Verizon and AT&T Greenlight VoIP. What’s next?

On October, 6 AT&T announced it has taken the steps necessary so that Apple can enable VoIP applications on iPhone to run on AT&T’s wireless network. Previously, VoIP applications on iPhone were enabled for Wi-Fi connectivity. This news came along with the announced strategic partnership between another US carrier – Verizon Wireless – and Google. Verizon is to offer Google Voice service on a range of Android-based handsets.

Why are these two events important and what the mean for the whole VoIP industry?

These both events seem to be the reaction of two US telecom industry giants on the recent FCC announcement about their plans to enforce net neutrality rules on wireless and wireline networks. But in fact FCC statement was just a "trigger" for both carriers to open their networks for third-party VoIP operators. AT&T and Verizon played the “block”-game as long it was possible, in the meanwhile developing own IP-based multimedia services. U-verse by AT&T combines TV with 110 HD channels, high-speed Internet, and digital home phone service. FiOS by Verizon is a bundled communications service, operating over a fiber-optic communications network and providing Internet, telephone, and TV. With the new agreement Verizon together with Google will be able to promote VoIP accessibility on Verizon network keeping carrier's subscriber base (as of 2009 the number of homes with FiOS availability was 12.7 million). Both business models offer carriers customers more than “just VoIP” offered by Skype.

The situation with the major US carriers is very similar to the last year developments in South Korea, when the Korean Communications Commission stated the VoIP number portability between PSTN and VoIP service providers. This statement allowed Korean fixed line users switching to VoIP-based packages from alternative operators while retaining their fixed line number and even created a special numbering capacity for VoIP service providers, just like for regular mobile operators. The attractive VoIP payment plans resulted in migration of 1.2 million subscribers from Korea Telecom (leading Korean fixed line operator) in a year after the service launch. To stop this mass migration Korea Telecom introduced a SoIP (services over IP) strategy that integrated VoIP and multimedia services to provide subscribers with video calling and data transfer as well as voice over IP, as a differentiated premium service. SPIRIT contributed to the SoIP strategy success with its carrier-grade Voice&Video Engines used in PC, mobile and embedded devices and applications for audio and video processing in IP video communications. After the launch of attractive high-quality IP services Korea Telecom managed to stop subscribers flow-out.

This case clearly demonstrates what carriers can do to protect subscribers and revenues – introduce own VoIP services inside own networks, under own brand, within own billing.

To support the telecom industry in faster rollout of successful IP-services and branded connected devices, SPIRIT is pleased to offer its carrier-grade voice and video processing technology. SPIRIT terminal VoIP solutions are the core technology for carriers’ IP multimedia services with real-time communication feature. This software complements and amplifies network QoS tools at the terminal side and directly influences service perception by end-users.

Carefully optimized SPIRIT’s cross-platform Voice&Video Engines are already used in the whole range of IP-services by world’s leading telecom operators, including Korea Telecom, British Telecom, China Telecom, LG-Dacom and multiple other SPIRIT respectful customers.

With SPIRIT’s software telecom operators can implement not only peer-to-peer communication services, but outperform Skype in functionality by offering high-quality multi-user videoconferencing over both wireline and wireless networks.

About SPIRIT

SPIRIT DSP (www.spiritDSP.com) is the world's leading provider of carrier-grade voice & video software engines since 1996. SPIRIT communication software is used in over 80 countries and powers more than 100 million voice channels. SPIRIT counts among its direct customers Adobe, ARM, AT&T, Blizzard, BT, China Mobile, Cisco, Ericsson, HP, HTC, Huawei, Korea Telecom, Kyocera, LG, Microsoft, NEC, Oracle, Polycom, Radvision, Samsung, Siemens, Skype, Texas Instruments, Toshiba, ZTE, and 200+ other telcos, OEMs and software vendors. SPIRIT smart-phone OEM customers' shipments jointly exceed 60% share of the global market.