The Company

Pervasip is a new generation communications company providing wholesale Voice over Internet Protocol (VoIP) services. Pervasip is focusing current and future resources on the growth of its wholly owned subsidiary, VoX Communications. Using its own nationwide VoIP network, VoX offers scalable and reliable broadband voice, origination and termination services to cable, wireless and wireline operators, as well as enhanced VoIP telephone service to the small business and residential marketplaces. VoX's proprietary IP platform enables superior quality and service at very low fixed costs, which is expected to translate into a faster break even threshold as the Company capitalizes on accelerating market demand for its VoIP services.

The Technology VoX has pioneered a Linux-based "server farm" approach to VoIP, similar to Google's search engine technology. The result is a predictable platform that is easily and cost-effectively scaled as the business grows. Management believes that this platform, together with the latest VoIP signaling protocol (SIP) and enhanced compression voice standard (G.729), processes the smallest packets of information possible both quickly and efficiently.

Low Fixed Costs   VoX's network equipment cost per subscriber is less than $10   VoX has the ability to scale its softswitch architecture in relatively small capital increments. $100,000 in additional equipment is a standard purchase to add additional capacity of 10,000 lines.   VoX pays no software license fees, as it owns its technology.   The rental costs of a colo facility and the IP circuits in and out of the facility are inexpensive.

VoX service is capable of being deployed and customized for each customer, remotely from a central location. Since the platform is proprietary, all VoIP features are controlled by VoX instead of a software vendor which enables faster response to the needs of wholesale customers and offers an uncommon level of automation with tight integration between the billing system, the provisioning system and the softswitch. This innovative and sensible approach to VoIP won the Company Internet Telephony Magazine's "Most Innovative VoIP Technology Provider Award" in 2005.

How VoX Works

VoX provides its customers with an Analog Telephone Adapter ("ATA") that enables them to make and receive phone calls through the Internet. Spoken words are converted into packets of data, sent out over the Internet through a broadband connection, and reassembled at the other end of the line. The VoX adapter is placed between the customer's computer and their cable or DSL modem. A standard telephone may be plugged into the adapter and used to place and receive calls in the same way calls are placed or received with traditional phone service providers.

In lieu of an ATA, VoX also supports a variety of other Internet telephone devices, such as an IP phone, that have a built-in ATA, or a WiFi phone, that uses a WiFi network to connect to the Internet to place and receive calls.

Competition

VoX differentiates itself from competitors by the quality and reliability of its network, its service features and its wholesale focus. Currently, VoX is one of the few VoIP carriers that can offer a competitive wholesale alternative to carriers and other service providers wishing to private label a VoIP service. Specifically, the Company targets providers with established customer bases that would benefit from a bundled offering. For example, there are 1100+ independent cable providers. Due to a lack of telecom experience and minimal VoIP know-how, many of these companies will have to associate with a provider like VoX to deliver a digital phone solution before their captive customers are targeted by other providers.

This wholesale focus is critical to VoX's strategy. Retail-centric VoIP providers are paying exorbitant customer acquisition costs to attract broadband subscribers to their service. A VoX wholesale customer incurs significantly less marketing costs when selling VoIP to an existing base of loyal customers. Retail-based VoIP companies have reported that their average monthly cost to service a VoIP customer is a little more than $7.50, yet their average acquisition cost per customer exceeds $300. VoX believes its strategy is smarter.

By enabling broadband carriers to sell VoIP and by choosing specific geographical areas where VoX has the advantage in selling retail services, the Company can find pockets of opportunity where it can acquire customers without expensive marketing costs. VoX is testing two of the largest cable carriers in the US because within their own customer base, these carriers have pockets of customers that cannot be reached with the standard non-SIP VoIP solution. The IP-based offering has minimal start-up costs and can reach every one of the cable carriers' customers. Management believes that the faster path to profitability will come to the VoIP carrier who manages and controls customer acquisition costs.

Company Links