iStart: Why are businesses implementing VoIP rather than sticking to the traditional telecoms methods?
Cecil Alexander: The answer is simple; for the most part it is about cost. VoIP users save money on tolls, access lines and value-add services. Businesses that are considering a new PABX or Centrex implementation also save a significant amount of money on equipment and annual third party support.

A quick example of the savings is that you are probably paying at least 10 cents per minute for national calls. With our VoIP service, you pay only 5 cents. That is a 50 percent saving right there. Also, businesses can save money on support. Generally, they will have a contractor to manage their LAN and a separate company that services their PABX. VoIP is basically data so the same company can support all of your IT&T requirements with a common understanding of a company’s business needs.

iStart: Most people associate VoIP with Skype or other internet calling, what is different about what you guys are doing?
CA: Ironically Skype has been the best thing for us in terms of creating awareness of voice over broadband and as a service option for the consumer. The big difference is that we are providing a true ‘fixed line’ replacement service where the New Zealand flavour of Skype has no integrated valueadd services. Skype users can be impacted by congestion out there in Internet-land, which leads to sub-standard call quality. When WorldxChange subscribers make calls, they hit our network and are routed over the dedicated voice network just like any of our traditional toll call customers. This results in call quality and reliability in line with customer expectations.

iStart: We know that many large companies have already moved to VoIP, how can small businesses gain from the technology?
CA: There are two types of access to VoIP service providers. The first is Hosted IP (IP Centrex) that can be delivered directly by the IP service provider or in conjunction with your network integration company. The other is to purchase or lease equipment that can be connected to the IP network.

With a Hosted IP service, the subscriber will connect to the VoIP Service Provider via broadband, Ethernet, wireless or fibre. There is a minimal amount of hardware required on site and the normal PABX functionality is handled in the VoIP provider’s network. Unlike traditional Centrex (hosted PABX) carrier products, small business can access the network and its functionality via a single data connection that can double as their high speed internet access rather than pay separately for broadband and each individual phone line.

Subscribers are able to manage their features on-line. From anywhere on the net, they can access their calling features as if they were at their desk. Customers have their voice mail sent to their email as a sound file in order to keep in touch with their messages no matter where they are.

The other way to take advantage of IP voice is to have your network integrator design and implement a premise based hardware solution. Some of the benefits gained here include management and security. Depending on the business requirements, it may make sense to put in a hybrid of hosted and premise based solutions. A good network integration company can be invaluable in assisting with the planning required to get the most out of the technology.

iStart: Everything has its risks, what should businesses considering this technology be aware of?
CA: It would be easy for a company to go down the traditional path of deciding what features they want, how many extensions are required in each site and write out a purchase order. With IP based voice services, this may be overkill. One of the great benefits is that customers do not need as much bandwidth or have to lease as many lines to connect to the network. Once again, the help of a good integrator can be invaluable here.

iStart:What do you think VoIP’s impact will be in New Zealand?
CA: Around the world, VoIP has already made its presence felt as both consumer and business customers embrace the technology. VoIP in itself simply offers a lower cost means of making and receiving calls with more user control than ever before. More importantly, because Voice over IP is so flexible in relation to the access method, another benefit will be realised as wireless networks crop up around the country. A user will be able to basically take their desktop phone with them wherever they travel. Our network will locate you whether you are at home or in a coffee shop in Courtney Place.

Several manufacturers are developing dual mode phones. This will turn your existing cell phone into both a mobile and a ‘roaming’ land line. Whenever you are within range of a wireless network to which you have an association, such as your office LAN or home wireless DSL router, the network will let you make and receive calls as if you were on a traditional land line. As wireless hot spots appear around the country, again the phone will behave as if you were at your desk.

When the network cannot find the phone, calls will be presented to the mobile network and routed that way. This way, subscribers can publish a single number and make their own decisions on the best or lowest cost method of receiving calls. We can even route calls over the data channel on your 3G mobile.

In short, you will no longer have to maintain a physical connection with your telecommunications service provider. We have customers that make and receive calls while overseas as if they were based right here in Auckland. At the cost of making and receiving calls as if you were in the office.

iStart: Is the new regulatory environment helping with your efforts to roll out new technology?
CA: To date, we have seen the price of broadband internet drop which is important because it is a key access method for VoIP. Consumers can now afford high speed internet and the obvious follow on is that they can reduce the cost of their telephony services while increasing the functionality.

Until the regulators put pressure on Telecom New Zealand to remove the requirement to purchase a standard phone line along with their broadband connection, we will not see broad take up of services in the SOHO and small business market. WorldxChange have been the first New Zealand telecommunications company to properly port numbers from Telecom to our network and are now able to allow customers to keep their existing numbers while taking advantage of new low cost, feature rich technology.

iStart: There are already a large number of IP PABX implementations around the country. What benefit would those companies gain from connecting to an IP network instead of the old fashioned way?
CA: Good question! Connecting directly to our IP network will reduce fixed access costs because both voice and internet can connect via the same line. In many cases at the moment, over half of the monthly phone and internet bill covers the cost of access – that is before customers ever pick up the phone or send an email.

Our IP network also puts companies on the path to a ‘true’ virtual telephone connection where they can take advantage of the core network call management and security features while at the same time enjoying the benefits of the premisebased solution and reporting as well as the new more functional telephone handsets.

And, of course, there is that same answer as before – cost. Customers can look forward to reduced access fees, toll calls cost less, business local calls cost less, land to mobile calls cost less and adding branch offices costs less.

For more information
WorldxChange Communications
www.wxc.co.nz
Ph 0800 123 456

Visit the IP Telephony Research Pavilion at istart.co.nz

May 2007