Telecom industry focuses on video, fat pipes

Wired and wireless carriers will meet up with network equipment vendors this week in Las Vegas to figure out how to meet the changing and fast-growing demands of enterprises and consumers.

The NXTcomm trade show, the latest incarnation of an annual event that used to be called Supercomm, will bring together the heads of AT&T, Verizon and Sprint Nextel, plus other luminaries, and they will have plenty to talk about. Demand for bandwidth is rising, new wireless technologies are emerging, huge swaths of radio spectrum in the U.S. have recently been allocated to wireless data and carriers are redesigning their networks to deliver packages of IP (Internet Protocol) wired and mobile services.

Video, for consumers and increasingly for business, is a major driver in the growth of data traffic and is likely to be a big topic at the conference. Research company IDC predicted last December that video distribution would be the biggest driver for service providers to consolidate their networks around IP this year.

Tandberg will push video for enterprises with two types of products on display at the show. On employees' desks, it will make the video phone a reality with its E20 Video IP Phone. It's designed from the ground up for visual calls, with a 10.6-inch LCD (liquid crystal display) screen built in right over the phone keypad, and a 5 megapixel video camera on top. The screen will have 448 lines of resolution, near DVD quality of 480 lines, and will feature CD-quality audio, according to Tandberg. With a button on the phone, employees can switch from video to sharing an application running on their PCs. Picture-in-picture application-sharing will come later, said Peter Nutley, director of global product marketing.

The E20 will come with a handset and also work as a speakerphone. There is an RJ-11 jack for wired headsets and Bluetooth is built in, though it won't be activated until a software upgrade due in the first half of 2009, Nutley said. Priced at US$1,490, the E20 can take the place of an existing desk phone and can be hooked up to either a Tandberg infrastructure or an existing IP PBX (private branch exchange). It is designed to work with most other IP phones and videoconferencing systems using SIP (Session Initiation Protocol) and other standards. The E20 is set to ship in the first quarter of 2009.

Most video phones have been designed for consumers, and enterprise employees typically have PCs they could use for IP calls with video, said IDC analyst Nora Freedman. But a dedicated device such as the E20 is likely to offer better image and voice quality and may be easier to start up and use, she said.

"I don't want to have to call my IT guy so I can dial the phone," Freedman said.

Devices such as the E20 may appeal more to a niche market, said Robert Arnold of Current Analysis, though having the video calling capability up and available all the time would be an advantage over PC-based options.

Also at NXTcomm, Tandberg will show off the beginning of its next generation of telepresence systems, featuring 1080p high-definition video. It will demonstrate the Codec C90, a telepresence engine using Tandberg's latest codec. That engine will power the T1, a telepresence system with one 65-inch 1080p screen and a 1080p camera. The arrangement of the camera and display on the T1 can make it seem that participants are looking into each others' eyes, Nutley said. The C90 will cost $36,900 and the T1 will cost $69,900, and both are scheduled to ship in the fourth quarter.

The IDG News Service is a Network World affiliate.