As introduced, the SBC IP portfolio includes the PremierSERV Hosted IP Communication Service (HIPCS) now available in some markets, and IP-VPN options to be offered early next year.

Benefits of IP

Businesses of all sizes are recognizing the benefits of IP connectivity, says SBC spokesperson Jason Hillery. He cited cost-savings through moving away from private phone lines and lower network-management fees as benefits of combining voice and data.

SBC's VoIP portfolio also provides tools to boost productivity, Hillery told NewsFactor, such as a single inbox for voice and e-mail messages, and "find me, follow me" call-routing options.

As hosted services, both HIPCS and IP-VPN let businesses use IP capabilities with minimal investment or management expertise, Hillery says, though he acknowledges that some enterprises are putting together the IP infrastructure on their own.

Packaged Services Preferred

Dial-up communications firms like SBC have to get on the VoIP bandwagon, said Yankee Group vice president Zeus Kerravala, to keep pace with cable companies that are pushing services that combine TV, Internet access and voice in a single package.

"It's a small market now, but it will grow as more vendors bundle these types of services," Kerravala said. He agreed that the potential to save cash through consolidating voice and data applications in one pipe makes VoIP attractive to businesses.

IP also allows operators to increase revenues through the sale of such features as antivirus protection, content filtering and call waiting for voice calls. "The more intelligence that goes into the network, the more operators will get involved with VoIP," said Kerravala. "It's a good way for them to differentiate themselves -- other than price."

Window of Opportunity

Although the VoIP market is in its infancy, notes IDC analyst Tom Valovic, his firm predicts that sales of both equipment and hosted services will reach the multibillion-dollar level by 2006.

"Carriers have to move quickly or lose their window of opportunity," he told NewsFactor, "because equipment vendors like Cisco are enjoying success in the VoIP market."

Currently, most enterprises adopting VoIP are focusing on voice virtual private network (VPN) applications. With this technology, companies with numerous remote locations can use small gateway appliances that interface with their PBX (private branch exchange -- a private telephone switching system) to place calls that bypass the phone companies' legacy networks, creating a secure voice connection.