MultiTech Systems Inc., based in Mounds View, Minn., has released a line of Voice over IP (VoIP) products aimed at helping companies sidestep expensive long-distance charges. The products, the MVP200 and MVP400, basically act as adapters, allowing standard telephones and PBXs to be plugged directly into existing IP-based networks.

The MVP units come in two flavours. The 200 offers two voice channels, while the 400 is rack mounted and boasts four or eight channels. Both units convert standard telephone connections into IP-based connections and back again. Paul Kraska, MultiTech's product marketing manager, explains. "They're designed for a company that already has a LAN and an infrastructure set up, and the company simply wants to install voice-over-IP for tariff avoidance between their high-use areas," he says. "Wherever your data is transferred, your voice can be transferred along with it. It can be via Internet or intranet. Anything IP-based. And you only need one side to be at a static IP address, the other side can be dialup IP."

Kraska is quick to point out that one important feature of MultiTech's system is its support for fax as well as voice. "The important thing about both these products is they handle both voice and fax," he says, "and often we see the fax side of things being not as well recognized in terms of cost savings. Many companies spend quite a lot of money on faxes."

But fax capability isn't the only thing that differentiates the MVP units from other VoIP solutions. Another is the fact that they are simple network-independent boxes that plug in between the server and the telephone system. "We've designed a product that doesn't require companies to change their infrastructure," says Kraska. "You know, you see the Ciscos and the Nortels — those products require a heavy investment by companies just to get into the VoIP business. Since we sell through two-tier distribution we need products that can go on dealer shelves that can be easily installed. So a company says, 'we're spending too much money between our Toronto and our Vancouver office. We've got a remote office out there, they're killing us with faxes and voice calls.' You put one of these on each end, connect them you your PBXs, and all of a sudden, those costs go away. It's a very simple sell."

Of course, the products aren't entirely flawless. Over especially long distances, and during periods of heavy Internet usage, some slight lag time may be noticeable in VoIP conversations. The MVP units also operate on a proprietary standard, which means that you have to use MultiTech products at both ends of the solution. That is, you can't connect with other VoIP products produced by other companies. At least, not yet. But international standards for VoIP connections are on their way, and the MVP units will be flash upgradeable to these new standards when they are finalized.

Daniel Colibaba is telecommunications manager with Burlington, Ont.-based CanCable Inc., one of the Canadian companies that sells MultiTech products. "They're great little units, actually," he says, "We find them very flexible, very useful."

CanCable set up a test connection with their office in California before deciding to sell the units. It found itself saving several thousand dollars a month, with almost no installation hassle. "Installation was a piece of cake," says Colibaba. "When we started our interoffice testing it took all of 15 minutes to get up and running."

Colibaba also notes that the opportunities for profit when selling the units are phenomenal, especially when selling them as part of a larger telecommunications solution. "The margins are great, when you look at the basic cost of the unit, and what they can potentially resell for," he says. "There's clear potential for margin if you look at the overall solution. You can really justify 40 points easy. If you really want to go out and hack and gouge at someone, you can justify a 100 per cent markup, because in the process of a month, the customer would recoup their costs." The units cost US$1,749 for an MVP200 and US$2,999 for a four-port MVP400.

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