Insights says a GCC state to test IP telephony in '04

The telecommunications prov-ider at one of the lower Gulf states is to have trial tests for IP telephony in 2003 for a possible commercial rollout in 2004.

Other telcos are also in various stages of their own preparations for introducing IP telephony, according to a market source.

So far regional telcos have been hesitant about having IP telephony as part of their services, since doing so was seen as compromising their historical investments, and revenues, from basic telephony.

"IP will introduce an era of cheaper telephone calls. Over the long term, basic telephony will move to an IP-based one," said Dominick Keenaghan, president of Insights.

"Regional operators now understand that IP is the way to go. There are discussions going on at various levels.

"All telecom operators belonging to the International Telecommunications Union (ITU), which is an UN body, have agreed to do something about having IP telephony.

"But there is a migration path, because the operators have got enormous investments on their existing infrastructure which supports basic telephony. IP telephony will turn their businesses upside down.

"But in the longer term, IP telephony is good for the national economy, facilitating a range of e-services."

Recently, Etisalat awarded Juniper Networks a contract to implement packet-based voice and data transmission services.

"With lower costs and ever improving performance characteristics, converging telecom concepts are now proving themselves commercially. This is particular true in the IP/PTSN (for public switched telephone network) convergence space where many new opportunities are appearing such as 'follow-me' call routing and location-based services," added Keenaghan.

"They are also a major challenge to existing public telephone operators who must migrate their delivery platforms to take advantage of new technologies."

Meanwhile, the concept of call centres, and the value that it can bring to businesses, is percolating down into the region, said Keenaghan.

"There is an education lag, but that is slowly being removed. Call centres have enormous potential in the region."

According to Ahmed Tahlak of Dnata: "People have to realise the importance of call centres to enhance revenues. If properly streamlined, it could increase revenues by 100 per cent."

Insights is organising the Middle East Computer Telephony Exhibition 2002, which opens today at Dubai Chamber of Commerce and Industry. The three-day event will also focus on optical communications.