VoIP networks for carriers and service providers: business models, technical challenges and solutions

Recent market surveys are revealing a significant increase in the level of interest and deployment of voice-over-IP (VoIP) solutions within the Enterprise, Service Providers and Carriers arenas. This interest stems mainly from the value proposition of VoIP in lowering Capital and Operational expenditures (CAPEX/OPEX), while creating new-revenue generation opportunities and higher return on investment (ROI) figures. Yet many believe that the most compelling business cases for IP telephony solutions will be built by the identification of viable and creative business models for producing VoIP revenue streams. In his paper, we explore and identify key VoIP business models for both carriers and service providers and convey the reasons why these models are attractive. We also outline the features and functionality sets that are driving each of these models and show how they are contributing towards the emergence of a new breed of service provider, namely the Internet Telephony Service Provider (ITSP). The paper also addresses the unique technological challenges, potential potholes, and enabling solutions related to next generation's VoIP solutions and provides service providers and carriers with practical advices on how to prepare their networks for VoIP.