Telephone Sets and Consoles

Some users will be satisfied with having a softphone as their only voice terminal, but we cannot assume that the PC, with added software, headset, and speakers, will largely replace telephone sets, as the PC is awkward to use, not always switched on, and certainly less reliable than a single-purpose phone. Most users still seem to prefer having a real telephone, with which they can dial, talk, and listen in a familiar fashion.

Numerous manufacturers are attempting to fill the need for IP-compatible phones and most of those will be based on the SIP standard. Some years ago there were predictions that ISDN-compatible telephones would become commonplace, low-cost devices, in conjunction with PBXs or Centrex. This has not happened because ISDN is an expensive technology to implement and this type of phone has not become a high-volume production item.

IP telephones are akin to ISDN sets in that they cannot easily be supplied with DC power from the central office and must be powered locally. Commonly an ac plug-in power cube is used for each phone, but a better method is to install a power supply unit (PSU) in the closest telecom closet (TC). The DC power is supplied to a number of sets over the LAN wiring and the PSU can be backed up by a small UPS in the TC.

However, the $100-IP phone became a reality in the early days of IP-Centrex, as Ethernet NICs and SIP chip sets both cost just a few dollars. The IP-Centrex service providers cannot expect to generate revenue from the rental of IP phones in the future, because these will become commodity items and will be mostly purchased from highly competitive retailers.

A two-level market in IP phones has developed as the less-demanding users' needs can be met by generic sets that implement just the requirements of the SIP standard. At the higher level of sophistication, manufacturers add their own features on top of SIP and therefore create proprietary sets that cost significantly more. The market for IP phones will simply reflect that for mobile/cell phones, most customers pay less than $100 for a handset, but some users (perhaps 20% of the total) are willing and able to pay well over $200 for a feature-rich handset.