Fusion and BBX Form Partnership to Provide IP Telephony Platform for Cable TV Providers
Opens the Door to Low-Cost, Speedy Introduction of IP Telephone Service

Fusion Communications Corporation and Broadband Exchange Corporation (BBX) have teamed up to provide an IP telephony platform for cable TV providers. The companies hope to commence the new service--which uses BBX's Broadband Exchange (BEX) service and Fusion's FUSION IP-Phone service--by the spring of 2003.

The new service will allow cable providers to begin offering IP telephone service to subscribers quickly and at low cost. BBX is already providing its BEX service to over 20 cable providers, and has set an immediate target of getting the new service adopted by 14 cable providers to reach a total of 100,000 households.

Recently, an explosive increase in the prevalence of broadband environments such as cable and ADSL has heightened demand for high-quality IP telephony, an Internet-based service. In response to this trend, the Ministry of Public Management, Home Affairs, Posts and Telecommunications has begun allocating dedicated "050" IP phone numbers to providers that meet a certain standard of connection quality. However, cable providers and other ISPs wishing to offer IP telephone service face an array of financial and operational obstacles, including the capital investment needed for dedicated IP telephony equipment, the cost of circuitry, the bureaucratic hurdle of obtaining dedicated "050" numbers, and the logistical challenge of cooperating with other providers to ensure interconnectivity.

But now Fusion and BBX have teamed up to address these obstacles by offering cable providers a one-stop shop for an IP telephony platform. BBX is providing, via its BEX service, the high-quality network for cable Internet connectivity. It is also developing subscriber modems and providing a billing system. Fusion brings to the partnership its high-quality IP telephone service, FUSION IP-Phone. By eliminating the need for providers to make their own capital investment in dedicated IP telephony equipment and resolving the interconnectivity and other issues, the new service allows cable providers to develop IP telephone service for their subscribers quickly and at low cost. The new platform is expected to spark a sudden increase in the number of cable providers offering IP telephone service.