IP Telephony News Wrap-up for Aug, 25 1999

Ursus to Use Global Crossing Capacity

Ursus Telecom announced that it is planning to use capacity on Global Crossing’s worldwide networks to
expand the reach of its IP calling, faxing, unified messaging and traditional telephony services. According
to the terms of the agreement, Ursus has committed to purchase a minimum of $30 million in capacity over
a specific time period, with the option to select capacity from any point to any point on any of the Global
Crossing systems.

Global Crossing’s system of networks includes: the Atlantic Crossing, connecting the U.S. and Europe; the
Pan European Crossing, which interconnects markets throughout Europe; the Mid Atlantic Crossing,
connecting select U.S. and Caribbean markets; the South American Crossing, which interconnects select
markets in South America and the Caribbean; the Pan American Crossing, which interconnects the U.S.,
Mexico, Central and South America and the Caribbean; the Pacific Crossing, which connects U.S. and
Asian markets; the Global Access Limited, which interconnects select Japanese markets; and the U.S,
Crossing, which interconnects select U.S. markets.

Earlier this month, Ursus launched a web V/FoIP service named theSTREAM.com. The service utilizes
Netscape and Internet Explorer plug-ins to enable users to initiate calls.

Ursus provides international telecommunications to more than 95,000 users worldwide. It operates
switching facilities in Paris, Moscow, Frankfurt, Geneva, Lima, Buenos Aires, Johannesburg and Tokyo.
Earlier this year, the provider expanded its Florida NOC to house 10,000 ports of digital switches, V/FoIP
gateways, Internet fax servers and conference bridges.

Ursus Telecom

Global Crossing


LiteWave Receives $2 Million in Funding

LiteWave has announced that it has secured $2 million in financing to fund the deployment of its V/FoIP
equipment in the Russian Federation, the Confederation of Independent States (CIS) and the U.S. The
company is teaming with NPO Crosna, a Russian technical services and marketing organization, to operate
national domestic V/FoIP services in the Russian and CIS markets and outbound services to the U.S.
Crosna will handle all licensing, marketing, and equipment location negotiations with PTTs, ISPs,
consumers and governmental agencies, while LiteWave will manage the installation and operations of its
V/FoIP equipment and services.

The firms have signed initial agreements with PTTs in the Russian Federation and the CIS, including a
contract with OJSC Rostelecom, to route approximately 10 million minutes of long distance traffic per
month. The agreement is guaranteed by a letter of credit and non-refundable security deposits.

8×8 & AG Develop VoIP Solution with CLASS

8×8 announced that it is planning to integrate its VoIP gateway technology, Symphony, into AG
Communication Systems’ iMerge Centrex feature gateway (CFG) to provide a VoIP system that includes
business centrex functionality. The MGCP/H.323 compliant (G.711, G.723, G.726 and G.728) Symphony
gateway connects four traditional phones to an IP network, and utilizes the CFG to provide CLASS and
Centrex functionality such as call waiting, call hold, call forwarding, call transfer, caller ID, three-way
calling, etc. The CFG can also extend Centrex functionality to VoIP calls from any Class 5 switch to IP

The companies expect to introduce the product in controlled system trials this fall, with carrier and
enterprise tests scheduled immediately after.

AG Communication Systems


Broadcom Introduces Single Chip Switch

Broadcom has announced the introduction of the StrataSwitch BCM5600, its single chip solution that is
capable of receiving, prioritizing and forwarding packets of voice, video and data simultaneously over
existing corporate networks. In addition, the product enables users to simultaneously access IP telephony,
video conferencing, and data services from any corporate desktop PC at any time. The product, which
consists of over 60 million transistors and a megabyte of high-speed SRAM, combines 24 Fast Ethernet and
two Gigabit Ethernet ports with Layer 3 switching and a multi-layer packet classification engine. In
addition to Layer 3 IP switching, it can also provide Layer 2 through 7 filtering and traffic classification.

The product enables OEM manufacturers to build next generation stackable workgroup switches that
prioritize voice, video and other latency-sensitive traffic, capable of providing QoS throughout a network.
To accelerate the development of sophisticated multi-layer switch solutions, the product is supported with a
development platform based on a compact PCI chassis that accommodates off the shelf processor cards. Its
software driver set includes a high-level API that is portable across multiple operating system

The 600-pin chip is currently available for sampling. Pricing was not disclosed.

Broadcom Corporation

IDC Releases European VoIP Market Report

IDC has released a VoIP market report entitled, IP Telephony in Europe 1998-2003. The study analyzes
the major drivers, trends and obstacles of IP telephony in the European market. It projects that VoIP
revenues will rise to $3.9 billion by 2003. The report also offers select Internet telephony provider profiles.

IP Telephony in Europe 1998-2003


WorldWideTalk Offering VoIP Systems Integration

WorldWideTalk (WWT) said that it is offering a turnkey VoIP systems integration solution that utilizes
VocalTec’s Ensemble Architecture VoIP technology, interconnection with its global network, call back
services, and PC to phone and phone to phone connectivity. The Ensemble IP telephony products consist of
H.323 compliant gatekeepers, gateways, network management resources and communications software
capable of supporting thousands of interacting multi- vendor gateways, gatekeepers and servers.



Lycos-Bertelsmann to Offer Access Power’s Services

Lycos-Bertelsmann AG said that it is planning to offer Access Power’s PC to phone IP telephony service,
Net.Caller, in Europe. The service, which is on a flat rate pricing schedule, enables subscribers to place an
unlimited amount of calls from any PC in the world to a traditional phone located in Belgium, Canada,
Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Puerto Rico, Spain, Sweden,
Switzerland the UK or the U.S. The provider charges $10 a month for calls placed to Canada, Puerto Rico
or the U.S., $15 a month for calls placed to all pan-European countries, and for $20 a month, calls can be
placed to all markets.

Lycos-Bertelsmann AG

Access Power

FaxNet Adds Store & Forware Capability to its Service

FaxNet has announced that it has added store and forward capabilities to its real time Internet fax service,
Never Busy Fax. Service users can now opt to have FaxNet store a document if it cannot be instantaneously
delivered because of a busy or unavailable fax line, and sent at a later time when the problem has been
rectified. If a document has not been sent after 12 hours, the system will automatically send an email
notifying the user that the fax could not be sent.

The store and forward capabilities are currently available for FaxNet’s FoIP service.


Actel Extends Lucent Order to $35 Million

Actel Integrated Communications (AIC) said that it has extended its initial $10 million order for VoIP
equipment with Lucent to include an additional $25 million in VoIP, VoDSL, ATM and frame relay
packet-switching gear. AIC is planning to use Lucent’s technology to offer service functionality such as
LNP, caller ID, enhanced 800 services, VPNs and SS7 signaling. Lucent will provide financing for the

AIC offers services in nine markets throughout Alabama, Louisiana, Florida and Mississippi, and plans to
aggressively expand its service offerings into other southeastern U.S. markets as soon as possible.


Actel Integrated Communications

Tidalwave & Cyberteens to Offer ZeroPlus’ Services

ZeroPlus.com, e-Net’s VoIP provider subsidiary, has announced that both Tidalwave Internet and
Cyberteens.com will provide its free PC to PC Internet telephony service to their respective subscribers.
The VoIP service, which was launched in June, offers free client VoIP software that enables anyone with
Internet access to place and receive calls via a permanent phone number. Both participants in a call must be
logged onto the Internet before a call can be connected. The provider also offers an online white pages
section that allows a user to list their phone number and search for other users’ phone numbers by name,
city, state or nickname.

Tidalwave and Cyberteens.com expect to begin offering the services this fall.

In a separate announcement, ZeroPlus.com and e-Net are developing a VoIP network, which currently has
80 POPs, that will provide PC to phone connectivity. In addition, the companies have negotiated a deal to
use IXC’s network capacity to route VoIP traffic on a global basis.




Tidalwave Internet


CSAA Integrates VillageFax.com’s Services

The California State Automobile Association (CSAA) has announced that it is integrating access to
VillageFax.com’s Internet fax services into its web site. Users of the vehicle purchase service need to
complete an online form detailing what kind of car is desired and their contact information, click send, and
the document will automatically be faxed to the appropriate sales person over VillageFax.com’s network.

California State Automobile Association


Cisco to Acquire Calista for $55 Million

Cisco has announced that it has signed a definitive agreement to acquire privately-held Calista for $55
million in stock. According to the terms of the agreement, Cisco will trade common stock for all of
Calista’s outstanding shares and options. The deal is expected to be finalized by the end of October.

Cisco plans to leverage Calista’s Internet technology to offer a system that enables different manufacturers’
traditional phone systems to interoperate with Internet-based PBXs.



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