Second Quarter 1998

An Internet Telephony Services Wholesaler

ITXC Corp. (Internet Telephony eXchange Carrier) provides wholesale IP telephony services worldwide to resellers, facilities-based telephone companies, and other Internet Telephony Service Providers (ITSPs). Currently, these services include intelligent routing, network monitoring, authorization, termination, and settlement. ITSPs can use ITXC's services to connect their customers to every telephone in the world — regardless of the extent of their own physical footprint. The company is U.S.-based and privately held.

ITXC routing sends high-quality IP calls from any origin over the Internet to gateways operated by tested, approved, and monitored local and regional service providers who are ITXC suppliers. Where there is not yet local IP termination, ITXC completes calls at very low U.S. international calling rates. 

ITXC does not offer services to either business or residential end users, but rather is a wholesaler supporting the IP telephony industry. The company is independent and free to offer the best possible service to its customers and to choose the best providers. In addition to its network services, the company provides fee-based marketing and technical assistance to ITSPs to help assure their success.

Companies whose customers want to make inexpensive international phone calls can benefit quickly from ITXC’s services — in some cases, without having to purchase any IP telephony hardware or software. Callback and prepaid calling card companies are finding that IP telephony is a great value for their customers, and ITXC offers the widest possible route selection at low prices and often without having to learn new technologies.

A select group of gateway operators provide termination for ITXC around the world. These suppliers, who’ve demonstrated that they can meet ITXC’s quality standards, benefit from traffic originated well beyond their marketing areas but routed to them by ITXC. Many of these providers are also ISPs or facility-based telephone companies.

ITXC’s Chairman and CEO, Tom Evslin, has over 30 years of experience in computer communications, networking, and connectivity. His management record includes running a communication software company for 18 years, leading the development and operation of AT&T WorldNet Internet service, and managing BackOffice connectivity products for Microsoft. Evslin left AT&T in July of 1997 to found ITXC. Initial seed funding for the company was provided by AT&T and VocalTec Communications. ITXC benefits from the large installed base of VocalTec gateways and its close relationship to traditional telephone companies, but will add support for gateways from other vendors in Q3 98. There are no restrictions on whom it can buy service from or sell service to.

In December of 1997, the company announced its initial offering: WWeXchange Service. This managed network of Internet and PSTN facilities gives ITSPs a global footprint for call completion no matter how many or how few locations they actually serve with their own facilities. ITXC does all routing off the ITSP’s own network, purchases local termination, and monitors the network to assure quality. Originating ITSPs have no need to form business or operating relationships or measure the quality of local termination providers. These services are provided by ITXC.

Affiliated ITSPs who operate facilities and meet ITXC’s rigid quality standards can also generate additional income by making their facilities available for terminating traffic originated by the customers of other ITXC-affiliated ITSPs. ITXC is the customer for all termination services provided through WWeXchange, so terminating ITSPs do not need business relationships with each traffic originator and have no credit risk with respect to these originators. For more information, visit ITXC’s Web site at www.itxc.com