Net2Phone Partners with Level 3 For VoIP Over Cable

Net2Phone and Level 3 Communications on Monday said they would jointly market local voice-over-Internet protocol services to cable operators.

Net2Phone, a specialist in VoIP technology, said Level 3's residential phone service will add to its current telephony service for cable operators such features as local calling, local phone numbers, operator assistance, 911 emergency services and local number portability.

Level 3, which provides high-speed communications services, is expected to benefit from Net2Phone's support for PacketCable, a standard for cable-based phone services that's favored by cable operators, Daryl Schoolar, analyst for In-Stat/MDR said.

Net2Phone, on the other hand, should benefit from Level 3's strength in more geographic areas and the fact it has more local numbers. Level 3, based in Broomfield, Colo., offers local VoIP phone service in 50 U.S. markets.

"They bring a lot to the table for each other," Schoolar said. "Now they have to work together to attract cable operators."The combined services are expected to be attractive mostly to regional cable operators, Schoolar said.

Net2Phone's PacketCable platform provides cable operators with a variety of services, including call management, billing and provisioning. The Newark, N.J., company also offers a similar wireless VoIP platform based on the Session Initiation Protocol.

Combining the Net2Phone platforms with Level 3 technology is expected to reduce the overhead of cable companies providing telephone services, Net2Phone officials said.

"Complementing our existing VoIP offerings with Level 3's industry-leading local coverage and expertise will only improve our value proposition, as we market diversified cable telephony solutions," Stephen Greenberg, chief executive for Net2Phone, said in a statement.

In January, Level 3 launched a calling service for international markets and a toll-free calling service across the United States. In September of 2003, the company unveiled its local VoIP calling service in the U.S.Level 3, which sells to carriers that can then offer VoIP and data services to customers, uses its softswitch networking technology to convert voice signals to IP packets for distribution over the Internet. The packets are converted back as the call is moved to the public switched network.

The latest announcement was made with Net2Phone at the National Cable and Telecommunications Association show in New Orleans.