BT kicks off Internet Protocol migration

09-06-2004

by Martin Lynch

Users could see lower phone costs following a multi-billion pound project from BT to convert all of its UK networks to an Internet Protocol network by 2008.

The conversion to an IP-based infrastructure will result in BT being able to offer its phone services across the same network as its broadband and other data services. The move will greatly reduce the overheads currently associated with managing a range of networks for different services. It should also result in lower phone charges for both residential and business customers, as well as a wider range of services on tap, but BT has not yet revealed specific benefits.

Routing phone calls across an Internet connection -- voice over IP (VoIP) -- requires IP-enabled hardware and software and is a fast-growing sector of the IT and telecoms industry. IP is proving very popular with businesses since it allows them to make phone calls using their existing network and Internet access without incurring individual call charges. Like e-mail, users pay for their Internet access but not for individual e-mails sent.

BT's migration programme, dubbed 21st century network (21CN), will see the company migrate all of its customers off the existing PSTN network, starting in 2006. The telecoms giant has promised to have the majority of its customers on the IP network by 2008, claiming they will have better choice, control and service flexibility. Broadband to 99.6 per cent of people will available by summer 2005 and BT is aiming to have broadband dial-tone to most customers in five years' time. This will allow them to switch on and off broadband services as they need them, without intervention by an engineer.

"The 21CN programme will deliver our vision of a converged, multimedia world where our customers can access any communications service from any device, anywhere -- and at broadband speed," commented BT Wholesale chief executive, Paul Reynolds, in a statement. "21CN will drive a radical simplification of BT's operations including significantly lower costs and the capability to launch new services to market faster than we can today."

Rachel Power, analyst at market watcher Canalys, added: "For BT, the move will reduce its costs because it will no longer have to integrate or manage multiple networks. BT should be able to pass those savings over to its customers in that they will only have to pay for their broadband costs. Customers should be able to switch the line on whenever they want it, which is a lot more straightforward than it is today, where exchanges have to be tweaked. BT will be aiming to make its money on increasing the services it can offer, such as TV and gaming, for instance."

A 1,000-user trial will kick-off in London, Kent and East Anglia by January next year.