October 21, 2002
Fusion Offers "FUSION IP-Phone" IP Subscriber Telephone Service
Fusion Communications Corporation has added FUSION IP-Phone to its menu of IP subscriber
telephone services, which are expected to become the next generation of telephone services.
On April 1, 2001, Fusion began offering IP telephone service (IP toll bypass telephone
service) over its IP toll bypass network, with the goal of signing up 2 million subscribers for both long-distance
and international telephone services in fiscal 2002 (which ends at the end of March 2003). As of October
21, 1.92 million customers have already subscribed to this service, and the company expects to reach its
target of 2 million by mid-November, turning this service into a profitable venture on a single-month basis
within the current fiscal year.
Fusion has positioned this new service as an addition to the ADSL and ISP services
that are currently its main offerings in the realm of IP subscriber telephone services. The company expects
IP subscriber telephone service to succeed fixed-line phones and mobile phones as the next generation of
telephony.
The company is offering FUSION IP-Phone in an effort to expand the overall market
for IP telephony. Rather than limit this service to its customers with permanent connections, the company
is adopting an "open ISP" and "open vendor" approach by expanding the Fusion Service
Partner Alliance through partnerships and other cooperative arrangements with a wide array of companies working
in relevant areas.
Specifically, building on proven technologies for IP toll bypass telephone service,
the company will provide users with an IP telephone number (050-xxxx-xxxx) to be designated by the Ministry
of Public Management, Home Affairs, Posts and Telecommunications, through which it will offer IP telephone
service for both initiating and receiving calls at a single nationwide rate that is less than or equal to
local call charges. As a new telephone service combining the signal quality of fixed-line telephones with
the convenience of mobile phones, this will be a high-value-added service.
The following kinds of service will be offered.
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Service for individual customers with permanent Internet connections
In addition to providing telephone service, Fusion also functions as an Internet
service provider. Until now, however, the company has offered only dialup service to its individual customers.
With the addition of FUSION IP-Phone, individual customers will now be able to have ADSL, FTTH, and other
permanent connections.
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IP subscriber telephone service merged with data communication service for
corporate customers
For corporate customers, FUSION IP-Phone will serve as an addition to the Fusion
VPN service the company currently provides, and also as a broadband Internet connection service for the
company's corporate customers as well as an application for use in broadband Internet connection environments
currently being used by companies.
Also, because the service will include IP-Centrex features, corporate customers
will be able to do without telephone exchange devices such as PBX (Private Branch Exchange), allowing
dramatic reductions in telecommunications facilities costs and maintenance expenses.
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Business development based on an "open ISP" concept
Under an "open ISP" concept, Fusion is expanding its ties with companies working
in relevant areas, such as ISPs that do not have their own IP telephone facilities, and cable TV providers.
By offering FUSION IP-Phone not only to its own customers with permanent Internet connections but also
as a means for partner companies to boost their added value, Fusion hopes to expand the environment to
accommodate larger numbers of users with permanent connections and raise the total number of IP subscriber
telephone users.
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Using the "open vendor" concept to invigorate the market for IP telephone
equipment and services
To provide FUSION IP-Phone service, Fusion will need various kinds of equipment,
such as modems, IP telephone equipment, and PBX devices. Under the "open vendor" concept, the
company will not develop its own models, but will also encourage multiple manufacturers to develop and
commercialize this equipment. By so doing, Fusion hopes to invigorate the IP telephone equipment market
and promote lower prices and added features.
Fusion is confident that by providing FUSION IP-Phone, a comprehensive IP subscriber
telephone service, under the aforementioned concepts, it is expanding options and increasing convenience
for customers of IP subscriber telephone service. Fusion also intends to provide new communication
features merging voice communications with data communications (such as unified messaging and intelligent
call centers). These features, together with high-value-added applications developed by software companies,
will create an environment that will allow applications to be provided directly to users.
Fusion is allowing new communication to take place by expanding the IP telephony
market and achieving a fusion of voice and data communications that is the strong suit of IP telephony.
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