IP Telephony News Wrap-up for Nov, 24 1999

iBasis & Bell Atlantic Team for Service

Bell Atlantic has announced that it is planning to terminate iBasis’ Internet telephony traffic in Baltimore,
Boston, New York, Northern New Jersey, Philadelphia and Washington, D.C.

The RBOC recently unveiled intentions to use Cisco’s AS5300 VoIP gateways, VocalTec’s gatekeeper
technologies and MIND CTI’s customer care and billing solution, iPhonEX, to build the infrastructure that
will enable it to offer a VoIP interconnectivity service.

iBasis’ service uses a combination of different vendor’s VoIP equipment (including Cisco’s) to offer an
H.323 compliant VoIP interconnectivity service. The provider’s global Internet telephony network includes
a NOC in Burlington, Massachusetts, regional operation centers in Los Angeles, Hong Kong, New York,
London, and POPs throughout Asia, Europe, Korea, the Middle East and South America.

The companies expect the networks to be interconnected by the end of the year.

Bell Atlantic


NetCentric & Portal to Integrate Products for Unified Solution

NetCentric has announced that it is planning to integrate its FaxStorm Internet fax system into Portal’s
customer care and IP based billing solution, Infranet, to offer a package that will enable providers to offer
customized pricing plans for enhanced FoIP services.

The latest version of the FaxStorm system features email to fax capabilities, an enhanced desktop client,
enhanced inter-network peering and advanced rating and billing functionality. It uses an SMTP server to
enable users to send T.37 compliant (store and forward) email messages with attached fax documents from
any SMTP email client (Microsoft Outlook, Lotus Notes, etc.) to any SMTP email client or fax machine.
The product has been recently enhanced to include a new user interface, easier installation, more document
sorting capabilities and better broadcast fax functionality.

Infranet is an end to end customer management and billing solution that enables providers to develop
Internet services that can support millions of users on a 24 x 7 basis. Its features include customer
registration, caller authentication, credit limit verification, tracking of prepaid usage and account
termination, LCR, and inter domain reconciliation and settlement capabilities.

The vendors have indicated that both U S WEST and MessageClick.com will use the integrated solution to
provide services.


Portal Software

US West


Startec Acquires Worldwide’s Hong Kong POP

Startec Global Communications announced that it has acquired select assets and operations of Worldwide
Telecommunications, a provider of voice and data services in Hong Kong. Details of the acquisition were
not disclosed. Startec plans to use Worldwide’s Hong Kong facilities to penetrate the Pacific Rim market
by forming an Asian service hub. The provider plans to launch VoIP services throughout the region as
soon as possible. In an attempt to jump-start the offering, the company will develop a Chinese market
community web site to push the service.

Last month, the company reported that it is using Clarent’s IP telephony equipment to offer an Internet
telephony interconnectivity service. The provider has already deployed 20 VoIP gateways throughout Hong
Kong, Paraguay, Poland, Russia and the U.S., with plans to launch the service, on a commercial basis, early
next year.

Clarent’s 8 to 120 port gateways support H.323 protocols including G.711, G.723.1, and G.729a, Q.931
signaling and G.165 echo cancellation. The gateway provides SS7/C7, PRI-ISDN, T1, E1, Analog, and
PBX interfaces that can handle voice, real-time fax or data traffic on each port. It can also reroute traffic to
the PSTN should the IP network become unavailable/congested. The units can be stacked to increase port
density at any POP. The product can be managed using telnet, SNMP, or Clarent’s own technology. In
addition, the gateway interoperates with the billing, call routing and network administration capabilities of
Clarent’s Command Center package.

The Command Center is designed to provide a centralized system for the management and control of a
network. The solution provides a web interface for access to routing and rating tables, subscriber
information, dialing rules and billing records. It is capable of billing and managing a network of over 1,000
gateways, which can support hundreds of thousands of simultaneous calls. The product also allows
gateways and subscribers to be added, rating tables to be modified, and routing tables to be reconfigured
without affecting existing services.



TEK DigiTel & Teltone Team to Develop VoIP PBX System

TEK DigiTel said that it is planning to team with Teltone to develop a VoIP PBX solution based on its V-
Server iGate VoIP gateway and Teltone’s communication software, OfficeLink 2000.

The iGATE is a SOHO VoIP platform that can consolidate multiple solutions and/or devices for voice, data
and Internet communications. It features a WAN router with an Ethernet port, a serial port, an ISDN BRI,
and two V/FoIP ports. It support H.323 protocols, for interoperability with other vendor’s VoIP equipment,
and the T.38 specification for real time fax transmissions. When combined with the OfficeLink software,
the solution will enable users to access all of the functionality of a PBX system (speed dial, call transfer,
call forward, caller ID, caller name, voice mail indicator/access, IVR, ACD, agent status, queue
information, etc) from a corporate PC.

In other news, TEK DigiTel has completed negotiations with a private investor for US$5.5 million in
equity funding. According to the terms of the deal, a US$500,000 interim loan from the investor will be
converted into equity, and the investor will purchase units consisting of one common share and four
warrants at a fixed price, ranging from 50 to 65 cents per unit, before next August. The investor has already
purchased 2 million units for US$1 million (50 cents/unit). TEK DigiTel will use the funding as working
capital for volume manufacturing and to fulfill several marketing commitments.

TEK DigiTel

Teltone Corporation

Lipstream Lands Several VoIP Contracts

Over the last few months, web site operators including Alta Vista, MyFamily.com, Miadora, PeopleLink,
WebEx and Excite have deployed Lipstream’s PC to PC VoIP conferencing technologies and services in
their respective web sites.

The technology is based on Qualcomm’s PureVoice and SmartRate technologies implemented on
Lipstream’s back end servers collocated at nodes along Qwest’s OC-48 network infrastructure. The
PureVoice codec compresses voice signals into a digital signal, and the SmartRate technology provides
compression rates without significant signal degradation. Qwest is also providing 24×7 network monitoring
and support for the service. The service, which utilizes a chat room format, enables users with at least a
28.8 Internet connection, PC, microphone, and speakers or a headset to download a browser based popup
VoIP client to join a conference in progress or create a private voice chat room that can support multiple
participants. It features technologies that enable users to send private voice messages to only one
conference participant in a group, and mute select participants.

Lipstream offers the service and technology to firms that would like to implement voice communications in
a web site for e-commerce, customer service, and distance learning or entertainment communities.



WebEx Inc.

Alta Vista


Undisclosed Provider to Use Radcom’s Testing Tools

An undisclosed provider said that it is planning to use Radcom’s suite of testing solutions to test and
monitor the ATM and VoIP transmission characteristics of its network. The deal has an approximate value
of $1 million. Radcom’s line of VoIP testing gear include the H.323 Call Generator and the AudioPro
analysis tools.

The call generator is capable of generating over 2000 simultaneous H.323 or H.323 v2 (G.711, G.723,
G.729, GSM, RAS, RTP, RTCP, H.225, H.245 and Q.931) compliant calls, and it allows call parameters
such as duration and rate to be controlled and monitored. The Windows NT based unit can be used to
perform interoperability testing or to verify the functionality of devices using different protocol settings. It
features real time and post-execution analysis tools that provide result interpretation via a variety of report
and data analysis options. It is currently available in three versions to emulate call traffic loads of up to 75,
500 or 2,016.

The AudioPro is an H.323 compliant testing module for Radcom’s Prism line of WAN/LAN/ATM
analyzers. It isolates and analyzes H.323 voice and signaling streams to provide detailed statistical
information such as delay thresholds, packet loss, out of sequence packets, average packet inter-arrival time
and jitter, stream length, timing, audio format and addressing information. It also deciphers the multitude of
signaling messages involved in call setup and teardown.


Franklin Telecom Receives $2 Million PO

Franklin Telecom reported that it has received a $2 million purchase order from an undisclosed provider for
the turn-key installation of its Tempest VoIP system.

The Tempest system utilizes the company’s ICT-1 MVIP card and ICDSP-8 card(s) to provide up to 96
H.323 (G.711/G.729), iNow! or MGCP compliant channels per unit via T-1 or FXO/FXS interfaces. It
ships with Franklin’s proprietary authentication and billing application, AMAS, to provide a centralized,
managed invoicing facility that will track and manage a database of subscribers. The server will support
credit, debit, pre-paid and other account types. When a call is placed, the AMAS server will authenticate
the user code and verify that the account has sufficient credit, and route it on to a terminating gateway.
When the call is completed, the terminating gateway will send CDR information back to the AMAS server
to enable the necessary changes to be made to the account balance. In addition, network administrators and
subscribers will be able to view account information online.

Franklin plans to begin filling the order as soon as possible.

Franklin Telecom

Netrix, OpenRoute & First Venture Offer Equipment Financing

Netrix reported that it is teaming with OpenROUTE and First Venture Leasing Corporation to offer a
solution that will enable users to finance the building of VoIP/VoVPN infrastructure. Netrix and
OpenRoute will provide the equipment and installation, and First Venture will provide the
monthly payment financing. The companies have already landed a deal with Sonic Communications, in
which Sonic plans to deploy more than $10 million of the equipment over the next 12 months.

Last month, Netrix and OpenROUTE signed a definitive agreement to merge. According to the terms of the
deal, which has been approved by each company’s BOD, Netrix shareholders will retain their respective
stock, and each common share of OpenRoute’s stock will be traded for one common share of Netrix’s stock.



Sonic Telecom

Cybergold to Market ZeroPlus’ VoIP Services

ZeroPlus.com reported that it has signed an agreement with Cybergold, in which Cybergold will pay its
web site visitors incentive rewards to register for ZeroPlus.com’s PC to PC VoIP service. Cybergold
provides Internet-based direct marketing and advertising solutions, and offers cash rewards to the 3.5
million visitors per month that interact with its online ads.

The ZeroPlus.com Internet telephony service provides users with VoIP software that enables anyone with
Internet access to place and receive PC to PC calls via a permanent phone number. All 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. In addition, the company has developed an array of fee based advanced
features for the service (call waiting, forwarding, transfer and hold) and PC to phone connectivity.

In other news, e-Net, ZeroPlus.com’s parent company, has developed instant messaging capabilities for
Zeroplus’ free VoIP service. The technology will enable users to exchange text messages, in real time, with
any other user that is listed in buddy directory. It will also notify users when another user is online, and if
the Zeroplus VoIP software is running.




CompuServe to Market Net2Phone’s Services

CompuServe has announced that it will market Net2Phone’s VoIP calling cards throughout its web site.
According to the terms of the two year agreement, CompuServe will promote both prepaid and post paid
calling cards that will enable users to place phone to phone IP telephony calls to any phone in the world via
Net2Phone’s IP network. During the first year of the agreement, CompuServe will market Net2Phone’s
services on an exclusive basis.



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