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Saturday 17 November 2007

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ICE TO Begin VoIP Pilot Program Next Month
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ICE TO Begin VoIP Pilot Program Next Month
The current rate for an international call to the United States is us$0.30 cents per minute, however, if the call is made by way of the internet, using VoIP, the call costs only us$0.05 cents per minute.

The difference is great and come next month, the Instituto Costarrice de Electricidad (ICE) will being testing the technology that allows callers to use their computer or a telephone connected directly to the internet to make and receive calls.

VoIP is not new to Costa Rica. Many already are using the technology, but not with ICE's blessing, who has seen a reduction in international calls from customers using VoIP instead of ICE's service.

Claudio Bermúdez, communications manager at ICE said that the institution will be testing its pilot project between December and March before making it fully available.

"The is to test the service and rate structure, to test the demand with the idea of introducing the service officially before the end of 2008", said Bermúdez.

Before ICE can officially offer the service it has to have a rate approval by the Autoridad Reguladora de los Servicios Públicos (Aresep) - the regulator of public prices and services.

Bermúdez added that ICE will evaluate the results of the pilot project to see the number of potential users for the service and determine the rates they can afford to pay before submitting a rate proposal to the Aresep.

ICE did the same with its GPRS service - cellular internet. However, with the GPRS the trial and evaluation period lasted more than 2 years before the institution was able to obtain rate approval by the Aresep and the was allowed a lower monthly rate than was proposed.,

VoIP - Voice Over Internet Protocol - also called IP Telephony, Internet Telephony or Broadband Phone is a routing of voice conversation over the internet or through an IP based network. VoIP's carry telephony signals as digital audio, typically reduced in data rate using speech data compression techniques, encapsulated in a data packet stream over IP.

To use VoIP, the users needs a computer or specially designed IP phone that connects to the internet. Calls are then made and received using the computer or IP phone and carried over the internet at a much lower cost than traditional international calls.

Currenlty ICE has 85.000 users of the Acelera service, with plans to expand to 160.000 users next year, as well as expand the system capacity from the current 8 Mb transmission rate to 24 Mb, which is also able to carry television signal over the internet.

According to Manuel Incer, an ICE telecommunications engineer, the current traffic only uses 4 Mb.

Since the middle of last month ICE obtained the approval of the Contraloría General de la República (Comptroller's office) to purchase the necessary equipment to expand the IP network, signing a contract worth us$20 million dollars.

Once the IP network is expanded ICE should be able to easily meet growth demands for VOiP services.

However, before ICE's VOiP service can be used fully, the state institution has to establish agreements with carriers in the destination country, the first and largest market being the United States.

ICE says that the difference between their service and that offered by Skype and Vonage, for instance, is it can guarantee that the quality of the connection will be superior, very similar to a fixed line conservation.

VoIP carry telephony signals as digital audio, typically reduced in data rate using speech data compression techniques, encapsulated in a data packet stream over IP, carried by different network routes to its final destination.

Once ICE has its service up and running it will be competing with Skype, Vonage and a number of local VoIP service providers already have a large number of customers signed up in Costa Rica
 


A diagram of how VoIP works.

 


Using it's 3 Skypephone instead, Skype customers can use a stylish mobile phone that calls, texts and takes pictures. The phone is currenlty only available in the UK and Italy, but will be around the world in no time.
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