Fixed Mobile Convergence (FMC) refers to a converged telecommunications service that allows subscribers to use dual-mode cell phones to access a common service via cellular and WiFi access networks in the home, enterprise or HotSpots. This developing FMC market is in an initial trial period as major service providers are preparing to offer this new exciting service later this year. AudioCodes is well positioned to participate in this initial phase and specifically has announced successful interop with Kineto Wireless, a market leading FMC partner, as well as being deployed in Tier 1 European service provider UMA trial networks with Kineto Wireless. UMA (Unlicensed Mobile Access) provides a standardized method to allow dual mode phone users to access GSM cellular networks with minimal impact to existing MSCs. Our support for AMR vocoders, high voice quality and signaling support were critical factors in winning that business. AudioCodes’ R&D team has been involved in developing leading-edge media gateway and media server products for wireline, wireless, cable and enterprise markets since the early days of VoIP. That experience has positioned AudioCodes as one of the strongest in the media gateway and media server markets, especially in the FMC market.

AudioCodes, likewise, has easily moved quickly towards IP Multimedia Subsystem (IMS) – the latest industry core network architecture. IMS standards provide for a common core network architecture that will allow subscriber access from multiple access networks, including cellular, WiFi, WiMAX, cable, wireline, etc. The IMS core network is made up of standardized network elements with predefined interfaces, allowing the deployment of best-of-breed network elements by service providers. This is definitely an advantage for AudioCodes as we are able to offer truly flexible and scalable best-of-breed media gateways and media servers. This is an exciting time for AudioCodes to be part of enabling the next-generation IMS networks.

Originally, VoIP was deployed to IP enabled legacy networks, be that wireline, wireless or cable. But, each of these networks essentially operated in a ‘silo’ fashion with each network type developing their own standards regarding the building of the network. IMS unites the standardization activities by creating a common IP core network that interfaces with each of these types of access networks. IMS does not just offer a cheaper VoIP service – it takes VoIP service further and provides a common network for rapid development and deployment of applications and communications service to subscribers.

AudioCodes’ media gateways and media servers can be leveraged within all types of fixed mobile convergence applications for wireline, wireless and cable due to the flexible nature of our platforms and their ability to address the varied requirements of the different access networks within in a converged network. We are excited about the many opportunities for all of our product lines within AudioCodes.

Forging Ahead

Last year was exciting from a ‘go-to-market’ strategy perspective. In 2003/2004, AudioCodes primarily operated as a pure OEM (Original Equipment Manufacturer) company. While we still embrace this OEM strategy, as it is important to our revenues and growth, we are recognizing the fact that we need to augment our sales and marketing operations and move to the next level by forming direct relationships with service providers, in order to continue to build our company. Additionally, we are developing more and deeper relationships with distributors and VARS (Value Added Resellers) as additional channels to the market. This has been a transformational period for AudioCodes and we are excited about our future as we continue to build a strong sales and marketing team to address the growing VoIP market.

Maintaining the Vision

AudioCodes has recently acquired two key players in the VoIP arena. The agreement with Nuera places AudioCodes in a stronger position in the Cable and Voice over Broadband markets and in particular in North America and Asia. The Netrake acquisition adds a Session Border Controller to the AudioCodes portfolio of media gateways and media servers suited for deployment in next generation networks, specifically within an IMS architecture.