VOIP Inc. (OTC:VOII)
Industry: Technology

Listed 2 Consecutive Market Days. On List as of 09/14/2005 Through 09/16/2005

VoIP, Inc., incorporated on August 3, 1998, is a global provider of advanced communications products and services utilizing voice-over-Internet-protocol (VOIP) technology. VOIP is the real-time transmission of voice communications in the form of digitized packets of information over the Internet or a private network, similar to the way in which e-mail and other data is transmitted. The Company has developed its business through strategic acquisitions. The Company is a certified competitive local exchange carrier (CLEC) and inter-exchange carrier (IXC). The Company's business is divided into three primary segments: telecommunications, which consists of consumer and wholesale telecommunication services provided through its VOIP network and technology; wholesale sales of VOIP hardware and broadband components, and the wholesaling of prepaid calling cards. During the year ended December 31, 2005, the Company acquired of Caerus, Inc., a VoIP carrier and service provider and purchased substantially all of the VOIP-related assets of WQN, Inc. Telecommunications Segment The Company's softswitch architecture is protocol agnostic, allowing integration with the networks (referred to in the industry as time division multiplexing or TDMs) employed by the traditional telephony companies and with other packet technologies. The Company's network will allow TDM-based networks to access the capabilities and efficiencies of packet technology networks. Its network supports its own media gateways, softswitch controller, unified messaging systems, voicemail, media transcoding, billing and many other integral parts of a solution. From its Orlando, Florida center, it monitors all aspects of the technical environment of the network, from the nationwide optical backbone to network routers, signaling gateways and numerous routing gateways, soft switches and other aspects of the VOIP infrastructure. The Company's network incorporates a multi-protocol label switching (MPLS) architecture, which provides services to carriers and other service providers. Its network features direct interconnection facilities with multiple regional bell operating companies (RBOCs), CLECs, IXCs, service providers, cable operators, wireless carriers and resellers. The Company's telecommunications products and service offerings target VOIP wholesale customers, such as RBOCs, CLECs, IXCs, wireless carriers, Internet service providers (ISPs), cable operators and other providers of telephony services in the United States and various countries around the world. The Company also sells VOIP products, such as EasyTalk and Rocket VOIP that are targeted at individual consumers. The Company charges its wholesale customers termination fees to terminate calls on its network. The Company pays termination fees when it is necessary to route calls from its network to other networks for termination. The Company's international termination product features direct routes and connections established to many international voice carriers worldwide. Carriers use least-cost-routing algorithms that direct traffic to the lowest cost carrier. Revenues generated from these services in 2005, all of which were derived from one customer, amounted to 30% of the Company's consolidated revenues. The Company is in the early stages of implementing its VoiceOne Carrier Direct program. The Company is a certified CLEC in 27 states, and continues to apply for CLEC certification in other states as required. The Company's VoiceOne Carrier Direct is a partner program for carriers that provide them with its technology to IP-enable their TDM networks. The Company interfaces its customers' TDM systems to its VOIP network. It does not charge the carriers for equipments that include softswitch technology, a media gateway, a service creation environment, a MPLS network and access to its products and services. The facilities-based carrier will pay the Company fees to terminate calls on the Company's network and for other services, such as hosted IP centrex and local inbound. Once the carriers are part of t

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