The product can also be used in IP telephony devices and cable modems, the company said.

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But among investors and vendors of emerging technologies such as IP telephony, expect a very different reaction--and concern about the future.

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Emerging data services like IP telephony are also starting to gain traction.

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Cisco's gateway, which underwent a trial in Honolulu, functions similarly but is more hardware-based, complementing its line of network routing equipment and voice-over-IP telephony.

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The telecommuting boom has been driven in part by the rapid penetration of broadband in the home, easier and cheaper forms of IP telephony, more robust VPN (virtual private network) software, plus a new generation of powerful laptops that are true desktop replacements.

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Technologies that let an IP-based telecommunications provider offer IP telephony services commensurate in quality to the traditional switched circuit providers, or at least as good a quality as cell phone providers can offer, are now getting close to being finalized by the Internet Engineering Task Force.

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Cable operators want to be able to offer the "quadruple play" of communication bundles--Internet, television, voice-over-IP and wireless telephony.

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Finding a concrete, believable economic analysis that shows that an IP-based telephony company might have lower costs than a traditional telephone company has been very hard indeed.

CNN: IP telephony is the "in" thing these days, but should it be?

The company supplies broadband operators with the tools and platforms they need to deliver converged IP video solutions, carrier-grade telephony, demand driven video, next-generation advertising, network and workforce management solutions, access and transport architectures and ultra high-speed data services.

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For small and midsize enterprises, the software works on Lucent's IP Exchange Systems, Merlin Magix, and Nortel's Norstar telephony systems.

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