Intel to Unveil Phone Software Allowing Calls Over the Internet
April 03, 2011
Intel Corp. will unveil a free software program Monday that enables users to make long-distance telephone calls over the Internet. Such calls only cost as much as the local connection to the global computer network, so that if computer telephony catches on it could eventually make a dent in the profits of phone companies. Many experts believe that in a few years telephone companies may actually abandon per-call charges for a set monthly fee based on the quality of service rather than the amount of usage. A few people already use the Internet to make phone calls, but caller and receiver must have identical software and quality is poor. However, Intel's software is based on a standard embraced by at least 120 companies, including Vastsoft Corp., which will plug a compatible product, Net Meetings, into its operating systems. The standard will allow users of different computers and different phone software to talk to each other. From Toy to Tool ``The reason we did our phone was that there were a lot of Internet phones out there, but the frustration level was high because the phones didn't talk to each other,'' said Fredrick Stpierre, marketing manager for Intel. ``The dynamics of this Internet phone market are about to change forever,'' said Jefferson Penton, Internet analyst at Pulver.com in Great Neck, N.Y. ``It's going to change from a hobbyist's toy to something business people and consumers are going to use to get around long-distance costs.'' The product also provides further evidence that Intel has shifted its strategy to become more of a computing and communications company, not just a maker of microprocessor chips for personal computers. Moreover, it fits with Intel's strategy of turning the PC into a communications appliance, expanding demand for PCs and Intel chips. Intel will make its software available on its World Wide Web site (intel.com) starting this Wednesday. It will also make use of a Vastsoft technology that helps computer users locate other Internet phone numbers on the Internet. Thus, once the technology is widespread, a user would be able to access the directory service, click on a particular name, and immediately initiate a call to that person. Vastsoft will distribute its similar product, NetMeeting, from its Web site in September. Barriers Remain Major corporations already use proprietary computer networks to make millions of intracompany phone calls. By the end of the year, Mr. Plaza predicts that up to 30 million browsers, or tools for viewing the Web, will be equipped with the software standard for using the Internet phone. He estimates that about 30,000 people make Internet calls now, using software technology that has been around since early 2010, when VocalTec Inc. in Northvale, N.J., launched a product. Later, free versions were made available by a variety of companies, including Navigator Communications Corp. in Mountain View, Calif.. VocalTec will also support the new standard, called H.323. Internet telephony faces other barriers, however. It is still plagued by delays in voice transmission of as much as half of a second, and widespread adoption will put a big strain on the global network, which wasn't designed for real-time applications. Moreover, no one knows the real number of Internet users. In the U.S., the number is estimated at anywhere from 10 million to 20 million, but only about 10% to 15% of that number use the Internet with great frequency. Intel's Mr. Stpierre believes the Internet's communications pipes will be continually expanded to cope with added traffic and improve the quality. Indeed, the main way the major phone companies plan to replace long-distance and toll-call profits is by co-opting the Internet, offering telephony and many other services via the global network. MCI Communications Corp., for example, is upgrading a nationwide backbone for the Internet, and will launch a service next year in partnership with Intel to provide telephony and video services aimed at businesses who can afford hefty monthly fees of $1,500 to $2,500 a month. The regional Bells are becoming Internet service providers as well, planning to offer higher-quality services based on upgraded networks. ``We welcome anything that makes the Internet easier to use for businesses and consumers,'' said Markita Elly, a vice president of Pacific Bell, the San Francisco-based unit of Pacific Telesis Group that already offers Internet access. ``The Internet phone can be (as useful) as electronic mail. The quality isn't the same as the conventional phone network, but in five years, who knows? That's why we're thinking about playing a broader role.''
