With the Cable companies and the phone companies providing bundled broadband access and VOIP services it seems there should be a bundled device to take advantage of these services. This device would be the next generation of Small Office/Home Office (SOHO) Integrated Access Device (IAD). I’m thinking of a simple looking box like the LinkSys or D-Link wireless routers. The device would integrate a WAN port, four or eight LAN ports, and four or eight phone ports. The phone ports would be compatible with any old cheap phone. The trick would be to build this box cheap enough so that it sells for less than the price of a couple of IP phones.

Digging deeper into the technical details, the product integrates a router, firewall, VOIP signaling and phone interfaces. Integrating the router in the same device as the phone interfaces provides some important advantages. First of all it solves the problem with running the Session Initiation Protocol (SIP) over Network Address Translation (NAT), a common firewall function. Since the firewall, router, and VOIP functions are all integrated into the same device, the SIP protocol can just bypass the NAT function of the firewall. Another advantage is that the router can throttle the Internet traffic down to give priority to the VOIP traffic when necessary. Your Web surfing slows down but the phone doesn’t get garbled.
How would I implement this product? First of all I would use one of Freescale’s PowerQUICC processors. I’m a big fan of this product family and have used it in a number of products. The advantage of this part is that you can get two fast Ethernet ports and a TDM interface all on one chip with a very powerful PowerPC processor. The TDM interface is what you need to connect the phone interface circuits, known as CODECs. For the CODECs, I like Infineon’s DuSLIC family. These parts contain two phone ports that include ringing functions, DTMF transmitters and receivers and caller ID functions.
There are two business models I can think of for building and selling this product. First there is the traditional venture-funded startup company. You go out and convince some VCs to put up a couple of million dollars. Sign non-disclosure agreements with the chip manufacturers to get access to their newest silicon before everyone else. Then land a distribution agreement with a large phone company or cable company, work like hell for two or three years and get rich, maybe. Many of us have been there, done that, and don’t have much to show for it except some company logo polo shirts. Besides I think its a bit late to go up against companies like D-Link and LinkSys with something this obvious.
The other business model that I think is more interesting is to build a board like this with minimal investment and commonly available parts. Completely embrace open source software; Linux and the Asterisk open source PBX. You have several income streams. You sell the hardware to OEMs and tech-savvy end users, provide training classes on customizing the software, and provide consulting services to OEMs, customizing both the hardware and the software. You won’t make a fortune like this but it might be a fun way to make a good living.