Product Line or Service Highly
reliable Internet Communication Systems with integrated telephone, voice messaging and
fax. This integrated system will include Smart Ethernet Telephones and will provide
Internet access, e-mail and Web server in-addition to telephone switching, voice mail and
fax management. This equipment works in combination with standard Ethernet wiring and is
compatible with current PBXs.
Technology/Proprietary Rights The Company has one patent
pending concerning the Smart Ethernet Telephone Device. It is in process of filing another
associated with its integrated communications server. All of the software developed by the
company would be proprietary to the Company and provides the Company with its competitive
advantage. Its integrated hardware architecture is a barrier to software only solution
Market Opportunities The Company is a high technology
startup focused on providing Internet communications systems for small office based
workgroups (100 users or less). The Companys communications equipment would consist
of Integrated Packet Communication Servers and Smart Ethernet Telephone Terminals that
provide real time telephone, fax, voice mail, e-mail and Web capabilities using Internet
Protocol technology on standard Ethernet wiring.
The overall communications equipment market is estimated to grow from $18B in
1996 to $26B by the year 2000. The Companys products are focused on the $2B small
business communications market where cost and value is selected over higher priced,
feature deficient branded products. The Company believes its products will offer superior
functionality to that of traditional and discrete switches, servers and software at less
than half the cost per user. It is further expected that the Companys integration of
services on T1 lines will lower recurring communication charges by more than half and that
the products integrated Web architecture will significantly reduce administration
and maintenance costs.
Key advancements and advantages provided by the companys products include
(a) one wiring plan is used for all communications (voice, fax, data), (b) a single access
line is used to access public communications networks (i.e. PSTN) for voice and data
communications (significantly reducing recurring communication charges) and (c) multiple
service capabilities (i.e. telephone switching, voice mail, fax management, e-mail, Web,
etc.) are integrated in one system.
Marketing/Sales and Distribution Indirect distribution
channels in 30 major US markets will be in place by year 5. This channel would consist of
100 to 120 independent dealers and 10 to 15 "gold" dealers. The company will
also seek strategic corporate partners and OEM channels to bolster sales. Initially,
direct distribution in limited markets will be used for the sales of the first 1000 to
2000 systems to develop initial customers and to develop product brand value.
Competition Company is not aware of any competitors with
the complete capabilities it proposes, though several with similar elements are known. NBX
and Selisus, startups, offer or soon will LAN based PBX replacement systems with Ethernet
telephones. These systems are not designed to be used with existing PBXs nor offer the
Internet and fax capabilities proposed by the Company. Other new startups include
Shoreline Teleworks and Vertical Networks that will offer Windows NT based PBX replacement
solutions. Use of NT will result in systems with lower reliability. Their approach also
requires two lines to the desktop and analog telephones, they do not provide Ethernet
telephones or fax management. Other companies with product elements include: Picazo Comm,
NetPhone, Altigen, Touchwave, Phonenet, Sphere Comm., Inter-Tel, Lucent, Vienna Systems.
The Companys products also compete with current multi-system voice and data
Manufacturing The Company will use third party
manufactures to produce hardware product elements.