What service provider customer segments does VoIP VPN address?
VoIP VPN could potentially be deployed by many different service providers including ILECs/PTTs, IOCs, CLECs, IXCs, AOs and ISPs. Nortel believes that the lead adopters will be incumbent ILECs and PTTs. Within North America, Bill 271 is removing the restrictions imposed on local carriers to transport traffic across LATA boundaries. With this relief, many ILECs are looking to expand out of territory and the VoIP VPN can be leveraged to accelerate this expansion. Most ILECs/PTTs have very large and well established Centrex and managed services businesses within their LATAs and many of their large enterprise customers utilize both managed and hosted solutions. With VoIP VPN, ILECs and PTTs can not only combine all of these solutions into a cost-effective integrated VoIP network, but they can also leverage this large installed base to incrementally offer national or pan-national VoIP VPN services. IXCs and AOs are seeing the loss of long distance revenue as prices erode and businesses buil