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Technology Stocks : Net2Phone Inc-(NTOP)

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To: Mohan Marette who started this subject10/17/2003 10:27:59 AM
From: carreraspyder   of 1556
 
Net2Phone Pushes Voip To Small Businesses

By Vince Vittore
Telephony
13 October 2003

Migrating from its cable-centric strategy of the past year, Net2Phone last week announced a hosted voice-over-IP service targeting small businesses.

Provided through the carrier's wholly owned subsidiary, Net2Phone Global Services, Max Private Voice Network comprises a set of PBX-like features, calling packages and a management software suite that lets users act as their own telecom administrators. “We've taken a lot of the functionality of our network and shrink-wrapped it on a CD,” said Bryan Wiener, president of Net2Phone Global Services.

While users get free calls when they stay on Net2Phone's IP network, Max PVN, which has been quietly offered for one quarter, allows for off-net termination as well as remote dial-in. Net2Phone, which has three major hubs in the U.S., the U.K. and Hong Kong, is pushing the remote dial-in option as one of the big differentiators because it allows users to ride on their global network for the cost of a local call. Additionally, the management software package lets customers pick between premise-based software that functions like a VoIP VPN and a hosted IP Centrex solution.

And while numerous carriers have shown that end users are willing to put up with lower-quality calls in exchange for cheap rates, Net2Phone is promising small businesses even better reception than they're used to.

“The call quality of on-net to on-net calls, even if they're going over the Internet, is often better than on-net to off-net calls because of the multiple conversions it has to go through,” Wiener said.

For Net2Phone, which previously focused most of its efforts on the consumer sector and hosting VoIP services for other service providers, Max PVN marks its first concerted effort to get into the small/medium business market. More specifically, the company is targeting offices on the lower end of the 10- to 250-employee range.

“We're focused on the people who want a $5000 solution,” Wiener said. “We're focused on being an enhancement to the PBX/Centrex equipment that they already have in place.”

Like many of Net2Phone's other products, Max PVN is being resold through VARs, systems integrators, corporate bandwidth providers and PBX resellers. The company also is offering a hosted version for the ISP market. After one quarter of operation, the company has 30 resellers.
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