Verizon Rings Up VoIP Security Service

On June 20th Verizon Business rolled out its enhanced VoIP Security Assessment Service, supported by its team of almost 300 expert security professionals. The service addresses concerns that users may have regarding VoIP security when an increasing number of companies are deploying Internet-protocol telephony.

Recommended Competitive Responses

► Security competitors, in general, will need to monitor Verizon’s success with this VoIP security service carefully. Most can point out that VoIP is just another data application to be protected for clients and that Verizon is simply trying to capitalize on market mania and fear.

► Getronics can point out that its RedSiren unit has VoIP security options going back to October 2004, when RedSiren expanded its security solutions to cover the emerging VoIP market.

► AT&T should continue to monitor Verizon Business’ service offering and look to step up its partner efforts, such as its work with Lucent, to bring security professional services to a client’s attention for VoIP security.

► Other competitors, such as Qwest, can point out their range of existing security services and professional solutions teams, which can work with customers for a comprehensive package of security solutions for their entire network.

Recommended End User/Customer Responses

► For many end users beginning to think about VoIP security, Verizon Business’ VoIP security assessment solution is an endeavor worth considering, as enterprises have not adequately reviewed their VoIP service from a security standpoint, and in light of recent revelations of hacker mischief, such a service should be considered.

► Users should recognize that all the same data security issues apply to VoIP as their other information, and they should look into taking steps to ensure that their systems are properly protected.

Level 3 to Acquire Looking Glass Networks, Fifth Acquisition in Seven Months

On June 5th Level 3 Communications signed an agreement to acquire Looking Glass Networks, Inc., a privately held facilities-based provider of metropolitan transport services.

Recommended Competitive Responses

► Competitors in both wholesale and retail markets need to see the trend towards consolidation in the industry and either match Level 3’s zeal for acquisition, or consider being acquired themselves. The key is identifying opportunities to reach out and touch customer buildings in major metro markets, either with fiber or possibly via emerging wireless technologies.

► If Qwest has given up on another mega-merger on the order of Verizon, it should continue to acquire and grow its out of region metro access capability with deals similar to the OnFiber acquisition. But time, and opportunities, may be dwindling. Still, there are CLECs with regional metro fiber networks, such as Telepacific on the West Coast, and also fiber providers such as Phonoscope, that operate in individual metro markets..

Recommended End User/Customer Responses

► Level 3 customers do not need to be overly concerned by this acquisition, but Looking Glass customers should be, and they need to keep in close contact with their account reps. If calls go unreturned, or e-mail bounces back as “undeliverable,” it might be time to look for an alternative service provider.

► Looking Glass customers would be well advised not to sign a multi-year contract until the dust settles and the future of the company and its services is no longer in doubt.

GLOBALCOMM 2006: Global Crossing Launches VoIP Community Peering

On June 5th Global Crossing announced a new VoIP Community Peering service that creates an extranet community for enterprises and their various business partners with high call volumes. The service also creates intranet communities for dispersed, intra-company and remote office locations that prefer not to develop a centralized private numbering plan.

Competitive Concerns

► Even though Global Crossing is targeting the large enterprise with this on-net service, it may find these customers still need to support branch offices whose connectivity requirements tend to fall outside the provider’s network footprint, thus limiting the potential market.

► Global Crossing’s voice product line tends to ignore the lower end of the market, such as integrated T1 voice/data services, network-hosted VoIP, or traditional Centrex; these gaps must be filled through partnerships, especially in secondary and tertiary markets, where the provider lacks a network presence.

► Global Crossing can benefit from the marketing impact of a global unmetered VoIP service that has the ability to bring new "peers" or customers on-net as word gets out. Still, business customers don't churn like consumers, and their buying decisions are predicated on more than just voice.

► Partners or affiliates of Global Crossing customers may be attracted to the service, but take many months or a year or more to consider switching providers. In the meantime, Global Crossing must forego the revenue of PSTN per-minute charges for its Community Peering customers, while still paying for TDM-to-IP gateway functionality.

GLOBALCOMM 2006: Time Warner Telecom Brings the Ethernet WAN to the Integrated LAN

On June 6th Time Warner Telecom introduced Integrated LAN, which provides secure data, voice, and Internet services for business customers with multiple distributed locations. The service provides "branch office" Ethernet connectivity and converged voice solutions at up to 4.5 Mbps, with dynamically allocated bandwidth.

Competitive Concerns

► The service’s current peak capacity is 4.5 Mbps, a curiously low interval for Ethernet (it is carried over three bonded T1s), especially considering the number of sites the customer may need to connect (customer examples of 12 or more are cited).

► Time Warner Telecom has a broad Ethernet footprint (44 major national markets) and it has worked to expand its reachable customer base by supporting Ethernet over copper access. However, so far, it does not have any NNI partnership agreements in place when it comes to handing off integrated voice data traffic, so off-net customers would have to “bring their own access” for both voice and data.

GLOBALCOMM 2006: Covad's NextWeb Subsidiary Taps First Avenue Networks to Build a Wireless Growth Path

On June 5th Covad's NextWeb subsidiary has announced a three-year contract to resell First Avenue Networks' higher-grade services in the markets where it offers fixed wireless broadband services. The deal will enable NextWeb to offer high-capacity business services in the Los Angeles, Las Vegas, and San Francisco Bay Area metros.

Competitive Concerns

► Fixed wireless has been a dud when it has to compete with fiber-based services. There is no shortage of fiber in the Los Angeles, San Francisco Bay Area, and Las Vegas metros, particularly in downtown areas where high-speed access is by far most likely to be needed.

► First Avenue Networks' capacities from NxT1 up to 600 Mbps are most likely to be needed by enterprise-class customers. These customers have long lead cycles and require intensive work to win the business. NextWeb, with services that top out at $749 a month, is set up to sell to smaller businesses that make quick decisions and are more willing to try something new.

► First Avenue Networks and NextWeb have two different networks in different slices of spectrum. Their base stations may be located in different places, meaning that their footprints will not sync up with each other.

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