Net2Phone, Liberty Cablevision launch VoIP service

Net2Phone today announced the first commercial launch of its hosted cable VoIP service with Liberty Cablevision of Puerto Rico. Coming off a trial with Net2Phone of less than 1000 customers, the small MSO based in Luquillo is now offering the voice service throughout its 300,000 home footprint.

Running off a DOCSIS-based PacketCable platform, the service is intended as a full land primary line replacement alternative, making Liberty the first operator to compete with incumbent Verizon Communications for residential users. And with Liberty’s launch under its belt, Net2Phone is hopeful it will push up deployments with six other operators currently trailing its managed VoIP service.

"Liberty is the model for how mid-sized cable operators should deploy phone service," said Michael Pastor, president of Net2Phone. "This sets the foundation for Net2Phone to market this service to MSOs both domestically and internationally."

Net2Phone bills itself as the solution for smaller cable companies wanting to follow the large MSOs into the cable telephony market. While companies like Comcast and Cox can afford not only to upgrade their networks but also deploy their own softswitching infrastructure, most smaller operators don’t have the resources, nor the customer volume to justify such capital outlays. Net2Phone-managed VoIP service provides the provisioning, switching and enhanced feature sets as well as handles billing, network monitoring and other back-office chores over its customers' cable networks.

In Puerto Rico Liberty and Net2Phone have deployed Cedar Point Communications integrated packet switch architecture to handle all Class 5 functionality in the local network. The two companies have also contracted with Sprint and IDC for long-distance and to backhaul the voice traffic to Net2Phone’s softswitch in the U.S. Liberty will be offering local plans starting at $25 a month. Liberty General Manager Jose Alegria said it plans to aggressively woo Verizon’s customers with its triple-play package and predicted Liberty could achieve 15% to 20% penetration of homes passed in a few years.