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What's New at General Telecom?
General Telecom continues
its legacy of product innovation - delivering services
critical to carriers during
changing times. Over the next few months
we will be engaged
in a Session
Border Controller trial. The trial
platform along with our monitoring tools will
enable General
Telecom to continue to expand our service offering
and provide robust IP-to-IP switching functionality.
Some of you have already suggested the need for
a "virtual
IP presence" in the United States. The trial
will include extensive testing of a number of possible
solutions
that we can readily make available. If you are
interested in learning more about the session border
control
trial, please contact solutions@gentel.net. A recent
article
in Network Magazine describes the nuances of Session
Border Control; click here to read this informative
article.
In tandem with a flurry of product innovation,
General Telecom has embarked on an extensive
internal training
program that began in January. The training ensures
that all of our employees receive advanced training
to meet
the needs of the growing VoIP world. The most aggressive
training is now occurring in our NOC,
where technicians are receiving in-depth training
about monitoring
and maintenance of VoIP networks, IP addressing
and sub-net
masking. We offer training packages available to
any service providers interested in learning
more about VoIP.
Training is available for Intro to VoIP, VoIP Sales
Training, IP Addressing, Basic VoIP Provisioning,
VoIP End-User
Network Design, and VoIP Customer Service. For
more information, please contact training@ngt.com.
In the last year, General Telecom has presented
a host of new services including VoIP
Direct and Virtual
Local
Loop which help bridge services between TDM
and IP networks, Internet
Connectivity which provides
one-stop
shopping
for all your IP needs, and stand-alone colocation to
increase access to our popular Global
Village.
More recent
product innovation also includes 6DegreesIP –
a managed, wholesale VoIP telephony service suite.
All of these
services came out of meetings or discussions with
our customers and are examples of how General Telecom,
along
with parent company New Global Telecom, is committed
to developing the services that will help our customers
succeed. If you are interested in providing feedback
on new services that will help your business, please
speak with your account manager or contact solutions@gentel.net.
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6DegreesIP
– Rapid Product Development
In February New Global Telecom released version 2.1 of our 6DegreesIP managed
wholesale service suite. V2.1 was the first of a number of planned releases
through 2004, designed to continuously enhance the service suite to meet customer
needs. Then in March, New Global Telecom released a minor enhancement, v 2.1.1
adding Long Distance Services to the product suite. Currently, v 2.2 is ramping
up for an early May release, with more major enhancements to the rapidly evolving
product suite.
Caitlin Clark-Zigmond, NGT’s Director of Product Management describes
our approach to product evolution – “We have designed and implemented
a very thorough product development and release process within New Global Telecom.
This includes continuous collection of product ideas and input from our existing
customers as well as from the market at-large, combined with a rigorous evaluation
methodology to help us establish development priorities and timing of releases.
Through the remainder of 2004, I anticipate at least three more significant
6DegreesIP releases to the marketplace.”
6DegreesIP version 2.3 is anticipated in June with new features and tools
to help service providers with low-cost, rapid entry into the VoIP marketplace.
In addition, New Global Telecom
has developed several Training modules, each involving approximately 1/2-day
in a classroom setting, for use by any of our New Global Telecom or General
Telecom customers. We believe that a fundamental building block for our customers’ success
is the readiness of their internal staff to deploy and support IP-based services.
The content was developed with this in mind, and we now have an expert training
manager on staff to deliver training and to support our customers as they roll
out services.
Current modules include:
Introduction
to VoIP – This
module provides a helpful context by delivering an overview of the history
and benefits
of VoIP services.
Sales
Training (for selling VoIP services) – This
module introduces approaches to the small- and medium-enterprise
(SME) marketplace that are effective and efficient
for generating quality sales, and covers a number of
important tools for use by our customers’ sales
team. These sales tools include an SME Cost Savings
Calculator, SME Sales Presentation and Sales Collateral
Materials.
Basic
Provisioning – This module
provides hands-on training and practice with regard
to setting up accounts and making changes to accounts
over time. Since 6DegreesIP allows service providers
to self-provision services to end-users, this module
is important for efficient service delivery.
End-User Network Design – This training assists
with the evaluation of SME network environments to
properly engineer the optimum network solution. It
covers network components and tools to ensure rapid
and seamless service delivery from our customers’ networks
to end-users.
Customer Service – With 6DegreesIP,
service providers conduct Tier 1 support internally
and this module provides
practical assistance in dealing with trouble
reports from SME end-users, including trouble-shooting
a series
of frequently asked questions. In addition, this
module reviews the procedures for reaching Tier
2 support
from NGT’s 24x7 Network Operations Center.
IP Addressing – This
module helps voice carriers better understand
the nuances of the
IP world including
binary math, IP addressing, and subnet masks.
In addition to the Training Modules,
prior product releases include:
- Feature Overview Documentation
- Feature
User Guide
- IP Device Support
- New Reporting Capabilities
- Long-Distance Service
If you have any questions about
product development or 6DegreesIP service features,
please contact solutions@ngt.com or speak with your account manager.
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6DegreesIP – Quantifiable
Benefits to Service Providers
Profitable New Revenue Streams
VoIP REVENUE& MARGIN
ASSESSMENT TOOL1
The decision to introduce VoIP service involves consideration
of a number of important and complex factors – some
of these can be quantified, while others are qualitative
in nature. To help with this evaluation, New Global Telecom
has created an interactive VoIP Revenue & Margin
Assessment Tool that provides insights into the impact
of 6DegreesIP service on your revenue and margin picture.
EXAMPLE – A
REPRESENTATIVE "SECOND-TIER" SERVICE
PROVIDER
Let’s take the case of a service provider – for
instance an Internet Service Provider or Cable TV Operator – looking
for new voice services to extend its portfolio. This
strategy will fend off competitors and generate new
revenue streams. Alternatively, this service provider
might be a CLEC seeking both a reduction in churn as
well as additional new customers.
In order to forecast financial impacts utilizing the
VoIP Revenue & Margin Assessment Tool, we will
assume that this service provider is a mid-size (i.e. ‘tier
2’) operator in its markets with the following
relevant parameter values (refer to Table 1):
- The
service provider currently has 5,000 business
customers, of which 50% are SOHO
(small office / home office), 30% are small businesses,
15% are medium-size businesses and 5% are large
businesses,
- The introduction of VoIP service will
attract new customers in the first year at a rate
of
10% of the service
provider’s
current customer base,
- VoIP service is sold
into 10% of the service provider’s
current customer base, and
- The introduction
of VoIP service will reduce customer churn
by an average of approximately
30%.2
We have assumed service provider pricing
to businesses (end-users) based on appropriate 6DegreesIP packages of service features for each size of business
(i.e. ‘Residential SOHO’ package for SOHO
customers, ‘Enterprise Dialtone’ package
for small businesses, ‘Basic Enterprise’ package
for medium businesses, ‘Premium Enterprise’ package
for large businesses) – refer to Table 2. All
packages include voice mail, although long-distance
calling is excluded from our analysis. It should also
be noted that we have NOT assumed the most
favorable pricing of 6DegreesIP to the service provider in this
analysis.
FINANCIAL IMPACT OF INTRODUCING
VoIP SERVICE
Based on the scenario described above, total
incremental revenue to the service provider will be
$2.0 million
over just the first-year – this assumes 10% penetration
of the existing customer base, as well as a calculated
net gain of 310 VoIP customers (or approximately 4,200
VoIP lines) through the year. Associated gross
margin will be $560,000. (Refer to Figure 1)
CONSIDERATIONS
The gains associated with deployment of 6DegreesIP are
impacted by a number of important factors. Among the
factors that service providers need to carefully consider
are:
- Service Penetration – Figure 1
reflects conservative assumptions regarding VoIP
service penetration. Of
course, results are sensitive to these assumptions.
For instance, if we assume instead that VoIP service
penetration of the service provider’s existing
customer base is 20% (rather than 10%) and customer
growth over the year is 20% (rather than 10%),
then associated incremental revenue will be $4.1
million
and incremental margin will be $1.2 million.
(Refer to Figure 2)
- Customer Acquisition & Satisfaction – VoIP
service will drive acquisition of new customers
due to highly competitive pricing, solid service
quality
and access to leading-edge features. It is assumed
that customer satisfaction with the service and
features is high, due to the freedom and convenience
introduced
by PC-based or web service management.
- Reduced
Churn – High customer satisfaction
drives lower customer churn. Another contributing
factor to reduced churn is the ‘stickiness’ associated
with bundling / packaging of multiple services
(such as high-speed Internet access and/or
cable TV, together
with VoIP telephony). It is reasonable to assume,
in fact, that ‘word-of-mouth’ from
satisfied customers will help drive sales.
- Speed-to-Market – The
opportunity to deploy VoIP services quickly
to a market via NGT’s
6DegreesIP managed wholesale solution is NOT
reflected in this analysis. However, this faster
speed-to-market
is an important factor to consider, since it
advances revenue and margin streams to service
providers.
- Pricing Terms – This analysis
has assumed that the service provider pays
for 6DegreesIP service on the basis of a 12-month contract,
with no up-front
revenue commitment to New Global Telecom. More
favorable pricing terms are, however, available
which would
improve gross margin to the service provider.
- Multi-Year
Analysis – The assessment
shown here reflects the first-year of service
only. A multi-year
analysis would demonstrate substantially
higher revenue and margin streams for the service
provider.
- Additional Service / Revenue Opportunities – In
addition to the VoIP service features reflected
in this analysis, other services (such as
long-distance calling) will add incremental revenue
for the
service
provider.
CONCLUSIONS
A cursory assessment of the financial impact associated
with deployment of 6DegreesIP service is compelling.
Extending the analysis over a multi-year time horizon,
and incorporating advancement of revenue as a result
of faster speed-to-market provides convincing evidence
that a managed wholesale VoIP solution can help
service providers to:
- Compete more effectively
- Gain new customers
- Reduce existing customer turn-over
- Increase customer
satisfaction
- Generate substantial, profitable
revenue streams
DO YOU
WANT TO KNOW MORE? DO YOU HAVE INPUT?
New Global Telecom would be pleased to discuss our
6DegreesIP service suite with you. If you wish, you
can utilize our VoIP Revenue & Margin Assessment
Tool to examine your specific situation. Give us
a call at 303-239-1025 or email us at sales@ngt.com.
And, if you have input regarding additional services
or enhancements, we would be very pleased to hear
from you – just write to us at solutions@ngt.com.
1 While
this article specifically concerns the use of New
Global Telecom’s VoIP Revenue & Margin
Assessment Tool, you may also wish to look at General
Telecom’s Savings Calculator. The Saving’s
Calculator provides valuable insights into the costs
and benefits associated with TDM traffic management.
If you are interested, click here.
2 Net of churn, there will be 5,310 customers at
the end of year-one.
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Supra Telecom Grows Consumer Business with General
Telecom  Supra Telecommunications and Information Systems,
Inc. recently expanded services at General Telecom’s
Miami location. Supra is a facilities-based national
Alternative Local Exchange Carrier ("ALEC")
targeting the consumer market. Headquartered in Miami,
Supra provides affordable local, long distance and
Internet access services. By outsourcing switching
functionality
to General Telecom, Supra is able to reap increased
earnings without capital expense.
"The relationship we have with General Telecom
provides us with diversity in our network, and enables
us to increase
our competitive advantage in the marketplace," stated
Victor Mediki, VP of Business Development and Carrier
Operations for Supra Telecom.
"General Telecom’s dedicated team – including
Randy Weinberger and John Jairo Ramirez – is
actively engaged with Supra to develop a solution
so they can
actualize their market vision," added Lee Story,
Senior VP of Network Management Services. "We look
forward to growing our
relationship with Supra as
they continue
to expand
services across the United States."
For more information about Supra’s services,
please visit www.stis.com.
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Jupiter Telecom Increases the Reach of its Voice
Minute Exchange
Jupiter Telecom is the provider of a
unique voice
minute exchange – delivering its customers
comprehensive reports that include true ASRs and
rate data every 15
minutes. This enables any of the 60+ Jupiter carriers
to manage rate and route quality in near real-time.
And today, Jupiter Telecom provides these services
on General
Telecom’s network backbone in NY, LA and Miami
which all connect to Jupiter's new VoIP switch via
an IP IMT providing SS7 signaling to all its customers.
 "The experience-level of General Telecom’s
employees is great – and they maintain an attitude
and willingness to help that is critical for our
fast-paced
business," stated
Joe Putgenat, President and CEO of Jupiter Telecom.
"The OSS router is unique to General Telecom and
instrumental
in providing the flexibility required to succeed
in our industry today."
Joe originally began services with General Telecom
in 1996 when he was operating LD Exchange. Over time,
he
has contributed to the evolution of General Telecom’s
services, including the OSS router and Alpha server.
"Jupiter Telecom is a great customer – and
their willingness to voice opinions has helped General
Telecom drive product development and innovation. We are dedicated
to meeting the needs of Jupiter’s rapidly growing
exchange," stated Lee Story,
Senior VP of Network Management Services.
For more information about Jupiter Telecom, please
visit www.jupitertele.com.
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Loop Around at CompTel/ASCENT Anaheim
More than 140
companies – including General Telecom – and
2,300 attendees were at the sold-out CompTel/ASCENT
Alliance Spring 2004 show in Anaheim. Another
productive,
profitable, and fun Loop-Around event was hosted
by General Telecom at the spectacular Hilton Anaheim
Towers. Members
of General Telecom’s Global Village and their
guests attended the event, with lots of meetings
scheduled and
many leads generated.
 Loop-Around
events have become a great way to support General
Telecom’s
goal of providing customers with increased access
to more markets at lower costs.
While Global Village members can meet online to
conduct business 365 days per year, Loop-Around
events are held
in a relaxed, social setting where current and
prospective members of our Global Village of carriers
meet face-to-face
to mingle…and find new opportunities to expand
and grow revenues.
If you’re interested in joining or learning
more about how the Global Village can provide increased
access
to more markets without the need for local loops,
contact
sales@gentel.net.
Maybe we’ll see you at the
next CompTel/ASCENT Alliance show September 12-15
in Miami
Beach, Fla.
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SPRING VON
 General
Telecom and New Global Telecom sales team members were
in attendance at the Spring
2004
VON Conference
and Expo, March 28th through April 1st in Santa
Clara, California. This show was very well attended
by vendors
and service providers alike, demonstrating the
tremendous momentum surrounding the VoIP revolution.
Our representatives
were delighted to have the opportunity of meeting
up with many current customers, and were exhilarated
by
the market interest in VoIP services in general – and
managed wholesale solutions, such as our 6DegreesIP suite, in particular. A very productive show, it
seems, for
everyone who was there!
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Speaking Engagements
New Global Telecom and General Telecom
continue to enhance their reputation as a major player
in the
rapidly evolving VoIP industry
through speaking appearances and presentations.
 CEO Rich Grange will be speaking on Tuesday, May
18th at the Comptel/ASCENT “Advancing The
Business Of VoIP” Workshop in Washington
D.C. Rich will present a one-hour session on the
transition from TDM to IP-based
technology and services. The session is titled "Network
Ops: Teaching Old Techs New Tricks" and covers
the challenges and solutions for skill-set evolution
and management of tasks needed to effectively support
TDM-to-IP migration.
Rich will present a model of VoIP service delivery
and discuss the relevant network operations issues
in the
context of TDM-to-IP migration, including end-user
support, network & facilities, and back-office
capabilities. He’ll also talk about the key
drivers for market penetration of VoIP services (including
some of NGT’s
own primary research), as well as the primary applications
that are igniting consumer and business demand for
VoIP. For more information on the Comptel/ASCENT “Advancing
The Business Of VoIP” Workshop visit www.comptelascent.org.
To schedule a meeting with Rich at the "Advancing
the Business of VoIP" Workshop, please email solutions@gentel.net.
We’re
also pleased to announce that Mark Bolton, NGT’s
Product Development Director, will be speaking August
3rd or 4th at the Technology Marketing Corporation
(TMC) VoIP Developer Conference in San Jose, California.
Mark
will be presenting at the session titled "VoIP
Enabling Legacy Products" on how best to ensure
that technical network & operations activities
support high customer adoption and successful VoIP
products.
Mark will address product extensions on legacy technology
platforms to create valuable products addressing
the needs of IP carriers. He’ll also talk about the
keys to ensuring effective development & implementation
of highly competitive VoIP-based products.
"Our team at NGT has a practical perspective on the
successful migration from TDM and implementation
of VoIP technology
and services," said Bolton. "With the
launch of our 6DegreesIP managed
VoIP services, we have extended
our own legacy TDM technology platform to encompass
IP-based technology and provide a broader range of
offerings to
service providers."
Mark’s presentation will provide a practical
perspective for conference attendees interested in
building the next
generation of IP based communications products and
services. For more information on the VoIP Developer
Conference, visit www.voipdeveloper.com.
To schedule a meeting with Mark at the VoIP Developer
Conference, please email solutions@gentel.net.
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Upcoming Events
 NetWorld+Interop
Dates : May 09 - May 14, 2004
www.interop.com
Las Vegas, NV.
The End-to-End Networking and Communications Event.
GTM 2004 Conference
Dates : May 17 - May 21, 2004
Marriott Wardman Park Hotel, Washington, D.C.
 6th
China VoIP Conference and Expo
Dates : May 18 - May 20, 2004
www.china-voip.com
Beijing, China.
China’s foremost event focusing
on the fundamental components of next generation networks
and for provisioning
NGN services.
Advancing the Business of VoIP
Dates : May 18 - May 19, 2004
www.comptelascent.org/events/VoIP-workshop
Washington, DC
Voice over Internet Protocol (VoIP) and other IP-centric
services are changing the face of communications for
carriers and consumers alike. Attendees will learn
about the many "flavors" of VoIP and how
one differs from another. What challenges will you
face when migrating existing customers over to IP-centric
services and what economic benefits will be derived
from doing so? How can changes in the regulatory environment
affect pricing and cost allocation? This interactive
workshop will answer these questions and many more.
Rich Grange, Pres/CEO of NGT will be speaking at this
event, May 18th, 11am-noon for the session "Network
Ops: Teaching Old Techs New Tricks". Click
here to arrange a meeting with Rich during the show.
 VON Europe 2004 Conference and Expo
Dates : Jun 07 - Jun 10, 2004
www.pulver.com/europe2004
London, UK.
The place to go to if you need to understand the issues
effecting the European IP Communications industry today
and would benefit from having a heads up on the future
directions of the space.
 conVurgeGOV Summit and Forum
Dates : Jun 13 - Jun 15, 2004
www.convurge.com
Homestead Resort, Virginia.
An executive level educational forum created specifically
for CIO's, CTO's and Senior Officials from federal,
state, and local government agencies, who are responsible
for technology related strategic and operational planning
and purchasing.
 SUPERCOM
Dates : Jun 20 - Jun 24, 2004
www.supercomm2004.com
Chicago, Illinois.
The world's largest annual all-inclusive exhibition
and conference for communication service providers
and private network managers.
 VoIP Developer Conference
Dates : Aug 03 - Aug 04, 2004
www.tmcnet.com/voipdeveloper/conf.htm
DoubleTree Hotel in San Jose, CA.
TMC's VoIP Developer Conference will feature two days
of high level, targeted education designed to teach
conferees how to develop solutions in the hardware
space and software space. Mark Bolton will be speaking
in a session titled "VoIP Enabling Legacy Products".
He'll address product extensions on legacy technology
platforms to create valuable products addressing the
needs of IP carriers. He'll also talk about the keys
to ensuring effective development and implementation
of highly competitive VoIP-based products. To schedule
a meeting with Mark at the VoIP Developer Conference,
please email solutions@gentel.net.
If you'd like to meet with General Telecom
at any of these shows, please send an email to sales@gentel.net or
call 646-328-5800.
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I use traditional
switch-partitioning, what’s the
best way to interconnect with IP carriers?
Global carriers need a simple solution that facilitates
TDM interconnections directly with VoIP carriers
in order to access additional revenue opportunities.
General
Telecom's Virtual Local Loop enables global carriers — our
customers — to operate both IP and traditional
networks without the capital expenditures and operating
costs of owning and operating both networks.
As part of the service, General Telecom
provides gateway equipment, Internet bandwidth, cross-connection
between the gateway and TDM platform as well as 24x7
element monitoring through General Telecom’s
NOC. This service facilitates low-cost, low-risk connectivity,
and the provisioning cycle for Virtual Local Loop service
is ten (10) business days.
In each issue of In the Loop, experts will answer your
questions about emerging technologies and tools that
can help our customers exploit the global marketplace.
This kind of feedback is invaluable in helping us understand
your needs and concerns, and so we can continue to
innovate the services you need to succeed. If you have
a question, concern, or current challenge, please write
us at solutions@gentel.net. Remember, input from our
customers helps us innovate new solutions!
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Animated Demos Explain VoIP Services
 General
Telecom’s parent company, New Global
Telecom, has just released animated VoIP demonstrations.
These demos are
available to 6DegreesIP customers
to help explain the benefits of VoIP to business
users. There’s
an overview and five additional short demos with
a hands-on approach to showing VoIP functionality.
To
view the demos, please visit www.ngt.com/demo.
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You are subsribed to
General Telecom's and New Global Telecom's newsletter
list, and will receive approximately
one email a month as part of this subscription
-- including the In the Loop Newsletter focused on
carrier issues and 6DegreesIP News focused on VoIP.
If this newsletter
has been forwarded to you and you would like to subscribe,
please click here: subscribe@gentel.net.
If you wish to unsubscribe, please click unsubscribe@gentel.net.
If you prefer to speak with General Telecom directly
please call 303-239-1025. General Telecom, 600 12th
St, Suite 200, Golden, CO 80401.
www.gentel.net
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