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Fusion puts a new model on the VoIP runway

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From whom and for how much is unknown, but Fusion Telecommunications International announced this week the acquisition of SIP-based technology that will allow it to launch a new model of voice-over-IP that challenges the models of Vonage and Skype.

Fusion will enable directed peer-to-peer Internet phone connections between session initiation protocol (SIP)-enabled devices primarily through its own backbone network. Fusion currently has facilities in 45 countries.

It plans to combine the benefits of Vonage’s full-featured service plan model with Skype’s free-calling model, but remove the inherent security and interoperability limitations of Skype and beat Vonage on price.

“We believe that by combining these two models and adding increased flexibility, features and functionality, Fusion will be able to provide service to a much larger segment of the global population as compared to each model as a standalone,” said Matthew Rosen, president and COO of Fusion.

The company will roll out a peer-to-peer service at a time and place that also is unknown, but which Rosen said was in “the near term.” The service will be under Fusion’s efonica brand. Fusion provides its efonica-branded VoIP service, Internet access, and other Internet services to, from, in and between emerging markets in Asia, the Middle East, Africa, Latin America and the Caribbean.

Rosen also sees opportunity in the wireless VoIP space. “As more operators enable high-speed Internet access, there are greater opportunities to approach users of the cellular operators to offer VoIP and avoid the inherent roaming and long-distance charges,” he said.

The acquired technology was in development for more than five years. It employs SIP standards rather than the proprietary standards of offerings such as Skype, one of the markets Fusion plans to take over.

“When combined with peer-to-peer, SIP offers low-cost, high-quality voice connections that work well with other networks,” said Joel Maloff, chief technology officer at Fusion. “The real challenge is creating an environment that enjoys the benefits of SIP peer-to-peer without the inherent challenges of [regular] peer-to-peer.”

Maloff said he believes Fusion has done that.

Users will be able to make calls between computers, Internet-connected telephones, wireless devices and other SIP-enabled hardware. Unlike Skype or other free services, it will not use customers’ devices or computers as supernodes to route calls or commandeer processing power.

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© 2008 Penton Media Inc.

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