CLEC Fonix Telecom Upgrades to VoIP

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CLEC Fonix Telecom Upgrades to VoIP

Fonix Telecom, a subsidiary of Fonix Corp. (OTC Bulletin Board: FNIX - News) that provides integrated telecommunications services, and Lucent Technologies (NYSE: LU - News) today announced at SUPERCOMM that Fonix Telecom will deploy technology from Lucent's Accelerate Next-Generation Communications Solutions to upgrade its network to VoIP throughout the company's nine-state territory. While CLECs have always been a step ahead of the ILECs in technology deployment, even the the CLECs have been slow to deploy VoIP due to the cannibalization of their revenue stream that VoIP incurs. However, VoIP also brings cost saving economies to the CLECs that improves their margins, especially in the long run. As per-minute pricing schemes reach 'rock bottom' and virtually unlimited minute cell phone plans continue to wreak havoc and cause heated exchanges in telecom board rooms, they have finally seen the writing on the wall. VoIP is coming and it's coming on fast. You'd better get on board the VoIP gravy train or be left behind!

Fonix Telecom is one such Competitive Local Exchange Carrier (CLEC) that provides voice over Internet protocol (VoIP), broadband services and traditional telephony services to business and residential customers throughout the Southeast. Lucent's VoIP solution, including the Lucent Compact Switch, will enable Fonix to migrate toward a facilities-based platform, reduce operating costs and create additional revenue opportunities. Lucent Worldwide Services will provide maintenance services.

The Lucent Compact Switch solution provides Fonix with the ability to:
* Offer hosted VoIP services.
* Improve time-to-market for VoIP, broadband and wireline products.
* Enhance existing broadband services such as T-1, ISDN PRI
(Primary Rate interface) and DSL.
* Provide end-to-end control of customer services.
* Simplify network operations.
* Position itself for substantial growth potential for future IP-based

"Offering cost-effective IP-based communications services is a core part of our strategy to better serve our existing customers and attract new ones while creating a revenue stream that is fully independent of the major carriers," said Dale Smith, VP and GM of Fonix Telecom. "We selected the Lucent Compact Switch because it offers the scalability and level of functionality we need to enhance our current services and ramp-up to bring new customers and services online."

"In order to stay competitive in today's telecommunications environment, independent carriers must acquire flexible platforms that can be the foundation for an IMS (IP Multimedia Subsystem) Network and the kinds of blended lifestyle services that consumers demand," said Gerry Cafaro, vice president of sales for Lucent Technologies. "We are pleased to be able to work with providers such as Fonix Telecom that are implementing our best-in- class technology to evolve their business and product offerings."

The Lucent VoIP solution for Fonix Telecom will include the Lucent Compact Switch in addition to the Lucent Feature Server 3000 and Acme Packet® Net- Net® session border controllers.

The Lucent Compact Switch can support from as few as 1,000 subscribers to more than 100,000 subscribers on a single integrated platform. Service providers can deploy the switch for end-office (Class 5) and tandem (Class 4) applications to replace an existing switch or as an addition to the network. In addition to providing VoIP, Internet off-load and gateway mobile switching center features, the compact switch also offers CALEA and E911 capabilities.

In addition, Lucent recently introduced a new high-performance DS1 blade for the Lucent Compact Switch (and the Lucent Network Gateway) that can make the system even more efficient and economical at the lower port densities, ideal for independent telephone companies and smaller rural end offices. The Lucent Compact Switch recently gained "RUS Acceptance" status from the Rural Utilities Service branch of the Rural Development Mission of the United States Department of Agriculture.

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