About Pervasip

The Company

Pervasip is a new generation communications company providing wholesale and retail Voice over Internet Protocol (VoIP) services. Pervasip is focusing its 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.

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 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.

Examples of the adaptability and flexibility of our technology are:

• A broadband satellite company, F4W, tried several VoIP carriers before selecting VoX, as VoX is so robust that it even provides excellent voice quality when riding over a broadband service that is transmitted thousands of miles to a satellite.
• We were introduced as the VoIP carrier of choice to a corporate customer because, unlike our competitors who were approached first, we could transmit video advertisements to a video phone and route back international calls to a switch other than our own.
• We developed a mobile phone application that downloads our VoIP product to recent models of Nokia smartphones, so that a consumer can make VoX calls over the Internet without using up his or her mobile phone’s voice-plan minutes.
• We have customers using our VoIP to make calls on their tablets. Tablet devices from Samsung and Apple have a data card in them for Internet access. People who use these tablets can also make phone calls using VoX’s mobile application.

Mobile VoIP

Our VoIP technology works efficiently over mobile phone networks. In lieu of routing a call from a mobile phone over the voice side of a mobile phone network, we route the call over the data side of the network, which runs over the Internet. It is a low-cost method of delivering telephone service, especially when the user is making international calls, because we do not have to hand off the call to another carrier to complete the call. Instead, after the call reaches the cell phone tower, it is placed on the Internet, where it travels to our switch and is completed by us. We believe we can attract a significant number of subscribers to our service from the larger and more expensive mobile phone carriers. We refer to our use of the data-side of mobile phone networks as voice-over-IP enabled mobile phone service (“Mobile VoIP”). Our Mobile VoIP service also runs over WiFi networks. The range of WiFi is significantly less than the range of the mobile phone networks, but the WiFi option allows our customers to use their mobile phones in buildings in which they cannot receive a signal from the mobile phone network.

We believe that Mobile VoIP, a wireless telephone service, will demonstrate rapid growth. We also believe that mobile applications will experience significant growth. Market research firm In-Stat projects the total number of Mobile VoIP users will reach 288 million by the end of 2013. According to iSuppli Corp., a market research firm, the market for preloaded applications and other software for mobile phones will grow to $7.7 billion in 2014, up from $3.3 billion in 2008.