Carrier Ethernet Need To Increase Availability

by Doug Allen
Fri. April 25, 2008

Carrier Ethernet Services is arguably the hottest sector for telcos these days. New switched metro and long-haul Virtual Private Line Services (VPLS) services from Verizon Business and AT&T are the latest indication that next-gen Ethernet services are here, and are poised for rapid growth.

But the industry remains constrained by a number of factors, not the least of which is market awareness. Even with simple service definitions from the Metro Ethernet Forum (MEF) to fall back on, many potential customers are still having a tough time sorting out all the flavors to choose from, and where to deploy them. David Hold, a senior analyst in Business Network Services at Current Analysis, sat down recently with Telecommunications’ Senior Editor Doug Allen to talk about carrier offerings and their applications.

Telecommunications: What are the primary Ethernet services carriers are offering business customers, and how are they targeting them at different types of business (i.e., small-to-medium-business or enterprise)?

Hold: In terms of general topology, carrier Ethernet services can be divided up into three main categories: Connecting a single building or data center to another (point-to-point); connecting a single building to a cloud type service like the Internet or Private IP VPN services (access), and connecting one or more locations to each other (multipoint). Most Ethernet today is metro area point-to-point. Switched multipoint services, formerly known as Transparent LAN, have been almost exclusively deployed in the metro area, although the new VPLS services are both metro and long-haul, and will soon go international.

Traditionally, Ethernet required fiber to the premises, which limited it to high bandwidth applications for medium to large enterprises. A typical example is connecting data centers at gigabit rates. Another would be connecting regional medical center facilities for high bandwidth medical imaging and off-site storage applications. However, with the advent of Ethernet over copper solutions, branch offices are now candidates for Ethernet access up to about 10Mbps.

On the access side, Ethernet is a promising alternative to TDM for local access circuits. Check out Verizon Business’ Ethernet-based Converged Packet Access service, which is designed to combine multiple access types over a single Ethernet connection.

Telecommunications: How do you segment the market? Do you distinguish between types of services—by application, by transport layer (Layer 2/Layer), SONET or WDM used, speed, dedicated vs. shared, long- haul vs. switched intra-metro, etc.?

Hold: All of the above, depending on the situation. Ethernet is most commonly classified by transport type—at the physical/optical layer it is native fiber, SONET/SDH (more expensive), DWDM (high bandwidth but unprotected) and copper (SHDSL or NxT1); and at L2/L3 it used to be transported over ATM and still is in some places. Today, Ethernet is increasingly running over MPLS in the case of Virtual Private Wire Services (point-point pseudowires) or VPLS (multipoint pseudowire mesh). By geography, you can also easily segment services by metro, wide area inter-city and cross-border/international.

Telecommunications: What kinds of important QoS and security parameters are carriers including with these services? Other attractive incentives could include service and/or applications bundles or special pricing incentives.

Hold: This is an area for further development and exploration. There has been little QoS in traditional Ethernet services, although some services use VLAN tags to separate traffic for prioritization; VPLS services can make use of VLAN tags, and can also support QoS the same as in MPLS using DiffServ codepoint (DSCP) or IP Precedence bit marketing.

Telecommunications: Strategically, where are providers trying to go in terms of business models and service deployment/ technology development (maybe inter-city switched Ethernet service)?

Hold: Ethernet is evolving from its roots as mainly a lower cost interface to a metro-optical transport service, to an any-to-any switched data service on a par with frame, ATM or IP/MPLS-VPN. As a Layer 2 VPN, Ethernet still has a ways to go to be fully competitive with IP/MPLS services, mainly in terms of scalability in large networks, but it can be an attractive migration alternative from legacy frame/ATM or TDM services for those end-user organizations that are unwilling to turn control of IP routing over to a carrier.

Telecommunications: When you evaluate carriers’ business models and service deployment plans discussed in question four above, from a customer perspective, what are the likely implications for customers six to twelve months out if carriers follow through on their plans? How will they impact customer’s network usage patterns and buying habits further out?

Hold: It has been interesting to watch AT&T and Verizon Business as they deploy Ethernet Access and VPLS services. The two carriers tend to mirror each other, with one pulling ahead and the other playing catch up. Some of AT&T’s largest customers have been demanding VPLS for several years, and some have defected to alternative carriers over that issue. In the end, the customers are begging their service providers to offer more than just IP-based services, so there is clearly a role for wide area networking services at Layer 2 beyond frame relay and ATM.

Telecommunications: What are business customers’ primary concerns when adopting carrier Ethernet services and how do you see carriers today and in the future addressing them? Where are they getting the most pushback or having the most real-world trouble developing adequate solutions for these concerns?

Hold: I would say that [the first concern] is getting it in the first place, because availability of fiber can be spotty, especially outside of downtown urban cores, and fiber extension can incur sizable costs and lengthy delays.

[The second issue] is the fact that there are so many different types of services that go under the name Ethernet that it can be confusing to know exactly what you are buying if you are not a networking expert. If you think about frame relay, which was the most successful wide area network service since T1, you did not have to worry about distance charges for example, except for the access circuit, and it ran over T1 so you could get it just about anywhere.

[The third issue] is scalability for wide area multipoint networking services such as VPLS. Many experts recommend keeping the numbers of end-points connected to a VPLS in multiples of a few dozen, which poses challenges for 1000 site networks. Beyond that, you may have to segment the network with routers, which is do-able, but in some ways that can defeat the purpose trying to build a pure Layer 2 VPN.

Hierarchical VPLS services could help, but are not yet in commercial deployment. Scalability of VPLS to large networks, in my opinion, is an issue that has not yet been adequately addressed by the carriers. See which major telecom carriers offer gigabit ethernet in your area.

Vonnage Headed In New Direction

by Jim Barthold
Tues. May 13, 2008

Vonage Holdings has withstood a flurry of patent infringement and other legal action which pretty much brought the company to its knees. Now it’s trying to re-energize itself as it transforms from a VoIP provider focused on cheaper voice services to a VoIP provider with a package of broadband capabilities.

When Vonage started, people needed a cheap voice alternative that voice-over-IP provided. That vision was changing before the company was distracted by a series of devastating lawsuits. Now it’s coming around again to recognize that today’s consumers can get cheap phone almost anywhere; they want features and services that make that voice more attractive, said Jeffrey Citron, Vonage chairman.

Vonage cut a wholesale DSL partnership deal with Covad and is preparing to launch a “prosumer” offering, Vonage-Pro, that takes the VoIP provider’s base products into the commercial space for business users.

“We have quire a few customers who call up … looking to buy the Vonage voice solution but they don’t have broadband. This led us to talk to Covad about wholesaling their platform and then putting together a Vonage bundled with allowed these customers to buy both digital voice and the broadband they’re asking for (and need for VoIP),” Citron said.

The partnership with Covad gives Vonage a nationwide broadband footprint so it’s no longer dependent on marketing to customers who already have DSL service, generally attached as part of a phone bundle, or cable modem service, which increasingly is bundled with digital voice. It also opens up a market of satellite subscribers who have no high-speed Internet or voice bundle.

“We’ve been talking to them about it for quite some time and we’re thrilled they’re finally ready to go to market with broadband,” said Lisa Graham, senior vice president and general manager of Covad’s wholesale division.

To be fair, Vonage has been a bit preoccupied. The company was hammered by multiple copyright infringement lawsuits from the likes of Verizon, AT&T and Sprint and took a beating in court. For a time, it appeared it was over for Vonage, but about this time last year the company developed a new strategy on which to focus and start anew. Since then Vonage has recorded three straight quarter of operating cash flow and positive EBITDA for two quarters said Citron and is working on a proposal to refinance its debt.

The company announced what Citron believed are good first quarter results.

“There was a point when I first took over after the loss of the Verizon (patent) case and there was a lot of uncertainty in our future and there were a ton of things we had to fix,” he said. Those were not minor fixes: “Fix the fundamentals of the business, fix marketing, fix cost management, fix customer care then strengthen the core relationship with the customers and grow from that core. Today’s announcements with Covad and Vonnage-Pro (demonstrate) we’re starting to get good traction in the marketplace and that’s going to lead to accelerated growth in the second half of the year. At this point we have a lot of the historic problems behind us.”

Vonage-Pro is ahead, providing a package that bundles most residentially oriented Vonnage services and features into packages for business consumers.

The company is also going to spend money, he promised.

“This past quarter we spend about 27 percent of our revenue on marketing (and) we expect at the end of the year we’ll be spending between 30 and 32 percent. The company has $150 million in the bank and we’re going to use that money,” he said.

Compare Vonnage to other providers to get the best deal for your home or business.

Key To Saving Money On Business Telecom Services

Finding cost effective business telecom services is a challenge that your business may not be able to undertake because it is not your core business. However, most business owner's can save money with a little research into which business telecom services are best for their situation.

A competent and informed business telecommunications consultant is vital to assist your business make the right decision every time. Whether you are an existing business, a franchise, or a new business you need to ensure that your telecommunication needs are not only met, but met at a cost effective rate. There are many business telecommunications sales representatives out there who will only try to sell you the plan that gives them the highest commission. A wrong decision will see your business locked into expensive contracts for mobile, fixed line and data services that do not meet your needs.

Many businesses purchase telecommunications on the phone from an unknown sales person and are pressured to sign by way of a recorded verbal contract. Not surprisingly when this decision is pressured the end result is often less than ideal, it could be expensive, and it could cripple your business. The quality of the service provided and the quality of the telecommunications management team is imperative to your success.

Whilst many business decisions need to be made quickly, your telecommunications need to be right, they need to be suitable for your business now and throughout the consequential contracted period. You need to find a telecommunications consultant you can trust and ask them the following questions to ensure that they have the best interests of your organization at heart and are capable of supporting your telecommunications needs.

1. Can the business telecommunications consultant provide you with an independent analysis of your current bills against the plan they recommend, and other comparable plans in the marketplace?

Many times the customer has been "sold" a service which has not been quantified in an analytical manner. We know that communication costs are an ever increasing cost to doing business and we respect that it is difficult for any organisation to employ or train a staff member to work though this minefield.

The key to having complete understanding of your telephone bills and your telephone spending patterns is in the professional telephone bill analysis

2. Can the business telecommunications consultant provide you with testimonials from companies that are of comparable size to your organisation?

Testimonials are vital. You need to be sure that the business telecommunications consultant you are dealing with is from a reputable company with many happy clients.

3. Can the business telecommunications consultant arrange for the seamless transfer of your services should you need to change carriers?

Once your business telecommunications consultant has identified the business telecommunication rates and services that are best for you and these are accepted by your business can they arrange for the transfer of your telecommunication services to the contract selected by yourselves? Professional business telecommunications consultants should ensure that you are not inconvenienced.

4. What kind of ongoing support does your business telecommunications consultant provide?

A good business telecommunications consultant will not only sign you up to a long term contract, but will keep you advised of better deals available in the market place, and proactively and constantly negotiate better deals for you, the customer.

Finding cost effective business telecommunications services is a challenge that your business may not be able to undertake because it is not your core business. However, most business owner's can save money with a little research into what business telecommunication services are on offer. By searching out an excellent business telecommunications consultant, and ensuring the above questions are answered before you sign your next business telecommunications contract, you should find that business telecommunications become a less stressful cost on your business.

Top Reasons to Use and Trust VAR Network

by Patrick Oborn, CIO

If there is one thing the internet is good for, it's networking - finding the people who have the skills and expertise that can give you the help you need. Aside from rocket science, there really isn't anything more technical on this planet than communications, specifically computer networks, telephone systems, and voice over internet phone systems. Not only do most manufacturers of this equipment not have direct sales outlets, they do not even pick up the phone if you haven't be certified and trained in their product set. That is where the VAR (Value Added Reseller) Network comes in - to act as your conduit to these telephone and network equipment companies (such as Cisco, Avaya, Lucent, Mitel, Nortel, PolyCom, ShoreTel, and 3Com just to name a few). They can sell you the networking gear and IP PBX phone system equipment you need and, more importantly, set up the system for you exactly the way you want it.

Finding the VARs who do a good job and have the required products and certifications is not an easy proposition. From the yellow pages you can find all of the bigger dealers who can afford to pay the thousands of dollars per year to take out advertisements there, but what about the highly skilled smaller companies? How can you find trusted, reliable VARs that aren't adept at manipulating mass media? The answer is VARSearch, featured exclusively on this web site!

Experience Matters
Telarus, Inc., the parent company of VARNetwork.com, has been in the telecommunication search business since 2002, when we created and patented GeoQuote - the worlds' first and only real-time T1 price comparison shopping tool. Telarus works with some of the largest companies in the world in order to bring the simple, easy-to-understand search tool to life; vendors like AT&T, Level3, Qwest, and XO just to name a few. The amount of research, programming, and negotiation was enormous, but we successfully reached the finish line. Now, we have set our sites on VARSearch, the world's first (free) interactive tool that allows the general public to find VARs in their local areas, sorted by proximity, product type match, past performance, customer feedback, and more.

We Are Experts in Telecommunications
When we launched ShopforT1.com in July 2003 and ShopforEthernet.com in August 2007, our presence was immediately felt. The real-time pricing software which forms the basis for GeoQuote reduced the turn-around time for customers looking for commercial telecommunication quotes from 2 weeks to 2 seconds. Since then, we have continued to pour resources into keeping GeoQuote up-to-date and filling our web site with useful information. Now, over 3,000 customers later, we still continue to strive for excellence in both telecommunications and in VAR search.

Real-time Search is Our Specialty
As I mentioned in the previous paragraph, Telarus has specialized in real-time T1 and gigabit ethernet price and availability research. The experience and knowledge that we have gained from the development of this technology form the foundation for the VAR Search platform. Instead of matching up customers with the best high-speed internet carrier, now we are matching up customers with the best PBX phone system and network equipment dealers - and what you see now is just the beginning.

We Listen to Our Users
The real secret to our success is that we create software designed by people who use it. What you see here is the end result of taking feedback from hundreds of users, VARs, and others. This feedback is invaluable to our program, and the best ideas are added to our web design team's list of features for future versions of the site. We pride ourselves in being humble enough to recognize that we don't know it all. We are expert marketers and programmers who are here to serve our clients. They need it, we do it.

We are Privately Owned
Miraculously, Telarus has been able to build the VAR network without any venture capital of any kind. This means that decisions can be made quickly and site changes can be implemented without any red tape. The lack of big investors means that VAR Network is not beholden to any outside party with its own self interests. VAR Network's mission is to provide a valuable service to its users, not just to put more money into a Board of Directors' pockets.

VOIP Service, A Good Solution

When you are looking for affordable and quality VOIP service it is sometimes hard to know which VOIP carrier to choose. They all claim to be the best thing since sliced bread or canned beer, but how do you separate the marketing hype from reality?

The first thing you need to look at is your high speed Internet connection at home. Be fully aware that the VOIP provider has absolutely no control over the quality or reliability of your high speed Internet connection, despite the fact that any VOIP service relies heavily on the stability and reliability of that connection. If your home DSL or cable service is not rock solid, stable and reliable, you are not going to be happy with any VOIP service you get at any price, regardless of the brand name.

When comparing different VOIP service providers, you need to look at the features they offer with the service. Features is another category where VOIP providers come out on top by a wide margin over traditional telephone services. VOIP providers offer many features that regular land line phone companies either charge extra for or are not able to offer at all. Standard features include things like make unlimited calls to other users of the same VOIP provider, to make unlimited calls locally and in the domestic US, caller ID, and voicemail. They may also offer other features as well, but make sure that you are not paying extra for features that you will only use once in a blue moon.

VOIP service providers have been rolling out “Enhanced 911” or E911 where calls are sent to a 911 network which then connects to a local 911 dispatching center. With E911, emergency dispatchers are able to see the caller’s location and call back numbers. If you are considering a VOIP service that does not offer the Enhanced 911 services, run in the other direction, since this is now a requirement in the US.

VOIP service can be very cost effective for your home or small business. It uses your high speed Internet connection to make and receive phone calls. But that comes with its own set of problems. For example, remember we talked earlier about the reliability of your high speed Internet connection? That becomes even more important because if your high speed Internet connection goes down, so does your ability to make and receive phone calls. Again, this is not the VOIP provider's problem since they assume that you already have a very reliable and stable Internet connection.

If you live off the beaten track and the only high speed Internet connection available to you is satellite, don't even think about VOIP service. You are not going to be happy because with today's residential satellite technology, it is simply not fast enough to provide reliable VOIP service.

The cost effectiveness of VOIP service cannot be argued. With a traditional phone line from the local telephone company, you are paying about $25 a month just for dial tone. Now compare that to VOIP service, where for less than that, you also get unlimited long distance, voice mail, caller ID, and perhaps other features as well.

Visit this Voip-Digital Home Phone Service site for more information about the providers that are the most cost effective option for reliable VOIP service when compared against the other leading contenders.

Wireless or Ethernet Networks?

In recent years, Ethernet hasn't exactly been fashionable. People are sick of running long wires all over the place, making holes in their walls, and being restricted when it comes to where they can use their computer. Wireless networking has become all the rage - and some predict that it will have killed off Ethernet altogether within a few years.

Wireless networking works by transmitting radio waves through the air. While it isn't yet strong enough to provide networking for a large area, it is quite possible and cheap to set up a cheap wireless networking system large enough to cover an entire house, using nothing more than a wireless router and a wireless card in each computer you want to use on the network. Newer laptops even come with wireless capabilities completely integrated in the form of Intel Centrino, so you can easily connect to wireless networks wherever you go.

Of course, wireless also has its fair share of downsides. Sure, Ethernet requires ugly wires strewn all over the place, but it's also much faster, more stable and more reliable. For large businesses or small businesses that have already had all the wires hidden away in their walls, there is little reason to change over to wireless now. Ethernet is also often more secure - wireless networks are often left unsecured, meaning that anyone can drive past and connect to them. While Ethernet networks can be insecure as well, the network intruder at least has to be inside the building in most cases, not sitting in a car outside.

In turn, wireless networking removes a lot of niggles from Ethernet. The best thing is that you no longer have to worry about wires getting damaged somehow and needing to be tracked down for replacement. Ultimately, which one you use will depend on how adventurous you are, and exactly what you plan to do with your network.

See which option is best for your organization at T1 Dedicated.