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YAK Communications Inc. Launches WorldCity'TM' VoIP Internet Telephony Service to Residential and Business Customers
MIAMI & TORONTO --(Business Wire)-- Sept. 9, 2004 -- YAK Communications Inc. (NASDAQ: YAKC), a provider of telecommunication services to residential and business customers, announced today that it has launched its highly anticipated WorldCity VoIP(TM) services.
YAK WorldCity VoIP(TM) will allow customers to make and receive phone calls using their high-speed cable or DSL Internet connection instead of a traditional phone line.
"The explosive growth of broadband DSL and cable internet access, which is now in approximately 25 million homes in North America and accelerating rapidly, as well as major improvements in telephony hardware and software, has put us on the leading edge of a disruptive communications revolution that is very quickly gaining momentum" said Charles Zwebner, President and CEO. "YAK has now entered the VoIP internet telephony services arena, alongside other entrants including Vonage, Primus, 8x8, and Broadvox. With over 175 million phone lines in North America and an additional 1.4 billion phone lines worldwide, along with an anticipated 10% conversion rate to VoIP services during the next three years, the market opportunities are huge," added Zwebner.
"We continue to believe that we are well positioned to take advantage of the opportunities that VoIP affords us. We currently have a customer base in excess of 810,000 monthly users of our traditional telephony services, a healthy balance sheet, over $20 million cash, free monthly cash flow, and positive EBITDA and earnings. In addition, we have an installed and mature PSTN and IP network, switching systems and infrastructure along with a very strategic and strong management team and loyal employee base. We have been successful in our executions and we feel confident that we will continue to grow the business, evolve and transition into a next-generation telephony and communications company," added Zwebner.
How Does Broadband Internet Telephony Work
The technology works by plugging a regular telephone into a small device provided by Yak called a DVC (Digital Voice Converter), which converts an analog voice-call into digital voice-data-packets and sends the voice packets over the customer's high speed connection through the Internet to our PSTN/IP gateway softswitch. We process these packets and when they reach their destination they are re-assembled into a traditional analog voice-call. When the customer receives a call, Yak does the reverse.
The YAK Pricing Plans and Features
Currently we are launching a simple service which offers true value to the high-usage long distance caller with emphasis on international calling. The current features are basic and will be enriched as we evolve to satisfy client needs and demands. -0- *T Basic Plan: - $19.95 (USD) monthly charge. - 1,000 free minutes of calling per month to the U.S., Canada, Hong Kong and China. - Per minute usage rates are as low as $0.02 to destinations such as France and Italy. - Unlimited and free member-to-member (Yak VoIP subscriber) calling. - Other unlimited usage flat rate plans are expected to be introduced shortly. Features: - Customers can select a telephone number for the VoIP service from one of over 50 cities across Canada, the U.S., and overseas regardless of where the customer resides. - The service includes: Call Display, Call Forwarding, 3-way Teleconferencing, and Voice-Mail. - 911 service is available for customers who select a telephone number from one of 13 select Canadian cities so long as they reside in that particular city. - Additional features, worldwide city phone numbers, and 911 service areas are expected to be introduced shortly and updated periodically. *T
The YAK Online End-to-End Ordering, Tracking and Customer Support System
Our fully integrated, web-based, real-time technology environments allows customers to learn about our VoIP product on our website, purchase in three easy clicks, and generate an order at our warehouse and fulfillment center. Orders are then provisioned automatically with our gateway switches. Customers will be assisted by our multilingual customer service support centers.
Customers anywhere in Canada, the U.S. and internationally, can sign up for the service by visiting www.yak.com.
About YAK Communications Inc.:
YAK Communications Inc. (the "Company") (NASDAQ: YAKC) is an Integrated Communications Provider (ICP) offering a full array of long distance (1+, toll free and dial-around), local lines, travel cards, cellular long distance, data services, and broadband voice to residential and small businesses in North America. Yak currently serves approximately 800,000 customers. For more information, the public may visit http://www.yak.com.
Forward Looking Statements:
Statements contained in this news release which are not strictly historical are forward looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. The Company makes these statements based on information available to it as of the date of this news release and assumes no responsibility to update or revise such forward-looking statements. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Words such as "projects", "believe", "anticipates", "estimate", "plans", "expect", "intends", and similar words and expressions are intended to identify forward-looking statements and are based on our current expectations, assumptions, and estimates about us and our industry. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although the Company believes that such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors, risks and uncertainties. These factors, risks and uncertainties include, without limitation, the successful deployment and customer acceptance of the Company's broadband/VoIP product offerings, the Company's success in integrating the operations of its newly-acquired businesses, and associated reduction in costs, the successful implementation of its business plans including growth of existing product offerings, strategic acquisitions, the successful integration of new management team members, continued and increased demand for its services, the successful deployment of new equipment and realization of material savings there from, competition from larger and/or more experienced telecommunications providers, its ability to continue to develop its markets, general economic conditions, changes in governmental regulation, and other factors that may be more fully described in the Company's literature and periodic filings with the Securities and Exchange Commission. You are urged to carefully review and consider these disclosures which describe certain factors which affect our business.
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