Linksys Introduces First Consumer VoIP Products

August 24, 2004

Linksys is planning to do for telephones what it has done for broadband data access. Linksys, the consumer division of Cisco Systems, has announced two new products that let individuals with broadband connections make low-cost telephone calls over the Internet. Using the new Linksys Analog Phone Adapter or the Linksys Broadband Router with VoIP ports, home and small business users can take advantage of the Internet to save money on their telephone bills while enjoying new features and capabilities that are either too costly or unavailable from traditional phone services. Some of these services might include retrieving phone messages via email, group dialing and conferencing capabilities. These new products are just one more way Cisco is bringing the power of IP networking to individuals and businesses.

News@Cisco recently spoke with Charlie Giancarlo, Cisco's chief technology officer and president of Linksys, about these new consumer VoIP products and how they boost the communication possibilities of Internet technology.

What communication products is Linksys announcing?

Charlie Giancarlo: We are announcing two new Linksys devices that let individuals make phone calls over the Internet. Additionally, these products will be the first VoIP products available through retail channels, such as Best Buy, Radio Shack, and Staples. One product is the Linksys Analog Phone Adapter, which connects to a high-speed modem and has two VoIP telephone jacks. The other product is the Linksys Broadband Router, which can connect up to three wired home computers to one broadband connection and has two telephone jacks for VoIP service. Both products let individuals use their existing phone line to make calls or send faxes over the Internet.

How can people use these new Linksys products to make calls over the Internet?

Charlie Giancarlo: The Linksys phone adapter and router do for telephone calls what modems and routers do for email. Both products connect your existing telephones to a VoIP service on the Internet over your broadband connection. They convert voice calls into digital packets that can travel over high-speed connections. A high-speed Internet connection and a VoIP calling plan are required much like traditional phone service. Any typical household phone can work with the adapters. Most users will want to share the Internet connection between the phone and computer at the same time. If the user already has a router, then the analog phone adapter will connect their phones to the VoIP service. If the user does not yet have a router, then they will need the broadband router with integrated VoIP phone ports.

The first VoIP service provider to make the new Linksys products available is Vonage. Vonage leads the Internet telephone services industry with a subscriber base of more than 200,000 users. Behind Vonage are two major US carriers who will launch Linksys products in the coming months.

What advantages does VoIP offer over traditional telephone services?

Charlie Giancarlo: First of all, VoIP offers significantly lower costs. Vonage customers, for example, can make international calls to London or Paris for about 3 cents a minute. Long gone are the days of scratchy connections over computer speakers and dial-up modems. Internet phone services offered by Vonage and other service providers include a host of features for free that most traditional phone companies charge for, including voice mail, caller ID, call waiting, call forwarding, and 3-way calling, among many others. In addition, since the calls use digital networking and Internet technology, VoIP can provide other features not possible with traditional phone services. Vonage, for example, offers virtual area codes and virtual phone numbers, which allow customers to have phone numbers that are independent of their geographical locations. Customers can also take the phone adapter with them or use another one in a different location to make calls on their service from wherever there is a high-speed Internet connection. And because its IP based, VoIP can enable other products and services such as video conferencing, dual mode WiFi/cell phones, instant messaging and more.

Can VoIP replace a home's existing phone service?

Charlie Giancarlo: That depends. VoIP is considered a second line service. It does not provide availability during power outages. However, given the quality of the phone connection, VoIP could certainly be appropriate for individuals who are most concerned about lowering their phone bills. VoIP telephony service comes with additional caveats. It may not work with some 911 emergency system location mechanisms, making it difficult for operators to automatically know the location of a call, which is similar to the situation of cell phones. But if you are already paying $50 or so a month for a high-speed connection, the Linksys phone adapters can certainly take on the job of running additional phone or fax lines. Why pay for a second phone line when you can run the phone through your existing high-speed Internet connection? We believe home or small office workers, telecommuters and other types of users who need a business line and a fax line, in addition to their home phone, will find VoIP particularly appealing.

How do these new consumer VoIP products fit into Cisco's business strategy and vision for IP networking?

Charlie Giancarlo: The new Linksys phone adapter is just one more way Cisco is bringing the power of IP networking to individuals and businesses. Linksys has led the industry with innovative data networking products for the home. With the introduction of these new consumer VoIP products, Cisco and Linksys are bringing the advantages of voice networking to individuals and small businesses. IP networking has a variety of inherent advantages over traditional communications systems. Since all communication can run over Internet infrastructure, data, voice and video can all be combined together into an infinite variety of communications services. This is now what we are seeing with the introduction of the Linksys phone adapter and broadband router. From a single Internet broadband connection an individual can surf the Web, send and receive email, and talk on the phone - all at the same time. Cisco believes very strongly in the future of Internet telephony. Thousands of corporations around the world currently use Cisco IP phones for their office phone systems. Over time, we believe IP networking is the future for all telephone services, given its significant multimedia advantages over the traditional telephone infrastructure.