CounterPath produces one of the most popular SIP softphone clients--known as X-lite (free) or Bria (commercial). According to CounterPath, tens of millions of its softphones have been downloaded, mostly by SMB organizations. Additionally, many hosted voice providers direct their customers to CounterPath for softphones. The client transforms desktop computers, smartphones, and tablets into SIP endpoints capable of interfacing with most SIP-enabled phone systems. The clients also support XMPP-based presence, and Bria supports desktop video.
The world of telephony changed a bit last month when Skype fetched an $8.5 billion valuation. So it isn't totally surprising that CounterPath intends to now connect its huge disparate user base with a new service called X-Lite Connect. X-Lite Connect will be a new peer-to-peer network that offers an alternative communication path via the client.
The CounterPath softphone user base today can only communicate with each other using their own infrastructure or voice service via the PSTN (or URI). X-Lite Connect will use SIP, secured with TLS and SRTP, for direct voice, IM, and video between users. The service was announced and demonstrated at the Emerging Communications conference in San Francisco, and is expected to be in trials this Fall.
The plan is to create a freemium model with core services at no charge, and premium services such as group video and SMS available for purchase. When a user initiates a new communication request, the client will first check if the call can be completed over the X-Lite Connect cloud, Where that's not feasible, the client will seamlessly revert to dialing out over the user’s SIP based resources. CounterPath positions it as a business friendly Skype-like service in that its cloud solution also integrates with the business telephony infrastructure, but only when necessary.
The vast majority of free P2P networks are totally separate from an organization’s telephony solution. CounterPath is attempting to create a mashup between SIP-based telephony and an Internet peer network; a single tool that passively determines the best route and network on a per call basis. In order to do this, an upgraded client is necessary, but X-Lite and Bria regularly check for updates. The new version will be pushed out when the network service is ready. This positions CounterPath to potentially create an instant multi-million user P2P communications network.
To make it attractive to corporate IT, CounterPath will include provisioning tools over the network for its softphone. This will enable administrators to centrally configure remote clients with proper SIP credentials over the X-Lite Connect network. IT managers will also also receive reports on P2P bypass usage--effectively how many paid minutes were diverted.
Hidden in the value proposition is an intriguing benefit around in-call status and presence. The presence engine understands call state regardless if it is an X-Lite Connect call or placed through a local or hosted call manager. Presence information is conveyed to all X-Lite users, enabling in-call status information to pass between companies with totally incompatible telephony solutions. X-Lite Connect effectively bypasses the notion of federation.
The strategy leverages CounterPath's large user base, but represents a significant change for the company. CounterPath will need to rapidly build a high capacity P2P network, with little opportunity for natural evolution. This isn't simple, Skype's had plenty of experience and still had several outages just in the past year. For Skype, it tests user loyaltiy, but CounterPath will never earn loyalty in the first place if it suffers poor performance. Adding to the challenge, CounterPath intends to build this network using non-proprietary techniques. CounterPath also needs to convince corporate IT managers to allow access to its unproven network service. CounterPath is relying on the ongoing need for a SIP client, which could change in the future (see: Making Every Desktop a Phone).
Despite these risks, its a compelling strategy. In addition to creating an entirely new type of P2P network service, CounterPath will separate its softphone from competitors, while simultaneously creating a powerful form of interoperability between disparate systems and users.
