Case Study I-2 • VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier 131- Delivering dial tone to the desktop and process-
ing voice calls would become a commoditized
application that would operate on standard PC hard-
ware—eliminating the need for expensive, special
use machines like traditional PBXs and KTSs, which
require proprietary hardware and software.
Some experts argued that VoIP would also allow for inte-
grating an organization’s many locations, including remote
workers, into a single communications network. VoIP
would also reduce communications cost and expand func-
tionality by combining voice and data onto one network
and by bringing advanced features not currently available
to most small and midsize business customers.
In order for businesses to take advantage of these cost
savings and functional enhancements, they would need to
enhance or replace their existing telecommunications
equipment, and replace their existing POTS telephone cir-
cuits with Internet connections. Utilizing open source voice
applications and commodity Internet circuits, management
at VoIP2.biz estimated that a business could achieve a four
to six month payback on the required investment.
The Market for VoIP Services
As the telephone system in the United States was
deregulated, technology vendors offered PBX systems for
managing voice communication and optimizing the utiliza-
tion of carrier services, reducing a company’s monthly
expense. Smaller versions of these systems, KTSs, were
introduced next, making these savings available to smaller
enterprises. Each manufacturer of PBXs and KTSs differ-
entiated its products by integrating call processing features,
like automated attendants and voice mail, into their sys-
tems. Eventually each manufacturer created a proprietary
architecture of hardware, software, and telephone handsets
for the market. Therefore, choosing Avaya as a business
telephone system ruled out using components from Nortel,
for example, to meet a future telecommunications need.
Over time, as the Internet expanded and became a
business necessity, businesses deployed additional network
services for Internet connectivity, and extended e-mail and
Internet access to each desktop. Generally, these deploy-
ments were made totally independent of the existing voice
communication infrastructure, including separate cabling
systems and face plates.
The development of “open systems” standards, funda-
mentally meaning a defined interface for exchanging data
between proprietary systems, created protocols like TCP/IP
and made the Internet possible. In addition to speeding the
development of application software and relational data-
bases, these open systems standards made it possible for
applications to be accessed from a standard browser, like- Phone Number Porting—At the customer’s option, VoIP2.biz personnel can, in most cases, move the customer’s existing
direct inbound dial (DID) phone numbers into the VoIP2.biz service, and the customer will receive inbound phone calls on
these numbers just as they have done in the past. - Call Origination—Users of the VoIP2.biz service can originate or place phone calls, both local and long distance.
- Call Delivery—Calls will be delivered via the VoIP2.biz network to (1) other callers on the network, (2) local destinations,
(3) long distance destinations, or (4) to other carrier facilities, as directed by the customer. - Additional Services—including 911; E911; Directory Assistance or 411; and operator services.
VoIP2.biz V2B Hosted Voice Services
V2B Hosted Voice Services is a hosted Internet Protocol (IP)–based voice service that delivers the same feature functionality that is
available in the V2B System 1 IP PBX bundled with the communications features of the V2B Network Services Schedule described
above. This packaged offering allows the customer to utilize VoIP2.biz’s capabilities and realize the savings of VoIP while paying a small
start-up fee and a fixed monthly fee per user per month. This service bundles V2B System 1 IP PBX capabilities with the necessary
network services into an easy to buy package. The V2B Hosted Voice Services Schedule includes:- Internet Access—In order to assure quality of service, VoIP2.biz provides high-speed data circuits that also include
Internet access. These circuits can augment or replace the customer’s existing Internet access. - Dial Tone—VoIP2.biz delivers dial tone to the desktop or remote user via VoIP2.biz provided facility.
- Phone Number Porting—At the customer’s option, VoIP2.biz can, in most cases, move the customer’s existing direct
inbound dial (DID) phone numbers into the VoIP2.biz service, and will receive inbound phone calls on these numbers just
as they have done in the past. - Call Origination—Users of the VoIP2.biz service can originate or place phone calls, both local and long distance.
- Call Delivery—Calls will be delivered via the VoIP2.biz network to (1) other callers on the network, (2) local destinations,
(3) long distance destinations, or (4) to other carrier facilities, as directed by the customer. - Voice Mail—VoIP2.biz’s Voice Services includes an integrated voice mail system, with voice mail to e-mail conversion.
- Additional Services—including 911; E911; Directory Assistance or 411; and operator services.
EXHIBIT 1 Continued