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Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June 19, 2006

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Page 1: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Preparing for VoIP Implementation & Lessons Learned

Presented to the Caribbean Association of National

Telecommunication OrganizationsJune 19, 2006

Page 2: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

VoIP Case Studies

Charles HamDirector

Page 3: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Mapcom Systems Geographical Operations System (GOS)

M4® Software Suite M4® Data Integration Engine

Accounting, Customer Service, Billing, Fiber, NMS

Help Clients Address & Improve Top 5 Telco Issues:

Customer Service Improved Profitability Information Accuracy New Plant & Overbuild Management Inventory & CPR Tracking

Page 4: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Mapcom Systems Clients in Green Case Studies In Red

Page 5: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Background Serve As a Roving

Reporter OPASTCO AMC

Presentations Calgary, AB July 2004 Palm Springs, CA

January 2005 Boston, MA July

2005

6 Independent Telcos Hargray WVT Yukon Telephone Wheat State Telephone Service

Company ENMR Plateau

Page 6: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Hargray Communications Bluffton, South Carolina 70,000 Access Lines Initial Strategy:

Perform inexpensive trial CLEC areas where we have no facilities CATV areas where we have HFC facilities that support cable

modems Flat rate pricing: unlimited local and LD for $34.99/month

Page 7: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Twelve Months Later Company Restructured- Stopped Roll-out To Date there are 300 CLEC Customers

$29.95 per month

Plan for soft switch deployment Combine CLEC and LEC customers on common platform IP Centrex

Will not sell to ILEC customers unless forced Become more involved in our customers networks

Page 8: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What Did We Learn? Vonage Makes it Hard to Compete on Price Deficient in IP Knowledge and Support

Hard to take existing staff and train on IP technology

Easier to take people who know IP and train them on telephony

Today, long distance is the reason for VOIP

Page 9: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

WVT Communications Warwick Valley, NY 30,000 Access Lines Strategy:

“To address the needs of the residential and business market segments by offering converged voice and data services that will reduce costs and provide a plethora of innovative services that were not possible on a traditional telco platform.”

Page 10: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Twelve Months Later Intense Competition from Cable Companies Issues Remain with “turnkey” VoIP Solution Offer VoIP in both ILEC and CLEC Markets offer as

Component of Triple Play Offer No Long-Term Contract

“Earn the Business Everyday”

Page 11: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What Did We Learn? Termination Agreements and Hardware Take

Longer Than Expected Cable Companies--Service Issues People are Buying Functionality and Value,

Not Technology Triple play Unlimited calling

Detail Study of Churn < 1% w/ Triple Play

Page 12: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What Did We Learn? Offer Unlimited Dialing Plans… Not “Long

Distance” MOU Study – $29.95 works

People want 1000 minute plan for $29.95 250 MOU to 800 back to 600 MOU

VoIP Works Well as Component of Triple Play- Eliminates Vonage Advantage

Revamp Operations to Fit Strategy Move to IP Requires More Training

Page 13: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What Did We Learn from the “Scouts”? Can’t Compete on Price Alone Need Expertise in IP/Packet Technology

20% Rule Your organization must match your strategy

VoIP Must be Designed as Total System Bundled Services Destroy the Vonage Advantage

Page 14: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

ENMR-Plateau Clovis, NM

13,500 Access Lines

Strategy- Original Consumer focused in CLEC Areas Long-Term – All Edge Devices will be VoIP Enabled Bought Softswitch

Page 15: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What We Learned Can’t Get Consumer $$ to Work Business IP/Centrex $$ Work Well SIP is Not SIP

Still somewhat immature as a standard Vendors must work well together

Data Networking/IP Training Needed Partnered with Community College

Page 16: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Six Months Later Strategy- Revised

Business –IP/Centrex Focused in CLEC areas where fiber is deployed

Page 17: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

What We Learned Entire Organization Needs to Embrace

New Technology Must Own the Pipe Getting the Technology Working is not the

challenge- it’s the Operational Aspects Billing Training Operations Setting up the CLEC business

Page 18: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

In Summary: VoIP Lessons Learned Can’t Compete on Price Alone

WVT, Hargray, ENMR

VoIP Works Well as Component of Triple Play WVT, Hargray

Bundled Services Destroy the Vonage Advantage WVT, Hargray

SIP is Not SIP: Immature Standard TSC, ENMR, Yukon

VoIP “on a Dime” Works Hargray, Wheat State

Page 19: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Preparing Operations for VoIP The Hardest Part is “Reconditioning” Your People

And consider: How does your operational infrastructure help or hinder your people?

Network performance/reliability and enhanced customer service have their roots in operations…

Page 20: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Preparing for VoIP A View of the Future is Necessary in Order to

Prepare Effectively Will VoIP be a catalyst for change at your company? What inherent advantages does VoIP have over the

legacy phone business?

Page 21: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Assessing Your Operational Readiness

In most companies, the technology available to offer new services such as VoIP outpaces the

ability of internal operations systems

to manage them.

Page 22: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Each Application Must Collect/Share Specific Bits of Information

VoIP Monitoring

VoIP Monitoring

Page 23: Confidential Preparing for VoIP Implementation & Lessons Learned Presented to the Caribbean Association of National Telecommunication Organizations June

Confidential

Thank You!Charles Ham

[email protected]