First call made on Telecom 'Next Generation' IP network

It may not have impressed competitors, who have been waiting since the 1990s for the dominant telco to embrace VoIP (voice-over-internet-protocol), but the first-ever IP call was made over a Telecom landline today. Rivals grouse that Telecom refuses to set a timetable for going all-IP, and may follow a relaxed schedule that hinders competition.

Students from Auckland’s Marshall Laing Primary School, sitting beside Telecom chief executive Paul Reynolds at Telecom's central Auckland office, took a call from Mt Roskill classmates in what the company called "a key milestone in the build of Telecom’s new all-IP next generation network (NGN)" by completing the first voice over internet protocol (VoIP) phone call over one of the company's landlines.

“This first call represents a significant step in the roll out of our NGN, which will change the way New Zealanders make phone calls and allow our customers to enjoy the very latest digital services in their homes." said Telecom CEO Paul Reynolds.

One day, all voice calls will be made over the NGN, said Dr Reynolds:

“In the future, the children who made this call will be able to use a range of online applications and services that we can’t even imagine today - and our NGN will help enable and deliver these services”

But itchy rivals don't want to see Marshall Laing pupils grow to adults before they make VoIP calls as a matter of course.

As Mr Reynolds notes, all-IP networks are the next generation of telecommunications networks and telcos all over the world are upgrading their fixed line networks to IP, ditching creaky, World War II-era PSTN (public switched telephone network) hardware for internet-age technology.

Rivals would like to see the changeover happen as soon as possible. David Diprose, Vodafone's point-man on regulatory affairs, says all his calls have been over IP since 1999

With newcomer Telstra on the same track, it's a matter of waiting for Telecom to upgrade its substantial legacy network.

The superior features offered by IP calling aside, Mr Diprose also sees Telecom's current PSTN-based home line accounts – wholesaled at a relatively high rate compared to unbundled bitstream DSL service – as a hindrance to further competition.

Mr Reynolds says the first customers will be offered pilot services on the NGN later this year, and Telecom was now focused on developing NGN products for customers as part of its regulatory undertakings to the Commerce Commission.

However, the telco has not set a timetable for rolling out its NGN, other than saying that its old PSTN network will be totally replaced at some point before 2020.