Small Office / Home Office (SOHO) IP Telephony Who says You Can’t Run with the Big Dogs?

Agenda  SOHO customer requirements  Enterprise-based solutions  Carrier-based solutions  Conclusion

What does the IP Telephony industry need to offer the SOHO business?  Low cost solution ($200 to $2,000)  Little or no technical expertise required  Scalable (many SOHOs are in growth mode)  Able to handle bursts or peak demand  Tools to project a “professional” image  “Big company” features

ENTERPRISE-BASED SOLUTIONS

SOHO Communications Infrastructure Traditional Model  2 or more phone $40/line  Fax or share a phone line  Data line VoIP Model  1 analog phone line  2 or more IP phone $10-$20/line expandable on demand  Never busy fax line  Data line

Virtual Private Networks (VPN) BIGCO VPN  Carrier VPN service or  Leased Lines  T1/T3/OC-n private line  ATM  Frame relay  IP SOHO VPN  Internet Telephony Less than $200 per each IP phone added HQ Other locations

IP PBX BIGCOSOHO  Add VoIP capability to existing key system or PBX for $200-$500 IP PBX PBX with IP Gateway PBX or KTS

PBX Extension for Remote Offices  Deliver PBX extensions for $200 per remote site  PBX site $50 to $200 per extension Ext. 101

Voice and Data Integration BIGCOSOHO Voice - Data - T1/T3/OC-n ATM/FR/MPLS/IP Multiplexer Channel Bank Voice-enabled Router $$$ Voice - Data - DSL/Cable Modem Or Dial-up!! $200

CARRIER-BASED SOLUTIONS

Long Distance and Toll Savings  Traditional  IP Telephony __ $200 for the first phone port $50 – $100 for add’l port $0 – $.03/min LD $.02 - $.20/min Int’l $.04 - $.10/min LD $.07 - $2/min Int’l

Intra-company Communications PSTN solutions (SOHO)  Issues  Calls between company locations cost $$  Forwarding if busy costs $$  Inflexible call routing  Miami, then NYC, then Voic  No call queuing | __ Incoming Call

Intra-company Communications VoIP solution (SOHO)  Benefits  Low or no cost between locations  Low or no call forwarding cost  Flexible, intelligent routing  Call queuing  Easy adds and moves  Load balancing possible __ Incoming Call Gatekeeper/ Server __

Call Center PSTN-based (SOHO)  Issues  Finite set of trunks  Set number of call paths for queued calls  Geographically defined  High premises equipment cost  “Nailed up”  Growing pains __Incoming Call __ Incoming Call __ Incoming Call

Call Center VoIP-based (SOHO)  Benefits  On demand expansion of trunk lines  Big company style queuing  Load balancing  Dynamic, ideal for short term use  Scalable, just add IP phone seats anywhere Incoming Call __ Incoming Call __ Incoming Call Call Centers Teleworkers in homes |

Challenges we have  Reliability and Availability  Quality of Service (voice quality, etc.)  Support  Interworking  Among IP networks  With existing PSTN networks and services  Among Internet telephony equipment vendors

Conclusions  IP Telephony can deliver communications products and services needed by SOHO businesses today  Critical characteristics  Low cost, solutions in $200 - $2000 range  Little technical expertise needed  Scalable, flexible, expandable  “Big company” feel with full set of features  Opportunity  Underserved by traditional players  Millions of SOHO businesses and many are growing