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Net2Phone Inks IP Telephony Deals with Motorola, Broadcom

Determined to create breathing room in the hotly-contested IP telephony marketplace, New Jersey-based Net2Phone Inc. (NASDAQ:NTOP) announced separate deals with Motorola Corp. and Broadcom Corp., all aimed at improving the way telephone calls are processed on the web.

Financial terms of the deals were not disclosed.

Under terms of the Motorola pact, the telco-equipment manufacturer would partner with Net2Phone to build voIP products and applications. The offerings would integrate Illinois-based Motorola's telephony technology with Net2Phone's existing IP communications network. Motorola's technology includes the SURFboard SB3500 modem.

The SB3500 cable modem would allow Net2Phone to offer primary line telephony service, Net2Phone explained in a statement. "The Quality of Service (QoS) features (of the modem) enable operators to guarantee telephone connectivity, even over a shared access medium like an HFC network, by prioritizing voice calls and eliminating the delay found in previous VoIP technologies,"

"(The Motorola project) enables us to expand our IP-based broadband offerings and provide a leading-edge VoIP service to cable operators with maximum flexibility and minimal cost. This agreement also gives us the opportunity to enhance the value of our existing VoIP backbone network," said Net2Phone's CEO Howie Balter.

Separately, Los Angeles-based Broadcom Corp has agreed to add Net2Phone's VoIP technology into its circuits. Broadcom's service enables faster transmission of information on cable networks through modems and television set-top boxes.

Under the deal, cable operators can immediately use Net2Phone's technology to offer IP voice services over broadband connections. End-users benefit by using their existing, traditional telephones and gain immediate access to the Net2Phone network.

Net2Phone, competing with such players as PhoneFree.com, deltathree, Dialpad.com and HotTelephone in the telephony space, offers applications on its network that include unified messaging, voice-activated dialing and web-based phone bill review.

At a time when Internet companies are struggling to land funding to remain competitive, Net2Phone has snagged a slew of big-name backers, including telco giant AT&T, which purchased a 39 percent ownership stake earlier this year. Other strategic investors include Softbank, America Online, GE/NBC, and Yahoo!.



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