AT&T pushing legacy services onto MPLS net

AT&T is migrating a host of legacy services to its Multi-protocol Label Switching IP network with the goal of making it easier, and in some cases less expensive, for users to support audio conferencing, videoconferencing, IP Centrex and toll-free services.

The carrier is expected to announce the services in the second half of the year. The services will run over AT&T’s worldwide MPLS network and primarily are aimed at current MPLS VPN customers. AT&T’s MPLS network has 1,000 nodes and is available in 60 countries.

In addition, the carrier intends to extend the reach of its VoIP support to include local connectivity, says Michael Antieri, product management group executive at AT&T.

But AT&T declined to provide details such as where local VoIP would be available, whether it is teaming with other local service providers or if it’s deploying gateways around the country to support local VoIP.

Industry watchers say local VoIP support will be key in extending legacy services such as audio conferencing and toll-free services over AT&T’s IP infrastructure.

Although these IP services will be new to AT&T, the carrier is not the first to roll out such offerings, says Counse Broders, principal analyst for Internet and managed services at Current Analysis. “AT&T has a strong brand and significant network reach. They can come in and make a pretty big splash with these services,” Broders says.

AT&T is moving traditional TDM services to its MPLS network to offer “economic advantages,” Antieri says. “IP conferencing is an example of a plug-and-play application that [AT&T] is making available to customers.”

Instead of developing applications in-house, Antieri says AT&T is using off-the-shelf software and making it available to customers. The carrier says it is testing these services with customers, but would not reveal details.

AT&T’s IP conferencing service will eliminate transport costs for users by keeping audio traffic on its MPLS network, Antieri says. “Instead of transporting calls to TDM, calls are routed over IP eliminating transport costs,” he says.

United Communications Group (UCG), a Rockville, Md., company that uses AT&T’s managed MPLS IP VPN service to securely connect seven locations in the U.S., says it sees value in AT&T’s planned offerings.

“Internally we don’t use a lot of audio conferencing, but we do host a lot of audio conferences for our customers,” says Mitch Barlow, CTO at UCG, which provides business-to-business content to users in industries such as healthcare, oil and energy, and education.

IP conferencing would only be advantageous to UCG if AT&T was going to offer local dial-in numbers for all locations, Barlow says. Without that, UCG still would have to pay transport costs. “I could see a time when that would happen, but I’m not sure [local dial-in support] will be part of AT&T’s offering,” he says.

AT&T says only that more details will be available when it makes an official announcement later this year.

Antieri says the nature of MPLS makes it an ideal platform to support multicasting and data streaming, which is why the carrier plans to introduce IP video.

UCG uses videoconferencing gear in-house and sends that traffic over its MPLS VPN. The company uses three classes of service to prioritize traffic over its VPN. Video traffic is dedicated to the second class, after voice but before data.

Video units cost about $5,000 to $6,000 and are easy to use, set up and support, Barlow says. “There are economies that don’t make sense for me to move to IP video. I’ve already made a minimal investment in video gear,” he says.

“If there was a feature benefit I would consider it,” he says. “If I could hook each desktop into the system where I could broadcast to everyone in the company, that would be part of a feature-rich environment I’d like.”

Barlow also says that if he didn’t already have a videoconferencing environment or if his gear was old, he would seriously consider the service.

One vendor that already offers IP videoconferencing services is GlowPoint. According to analyst Broders, the GlowPoint service is user-friendly and provides help for when conference problems arise. “Users just have to dial 000 # and a live operator will come on the line,” he says. “Those who aren’t tech-savvy want easy set-up and technical assistance.” As AT&T and its competitors start rolling out IP video services, those are features they should emphasize, he adds.

AT&T will be behind the pack with its IP Centrex services. BellSouth, Qwest, SBC and MCI all have IP Centrex offerings today. Verizon is expected to roll out such an offering next quarter. And Sprint says its offering will be available this sometime this year.

AT&T will offer users a hosted IP Centrex service, which will include PBX-like telecom features off-site and over a user’s MPLS VPN. Typical IP Centrex features include click-to-dial, find me/follow me, IP conferencing, call blocking, call forwarding, voice mail and caller ID.

ServiceMaster, which just announced a $21 million contract with AT&T last week, doesn’t plan to deploy AT&T’s planned IP services over its MPLS VPN. But it likes that AT&T will have these capabilities going forward, says Jim Goetz, CIO at ServiceMaster in Downers Grove, Ill. “We think strategically MPLS is the right platform to support more advanced applications,” he says.

“We do have an interest in video, but it’s not even in pilot yet,” Goetz says. But one reason ServiceMaster switched from a frame relay network to an MPLS VPN was to have the ability to eventually support a variety of applications, he says.

The company is deploying a Cisco-based VoIP system. “Let’s assume we survive voice, then we’ll start thinking about other applications,” he says.