4/8/99 News
ERA West Inc. Enters Into Strategic Alliance Agreement With World Access Communications Corporation to Provide Phone-to-Phone Long Distance Telecommunications
Business Wire - April 08, 1999 09:16
OCALA, Fla.--(BUSINESS WIRE)--April 8, 1999--ERA West Inc. (OTC BB:ERAW) has entered into a strategic alliance agreement with World Access Communications Corporation, a subsidiary of Terra Telecommunications (OTC BB:TRRT) to provide phone-to-phone long distance telecommunications utilizing Voice over Internet Protocols (VOIP).
The agreement gives ERAW exclusive rights to VOIP technology in Australia, New Zealand, the Pacific Rim, and select West African Countries.
Frank Speight, President & CEO of ERAW, stated: "The opportunity to move into the VOIP market fits exactly into our business strategy of developing high tech, Internet related, revenue generating business models. We are excited about the relationship with World Access and will continue to develop this aspect of the company's strategy."
VOIP converts standard telephone voice signals into compressed data packets that can be sent locally over Ethernet or globally via Internet Service Provider's (ISP) data networks rather than traditional phone lines.
Chief Technical Officer of ERAW, Josh Eikov commented, "The VOIP technology that we are deploying will allow our customers access to quality long distance services for pennies on the dollar on a phone-to-phone basis."
Dynamic Bells NetWorld (http://www.dbnw.com.au), an Australian based ISP and wholly owned subsidiary of ERAW, will be the exclusive marketing arm for Australia and New Zealand. VOIP service will begin June 1, 1999. Revenues from VOIP based on DBNW's existing customer base are projected to be $6,100,000 by year-end.
ERAW is currently finalizing negotiations with United Africa Telecom (UAT) to form a strategic partnership to provide VOIP to various West African countries. Mr. Speight added: "We are very excited about this alliance and feel it will be more beneficial to both companies to develop this relationship. The proposed merger between UAT & ERAW, and the capital requirements of such a merger, did not fall in with ERAW's business strategies. This business model is much less capital intensive, and far more profitable for both companies. We are also negotiating with other strategic partners for the expansion of VOIP into the Asian market. Additionally, Mr. John Sharples, former CEO of UAT and former managing director of AT&T Africa has agreed to serve on the ERA West Board of Directors. Mr. Sharples' expertise will be very beneficial to ERAW in the VOIP market."
ERA West, through its wholly owned subsidiary Dynamic Bells NetWorld, an Australian company, offers Internet access, Voice over Internet Protocols, web publishing and web hosting. The recent acquisition of USA-based ISP, City-Online, Inc. (http://www.city-online.com) and its wholly owned subsidiary, DigiCon Technologies, continues to reinforce the company's goal as a global Internet company.
Safe Harbor Statement: Certain information included in this communication contains statements that are forward-looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated.
CONTACT: ERA West, Ocala
Investor Relations:
Tim Ellis, 352/690-1633
timellis@city-online.com
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