New Local Phone Service Soon Available in the Gorge - June 30, 2004

Gorge Networks, based in Hood River, recently installed a Class 5 phone switch in The Dalles, which will allow them to offer local phone service throughout the gorge. The new local phone company is known as Axxis Communications.

The new phone service will route calls over the Internet instead of the Public Switched Telephone Network or PSTN, which refers to the international telephone system carrying analog voice data.

Known as Voice Over Internet Protocol (VoIP), the technology allows long distance and local calls at a reduced flat rate. Although prices have yet to be determined, Axxis plans to offer calling rates considerably below traditional phone services.

"Initially, the service have the greatest benefit to companies with three to ten phone lines and data services," said Glenn Phillips, CEO of Axxis. "We plan to roll it out by fall (of this year). Eventually, we will offer the service to anyone in Sprint Territory."

That territory includes Stevenson, Hood River, The Dalles and Goldendale, as well as the smaller towns within the region.

"We bought the equipment (for VoIP) because we're a large user of phone services," explained Phillips. "Just implementing (the phone switch) for our own use goes a long way to pay for the equipment."

The phone service, which will require and be bundled with a broadband Internet connection, will be available with the typical features customers have come to expect, such as voicemail and call forwarding. The service will also include features not typically available, such as web-based voice mail and voicemail to email.

In addition, Axxis will use SIP, or Session Initiated Protocol, to manage communications. Among other benefits of this protocol, a user will be able to easily move their laptop from work to home to a WIFI hotspot. The network will sense that the user has changed locations and configure the computer accordingly.

According to Gartner, Inc., a technology research firm, at the end of 2003 there were 150,000 U.S. VoIP subscribers. Gartner predicts this number will grow to 1 million by the end of 2004 and reach 6 million by the end of 2005.(1) Some experts predict that consumer use of VoIP could reach 40% of the U.S. market by 2009.(2)

When asked about the future of Axxis, Phillips said, "We'll look at entertainment next," indicating he has his eye on cable television.

With the convergence of phone, Internet, and entertainment technology, cable companies are considering VoIP and Internet companies are eagerly eyeing VoIP and cable. In the end, this will increase the options available to users.

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(1) "Internet Telephony Poses New Problems" National Journal Tech Daily, April 13, 2004.
(2) "The Future of Internet Phone Calling: Regulatory Imperatives to Protect the Promise of VoIP for Industry and Consumers" New Millennium Research Council, December
16, 2003.

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