Cabletron to pick NetPhone for IP

Cabletron Systems is expected to announce this week that it is teaming up with NetPhone Inc. to provide Internet protocol voice capabilities within its switching product line.

Under the deal's terms, to be unveiled at Networld+Interop in Las Vegas, NetPhone will embed its voice-over-IP software in Cabletron's SmartSwitch 2000, 6000 and 9000 switching chassis. The companies will gear the SmartVoice plug-in toward small to medium-sized corporate branch offices by pricing it at less than $300 per port.

Once deployed, SmartVoice will allow users to transfer up to 24 simultaneous voice calls from an IP intranet to a data center by plugging existing PBXs into a SmartSwitch.

"Voice over IP is becoming more mainstream now because it's in intelligent switching hubs," said Mike Katz, vice president of marketing and business development for NetPhone. "With the price points we're talking about, you're going to have a return on investment of less than six months. This is really going to up the ante."

The two companies also have reduced latency on IP voice calls to the point where it's imperceptible, Katz said.

The move is another in a series of steps traditional data networking companies have been taking to get into the voice business. According to a study released last week by Killen & Associates, the global market for IP telephony equipment, software and service will hit $17 billion by 2002, with much of that coming from corporate users.

"Our sense is that the corporate LAN market is going to lead the way in terms of growth," said Bob Goodwin, senior vice president of Killen. "Just because of the sheer concentration possibilities, most businesses are going to take a very close look at this."