© copyright 2003 personeta inc. confidential the next-generation intelligent network the case for...

Confidential © Copyright 2003 Personeta Inc.

The Next-Generation Intelligent Network

The Case for IP “Centrex”

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Centrex was a Good Idea Key Assumption:

Few intrinsic benefits to organizations from owning and maintaining PBX equipment

However, Centrex did not evolve with the times Lacks support for mobility, IP/IT

applications and services, and geographical distribution of branch offices

Traditional Centrex is inflexible Device (Class 5) based Expensive to implement, manage and

maintain

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There is a Market for Centrex In 2001, there were 16.5 million lines served

by Centrex (Frost & Sullivan) At an average of $5/month per served line

this represents annual revenues of nearly $1 billion

Compelling business case for customers: While an organization with 500 lines will

pay $30K annually in basic Centrex subscription fees

Versus fully-burdened annual salary of a PBX system administrator is $80K (plus capital expense, etc.)

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IP “Centrex” - Two Approaches Soft Switch Approach

Class 5 replacement with most traditional Centrex limitations

Does not serve existing Centrex customers or migrate

Network-Based Approach Device independent, avoiding inherent

limitations Provides service to both IP and traditional

customers Centrex features without limitations

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TappS Enables Network Solutions

PSTNPSTN VoIPVoIP MobileMobile

TappSTappS NSC NSCTappSTappS NSC NSC

Service logic maintained in centrally manageable location

Uninterrupted service for existing customers

IP customers receive latest bells and whistles

IP media servers replace VRUs for IVR

Mobile employees remotely accessible

Remote branches integrated into numbering plan

Taveling employees have virtual office

IP Data IP Data NetworkNetwork

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Thinking Outside the Service Box Any service is a bundle of features Different customers require different features

All customers don’t need all features all the time (and they don’t want to pay for them!)

Features combined in different ways redefine the service and its chargeable value to the customer

Flexibility presents, in itself, compelling value for the end-customer!

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Voice VPNVoice VPN

Number TranslationNumber Translation

Feature Layering

Small and medium size

businesses pick and

choose service features for unique bundles

“Premium” features leverage underlying layers for high-end

customers

Call HandlingCall Handling

Network IVRNetwork IVR

Advanced RoutingAdvanced Routing

Voice Voice PortalPortal

Bas

ic

PBX

feat

ures

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Feature Bundling – an Example

Private Numbering Plan (PNP)

Call Hold

Call Transfer

Call Forwarding

Closed User Group (CUG)

Outgoing Access Privileges


Call Hold

Call Transfer

Call Forwarding



Abbreviated Dialing

Direct Inbound Dialing (DID)

Abbreviated Dialing


Time-of-Day Routing (TDR)

Do-Not-Disturb Routing (DND)

Origin-Dependent Routing (ODR)




Auto-AttendantAuto-Attendant

Enterprise DirectoryEnterprise Directory

Advanced Speech Recognition (ASR)Advanced Speech Recognition (ASR)

Basic package = $3.50/line/month

Each feature = $.75/line/month

Each feature = $1.50/line/month

Package = $3.50/line/month



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Feature Bundling – an Example


Call Hold

Call Transfer

Call Forwarding




Call Hold

Call Transfer

Call Forwarding



Abbreviated Dialing


Abbreviated Dialing








Auto-AttendantAuto-Attendant

Enterprise DirectoryEnterprise Directory

Advanced Speech Recognition (ASR)Advanced Speech Recognition (ASR)

X 100 lines = $350

X 100 lines = $75

X 100 lines = $150

X 50 lines = $75

X 100 lines = $350

X 100 lines = $250

X 100 lines = $75

Total Monthly Cost = $1,325

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Promotional Bundling – an Example

Carrier Carrier Transport Transport NetworksNetworks

Carrier Data Carrier Data NetworkNetwork

OSS/OSS/BSSBSS

RealtimeCharging Engine

Promotion: Take the Basic Hosted IP PBX Package

and get 3000 free minutes of off-net calls per month.


DEBITDEBITDEBITDEBITDEBITDEBITDEBITDEBITDEBITDEBIT

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Promotional Bundling – an Example

Carrier Carrier Transport Transport NetworksNetworks

Carrier Data Carrier Data NetworkNetwork

OSS/OSS/BSSBSS

RealtimeCharging Engine

Promotion: Take the Basic Hosted IP PBX Package

and get 3000 free minutes of off-net calls per month.


BILLBILLBILLBILLBILLBILLBILLBILLBILLBILL Balance = 0

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Value for Service Providers Differentiation that retains valued customers

and opens new SMB opportunities Allows extension of existing resources with

next-generation features Subscription oriented, rather than relying on

declining network access charges Offloads significant provisioning tasks to the

customer to widen operating margins Enables creative marketing of feature bundles

at low cost (and low risk) Increases opportunities for penetration of

other network-based business voice services

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Value for Customers Compelling alternative to buying and

maintaining an IP PBX Flexible, customizable feature bundles to

better meet specific enterprise needs Self-provisioning to enable customization

monthly, daily… even hourly Charging based on features actually used

rather than monolithic service

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Conclusion There is a real market for hosted IP PBX

“Centrex-type” features Simply changing the device does not

overcome the inherent limitations of Centrex Requires a service-centric approach that

delivers features across networks Flexibility and creating chargeable value are

key issues

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