SOURCE: Verilink

August 02, 2005 07:00 ET

New Study Highlights the Economic Benefits of VoIP Using Verilink 8000 Series IAD as Benchmark

NSP Study Reveals 85% OPEX Savings Through the Utilization of VoIP-Enabled IADs and Softswitch Technology

CENTENNIAL, CO -- (MARKET WIRE) -- August 2, 2005 -- Verilink Corporation (NASDAQ: VRLK), a leading provider of broadband access solutions, today announced the results of a new study conducted by independent research firm Network Strategy Partners, LLC which identifies and quantifies the benefits of moving from traditional Time Division Multiplex (TDM)-based to VoIP-enabled IADs as a CPE solution. The report, entitled "Economic Impact on T1 Infrastructure of VoIP-enabled IAD," uses Verilink's 8000 Series IAD as a benchmark in examining the benefits of VoIP-enabled IADs and explores four primary areas, including: CAPX analysis; recurring operating costs; total cost of ownership (TCO); and operating expenses.

Conclusions from the study support the economic, technical and operational advantages of VoIP-enabled IADs over their TDM-based counterparts, and revealed a sharp reduction in legacy infrastructure CAPX spending with the introduction of VoIP-enabled IADs and softswitching. The study found that CAPX is 71% to 75% less through the integration of VoIP enabled IADs in the future mode operations (FMO) over that of present mode operations (PMO) based on TDM. The study also found that the use of TDM IADs typically result in the underutilization of a T1's full capacity due to the channelized nature of TDM's dedicated DS0 circuits. VoIP-enabled IADs, in contrast, can increase T1 utilization from 50 to 100% by employing statistical multiplexing and sophisticated QoS capabilities, thus tripling the service capacity of a T1 line.

"The dramatic savings as a result of integrating both a VoIP IAD and softswitch solution backs our initial conclusions that VoIP-enabled IADs produce a multitude of economic advantages over that of legacy TDM-based IADs," said Michael Kennedy, President Network Strategy Partners. "Our research makes a compelling case for service providers to move from the PMO model to FMO based on VoIP. Furthermore, our findings show a significant increase in capacity, enhanced feature capabilities, and cost savings when service providers move from TDM to the enhanced capabilities that VoIP-enabled IADs bring. Verilink's 8000 Series IAD was useful as a benchmark in the study given its unique multi-protocol transport support across TDM, ATM and IP."

"As shown in NSP's study findings, service providers can build a compelling case to continue transitioning their legacy TDM infrastructure to IP packet-based networks while at the same time increasing service levels, maintaining customer churn, and growing their overall customer base," said Sab Gosal, Vice President of Marketing for Verilink. "The enhanced capability of VoIP-enabled IADs, such as Verilink's 8000 Series, allows carriers to provide better value to their business customers with broadband services that offer as much as three times the capacity of traditional TDM-based solutions. Furthermore, service providers can employ VoIP technology to substantially reduce their CAPX and OPEX costs today while preparing their networks to deliver new services in the future."

The report, entitled "Economic Impact on T1 Infrastructure of VoIP-enabled IADs," is available from upon request from Network Strategy Partners (NSP), or can be downloaded from the Verilink web site at http://www.verilink.com/papers/voip-economics.cfm.

About Verilink Corporation

Verilink Corporation (NASDAQ: VRLK) is a leading provider of next-generation broadband access solutions for today's and tomorrow's networks. The company develops, manufactures and markets a broad suite of products that enable carriers (ILECs, CLECs, IXCs, and IOCs) and enterprises to build converged access networks to cost-effectively deliver next-generation communications services to their end customers. The company's products include a complete line of VoIP, VoATM, VoDSL and TDM-based integrated access devices (IADs), optical access products, wireless access routers, and bandwidth aggregation solutions including CSU/DSUs, multiplexers and DACS. The company also provides turnkey professional services to help carriers plan, manage and accelerate the deployment of new services. Verilink is headquartered in Centennial, CO (metro Denver area) with operations in Madison, AL and Newark, CA and sales offices in the U.S., Europe and Asia. To learn more about Verilink, visit the company's website at http://www.verilink.com.

About Network Strategy Partners, LLC (NSP)

Network Strategy Partners -- management consultants to the networking industry -- helps service providers, enterprises, and equipment vendors around the globe make strategic decisions, mitigate risk and affect change through custom consulting engagements. NSP's consulting includes go-to-market strategies, development of new service offers, pricing and bundling as well as infrastructure consulting. NSP's consultants are respected thought-leaders in the networking industry and influence its direction through confidential engagements for industry leaders and through public appearances and trade magazine articles. These interactions assure NSP's clients that they will be among the first to know the latest industry concepts and emerging technology trends. Each consulting engagement is uniquely structured -- no forced methodologies or canned reports are employed. NSP's consultants' collective experience is derived from leading firms across a broad spectrum of professional disciplines including management consulting, engineering, marketing, financial analysis, and IT management. Contact NSP at http://www.nspllc.com.

Contact Information

  • Contacts:
    Gary W. Gray
    Verilink Corporation
    510.771.3354
    Email Contact