To all:
I find this very interesting. Esp. on the heels of the Sprint announcement.
Friday June 5, 12:24 pm Eastern Time
VocalTec, Digital target phone carriers
NEW YORK, June 5 (Reuters) - Bolstering its move into the phone carrier market, VocalTec (VOCLF -
news) and Digital Equipment Corp.'s telecommunications systems integration unit said on Friday they have
agreed to a strategic alliance to build large-scale Internet phone networks.
The alliance puts the muscle of Digital's industry-leading telecom systems integration business -- with more than
2,600 staff -- behind software developer VocalTec Communications Ltd., the pioneer of voice communications
over the Internet.
No financial terms were disclosed.
VocalTec stock gained a $1 to $15.25 following the news.
In the last six months, VocalTec has announced and begun shipping a set of sophisticated ''gateway'' products
that translate voice conversations into Internet data along with the control software necessary to centrally
manage such networks.
The pact calls for Digital to integrate VocalTec software into existing phone networks to permit such functions
as overall systems management, customer billing and so-called ''intelligent network'' features like call waiting.
''VocalTec's relationship with Digital is tremendously important to the development of the IP telephony market,''
VocalTec Chairman and CEO Elon Ganor said in a statement.
''Clearly, the entry of one of the world's pre-eminent systems integrators shows this market has matured and is
rapidly expanding,'' he said.
Already, executives at the two companies said VocalTec- based Internet systems are undergoing pilot testing at
major carriers in the United States and overseas and by newer players building entirely Internet-based
communications networks.
The only customer Ganor was prepared to disclose is German national operator Deutsche Telekom AG
(DTEG.F), which holds 21 percent of VocalTec and has set out on an agressive plan to integrate Internet
functions into the core of its network.
VocalTec and Digital said they also planned to work together to target the corporate market for Internet
communications.
However, developments in this area are lagging behind the race by phone carriers to build new Internet
networks, which was fueled earlier this week by Sprint Corp's announcement that it will move to an integrated
Internet voice and data network.
VocalTec's partnership with Digital makes it a serious competitor to sell its communications software into
networks serving millions of customers simultaneously.
The company faces competition from vastly larger telecom and data networking equipment suppliers like Lucent
Technologies Inc. and Cisco Systems Inc., which are angling to win customers in this area too.
VocalTec, based in Herzliya, Israel, has 235 employees, with roughly 170 of them active in research and
development. 1997 net sales amounted to $16 million.
The value of contacts in this area may start at $150,000 and run up into several millions of dollars for the
VocalTec software, excluding the cost of services and maintenances contracts, Ganor said.
Tom Mercer, director of business development for Digital's systems integration business, said Digital was
seeking to build up business in the fast-growing Internet communications market. ''We saw VocalTec as the
market leader in this area,'' he said.
Mercer said Digital plans to act as a ''preferred systems integrator'' for VocalTec and has been granted
distribution rights for VocalTec software. After installing VocalTec software, Digital would continue to provide
24-hour, seven-days-a-week support services to phone carriers and corporations.
More Quotes
and News:
Digital Equipment Corp (NYSE:DEC - news)
VocalTec Communications Ltd (Nasdaq:VOCLF - news)
Related News Categories: US Market News |
