CLOVERDALE, CA – October 8, 2002 - By 2005 the worldwide voice over IP (VoIP) market will reach $4.8-bil, up from approximately $1-bil in 2001.

In 2002 VoIP traffic will exceed 20-bil minutes.

VoIP puts voice information into digital packets and sends them across the IP network. VoIP requires a steady stream of packets to achieve high-quality transmission.

Poor voice transmission results in delays and poor call quality and VoIP is tainted by the memory of low quality of PC-based free calling over the Internet. Quality has improved and cost savings resulting from flat-rate long-distance calling will entice more and more companies to consider the VoIP alternative.

Implementing VoIP takes IT managers into a new realm and consequently requires a different focus of attention:

• Users expect high voice quality and reliability. Telephones have been around a long time and the technology has been perfected to demanding expectations. Even digital cell phone users expect high quality. Hence, users expectations are high and even the slightest drop in quality and reliability of VoIP will be noticed and complained about.
• Voice gobbles up bandwidth. Managers need to allocate adequate bandwidth to accommodate voice. Ultimately, inadequate bandwidth reduces network performance and degrades both data and voice transmission. Compression and priority routing have proven useful strategies.
• Talent in monitoring and managing data networks doesn’t necessarily transfer to VoIP. Training in-house managers or contracting with outside professionals should be considered. There will be surprises.
• A unified infrastructure lowers costs of communication for end users and service providers. Using network management software to simultaneously monitor performance metrics of voice and data enhances performances of both. It’s usually cost prohibitive to run two separate networks.

VoIP market growth largely depends on three factors: (1) Increasing consumer awareness of quality and cost savings. (2) Constantly improving cost-performance of underlying technology. (3) Transparency in standards and protocols among equipment providers.