Softswitch not so Soft
Friday, September 06, 2002
It may still be a decade or two before
converged packet-switched networks replace PSTNs.
T he last few years have seen the emergence of Next
Generation Networks (NGN) not only to cater to high growth in data/packets, but
also to bring down opex and improve service offering. At the center of this
have been ‘softswitces’. The sharp industry slowdown and the so-called Internet
bubble burst, have adversely affected many carriers around the world. It has
made the industry over-cautious with the new technological trends, driven
especially by data or packet growth. One would believe softswitches to be one
of them.
Despite challenging economic conditions, many
alternate carriers/service providers, with sound business models and well
positioned for market success, have continued to invest in softswitch
architectures to secure their position in a competitive environment and ensure
future growth. In addition, many incumbent carriers/PTTs and wireless operators
are aggressively moving forward, with plans to deploy packet-based voice
solutions by leveraging softswitch technology. Global deregulation and
government-based policy strategies have committed many nations to privatize
their national telephony operators, creating economic incentives to remain
competitive with NGNs using ‘softswitch’ solutions, but the softswitch will not
be so soft in the times to come.
|
According to Cahners In-Stat/MDR, the softswitch
market is in the very early stages of a long growth period, as the public
switched telephone network (PSTN) is getting transformed into a packet-switched
network capable of supporting voice, data and video. They predict that
softswitch will be a key component of this transformation, as it controls media
gateways, IP phones and integrated access devices in the packet-switched
network, and provides inter-working with the traditional circuit-switched
network. Reduced capital equipment budgets will dampen the investments in new
technologies like softswitch. However, it cannot be overlooked that
softswitches and related technologies can reduce cost and provide for increased
service revenue.
|
The Softswitch Terminology |
|
A softswitch, short for ‘software switch’, is a
generic term for any open application program interface (API) software that is
used to bridge a traditional PSTN and VoIP, by linking PSTN to IP networks
and managing traffic that contains a mixture of voice, fax, data and video.
It separates call control functions of a phone call from the media gateway
(transport layer). Softswitches are able to process signaling for all types
of packet protocols. Softswitch is a software-based switching platform based
on open systems as against traditional proprietary hardware-based switches.
Softswitch is also called media gateway controller, call agent and
gatekeeper. Functions of a softswitch have been categorized into four different layers:
|
Market Growth
As the VoIP market continues to attract
the interests of carriers, the worldwide softswitch market for 2006 estimates
ranges from In-Stat/MDR’s $1.32 billion (representing a CAGR of 60.2 percent over
the forecast period 2001- 2006) to $4.1 billion (a CAGR of 119 percent) on the
other end. The market will continue to experience strong growth beyond 2006.
Allied Business Intelligence reports "While North America is leading the
charge in softswitch development, it is the Asia-Pacific region targeting at
the highest growth". The firm cites the region’s readiness to accept
technology and its use of VoIP for long distance toll arbitrage. It predicts
that softswitch will act as an anchor within the next-generation network in the
coming years, and the circuit switch market is expected to decline over the
next few years.
Companies competing in the softswitch market
include traditional telecom equipment providers like Alcatel, Lucent, Nortel,
and Siemens, as well as a new breed of companies with a strong IP/computers
heritage like CommWorks, VocalTec, Cisco, Sonus, Clarent, have emerged among
the dominant players. As the carriers are opting to cap investments in legacy
technologies by leveraging softswitch solutions, most of the legacy switch
vendors have recognized this fundamental shift in technology, and have
realigned their development resources towards packet-based softswitch
solutions.