QWEST THROWS LUCENT VOIP PROGRAM A LIFELINE

Qwest’s decision to deploy Lucent Technologies’ 5E-XC switch as part of a migration to packet switching is more than just a big contract win for the vendor. The deal, which neither side is attaching numbers to, is symbolically significant—some might even say a lifesaver—for a manufacturer that was in danger of playing the unfamiliar role of also-ran in the central office of the future.

Qwest’s plan, which is being touted as part of an existing upgrade, is relatively straightforward and relies largely on equipment that is already in place. Initially, the company will install 5E-XCs in rural markets where there is some growth or where existing switches are either reaching the end of their lifecycle or have been difficult to support. In some cases, those switches were manufactured by Ericsson, which pulled out of the U.S. central office switch market several years ago.

Any additional access lines in those markets will be added to the Lucent switch, which, with the addition of an IP card, gives Qwest an easy entry into the voice-over-IP service market.  Further out, Qwest will begin deploying Lucent’s new media gateways, which can replace most of the functions of Class 5 switches in small markets and can be managed from remote locations via existing switches or softswitches.

“It works for the maintenance upgrade that we need today and it allows us to move toward packet switching,” said a Qwest spokeswoman.

Almost overlooked, though, is the deal’s significance to Lucent, said Joe McGarvey, carrier infrastructure analyst for Current Analysis. At one point last year, the vendor stated that it was moving away from a softswitch market that appeared stalled, instead putting more emphasis on circuit switches. But as telcos began deploying softswitches earlier this year, archrival Nortel Networks as well as numerous start-ups like Sonus Networks and Telica were establishing their own market presence, threatening to push Lucent out of the picture. The Qwest deal gives Lucent a marquee carrier, and more important, it gives the vendor the potential to continue in its role as a dominant central office equipment supplier.

“It was sort of an eleventh-hour move for Lucent,” McGarvey said. “That [number one] position is really difficult to overtake.”

The contract also gives Lucent the ability to tie its future softswitch developments to a major carrier. One of the keys to that effort will be convincing carriers that deploying softswitches isn’t just a cost-cutting move but one that will lead to new services, said Roger Heinz, vice president of Lucent’s convergence solutions business unit. “Unless we can deliver new revenue, the opex and capex savings just don’t do it,” he said.

One the same day as the Qwest announcement, Lucent also unveiled its Accelerate program, under which its softswitch, the 5E-XC and media gateways will reside. Additionally, the company is opening up to outside developers. For some applications—such as messaging with the AnyPath platform—the company will do its own integration.

“Over time, the applications that we feel are predominant enough, we’ll write ourselves,” Heinz said.