IP Telephony News Wrap-up for Jun, 22 1998

Telstra and Thyssen to Offer Internet Telephony using Siemens’ Gear

Siemens has announced that both Telestra and Thyssen Telecom AG will use its
InterXpress VoIP solution to offer Internet telephony services.

Telstra will use the InterXpress VoIP solution for a six-month trial service in
Sydney. The trial will be limited to 250 users and it will only enable calls to
originate in Sydney and terminate in the Greater London area. The limitations on
the service will allow Telstra to focus on improving QoS before launching the
service commercially. Telstra is also planning to develop an Icon Calling service,
which will enable web surfers to initiate communications with a business by
clicking an icon on the organization’s web site.

Thyssen will team with its subsidiary, IS Internet Solution GmbH, to offer its
InterXpress enabled IP telephony service in Germany. In addition to phone to
phone calls, the companies also plan to offer voice-controlled web sites, IP
based call centers and universal message systems with integrated voice and text

The InterXpress solution will enable H.323 compliant Internet communications from
phone to phone, phone to PC, PC to phone or PC to PC. It consists of client software,
gateways and gatekeepers, network servers, and management and customer care
servers. The client software provides real-time, full-duplex, point-to-multipoint
voice communications. The gateways and gatekeepers will interoperate and mediate
traffic between the IP network and the PSTN. Network servers will authorize,
authenticate, route and rate IP telephony calls. Last, the management servers
will enable the provisioning, billing and operation of the services.





Telstra’s Trial Service


Thyssen Telecom AG


NetVoice to Use Inter-Tel Products and Services to Offer Internet Telephony

NetVoice Technologies has announced that it is using Inter-Tel’s Vocal’Net servers
to offer Internet telephony in the Dallas market. NetVoice will also resell time
for the Inter-Tel.net IP telephony service to enable its service to reach locations
throughout the Inter-Tel.net’s footprint.

NetVoice is currently focusing on offering the service in other Texas markets
including Austin, Houston and San Antonio. The company also plans to extend the
service offering into select Florida markets.

The Vocal’Net gateway will support standard telecom systems with T1, E1, ISDN,
and analog single line interfaces. It is scaleable from 8 to 24 ports per solution
and can support up to 24 simultaneous connections. The gateway utilizes DSP cards
to perform the real time compression and packetization to limit the impact on the
server’s CPU.





Nortel to Acquire Bay Networks

Nortel has agreed to pay $9.1 billion in stock to acquire Bay Networks. Nortel
will issue 0.6 of its own shares for each share of Bay Networks. After the deal
is finalized, Bay shareholders will own approxiametly 21% of Nortel. David House,
Bay’s current CEO, will become president of Nortel. The transaction is expected
to be finalized in late-summer.



Bay Networks


Netrix and US Department of Commerce to Report on the Quality of VoIP vs PSTN

Netrix has announced that it has entered into a five year R&D agreement with the
US Department of Commerce to improve and implement objective test tools to
evaluate voice quality. The initial research conducted under the agreement
will include both subjective and objective voice quality testing of Netrix’s
2201 and 2210 Network Exchange VoIP/FR gateway products with Vodex software.
The voice quality of the gateways will be compared with that of the PSTN using
ITU-T recommendation P.800 testing guidelines. Testing will result in conversational
mean opinion scores for both NETRIX 5.5K ACELP voice compression and the PSTN
at its traditional 64kbps rate.

A full report of all findings will be available from NETRIX in Q3 ’98.



June 30, 1998

AT&T to Acquire TCI and Provide Local Area Access Services

AT&T has agreed to pay $48 billion in stock to acquire TCI. According to
the terms of the deal, AT&T will issue 0.7757 of its common shares for each
share of TCI group A stock and 0.8533 for each share of TCI group B stock.
On the consumation of the deal, AT&T plans to create a subsidiary, AT&T
Consumer Services, to offer local and long distance telephony, CATV and
high speed Internet access to the 33 million homes that TCI’s cable system

In addition, AT&T has indicated that it may use TCI’s cable pipes to offer
VoIP services. The merger will also give AT&T a controlling interest in the
@Home service offering that will eventually pass 50 million homes.

However, before any of the services will be available, the acquisition has
some hurdles to overcome including several anit-trust class action lawsuits
and scrutiny by the Federal government. The lawsuits seek to stop the
merger as it will give group B shareholders, particularly TCI’s CEO, John
Malone, an unjustified premium for stock when compared with the premium
that group A shareholders will receive. The government is also interested
in examining the legality of the merger; however, it is undecided as to
whether the FTC or the FCC should perform the inquisition. The FCC has
already suggested that the merger will not have any problems being approved
if it offers a broader choice of local telephony and Internet access
options than consumers have today.





COM2001 Integrates MiBridge’s VoIP Technology Into its Servers

COM2001 has announced that it is integrating MiBridge’s VoIP technology
into its flagship product, the NTX Enterprise Communications Server (ECS).
Currently, the ECS features a telephone switch with a conference bridge, an
auto attendant with speech recognition, voice mail messaging, and email or
facsimile capabilities. COM2001 will use the VoIP technology to enable
corporations to link multiple locations together via the ECS platform. The
company also has plans to develop the integrated product into a carrier
class solution that will enable ISPs and telcos to offer long distance VoIP.





RightFAX Supports Brooktrout’s BRI and PRI Internet Fax Boards

RightFAX has announced that it supports Brooktrout’s Netaccess PRI and BRI
ISDN telephony board. RightFAX plans to offer support for single span and
dual span T1/E1 PRI ISDN network interface boards for both ISA and PCI bus
computers. The Single span PRI boards will support up to 30 fax lines per
server, while dual span boards support up to 60 fax lines per server.

The boards will be released in a RightFAX service pack this month.





Sonus to Use Netrix VoIP/FR Products for Service

Netrix has announced that its Network Exchange 2000 family of VoIP/FR
gateway products will be used by Sonus Communications to provide telephony
services between Eastern Europe and the United States. Sonus has signed a
five-year contract with Netrix for products and services, which are
presently being installed. Initially Sonus will use Netrix’s 2210 VoIP/FR
gateway with the 2550 multi-service switch for central sites in the US and
Europe. The system will eventually incorporate terrestrial links as well as
satellite-based circuits.

Sonus expects the service to be commercially available next month.

Sonus provides voice and data communications services between Eastern
Europe, Africa, Latin America and the US. Sonus also plans to offer
Internet access.



Loxley and Communications Authority of Thailand Explore IP Telephony

Loxley Information Services has beseeched the Communications Authority of
Thailand (CAT) and the Ministry of Transport and Communications to approve
its application for a PC to phone Internet telephony service. The
regulatory agencies are expected to hand down a decision within the next
two months.

CAT receives much of its funding from the traditional telephony charges
that it levies, so besides examining Loxley’s service proposal, it is also
exploring the possibility of providing PC to phone and phone to phone
Internet telephony services with Chungwa Telecom of Taiwan.

Loxley Information Services


NKO Adds POP in Australia with Ritemore Pty

NKO has announced that Australian based Ritemore will offer its IP
telephony services including the Prepaid Phone Card program. The Prepaid
Phone Cards are offered in varying rates and denominations. The phone cards
will enable users place calls to and from Australia with the abilities to
transfer analog calls to digital calls. The service will be billed at flat

In addition to the Australian POP, NKO’s managed IP-based network includes
POPs in Brazil and Israel, with POPs scheduled for deployment in Korea and



Spiritec Announced Turnkey ITSP Program

Spiritec has announced the introduction of EasyITSP, its turnkey package
that will enable ISPs to become ITSPs. The EasyITSP program includes
Internet telephony products from VocalTec and an account with either Delta
Three or ITXC to enable the ISP to offer Internet telephony with global

Spiritec Internet Solutions provides a wide-range of Internet solutions,
but primarily focuses on promoting and delivering IP network based
communications technologies to the business community.



Datamonitor Offers Industry Projections

Datamonitor, a market research firm, has just released ‘IP Telephony
Markets in Europe and the US: Beyond Internet Voice’, a VoIP market study.
Datamonitor’s report forecasts the growth of equipment and service markets
through the year 2002. Datamonitor projects that IP telephony will
represent over 10 percent of international telephony by 2002, and that
gateway revenues will reach $2.5 billion. For further details, email



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