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June 11, 2007

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Preparing for the IMS Future: Easing Sticker Shock
By Chris Brazdziunas
Chief Architect, Verso Technologies
chris.brazdziunas@verso.com

IP Multimedia Subsystem, or IMS, is the hottest topic in the industry today and promises significant long-term benefits to a wide range of carriers. Most carriers have an IMS roadmap at this time, but a cautious few still hesitate, most likely due to sticker shock. There is no doubt the cost of implementing an IMS standard architecture is high, and the lead time on ROI is admittedly quite long. Other concerns include complexity from a platform count perspective, integration of components composing the IMS solution, and deployment time. The high cost is the major reason carriers delay in implementing IMS.

Few can argue about the benefits of the IMS architecture. It can give carriers the ability to introduce new applications such as video and multi-media, which are considered by most to be the key to new revenue generation services- today and in the future. It also allows for integration and transparency of traditional wireline or wireless (2G/3G) services with services deployed on IP based networks (WiFi, Ethernet, WiMAX). Additionally, IMS enables bundling of services which helps carriers reduce churn by creating customer loyalty, - significantly improving their operating efficiency. Bundled or converged services is key to generating sustainable revenues from new and current customers, creating brand loyalty and launching new services. Overall, IMS is fast becoming a requirement for any carrier who wants to arrive first-to-market with a range of customizable offerings and who wants to hang on to their hard-earned customers.

Given these benefits, it's no surprise that nearly every large carrier has already announced their IMS plans. For Tier-1 carriers who can afford infrastructure costs and a slow recoup on their IMS investment, IMS is a sound and obvious choice. Among smaller players, however, the advantage of IMS is less obvious. They too need an IMS roadmap, and even Tier-2 and 3 carriers need to carefully consider their IMS options and lay the groundwork for the architecture, rather than dismissing it as the domain of the big players. IMS enables next generation communications for all carriers, both large and small.

The Verso MetroNet VoIP Overlay, an IMS-ready solution, is the ideal platform for carriers who wish to leverage the benefits of VoIP and IMS but, in an incremental manner. The modular structure of IMS architecture, when combined with Verso's distributed VoIP architecture, creates a unique opportunity to evolve toward IMS-based networks in a step-by-step system.

The solution complements the IMS architecture by enabling carriers to plug in desired third-party applications and offers users in demand services. This enables IMS-ready applications that include features such as one voice mailbox for both wireless and wireline, video/voice conferencing, same inbound and outbound call logs on wireless and wired calls, instant messaging between wireless and wired, and interactive push to talk. These are just a few of the features needed for new revenue generation and enabled by the MetroNet VoIP Overlay solution.

As mentioned above, IMS enables and simplifies services bundling. But bundling is only a benefit for the carrier if it generates revenue. Therefore, the IMS architecture almost logically demands a solution which supports dynamic rating plans, converged pricing for bundled services- ranging from VoBB, IP Centrex, conferencing, and messaging, just to name a few.

In effect, the MetroNet VoIP Overlay solution allows Tier 2 and 3 carriers to test the IMS waters with minimal infrastructure investment and is also a cost-effective solution for cost-conscious major carriers. The initial capital expenditure for the Verso MetroNet VoIP Overlay solution is relatively low when compared to traditional circuit switches and this enables carriers to test the waters with IMS enabled applications and quickly demonstrate an ROI.

IMS compliance is quickly becoming a requirement in an ultra competitive market where multiple players compete for the same customer, early market entry and service flexibility. Every carrier needs to make an investment in their IMS future today, even those smaller players taken aback at infrastructure investment cost. At Verso, we believe the best way large and small carriers can prepare for the inevitable IMS future is to purchase "pay-as-you grow" VoIP solutions offering the ability to easily introduce new applications via bundled service offerings. We are certain that once carriers see the benefits of IMS-compliant VoIP deployments, they will take heed and invest in their IMS future.

Verso Market Entry IMS