Voip business opportunity

I2Telecom, a startup VoIP-over-broadband provider that to date has had its greatest success overseas, now appears poised to make inroads with a differentiated offering in the U.S.

The hook? Users can now place calls over their broadband VoIP connection even when they are away from their home or business location.

Like other VoIP-over-broadband providers, i2Telecom provides customers with an adapter to plug a conventional phone into a DSL or cable modem connection, which can be from any provider. But unlike other VoIP providers, i2Telecom's device also supports conventional circuit-switched connectivity. (When they want to connect via IP, users precede the regular phone number with a pound sign when dialing.)

"Having two voice paths through the same device enables us to do all kinds of cool tricks," says Rick Scherle, senior vice president of marketing for i2Telecom.

With a new version of the adapter that will be released soon, users will be able to dial their home or business using the conventional POTS connection and then place long-distance calls using VoIP over the broadband connection. Software inside the adapter can be programmed to accept calls from up to three numbers, which could include cellphones.

"People will no longer be tied to a time and place to use VoIP," says Scherle.

SME TARGET

I2Telecom's target market is small to medium-size businesses that make a lot of international calls. "There's a huge opportunity there because of all the types of globalization that's going on these days," Scherle says.

The company expects to charge less than $100 for the adapter, and basic service will begin at $6 a month. Long-distance calls will be billed on a per-minute basis. I2Telecom offers competitive rates to numerous international destinations through partnerships with competitive carriers in each region. The company has gateways in several network access points worldwide. I2Telecom also has partners in China (China Unicom), the Mideast and Latin America. In many cases, Scherle says, those partners are challengers, rather than incumbent service providers.

To date, about two-thirds of i2Telecom's customers have been located overseas. In some cases, as with China Unicom, the broadband connection is provided by the i2Telecom partner. Calls between i2Telecom endpoints are completed at no charge.

DEPENDENT ON VARS

I2Telecom markets its services through value-added resellers.

I2Telecom was founded in 2002 and later went public through a reverse merger with Digital Data Networks.

The i2Telecom adapter has received a provisional patent. The company is considering licensing its technology to other VoIP-over-broadband providers, Scherle said.

FAST FACTS:

Corporate Profile:

Company: i2 Telecom International Inc.

Founded: February 2002

Headquarters: Boca Raton, Fla.

Executives: Paul R. Arena, Chairman, CEO; Anthony F. Zalenski, President, COO

Publicly traded: OTC Bulletin Board. Symbol: ITUI