factoring in a $173 million expense that was added to the financial statements due to a change in Telus’ share option plan last year, profits were up 49% over the same period last year.

Without the adjustment, profits actually dropped 4% for the quarter. Profits were down 27% compared to the last three months of 2007 when a tax adjustment partly accounted for a net income of $400.1 million.

Darren Entwistle, TELUS president and CEO said, “first quarter results were driven by strong data growth in both the wireless and wireline business segments. This growth and our cash flow enable TELUS to continue returning value to shareholders whilst investing in the long-term success of our company.”

“Based on today’s results, we are reaffirming TELUS’ full year 2008 financial and operating targets announced last December,” added Mr. Entwistle. Robert McFarlane, TELUS executive vice-president and CFO, said, “TELUS successfully accessed the unsettled Canadian capital market in April with the issue of $500 million of 5.95% long-term notes. Placing these seven-year notes reflects our strong investment grade credit ratings and further increased the considerable strength of the TELUS balance sheet in advance of the upcoming AWS wireless spectrum auction.”

Download the full report

Q12008QuarterlyReport.pdf