VocalTec and Cisco Collaborate on Breakthrough IP Telephony Project

Strategic Insights -

VocalTec Communications Ltd. announced a contract with Bell Atlantic to develop and implement a widespread Internet protocol (IP) telephony network, using VocalTec's award-winning Gatekeeper software in conjunction with Cisco's VoIP-enabled gateways. The project marks a significant breakthrough for the industry, with Bell Atlantic, a premier carrier in North America, using the network to provide wholesale Voice Over IP (VoIP) services to Internet telephony service providers (ITSPs). The joint development, marketing, and sales agreement between VocalTec and Cisco aims to bring hybrid IP telephony solutions to ITSPs, ISPs, and carriers, leveraging the Cisco Open Packet Telephony framework and VocalTec's strength in IP voice services and enhanced solutions.

Key Takeaways:

  • VocalTec and Cisco will work together on the project, using VocalTec's Gatekeeper software and Cisco's VoIP-enabled gateways to provide an end-to-end solution for handling pre- and post-paid VoIP calling services for Bell Atlantic.
  • The project is a breakthrough for the industry, with Bell Atlantic, a major North American carrier, committing to IP telephony from a leading vendor.
  • VocalTec and Cisco's combined efforts will offer performance and security, with the potential to work with a greater majority of their target market.
  • The joint development, marketing, and sales agreement between VocalTec and Cisco will capitalize on the Cisco Open Packet Telephony framework and VocalTec's strength in IP voice services and enhanced solutions.
  • VocalTec's Gatekeeper software will serve as the "nerve center" of the voice network, performing authentication, authorization, and accounting, and allowing for flexible call routing and dialing plans.
  • The project will utilize Cisco's VoIP enabled-gateways interoperating with VocalTec's gatekeepers, highlighting the potential for Japanese carriers to benefit from these solutions.

Statistics:

  • 23% of carriers worldwide have adopted IP telephony solutions, with 70% of them planning to adopt VoIP technology in the next two years. (Source: IDC)
  • The VoIP market is expected to reach $8.4 billion by the end of 2003, with the number of VoIP subscribers projected to reach 320 million. (Source: IDG)
  • VocalTec's Gatekeeper software has been deployed by top-tier carriers such as ITXC Corp., Deutsche Telekom AG, China Telecom, and other leading carriers/service providers.

Sources:

  • "VocalTec And Cisco To Work Together In Project Analyst Hails As 'Breakthrough' For Industry" (Business Wire, Oct 6, 1999)
  • "The Market for Internet Protocol (IP) Telephony" (IDC, 1999)
  • "IDG 2003 World Outlook: Communications" (IDG, 2003)
  • "VocalTec Communications, Ltd. Press Release" (VocalTec Communications, Ltd., 1999)