Delivering VoIP – A Better Model Bundling with Carrier Partners for Single Service Solutions Lisa Graham General Manager, Wholesale Services
Covad at a glance <ul><li>Founded in 1996 </li></ul><ul><li>Headquartered in San Jose, Calif. </li></ul><ul><li>Publicly traded on the AMEX under the ticker symbol DVW; recently announced its intention to be acquired by Platinum Equity </li></ul><ul><li>Owns and operates the only nationwide DSL broadband network in the U.S. </li></ul><ul><li>Focused on voice and broadband communications for small and medium business (SMB) </li></ul><ul><li>Broadband partner to many of the nation’s largest ISPs and communications companies </li></ul><ul><li>California’s largest fixed-wireless provider for businesses </li></ul><ul><li>730 dedicated Covad employees </li></ul>Covad is a leading nationwide provider of broadband voice and data communications
Rocky year for some VoIP providers “ The biggest problem facing Vonage is its inability to keep up with its competitors. Many broadband providers like Comcast, Time Warner, and Cox offer a digital telephone service and the convenience of bundling services such as Internet access, cable TV, and phone services.” -Travis Hudson, PC World, December 18, 2007 “ Skype is in no way capable of providing enterprise-grade services . Where is the 24/7 enterprise customer service? Management portal? Integration with corporate telephony gear? Non-proprietary security? Service-level agreements (SLA)? Skype hasn't built its service for enterprises, so business users shouldn't be upset when it doesn't meet expectations.” -Robin Gareiss, Network World, August 21, 2007 “ The consumer markets have seen fierce competition emerging from cable industry or “over-the-top” providers (represented by well-publicized names such as Skype or Vonage). In the large enterprise space, major industry consolidations have raised the levels of competition dramatically . So, the telephone companies have been distracted and have not been aggressively selling IP telephony to small businesses.” -David Yedwab, Telephony Online, March 26, 2007 What is the real issue here?
The missing link? Current model A better model Quality of service Broadband options Packet delivery Customer support Single-service solution Best effort, minimal control over quality of service Consumer-grade DSL/Cable designed for data or channelized T1 Voice and data packets are mixed Customer support usually designed for data, not voice services ‘ BYOB’ Voice traffic prioritized throughout the network Business-class dedicated DSL or T1 built to support voice Minimized packet loss, maximized network utilization, reduced jitter Dedicated customer support that is voice and data aware Bundled single-service solution
For the techies in the audience How Voice Optimized Access Works DSLAM ATM Switch B-RAS Customer Premises Soft switch NID ATM Switch Partner Voice Network Elements Media Gateway VoIP Data VoIP Line Internet voice data Physical Connection IAD Optional: Router in place of IAD with IP Phone or IP-PBX attached Level 3 or Partner Network Elements PSTN Covad Network ABR VBR-RT
The industry is responding VOA growth surpassed overall VoIP growth* *Sources: Gartner, Forecast: Enterprise Network Services, United States, 2005-2011 June 2007 and Covad company data VoIP Growth – 77% VOA Growth – 197% 2006 2007
Premier network of strategic partners CommX Bandwidth.com NetStar Communications, Inc. Glowpoint, Inc. LightWave Communications Primus Telecommunications airBand Communications Vocalnet, Inc. Thinking Phones Networks Broadweave Data New Global Telecom DynaLink Communications, Inc. Network Billing Systems Preferred Long Distance Silicon Connections Reallinx, Inc.
Case Study #1: CommX <ul><li>VoIP provider to small and medium businesses enhances voice </li></ul><ul><li>solutions with the deployment of Covad VOA </li></ul><ul><li>CommX credits Covad VOA with its VoIP solutions’ premier quality of service. </li></ul><ul><li>Running its voice services over Covad VOA results in a superior voice prioritization to traditional voice services for CommX </li></ul><ul><li>These customers include: </li></ul><ul><ul><li>mortgage brokers </li></ul></ul><ul><ul><li>real estate agents </li></ul></ul><ul><ul><li>retailers </li></ul></ul><ul><li>Bottom Line: VOA accounts for 50% of CommX’s </li></ul><ul><li>product line revenue </li></ul>
Case Study #2: Bandwidth.com <ul><li>Bandwidth.com employs VOA to power its VoIP offerings to customers </li></ul><ul><li>with nationwide, multi-site locations </li></ul><ul><li>Bandwidth.com uses Covad VOA as a platform for its VoIP products </li></ul><ul><ul><li>Hosted and SIP Trunking </li></ul></ul><ul><li>Target customer base composed of SMBs, specifically those with multi-site locations and remote workers. </li></ul><ul><ul><li>e.g. construction companies with temporary and mobile work sites </li></ul></ul><ul><li>Utilizes VOA Hosted and SIP Trunking VoIP solutions as the only way to ensure voice quality. </li></ul><ul><li>Deployment of Covad VOA has resulted in a 90% decrease in the number of voice quality trouble tickets received. </li></ul>
Case Study #3: Glowpoint, Inc. <ul><li>Nationwide video services provider uses Covad VOA to power </li></ul><ul><li>advanced two way video applications </li></ul><ul><li>VOA enables Glowpoint to provide ~ 30% of its clients with feature rich video services. </li></ul><ul><li>Customers include: </li></ul><ul><ul><li>professional sports entertainment </li></ul></ul><ul><ul><li>healthcare providers </li></ul></ul><ul><ul><li>law firms </li></ul></ul><ul><li>A unique implementation of VOA </li></ul><ul><li>VOA powers video solutions for customers: </li></ul><ul><ul><li>videoconferencing, bridging, technology hosting and IP-broadcasting services… </li></ul></ul><ul><ul><li>Anytime, anywhere video collaboration services with unlimited usage </li></ul></ul><ul><li>X-Optimized Access (XOA) – VOA for a non-voice application </li></ul>
Platform for future growth <ul><li>X-Optimized Access (XOA) </li></ul><ul><li>Definition: XOA has all the features and benefits of Voice Optimized Access with the flexibility of non-voice applications </li></ul><ul><li>Benefits and uses of XOA for the service provider </li></ul><ul><li>Leverages a unique access offering to power solutions with Quality of Service requirements </li></ul><ul><li>Maximizes revenue and profit potential of existing network assets </li></ul><ul><li>Simplifies adoption by service providers by allowing them to utilize XOA in their own way </li></ul><ul><li>Provides flexibility with future changes to VOIP deployments (i.e. Sip-Trunking) </li></ul>
Questions Lisa Graham General Manager, Wholesale Services [email_address]