Two major competitive carriers are flushing out their voice over IP offerings by adding hosted PBX features.

Equant announced today it has formed global strategic alliance with Avaya, a leading provider of IP-PBXs, to deliver jointly developed advanced IP services. Equant already works with Avaya rivals Cisco Systems and Norrtel Networks.

Global Crossing is taking smaller steps. It announced Global Crossing Hosted IP Voice service will combine PBX functionality, provided by U.K.-based TeleWare with its own MPLS network to deliver advanced VoIP features without requiring investment in VoIP gear, but is currently limiting that offer to the United Kingdom, with plans to expand to Europe in mid-2006.

The moves come as the enterprise VoIP market is rapidly expanding and service providers are seeking to differentiate services on something more than price. In both instances, the new services allow enterprises to get started with VoIP without ripping out and replacing all their current telephony equipment. That reduces the risk to customers of trying the new technology.

Equant is Avaya’s first global Strategic Alliance Partner for IP telephony and IP contact center services and is already delivering an integrated solution based on Avaya PBX technology to its customers. The appeal of the offering is its low-risk, low-cost nature, along with the single supplier aspect, according to Equant.

"Immediately, this agreement brings us a world class partner which is number one in market share according to Synergy Research and especially in the U.S.. where Avaya does 80% of their business," said Michael Burrell, senior manager of enterprise telephony. "Avaya is a strong technology partner that allows us to diversify our base for customers and reach a broader segment of our enterprise customer base."

The two companies will work to integrate Avaya's technology into Equant's network service, a process that gives customers "a more fully featured voice service without buying a lot of new equipment," Burrell said in a telephone interview.

Global Crossing’s service is targeting service providers, resellers and ISPs who want to offer a VoIP Centrex-type service to their customers. Those service providers would then target the small to mid-sized business market, according to Global Crossing and TeleWare officials, to enable those customers to reap the benefits of VoIP without substantial capital investment.

“We have our stand-alone VoIP products that can be sold to people who are facilities-based,” said Robin Brown, Global Crossing sales manager in the U.K. in a telephone interview. “This rounds out the product line by letting resellers who don’t have their own equipment, who want to white label someone else’s, offer a hosted VoIP service.” The service itself is pitched very differently from that which Global Crossing offers to high-end enterprises, Brown added.

“The low-hanging fruit is smaller companies who aren’t looking for all the bells and whistles,” he said.