Cable IP takes first step in voice

IXC Communications, along with Cablevision of Lake Travis in Texas, said last week that the companies would begin what is believed to be the first test of Internet protocol voice service over a cable plant in the United States.

The six-month trial, which will begin May 17, will combine Cisco Systems' IP gateway and IP phone with Cablevision's existing network and OC-3 (155.5 Mb/s) Sonet ring, will involve mostly IXC and Cablevision employees working from home. But unlike many other IP voice services, the Lake Travis trial will include single-stage dialing and the ability for employees to access PBX-type features from remote phones. The remote office service being tested also will use virtual private networking technology to provide remote workers with guaranteed bandwidth through a Com21 cable modem and Cisco hub (see figure).

The test also is designed to reduce latency and improve the overall quality of IP voice, said Chris Rothlis, vice president of new product development for IXC. "My guess is that latency isn't even going to be an issue. Where I have concern is scale."

IXC, which will have about a dozen employees taking part in the test, is providing national connectivity through its Gemini2000 backbone.

For Cablevision, the decision to use partners for its first telephony trial was a no-brainer and could lead to other services. "For me to hire staff for this kind of service when there are people out there that do this every day would be a waste of expertise," said Jess King, president of Cablevision of Lake Travis. "If this trial is successful, then we'll be discussing a joint venture."

IXC, which provides wholesale long-distance for cable operator Adelphia Communications, may end up providing the remote office service on a wholesale basis, said Rothlis.

Boyd Peterson, an analyst with The Yankee Group, is giving the trial good marks for its specific focus on a single application. "We look at the proliferation of IP voice as an iterative process. What they're doing is technically at least a little more controllable. We can view this as a testing ground. What AT&T wants to do with [Tele-Communications Inc.] is not dissimilar to this."

The PCS C-block re-auction closed April 15 after 78 rounds, with Cook Inlet/VoiceStream emerging as winner of the hotly contested Chicago and Dallas markets. The two companies that led the bidding most of the way-Cook Inlet/VoiceStream, backed by Western Wireless, and OPCS Three, backed by Omnipoint-concluded as the highest bidders.Cook Inlet/VoiceStream captured 28 markets, pledging more than $192.2 million. The company claimed markets in Illinois and Texas, along with markets in Arizona, Louisiana and other states.

OPCS Three acquired 34 markets, adding new ground to its territory and filling out its existing footprint. The company spent more than $45 million. In addition to obtaining many markets in Michigan, including Detroit and Grand Rapids, the company procured markets in Pennsylvania, New York, Ohio, Indiana and other states.

Both companies are expected to build out GSM networks in the newly acquired areas.

The auction drew 67 qualified bidders that captured 302 of the available 347 markets. They generated more than $412.8 million in net sales.