IRVINE, Calif., April 6, 2000 (PRIMEZONE) -- AsiaInfo Holdings, Inc. (Nasdaq:ASIA), a leading provider of Internet infrastructure solutions and software products in China, announced today that it has been awarded a major contract to build a 311-city nationwide Voice over IP (VoIP) network in China for China Unicom. The agreement, signed on March 31, follows on the successful completion of a pilot project led by AsiaInfo to provide IP telephony service in 12 cities in China. Under the terms of its contract with China Unicom, AsiaInfo will build what is expected to be the largest VoIP network in the world. Once completed, this network will be able to carry 8 billion minutes of long distance calls per year, providing dial-up services to consumers and businesses through wire-line as well as wireless connections.
Additional VoIP News
Presidents Telecom Inc. recently announced its entry into the Global VoIP industry via the proposed acquisition of Access Network's Ltd and International Communication & Equipment Corp. Presidents Telecom Inc. is focused on the deployment of worldwide digital, voice and data via VoIP, fiber optic, Internet circuit, satellite and public switched telephone networks. Emerging Telecom players like Presidents Telecom, Net2Phone, iBasis (Nasdaq:IBAS) and NetworkPlus (Nasdaq:NPLS ) are embracing new technologies that will take advantage of the shifting paradigm and leave behind the larger, slow-moving players.
The major telcoms are already scrambling to catch up with the Voice over IP leaders. Last week, Yahoo (Nasdaq:YHOO) and an AT&T (NYSE:T) led consortium announced investments of $1.4 billion in Net2Phone (Nasdaq:NTOP), taking a 32 percent stake in the young VoIP company. Net2Phone currently handles roughly 40 percent of all phone calls routed over the Internet. Other promising VoIP companies include ITXC Corp (Nasdaq:ITXC), Tekelec (Nasdaq:TKLC), Network Plus (Nasdaq:NPLS) and VocalTec (Nasdaq:VOCL).
Blue Wave Systems Inc. (Nasdaq:BWSI) today announced that its FACT(TM)software framework and associated Resource Development Kit (RDK) will take advantage of Texas Instruments' (NYSE:TXN) new DSP/BIOS II real-time kernel and the TMS320(TM) DSP algorithm standard to simplify the integration of commercially available or proprietary algorithms into the ComStruct(TM) framework. With the recently announced DSP/BIOS II combined with the FACT framework, developers can take full advantage of the eXpressDSP(TM) real-time software technology initiative and the expanding range of algorithms designed to the TMS320 DSP algorithm standard to create multi-channel communications applications in shorter timescales than ever before. Blue Wave Systems is a leading supplier of high-channel Digital Signal Processing (DSP) subsystems used in telecommunication infrastructure equipment, such as voice over packet (VoIP) gateways, digital wireless communications and intelligent peripherals. The ComStruct(TM) line of telecom infrastructure communication processing subsystems was launched in January 1999. At the heart of the ComStruct(TM) line is the company's FACT(TM) software (Framework Architecture for Communication Technologies), which enables the DSP subsystem to be rapidly and effectively deployed in a variety of carrier class telecom applications. Blue Wave Systems has been a market leader in DSP board-level products since 1983. For additional information, please visit the company's Web site at www.bluews.com.
Brooktrout Technology, (Nasdaq:BRKT), a leading provider of innovative hardware and software platforms that enable applications for the New Network(TM), today announced that it will participate in the T-Portal collaboration, an industry-wide Internet Protocol network collaboration started and being administered by ipx.Inc. T-Portal provides telecommunications services providers around the world with best-of-class hardware, software, network connections and support needed to offer diversified and advanced applications via a private IP network. Typical applications include unified messaging, IP fax, conferencing, and online collaboration.
Startec Global Communications Corporation (Nasdaq:STGC), an integrated communications provider of voice, data and Internet services to the emerging economies, today announced that it has acquired and integrated a network of four additional Internet Protocol gateways in the Middle East and Africa, increasing the total number of IP gateways in its global network from 60 to 64 accessing 32 countries. Startec is building an IP network to tap into the $24 billion global VoIP market.
About VoIP
VoIP (Voice over Internet protocol) based networks are lower cost alternatives to the traditional LD calling solutions. The global market for, VoIP is predicted to reach $14.7 Billion by 2003, according to "The IP Telephony Report - Driving the Open Communications Revolution", by Edward R. Jackson, Sr. research analyst at Pipper Jaffrey, a major Investment Bank. The global (VoIP) voice-over-packet switched service market should grow to $87 billion by 2004, according to Dataquest, Inc., a division of the Gartner Group (NYSE:IT). Long-haul networks are considerably older and inferior to other emerging players like Level 3 (Nasdaq:LVLT), Global Crossing (Nasdaq:GBLX) or Qwest (NYSE:Q). This is a huge disadvantage, as the incumbents must pay to use the newer networks to remain competitive. The nation's largest traditional switched carriers include companies such as MCI/Worldcom, Sprint, AT&T, Global Crossing, Qwest (Nasdaq:QWST) and Williams Communications (NYSE:WCG).
Some believe that VoIP companies will drive the price of long distance so low that established telcoms could no longer compete. David H.M. Baker CFA, president of Rivendell Capital Management, recently said in an article published on worldlyinvestor.com that, "Telecom upstarts will eventually overcome the established phone companies. Voice telecommunication ultimately is going to be free. Voice services will eventually be a loss leader for other services offered by these companies over their networks. This is a huge problem for the three leading long-distance companies AT&T (NYSE:T), Sprint (NYSE:FON) and MCI Worldcom (Nasdaq:WCOM), for whom consumer voice service is still a huge portion of revenues."
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