Eschelon Telecom plans to add Voice Over Internet Protocol product capabilities to its network. The new IP applications will leverage the existing network infrastructure from Nortel and Cisco Systems, and will be available in addition to existing TDM products.

“We have always maintained that VoIP products can work very well for some customers,” stated Richard A. Smith, Eschelon’s President and CEO. “At the same time, there are customers with applications that do not work well over this technology. By offering both technologies, we will be able to offer the best solution to fit the customer’s needs, rather than forcing the customer into the only technology we offer.”

The VoIP technology will add a “variable bandwidth” product to Eschelon’s product set. This means customers will be able to use the entire 1.5Mb of available bandwidth on their T-1 circuit for dedicated Internet traffic when no voice calls are in progress. The first Eschelon markets to add the VoIP product capabilities will be Minneapolis, Denver and Phoenix. The network in these markets will be available for customer installations in the third quarter, 2007. Networks in the remainder of the company’s major markets will be ready for customers by the end of the year.

“We will be able to add these VoIP capabilities within our previously-announced network expansion capital plans,” continued Smith. “The technology and economics of VoIP have evolved to the point that it now makes sense for our company and customers.”