Voice over DSL asserts itself: CLEC deployments start to trickle in

Voice over DSL appears to be here to stay. With equipment becoming available and benefits becoming more obvious, service providers are putting more faith in the technology. To that end, Massachusetts-based competitive local exchange carrier Network Plus is rolling out a combination of AccessLan communications and Jetstream Communications' voice-over-DSL-enabling equipment in central offices within BellSouth and Bell Atlantic territories. Network Plus is focusing on the small and medium-sized business market typically underserved by incumbents.

The announcement came a few days after Jetstream competitor CopperCom announced its first product rollout with Picus, a CLEC in Virginia that also will tap into Bell Atlantic's domain.

Network Plus plans to deploy the service in about 300 COs and activate 10,000 lines within the next two years. The provider already has deployed equipment in 20 of those planned CO rollouts.

"It is exciting that Network Plus already has [COs] deployed today," said Laurie Falconer, an analyst with TeleChoice.

To enable the service, Network Plus will use AccessLan's PL-2000 DSL access multiplexers for symmetrical DSL and public network DSL and the PL-50 and PL-200 customer premises equipment. The provider will use Jetstream's CPX-1000 GR-303 voice gateway along with the vendor's integrated access devices.

Although the voice-over-DSL technology still is young, Network Plus hopes that it will catapult the provider past RBOCs that have a tight grip on local access service. But in the small and medium-sized business markets, RBOCs have a looser grip, and, theoretically, the competitive providers should profit from that.

Network Plus' customers have an average of six lines each, which makes the provider a good candidate for the solution, which will enable it to condense the multiple lines into one.

"We will be able to offer service at a more competitive price point by driving down network costs as we continue to target customers with over eight lines," said Joseph Haines, senior vice president of operations at Network Plus. "Before we had eight customers going over eight lines, now we just have to worry about one, which enables us to sell more."

"Service providers can save money on copper loops, have lower co-location costs and lower backhaul transport costs and network management costs," said Sundi Sundaresh, CEO and president of Jetstream. "Data sells and gets traffic in the door, but voice pays."

But beyond the planned reduced cost, the ability to add more services to offerings will present more business opportunities for providers.

"Multiple services are the way to go," said Ofer Doitel, CEO and president of AccessLan. "Internet access alone is not going to cut it anymore." Voice over DSL will make the Telecom Act real for the small and medium-sized business customer, Doitel said.

Although the voice-over-DSL equipment now is available, and the technology presents significant benefits to service providers, problems arise with the implementation of the service.

"The qualification of loops with the RBOCs will be our biggest challenge," said Haines, who added that Network Plus already has run into problems with Bell Atlantic.

"I think it would be interesting to know more about the problems erupting with Bell Atlantic," Falconer said.

In another voice over DSL-related announcement last week, Jetstream and Vertical Networks are partnering to deliver voice-over-DSL solutions. Vertical develops integrated communications platforms that, when combined with the Jetstream products, will enable voice over DSL for branch office and small business applications.

The combination will be used with Vertical's InstantOffice system, said Matt Howard, senior product manager for Vertical. InstantOffice provides voice, data and communications applications, such as PBX services, and voice and data LAN/WAN connectivity for offices with five to 100 employees.