Why does VoIP support new emerging technologies better than the PSTN?
An inherent limitation with the PSTN is that intelligence resides in telephone company Central Offices (CO) and corporate PBX’s. The technology in those systems is highly reliable but changes are slow and expensive to make. In contrast, IP architecture uses networks of servers and routers that are rapidly escalating in power and frequent introductions of new software that offers new functionality and features. High-end routers can process more information at a fraction of the cost and physical size of a traditional CO switch. This explosion of power and reduction of cost has triggered enormous changes by Nortel and Lucent, the major suppliers of PSTN equipment. In order to gain the expertise and technology in the emerging area Nortel acquired Bay Networks and Lucent acquired Ascend. Cisco, who already had data network expertise, bought numerous telephone companies to add expertise and penetrate this emerging marketplace.
