IP Telephony News Wrap-up for May, 17 1998

AT&T Trials Internet Telephony Service in US

AT&T has announced that it will trial its Internet telephony service,
Connect ‘N Save, from Atlanta, Boston, and San Francisco to anywhere in the
domestic US. The company plans to improve QoS by carrying the phone to
phone calls over its IP backbone network and limiting the number of
participants for the service.

Domestic US calls from Atlanta will be billed at 7.5 cents per minute, from
Boston 8.0 cents per minute, and San Francisco users will pay 8.5 cents per
minute. Users will prepay via credit card for a set amount of calling
minutes in units of $25, $50 or $100. The service will automatically
inform users of account balance as calls are made. Connect ‘N Save is
currently available to AT&T customers and non-AT&T customers. Non-AT&T
users will not need to change their long-distance carrier to use the service.

To sign up for service, consumers need to call 800.345.0995. Registration
will be taken on a first-come, first-served basis.



Connect ‘N Save


Delta Three’s Expands Internet Telephony Service to UK and Finland

Spiritec and RSL Com Finland Oy have both announced that they will resell
Delta Three’s Internet telephony services in Europe. Spiritec will offer
the service to its customers in the UK and RSL Com Finland will offer the
service to business and residential customers in Finland.

Delta Three currently owns and operates an Internet telephony network with
20 operational POPs globally. In addition to phone to phone Internet
telephony, Delta Three offers PC to phone communications that enables users
of its PC to phone software to connect with phones in over 240 countries.
Its parent company, RSL Communications, owns and operates a traditional
circuit switched telephone network with termination services to over 250
countries. It routes the phone to phone IP telephony traffic to locations
where the Delta Three global Internet telephony network does not yet reach.

Spiritec Internet Solutions provides an array of Internet solutions. Its
primary focus is on promoting and delivering IP network based
communications technologies to the business community.

Delta Three




RSL Com Finland Oy


Spiritec Internet Solutions


Prepaid Cellular to Use Array Telecom’s Gateways for IP Telephony Service

Prepaid Cellular Services has anounced that it will use Array Telecom’s IP
telephony gateway product, VOIP.gate.com, to offer an Internet telephony
service. Prepaid Cellular is planning to install gateways for
international use in Seattle, Los Angeles, New York and Atlanta. These
locations will manage IP traffic to and from the Pacific Rim, South and
Central America, Europe and other southern hemisphere countries. Prepaid
Cellular plans to serve the entire US market by placing regional gateway
centers in highly populated areas around large cities.

Array Telecom


Prepaid Cellular Services, LLC


Inter-Tel to Acquire Telecom Multimedia Systems

Inter-Tel has announced that it has entered into a definitive asset
purchasing agreement with STM Wireless (STMI), a majority shareholder of
Telecom Multimedia Systems (TMSI), to purchase certain assets and assume
certain liabilities of TMSI. According to the terms of the agreement,
Inter-Tel will pay approximately $25 million in cash plus related
acquisition costs. Inter-Tel will account for the acquisition as a purchase
transaction and expects that a substantial portion of the purchase price
will be written off as in-process research and development. The Board of
Directors of Inter-Tel, TMSI, and STMI have already agreed to the terms of
the agreement. The acquisition is expected to be finalized by mid-year.

Inter-Tel will add TMSI’s products to its current Vocal’Net IP telephony
gateway line of products. Inter-Tel’s Vocal’Net gateways, the Inter-Tel
Vocal’Net Call Accounting System, and the TMSI gateways will achieve
interoperability through the mutual support of the H.323 standard.

TMSI develops DSP based integrated software, hardware and systems to
deliver compressed voice, facsimile, data and other multimedia solutions
over IP and frame relay networks for telecommunications applications.



STM Wireless


Telecom Multimedia Systems


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