News and Articles

News and Articles

Neal Shact quoted in LA Times about using Internet Telephony

Say hello to lower phone costs on Net - Internet calling has improved so much and become so inexpensive, it's a good time to try some of the services

November 25, 2007

James S. Granelli, Times Staff Writer

The cost of phone calls has been dropping for years, but there's still a lot of room to push prices down to pocket change -- if you're not afraid to make calls through your computer.

A growing number of calling services take advantage of the technology known as voice over Internet protocol, or VOIP. Thanks to continuing technological improvements, the plans are easier to use than ever and can save you a boatload of money on long-distance and, particularly, international calls.

You might not know it, but you're probably already using VOIP: It's the same technology that AT&T Inc. and Verizon Communications Inc. use to handle your long-distance calls, and it's the backbone in the so-called digital-calling plans offered by cable TV giants like Comcast Corp. and Time Warner Cable Inc.

The cost savings of VOIP has allowed upstart phone-based firms, including Vonage Holdings Corp. and Packet8, to compete against the big players, even though they don't own the lines to your home.

VOIP technology breaks up voice into data packets and sends it, like e-mail, over high-speed lines without the need for a lot of expensive hardware that phone companies use.

Scores of computer calling operations -- Skype Ltd., SightSpeed Inc. and Gizmo Project among them -- don't think those entrenched phone companies are passing the true savings of VOIP on to consumers.

And such companies as Mobivox Corp. and ISkoot Inc. believe that's especially true in the higher-priced mobile-phone industry, so they are bringing the same free and low-cost calls to cellphones.

"Costs of calling are dropping to free," said Andy Abramson, an industry and marketing consultant who has tested all the major VOIP operations.

Consumers might pay a basic access charge -- "an admission fee," Abramson called it -- for a connection or a basic calling plan, but they don't have to pay more just to talk to someone around the corner or around the world.

Neal H. Shact, chief executive of telephone services company CommuniTech Inc., recalled a visit to Paris two years ago when he spent $1,000 on cellphone calls.

"Two weeks later, I went to Sweden and used Skype through my laptop for even more calls and I didn't spend the whole $12 I had paid for," he said.

But the VOIP companies are businesses too and have to make a profit to continue offering service.

Article that appeared in Internet Telephony magazine naming Neal Shact as one of the "Top 100 Voices" in Internet Telephony

Top 100 Voices of IP Communications:

Neal H. Shact, CommuniTech Services
Neal Shact is the founder and CEO of CommuniTech Services (1983), a voice messaging company and CommuniTech (which was sold last year). He was also the founder of the International VoIP Council which later joined forces with the International Packet Communications Consortium (IPCC). Regarding the significance of IP Communications, Shact shared his thoughts: Prior to the advent of IP Communications, voice transmission was tightly coupled with traditional telephone systems. In the first stage of VoIP, voice could be transmitted by PC/Internet technology without using phone equipment. We are just now grappling with what it means when voice emerges as an application regardless of platform or even reside as a subset of other applications. Rich Presence and Unified Communications are ushering in revolutionary changes in the way people communicate that are only limited by our imagination and genuine customer needs. "I love this business."

Other list members include

Michael Powell, FCC (2001-2005)
John Sununu, United States Senator
John Ensign, United States Senator
Bryan R. Martin, 8x8 (News - Alert), Inc.
Robert Messer, ABP (News - Alert) Technology
Seamus Hourihan, Acme Packet

Mike Quigley, Alcatel

Jonathan Shapiro, Alliance Systems
Ragui Kamel, AOL
Alex Mashinsky, Arbinet, VenturiFX
Cathy Martine, AT&TS

Shabtai Adlersberg, AudioCodes
Alan Percy, AudioCodes
Michael Thurk, Avaya
Michael J. McHugh, BEA Systems
Scott Wharton, BroadSoft
J.C. Murphy, Cantata Technology
John T. Chambers, Cisco Systems
JD Rosenberg, Ph.D., Cisco Systems
Gordon Payne, Citrix Gateways
Henning Schulzrinne, Ph.D., Columbia Univ.
Neal H. Shact, CommuniTech Services
Grant Henderson, Convedia
Manuel Vexler, CopperCom
Charles Hoffman, Covad
Gregory Giagnocavo, Dash 911
Mark Spencer, Digium
Meg Whitman, eBay
Niklas Zennstrom, Skype/eBay
Duane Sword, Empirix
Mikael Stromquist, Ericsson North America
Mike Ross, Acredo Technologies
Brian Mahony, Espial IPTV
Craig Walker, Grand Central Communications
Gregory O. Welch, GlobalTouch Telecom
Vinton G. Cerf, Google
Ofer Gneezy and Gordon VanderBrug, iBasis
Howard S. Jonas, IDT
Olle Westerberg, Ingate
Michael Stanford, Intel
Jim Machi, formerly of Intel
Donald E. Brown, M.D., Interactive Intelligence
Jeff Ford, Inter-Tel
Karl Stahl, Intertex Data AB
George Heinrichs, Intrado
Alec Saunders, iotum
Arun Sobti, IP Unity
Michael Khalilian, IMS Forum
Don Gant, Iwatsu Voice Networks
James Crowe, Level 3
Patricia F. Russo, Lucent Technologies
Stef H. van Aarle, Lucent Technologies
Anoop Gupta, Microsoft
Michel Nadeau, Minacom
Terry Matthews, Mitel
Don Smith, Mitel
Edward J. Zander, Motorola
Jay Krauser, NEC Unified Solutions
David Michaud, Netcentrex Americas
Mark D. Foster, Neustar
Brough Turner, NMS Communications
Mike Katz, NMS Communications
Phil Edholm, Nortel
Tony Rybczynski, Nortel
Jason Talley, Nuvio
Dave Horton, Pactolus
Dr. Christian Stredicke, Ph.D., snom, pbxnsip
William J. Rich, Pingtel
Jeff Pulver, pulvermedia, pulver.com
Charles Rutledge, Quintum Technologies
Richard Notebaert, Qwest
Eli Doron, RADVISION
David Mandelstam, Sangoma Technologies
Andy Voss, Sansay
Harald Braun, Siemens Communications
Mark Straton, Siemens Communications
Hassan Ahmed, Sonus Networks
Ben Guderian, SpectraLink
Todd Landry, Sphere Communications
Andy Huckridge, Spirent Communications
Shrihari Pandit, Stealth Communications
Pete Bonee, Sylantro Systems
Scott Erickson, formerly of Telcordia
Eli Borodow, Oracle/Telephony@Work
Hunter Newby, telx
Larissa L. Herda, Time Warner Telecom
David Endler, Tipping Point, VOIPSA
Michael Doyle, Ubiquity Software
Tom Kershaw, VeriSign
Robert Mimeault, formerly of Versatel Networks
Shawn Lewis, VoIP Inc.
Jeffrey A. Citron, Vonage
Jeff Bonforte, Yahoo!
Hossein Eslambolchi, Ph.D., Venture Partners
Ivan Seidenberg, Verizon
Michelle Minus Swittenberg, Verizon
Lior Haranaty, Elon Ganor, VocalTec

In the telecommunications space, unified communications (UC) is all the rage. This conversation was featured in a podcast on TMCnet.

Podcast Discusses Hidden Dangers of Unified Communications
By Susan J. Campbell, TMCnet Contributing Editor

In the telecommunications space, unified communications (UC) is all the rage. Small business owners and large enterprises alike are investigating the implementation of such technologies in hopes of reducing communication spend within their infrastructure. While UC can be a smart move for many, there are hidden dangers that must be uncovered to ensure long term success.

To discover these hidden dangers, TMC president Rich Tehrani  talked with Neal Shact, CEO of Communitech Services. This conversation was featured in a podcast on TMCnet. You can also read Tehrani’s blog to learn more about this podcast and why it is relevant to every company today.

According to Shact, a lot of hype has been created around UC. Much like what happened with VoIP, companies jump on the bandwagon in hopes of receiving all of the perks and benefits promised by the vendors. When the solution fails to perform at this peak level, customers then become skeptical and tend to avoid making further investments in such technologies.

It is common for vendors to try and encourage a company to develop a roadmap for their UC investments. Such a roadmap is designed to identify where the company is going and how they will get there. What Shact noted is happening in the industry is that one: companies are developing these roadmaps based more on vendors than their own needs; and two: they are planning for the improbable and not staffing effectively for the probable.

There are two specific things to know when dealing with the hidden dangers of UC: stuff that the company can predict and stuff that is right in front, yet the outcome or impact cannot be predicted. It is the challenge in planning around these unknowns that make roadmaps nearly impossible to create with accuracy unless they are based on the company itself and not the vendor.

Consider such phenomenon as social networking and the growth of the virtual world. These are two examples of UC that were in use by younger generations for years before they ever hit the business sectors. Even now, executives are connected on Facebook (News - Alert) more because they think they should be rather than using the site for its intended networking purposes.

Companies are investing heavily in virtual worlds like Second Life and telepresence. There is the promise in the industry that such technology will replace face-to-face meetings and eliminate business travel. Shact points this is as a significant mistruth in the industry.

As Shact highlights, it is true that telepresence can provide benefits that can not be experienced in real life, it will never replace face-to-face interactions exactly. The results are not the same and it cannot provide the proper environment to build relationships. Instead, telepresence should be used when it can improve the interaction, not just replace it.

What can you gather from this podcast? For one thing, you cannot create a comprehensive long-term UC plan. Instead, you have to plan for what you cannot plan for. Technologies emerge and evolve and their applications within the enterprise may not yet be identified.

Most importantly, demand solutions from a vendor that are open and can work with solutions from other vendors. No one vendor can create the best of every UC component and it is imperative that the company — regardless of its size — avoids locking in with one vendor. In doing so, it will lock out the potential for the optimal UC environment.

To gain the most from Shact’s input in this industry, check out this podcast as it offers a wealth of information and insight surrounding UC that can help you make a difference in your own planning.

“Put Your Money Where Your Mouth Is.” panel about IP Endpoints appearing in Phone+ magazine about a panel hosted and assembled about IP phone devices.

February 17, 2006

“Put Your Money Where Your Mouth Is.” The familiar challenge is being taken up by three expert speakers who will be awarding prizes to attendees of their session, End Games: Selling and Servicing IP Endpoints, at The Spring 2006 Channel Partners Conference & Expo.

Solutions providers have a chance to win one of three prizes put up by the panelists, who include Neal Shact, CEO of Communitech Services Inc., Simon Gwatkin, vice president of strategic marketing for PBX maker Mitel Networks Corp., and Robert Messer, president and founder of distributor ABP International Inc.

The prizes include a USB Clarisys Combo Telephone/Speaker phone from Communitech Services, a Mitel 5310 IP Conference Unit from Mitel, and a free training course on VoIP Fundamentals and IP PBXs from ABP. Winners will be selected at the end of the session from business cards collected from delegates in attendance at the session, 4:30-5:20 p.m., Wednesday, March 1. The prizes are a way to raise the profile for an important topic that can impact partners’ success and profitability selling hosted and software-based IP PBXs, according to the panelists.


Whether selling phone equipment is familiar or new to them, solutions providers are advised to rethink their ideas about IP endpoints, says Neal Shact, CEO of Communitech Services Inc. After 20 years as a phone distributor, Shact says IP endpoints are a different animal. A phone is a phone, but an IP endpoint is more like a data terminal, he says. If you think of them that way, it’s much easier to understand the issues – interoperability, software upgrades, bugs -- that impact sales and support.


The session will review the available types of IP endpoints – phones, softphones, PDAs, wireless devices, headsets and video devices. Among the available endpoints, Messer said videophones have been slow to take off but the dual-mode Wi-Fi/cellular phones should be popular once widely available, but that won’t be until 2007. A more immediate opportunity, he said, is in softphones, which range in capability from the common pop-up dial pads to IM-based video to complex collaborative applications that support instant meetings and co-browsing.


The panelists will go over pricing and margins as well as other key criteria – power source, platforms and number of lines supported, for example – to consider when deciding which endpoints to sell and support. “Pricing has settled in the last six months, but that doesn’t mean there won’t be decreases,” said Messer, but he cautions against buying on price alone. “The low-price leader may not be able to sustain a channel.”

 

VoIP, Pivotal For National Security And Energy Independence

December, 2004 Commentary in Internet Telephony magazine

By Neal Shact

November, 2006 - World wide oil markets were roiling and governments were in a panic today as oil spiked to $140 per barrel following the devastating attack on the Saudi Arabian off-shore loading platform...

This hypothetical incident is certainly within the realm of possibility. As the price of oil surges to $55 per barrel, there is already speculation on the possibility of an oil induced recession.

A national policy of supporting and endorsing VoIP is a simple way to respond to the call for increased energy independence and, at the same time, help conserve energy. VoIP in conjunction with a high-quality, affordable broadband infrastructure, is a key element to the energy conservation program. Its in the national interest, and therefore a key element of national security. Broadband supplies the infrastructure, VoIP supplies the means.

VoIP and broadband technologies facilitate employees working from home while fully integrating them into their offices. For the first time, employees can be present at work without the need to drive for hours. This means taking full economic advantage of their employers investments into productivity tools and software resulting in lower cost phone services. Having widely deployed, high-speed data connection supports not just VoIP (Voice), but a full integration with other MIS systems in the office. This is the infrastructure necessary to support teleworkers so that they can be fully supported and integrated into the workplace.

Now that broadband is becoming increasingly available, significant percentages of the work force are able to seamlessly work from home. If 20 percent of employees work remotely one day a week, it could engender a significant reduction in automobile traffic. The stakes for us as a nation are clear.

The national discussion is bogged down with issues such as taxation and wire tapping, yet it would be far better to have a national discussion about how we can reduce energy needs by widely deploying VoIP.

Though the recent glut of bandwidth seemed to disprove George Gilder's prediction that we would use as much bandwidth as became available, the glut of bandwidth on the market is being absorbed at a rapid rate. New emerging applications and the long-awaited arrival of cost-effective video communications will start gulping bandwidth. But will enough bandwidth to the home be available?

VoIP is critical because of its unique and revolutionary ability to direct or redirect a voice, video, or data call or transmission to any broadband equipped location.

Remote access has emerged as one of the true "Killer Apps" of VoIP. This gives businesses the capability to extend phone service now provided to employees within their facility outward to remote employees or staff working from home or traveling. This is an important step towards extending enterprise communications beyond the walls of the enterprise.

Extending enterprise communications is accomplished by giving remote employees an IP phone or a Softphone. (Softphones are software put onto a PC that allows it to operate as an IP telephone). Add a USB phone or a PC headset, and you have the equivalent of an easily transportable IP phone.

VoIP gives businesses the ability to easily modify the workplace to allow more people to work from home. The socioeconomic changes are profound. There is also ample evidence that workers are more productive and happier by eliminating workplace distractions, eliminating lengthy commute time, and increased flexibility of work hours.

When we as a nation finally get serious about energy independence and reduction of energy consumption, the highest priority will be to reduce the number of people traveling on the road. What better way to reduce energy independence than to get more people off the road and enable them to work from home? Having employees telecommute for a portion of their work week is one of the quickest ways to get there.

Other National Security Interests Of VoIP

Reliability: The reliability of the Internet - a durable and reliable network architecture was vividly demonstrated in lower Manhattan after September 11, 2001. The telephone network, with its dedicated connections and fixed paths took months to restore. The VoIP networks, with their self-healing abilities, quickly routed around failure points practically with no interruption in services.

Media Convergence: Our armed forces and domestic emergency services often find that they have multiple, incompatible communications systems. In an emergency, an Army unit may be coordinating with the Marines or a police unit may be working with a fire department. It is not unusual to find that similar organization have adopted different wireless technologies that operate on different frequencies. These groups often find themselves in an electronic tower of Babel. Worse, these incompatibilities lead to the type of confusion that costs lives. VoIP has inherent media convergence capabilities in this environment mean that if armed forces and domestic emergency workers were all IP enabled these diverse organizations could all communicate using different wireless and wireline systems. Wouldn�t we all be safer if the police radios, PCs, pagers, and phone systems could all be integrated to provide the best possible information to those on the front lines?

New Capabilities: Multiple parties on traditional radio or voice emergency systems also create enormous confusion. It is almost impossible to tell who is talking and what their rank is. Here too, there are VoIP solutions that aid in distinguishing various parties in these large, multiple party environments. DiamondWare, a provider of VoIP audio technologies has been building SIP-based, VoIP battlefield control systems for the U.S. Special Forces. Their battlefield system has two distinguishing characteristics. The first is the ability for each user to place all of the parties in three-dimensional space. Based on their years of developing audio capabilities for PC game simulations, they are experienced at providing users with easy-to-manage capabilities. Each user can use a binaural headset and has desktop tools to position the other members of a conference call into user definable locations in space.

International Competition: There are already a number of countries that are ahead of us in being able to provide their citizenry with faster and cheaper broadband. Countries like Korea and Japan are starting with the advantage of highly concentrated population where it is far easier to wire up and cable condominiums and apartments. Other countries benefit from generous government policies and investment. I just returned from visiting Umea, Sweden; a university town with a population of 100,000, 430 miles North of Stockholm. Despite that remote location, citizens already have access to fiber run directly to the home.

By contrast, in the U.S., we have much slower and more expensive broadband connections. Two key results of these factors is the price of high-speed, fixed-rate connectivity and what capabilities this conduit can be used for. While perhaps adequate for today�s needs of data and telephony, it remains to be seen whether the services of the future which may include rich media, video and collaboration technologies, will have adequate bandwidth, especially if there are multiple simultaneous users. VoIP deployments are moving faster in developing countries than here. With decades of high-quality TDM infrastructure, we have had less motivation to upgrade our infrastructure to support packetized communications than countries that are installing infrastructure for the first time. It is easy to visualize that in five to 10 years, the U.S. will be one of the last countries to remain on a TDM network.

If the government looked at VoIP in the broader context of global competitiveness and productivity benefits, there might be a stronger rationale and connection between having policies to support broadband adoption and a stronger security infrastructure, as well as reducing the need for people to be on the road driving to work.