RealTime IT News

VocalTec Aims For Service Provider Market

Internet protocol communications company VocalTec Communications Ltd. Thursday launched a corporate initiative to make the jump into the worldwide telecommunications service provider market.

The Israeli company plans to form a separate entity with a strategic partner or divest its current enterprise-oriented operation and not sell directly to enterprise customers.

The company says it will continue its pursuit of the consumer Internet telephony market as well.

The change will spark of a series of organizational changes at VocalTec, including a reduction in staff, to "enhance operational efficiency." VocalTec indicated that it expects its second quarter results to include a one-time $1 million charge which will pay for employee severance packages and other reduction-related costs.

"We are moving aggressively worldwide to exploit the opportunities in the service provider market," said Doron Zinger, VocalTec's president and chief executive officer.

"We intend to focus our attention on specific applications for this market where we are already well positioned to serve the customer. There are many opportunities throughout the IP telephony industry but we must allocate resources so as to maximize our strengths and operate as an efficient and flexible competitor."

VocalTec entered the IP telephony industry in 1995 with the first commercial IP telephony solution.