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THE PULVER REPORT(TM) Provided by: pulver.com, Inc. The November 17, 1998 Issue: RE-SENDING OF THIS NEWSLETTER TO ANY NUMBER OF COLLEAGUES IS ENCOURAGED ON A ONCE-PER-USER BASIS, PROVIDED YOU ALSO CC: REPORT@PULVER.COM; IN RETURN, WE WILL PROVIDE RECIPIENTS WITH A SUBSCRIPTION. YOU CAN ALSO VISIT http://pulver.com/reports TO SUBSCRIBE. TO UNSUBSCRIBE, PLEASE E-MAIL: LISTADM@PULVER.COM, PUT 'REMOVE' IN SUBJECT. ANY OTHER UNAUTHORIZED RE-DISTRIBUTION IS A VIOLATION OF COPYRIGHT LAW. --------------------------------------------------------------------------- In this issue: - Heard on the Net - IP Telephony JOBS - What COLOR is your IP Telephony Parachute? - Firewalls and H.323 - A Call for HELP! - 1999 NextGen Telco Trends: Numbering Plans and Settlement Services - Level 3 and Bellcore Announce MGCP: The Media Gateway Control Protocol - Bandwidth as a Commodity / Update on The Minutes Exchange - November, 1998 IP Telephony Spot RATES - SS7 Myth #1 - "My Product SUPPORTS SS7" - IP PBX Marketplace HEATS up - IP Fax Industry - Great Opportunities for 1999 and Beyond - Enterprise Opportunities for IP Telephony - IP Telephony Gateway User Group Meeting: December 10, 1998 at JFK - Update: Spring '99 Voice on the Net - Next Meeting of the IP Telephony MoU - December 11th at JFK Hilton - Call for Discussants: Sophia Antipolis II - Issues Effecting the Widespread Deployment of Gateways - pulver.com 1998/99 Conference/Workshop Calendar ---------------------------------------------------------------------- Heard on the Net Company News -------------- The past month has been a busy one in the IP Telephony Industry. Some of the companies making news include: - Hewlett Packard and Lucent Technologies recently announced they plan to integrate Lucent's network solutions and HP's telecommunications computing platforms to provide value-added voice services to data networks. They will accomplish this by integrating elemedia's H.323 Gatekeeper software into the HP Opencall Intelligent Network (IN) platform. ( http://www.hp.com ) ( http://www.lucent.com ) ( http://www.elemedia.com ) - Selsius/ Cisco - Cisco purchased Selsius for US$ 145 Million. I knew that Selsius had a cool product when it was first demonstrated to me in my kitchen back in September, 1997. ( http://www.selsius.com ) ( http://www.cisco.com ) - Lucent's IP Exchange System - Lucent Technologies recently announced their own IP based PBX. Just as Lucent's entry into the IP Telephony Gateway marketplace in September, 1996 was a significant milestone for the industry at that time - this announcement by Lucent is just as significant for the IP Based PBX (iPBX) industry in 1998. ( http://www.lucent.com ) - Vocaltec and Cisco announce plans for H.323 version 2.0 Interoperability between their IP Telephony products. Field trials are planned for Q4 1998, with product availability expected in the first half of 1999. ( http://www.vocaltec.com ) ( http://www.cisco.com ) - Bellcore and Level 3 - Level 3 and Bellcore recently got together and merged IPDC and SGCP to create MGCP. ( http://www.bellcore.com ) ( http:///www.level3.com ) - VIP Calling - VIP Calling recently has made a series of announcements related to the expansion of their business. - US$ 10 Million dollar purchase of Cisco Equipment for their International Network - IGC Netcom and VIP Calling announce co-operative Agreement for Minute Termination. - DACOM International will terminate VIP Calling Calls into Korea October, 1998 was a pretty busy one for the announcement of Strategic Relationships. Some of the recent Strategic relationships announced include: - Access Power and Worldstar of Ghana - VIP Calling and DACOM International - Eicon and .comfax and Net2Phone - FaxSav and GTC Telecommunications - IDT and 1-800 Flowers - Pulsecom and IPAXS - IDT and Capcom S.A. - OzeMail Interline with Teltran and Pacific Gateway Exchange - PSINet and Wang - Big Planet and Aplio - Shiva and Clarnet - XACCT and Kenan - Dialogic and Sun Microsystems - Vocaltec and Fujitsu - FaxSav and InfoCom Systems - 01 Communique Laboratory and E-Tech - Siemens and GRIC - AT&T and Cisco For daily news updates regarding the Internet Telephony Industry please visit http://pulver.com/news --------------------------------------------------------------------- IP Telephony Jobs As I have written before, from time to time companies approach me asking whether I know of any individuals well versed in some aspect of IP Telephony to fill gaps in their management team. Many of these companies like to use the Voice on the Net Conference as the venue for meeting potential candidates. In order to help foster this activity, we have created the IP Telephony Jobs website at http://pulver.com/jobs The headlines to any of the positions posted to IP Telephony Jobs will be reproduced in the Pulver Report. Here's our current batch: - Venture backed Silicon Valley early stage start up in VoIP: VP Marketing - Fortune 50 Telecom Company: VP of Sales - IP Telephony Products and Services - GTE Internetworking: Area Sales Manager(s) - GTE Internetworking: Senior Channel Manager - GTE Internetworking: Product/Service Line Manager - Ascend: Senior/Principal Software Engineers - VoIP - AT&T: IP Telephony Product Manager - Glocal Media Concepts: IP Telephony Product Manager - ITXC: Billing Developer - ITXC: Senior IP Telephony Service Platform Developer If you are interested in pursuing any of these positions, just visit the website for full details. If you would like to post a job opening, the fee is US$500 per month per listing. Feel free to e-mail: jobs@pulver.com ---------------------------------------------------------------------------- What Color is your IP Telephony Parachute? What Color is your IP Telephony Parachute? Quick - are you 100% sure you know the business that you are in and the products and services that your company is selling? What about the people directly responsible for selling these services and servicing your customers? During the past three years as the IP Telephony Industry has been growing, quite a few companies - both large and small - have been changing directions as a means to stay ahead of the competition and in some cases have fallen into classic traps which waste time and create distractions. Sometimes it is an issue of Market focus. This has been the case for some of the PC based Gateway vendors who write the software applications that are Gateways and Gatekeepers. Are these vendors expected to be selling the enabling software and rely on others to build the necessary equipment or does the company themselves have to purchase PCs in bulk, configure the machines and send the completed bundle out the door to help close a sale? Do these companies believe they are in the hardware or software business? Sometimes it is an issue of Market Direction. "Do we focus on selling to Carriers or to Enterprises?". While some companies may be able to do both, many can't. These kinds of issues start to divide a company at the very time when they need to be operating at peek efficiency in order to keep their competition at bay while at the same time preparing for the next battle. The winners and the losers of the IP Telephony Industry will be those companies which are best able to adopt to new challenges while being able to stay focused and deliver solutions that their core customers are looking for. ---------------------------------------------------------------------------- Firewalls and H.323 - A Call for HELP! As VON Technologies are deployed across multiple Intranets and LANs, Enterprise users will require immediate support of H.323 Gatekeeper router call setup. Service providers are finding that the lack of H.323 Gatekeeper support from the leading Firewall vendors have proven to be a showstopper for running H.323 across multiple IntraNets and LANs. Ivar Plahte, Director of Telecom over IP, of Telenor Nextel writes: "Currently, in our pilot project with our major Norwegian oil customer, the missing support of H.323 GK router call setup across both Cisco's and Checkpoint's firewalls has proven to be a showstopper for running H.323 across multiple Intranets/LAN. The reason is that with direct PC-PC call setup you must configure the firewall to allow ALL your PCs on the Intranet/LAN to accept direct UDP/TCP socket setup requests from ALL PCs on the Internet on the appropriate H.323 assigned ports. If you do this you may just as well remove the firewall. On the other hand, if you consider the GK in the ISP domain a trusted element, the PCs on the Intranet/LAN only needs to receive call setup signaling from this trusted GK, which pretty much removes the security risk." In order for Multimedia Telephony to grow, the security problems which are referenced above should be handled by all of the leading firewall vendors. ---------------------------------------------------------------------------- 1999 NextGen Telco Trends: Numbering Plans and Settlement Services Look for NextGen Telcos to start announcing their own in-country numbering plans for IP Telephony Calls. To date I am aware that both Telenor Nextel and Glocalnet have been assigned their own numbering plans and I'm sure that quite a few other NextGen Telcos have applied for their own numbering plans as well. This is a good first step in empowering NextGen Telcos with "Equal Access". A great follow up step will be the widespread, multi-vendor availability of Carrier-Grade solutions which offer single-stage dialing and have the intelligence to detect and route: Voice Calls, Fax Calls and Modem/Data calls separately. In 1999 I expect that some NextGen Telcos, as well as the "IP side" of established Service Providers / PTTs will announce their own Settlement and Clearing House Settlement services. This should create a boon for some software vendors. ---------------------------------------------------------------------------- Level 3 and Bellcore Announce MGCP: The Media Gateway Control Protocol At Fall '98 Voice on the Net, I had heard that the teams working on IPDC and SGCP would be getting together and would be formally announcing MGCP (sometime soon), which made a lot of sense to me, given the roots of each of these protocols. In fact, Level 3 and Bellcore recently announced they have merged what was IPDC and SGCP into what is now known as: MGCP - "Media Gateway Control Protocol". MGCP has been submitted to both the IETF and ETSI TIPHON working groups for review. MGCP enables external control and management of data communications equipment operating at the edge of NextGen networks...the communication between: Media Gateways and Call Agents / Media Gateway Controllers. The MGCP specification is available without a fee to both service providers and hardware and software vendors interested in implementing it in their networks and equipment. ---------------------------------------------------------------------------- Bandwidth as a Commodity / Update on The Minutes Exchange In the new Digital Economy, it is just a matter of time before Bandwidth becomes a commodity which is traded by Wall Street brokers. Right now companies like Band-X ( http://www.band-x.com ) and Rate Exchange ( http://www.ratexchange.com ) have been brokering bandwidth on the Internet since 1997. After speaking with some of my friends who are still working on the Street, I'm willing to bet that within the next twelve to eighteen months some of the major commodity trading firms will strongly consider launching their own Bandwidth brokering desks. When I used to work on Wall Street at Cantor Fitzgerald Securities, we relied on a private customer network which cost millions of dollars a year to maintain and support. By leveraging the power of the Internet - Min-X.com - "The Minutes Exchange" was able to launch what my peers on the street would call a "inter-dealer" brokering system - without the capital needed to supply private trading screens to each of the endpoints. By relying on the Net I was able to launch a private trading system where customers can directly enter their deals without needing to contact a broker to enter their deal information for them. The primary purpose of The Minutes Exchange is to help accelerate the growth of the IP Telephony Minutes marketplace by providing a forum for Buyers and Sellers of IP Telephony Minutes to get together and do business. During the past month, I have found it very interesting watching the Minutes Exchange evolve and the trading screens become populated with IP Telephony routes. With special thanks to the Internet Telephony Service Providers (ITSPs) who have been providing price support for the trading screens, last week I was able to launch the first of the planned virtual trading screens, the "IP Telephony Minutes" screens up at http://pulver.com/min-x Members of the Minutes Exchange are currently using IP Voice equipment from the following vendors: ACT Networks, Cisco, Clarent, Ericsson, Inter-Tel, Lucent, Nuera, NeTrue, OzTel and Vocaltec. The screens are presented with two views - (a) sorted by destination by vendor and (b) sorted by vendor by destination. Knowing the vendor of the equipment for IP Telephony is critical since there is very little interoperability between IP Telephony Gateway products that are currently in production. The information which is entered for each listed deal includes: The Offering Price from the Seller and/or the Bid Price from a prospective Buyer. While QoS levels associated with the different routes / service providers are not currently being being objectively ranked yet, deals which are entered have their relative QoS indicated by having the deal originator specify the IP connection type to the Gateway: Public Internet, Leased Line or Private Peering. There are two levels of user status at The Minutes Exchange: (1) Registered User of the Minutes Exchange. All that is needed is for somebody to completely fill out the information requested at http://pulver.com/min-x/register.html. (2) Members of the Minutes Exchange. Companies which wish to become Members of The Minutes Exchange need to first register, and then fill out a Membership Application at http://pulver.com/min-x/member.html . At this point I'm currently working on the launch of the second virtual trading desk - the "Switched PSTN Minutes" desk. Carriers and Telecom resellers interested in putting asking prices on our Switched PSTN Minutes trading screens, after applying for Membership in the Minutes Exchange just have to download our Min-X Pricing Excel spreadsheet from http://pulver.com/min-x/pstn.XLS and email it back to pstn@pulver.com I'm currently targeting our 2nd virtual trading desk for Switched PSTN Minutes to be going live during December, 1998. Please feel free to drop by http://pulver.com/min-x if you are interested in buying or selling Minutes. ---------------------------------------------------------------------------- November, 1998 IP Telephony Spot Rates source: The Minutes Exchange ( http://pulver.com/min-x ) (Prices are in US$ Dollars) Terminating IP Telephony Country Spot Rate =========================================================== Brazil .15 China .29 Hong Kong .06 Jordon .30 Latvia .14 Malaysia .10 Singapore .10 South Korea .20 Switzerland .12 Taiwan .20 ----------------------------------------------------------------------------- SS7 Myth #1 - "My Product Supports SS7" These days it is hard to find a vendor in the IP Telephony Industry who doesn't plan on supporting SS7. This is the good news. But when a customer is evaluating different products and is looking to find out if a given product supports SS7 - it isn't enough for a prospective customer just to ask if a product supports SS7 - the question to ask the vendor is more like "whether the SS7 stack in a particular product is used in a network interconnected with a particular carrier's network." The answer it will vary by central office switch and application. According to Mona Johnson, Executive Director, Intelligent Network Forum ( http://www.inf.org ) - "The issue is more complex than asking how many versions of SS7 there are in a country. The network switch used (Lucent, Nortel, Siemens, Alcatel, Motorola, etc.) will affect the SS7 flavor, as will the particular application SS7 is being used for. Carriers will conduct testing and certify a particular interconnection, but there's not necessarily a formal vendor certification process." Jeff Lawrence, CEO of Trillium Digital Systems ( http://www.trillium.com ) recently dropped by my office on Long Island and while talking to him, while he wasn't sure if Brazil had 13 or 14 versions of SS7 - he did confirm that local in-country homologation issues for SS7 are real and should not be taken lightly. For those of you not familiar with Jeff's work, Jeff is the CEO and co-founder of Trillium Digital Systems, one of the leading providers of communications software solutions for computer and communications equipment manufacturers. His company has licensed its source code to many of the leading companies involved in the telecommunication industry. For those of you interested in Intelligent Network (IN) issues, you may want to consider attending the INF Workshop, "The Intelligent Network and Internet Protocol" on January 25-26, 1999 in Orlando, Florida which pulver.com is sponsoring. Details regarding the meeting are available on the INF Website - http://www.inf.org -------------------------------------------------------------------------- IP PBX Marketplace Heats up The recent purchase of Selsius for US$ 145 Million by Cisco, and Lucent's recent announcement of their own IP Based PBX their "IP Exchange Systems" has brought additional attention to a portion of the IP Telephony Industry which I believe will start to gain significant momentum during 1999. In 1999, IP based PBX solutions should start to become scalable and typical installations will be between 500 - 2000 seats. Look for IPBX (Incumbent PBX) vendors without an iPBX (internet PBX) strategy, to start reacting to having their very existence threatened and will take steps which reflect their reactions to living in a "disrupted" world. A few months ago I started tracking IP Based PBXs on the Gateway page at pulver.com - http://pulver.com/gateway. For those of you tracking IP based PBX vendors, in addition to Selsius ( http://www.selsius.com ) and Lucent ( http://www.lucent.com ) I'm aware of: NetPhone - ( http://www.netphone.com ), Shoreline Teleworks - ( http://www.shoretel.com ), NBX - ( http://www.nbxcorp.com ), Praxon - ( http://www.praxon.com ) , Calista ( http://www.calista.com ) and Touchwave - ( http://www.touchwave.com ). If you are familiar with additional iPBX solutions, please feel free to email me so I can add the company to my personal watch list. ------------------------------------------------------------------------- IP Fax Industry - Great Opportunities for 1999 and Beyond Fax on the Net '98 took place in November, 1998 in Amsterdam. Copies of the slides from Fax on the Net '98 are available at http://pulver.com/fax98 Looking at the IP Fax Industry as compared to the IP Voice Industry, QoS concerns are no longer a significant issue, the IP Fax Industry has no real reason to worry about an overbearing threat of regulation and interoperability between equipment vendors is not an issue either. In other words, the technology works and now is a great time for service providers to consider offering high-end IP Fax services. IP Fax is the first of the "X over IP Services" that Service Providers have started rolling out. Over the next 6-12 months look for PTTs and Service Providers to start launching new IP based Fax services. -------------------------------------------------------------------------- Enterprise Opportunities for IP Telephony Back in October, 1998 I produced a two day workshop in London entitled "IP Telephony Solutions for the Enterprise". Presentations from that workshop are available up at http://pulver.com/solutions. After speaking with the Enterprise delegates who attended Fall '98 VON and the delegates who attended the workshop in London I confirmed my feeling that opportunities for IP Telephony in the Enterprise really is huge, but right now one of the biggest competitors for sales into the Enterprise is ignorance. I believe that the Sales Channels which vendors will choose to use to sell IP Telephony products into the Enterprise are critical choices. When dealing in a "Disrupted" environmnet, I'd suggest looking to new (and different) sales channels. Once an Enterprise decides to go forward with IP Telephony, one of the biggest issues facing deployment within the enterprise is the mindset of "Best Efforts" telephony vs "99.9999%" reliability. Will CLECs be the ones who sell IP Telephony solutions to the Enterprise or will IT/IS departments decide that they want to take advantage of these enabling technologies to control their future investment in Telecom and do things themselves? >From my perspective, the best opportunities to sell IP Telephony solutions to enterprises exist when the established Telecom manager leaves and responsibility for Telecom shifts to the IT/IS department. ---------------------------------------------------------------------------- IP Telephony Gateway User Group Meeting: December 10, 1998 at JFK On December 10th at the JFK Airport Hilton in New York pulver.com will be holding a meeting for owner/operators of IP Telephony Gateways at a workshop which we are calling the "IP Telephony Gateway User Group Meeting". This one day meeting is a forum targeted towards current owners/operators of IP Telephony Gateways, as well Service Providers who plan to be deploying these technologies over the next 6-9 months to get quick updates from: IP Telephony Gateway Vendors, IP Telephony Accounting/Billing Solutions and IP Telephony Clearinghouse and Settlement companies. While I'm currently tracking 49 vendors who are selling Gateway products, for this workshop I invited the eight vendors who had customers represented on The Minutes Exchange ( http://pulver.com/min-x ). As such, I have invited speakers from: Vocaltec, Cisco, Clarent, Lucent, Inter-Tel, Nuera, Ericsson and NeTrue to discuss their Gateway/Gatekeeper products. I've also invited: Portal, Amdocs, Mind CTI, Kenan to talk about their IP Telephony Billing Solutions, and I invited: ITXC, Transnexus, AT&T Global Clearing, GRIC and Arbinet to talk about their Clearing House and Settlement services. Bruce Jacobs from Fisher Wayland will be giving a year-end recap on current Regulatory Issues. Seating for this workshop will be limited to 75 people. If you are interested in attending, I would suggest registering early to assure yourself a seat. More information is available at http://pulver.com/iptel98 ----------------------------------------------------------------------------- Update: Spring '99 Voice on the Net Spring '99 Voice on the Net will be taking place April 13-16, 1999 at the Rio Hotel in Las Vegas. I am currently reviewing the submitted speaking proposals and will be posting a draft of the conference schedule the week of December 14, 1998 up at http://pulver.com/von99 Just as a reminder, November 18th is the final date for the Call for Speakers. On April 13th we will be offering five pre-conference workshops: - The NextGen Telco Summit - Spring '99 Fax on the Net - IP PSTN/Gateways, Gatekeepers and IP Billing Solutions - Building the IP Central Office - IP Telephony Billing Summit At the Rio Hotel the exhibit floor is 10,000 sq ft and we have room for 130 booths. As of this date - November 17th the exhibit floor is over 70% full. If you are thinking about exhibiting and have not yet contacted the office for a contract - please feel free to drop by http://pulver.com/von99/exhibit.html and fill out the exhibitor form. ----------------------------------------------------------------------------- Next Meeting of the IP Telephony MoU - December 11th at JFK Hilton The next meeting of the IP Telephony MoU will be held on Friday, December 11th at the JFK Airport Hilton which is located at JFK Airport. The meeting is scheduled to run from 10:00 AM - 4:00 PM. Meeting Location: ------------------ JFK Airport Hilton 138-10 135th Avenue Jamaica, New York 11436-2102 Tel: 1/718/322-8700 Fax: 1/718/529-0749 Based on the feedback received to date, items which I have on the agenda include: * Update on ETSI TIPHON Activities * Update on the SGCP / IPDC work * Update on VoIP Forum Activities * Presentation on emerging Network traffic standards focused on providing QoS such as MPLS If you are planning on attending the meeting, please feel free to email additional items that you would like to have added to the agenda. You can register for the meeting from the MoU website at http://pulver.com/mou/register.html ----------------------------------------------------------------------------- Call for Discussants: Sophia Antipolis II - Issues Effecting the Widespread Deployment of Gateways I'm looking for Discussants to join us for a day and a half no holds barred meeting which is tentatively scheduled for February 17/18 1999, in Sophia Antipolis, France (near Cannes) for a meeting which will be taking place in the World Congress Room at ETSI Headquarters. This time around the theme is "Issues Effecting the Widespread Deployment of Gateways" and I'm looking for a balance of Service Providers and Equipment vendors who are interested in participating at this meeting. If you are interested in participating in this meeting or would like to nominate somebody that you know to participate, please feel free to contact me directly using email. ----------------------------------------------------------------------------- pulver.com 1998/99 Conference/Workshop Calendar December 10 - IP Telephony Gateway User Group Meeting - JFK Hilton, NY ( http://pulver.com/iptel98 ) December 11 - IP Telephony MoU meeting - JFK Hilton, NY ( http://pulver.com/mou ) December 10/11 - Minutes Exchange Dealer Meeting - JFK Hilton, MY ( http://pulver.com/min-x ) January 16-18, 1999 - PTC '99 - Hilton Hawaiian Village, Honolulu, Hawaii. pulver.com will be exhibiting and attending PTC '99. If you are planning on attending and would like to schedule a meeting with Jeff Pulver, please e-mail: ptc99@pulver.com January 25-26, 1999 - The Intelligent Network Forum and pulver.com is holding a Demo and Workshop, The Intelligent Network and Internet Protocol in Orlando, Florida ( http://www.inf.org ) Feb 3-4 '99 - Internet Telephony Solutions for Call Centers - Dallas, TX during Call Center '99 ( http://www.callvoice.com/ccus99/home.html ) February 17-18, 1999 - Sophia Antipolis II - "Issues Effecting the Widespread Deployment of Gateways". April 13-16 '99 - Spring '99 Voice on the Net - At the Rio Hotel in Las Vegas, Nevada. ( http://www.pulver.com/von99 ) *** June 21-24 '99 - Voice on the Net Europe '99 - Helsinki, Finland. Sept 27-30 '99 - Fall '99 Voice on the Net - Atlanta, GA ----------------------------------------------------------------------------- If you are aware of others who would like to receive this service, please forward this entire message to them and cc: report@pulver.com They will automatically receive a subscription. To discontinue your subscription please e-mail: listadm@pulver.com and put REMOVE in the subject. Please send your comments and feedback regarding this issue of The Pulver Report to jeff@pulver.com. Your suggestions for topics to be covered for future issues would be greatly appreciated. Jeff Pulver Tel. +1.516.753.2640 The Pulver Report Fax. +1.516.293.3996 November 17, 1998 (c) 1998 pulver.com, Inc. http://www.pulver.com/reports
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