NetworkIP Expands with New Nortel DMS-250 Switches (From "TRA '99 Show Daily", Tuesday, May 11, Vol. 1) Jun 2, 1999 Network.IP (Booth 405), formerly Network Enhanced Telecom, Longview, Texas, a service bureau for prepaid calling card services, turned on a second Nortel Networks (Booth 1104) DMS-250 switch in Los Angeles in March and announced today that it plans to install another DMS-250 in Mexico City later this year. Network.IP's architecture is unique in that both its current DMS-250 switches are controlled by a single service control platform that does all billing and back-office functions. The company hopes to control the third switch in Mexico from the same platform. Communications between the elements of the platform are all web-based, as are the interfaces for Network.IP operators and the company's customers. Pete Pattullo, president and CEO of Network.IP, says the year-old company now is switching about 120 million minutes of pre-paid traffic a month, and, with the Los Angeles switch, has a capacity of 300 million minutes a month. Pattullo says the economies of scale achievable with the DMS-250 have enabled the company to have a significant price advantage in the prepaid market. "What we are trying to do is take the reliability of 1+ networks and bring that to prepaid, with the economies of scale as well," he says. "No one can compete in the long distance market today with a bunch of PBXs (private branch exchanges). today in prepaid, you do not want to try to compete with a bunch of 2000-port switches, which to us is no different from a PBX. You have to have heavy metal--not necessarily as big as Nortel--but the ability to process the millions of calls per day that the volume in the industry justifies." Network.IP wholesales telephone services and sells to distributors that actually market and sell the cards. The company's back-office system delivers real-time customer service information about each user account. Retailers can access most records via the Internet and can customize features of their services, such as developing their own formats for their invoices. About NetworkIP Founded in 1997, NetworkIP is an industry leading e.Communications application service provider of enhanced services. The company provides value-added, business-to-business communication services via the Internet to service providers. The company has created the first future-proof, large scale e.Communications network, bringing together the best in class switching, computing hardware, data storage, IP networking, and software development methodology. NetworkIP's platform enables CLECs, ILECs, ISPs, cable companies, municipalities and public utilities, and other businesses to offer broadband voice, data and video services. Current e.Communication products and services offered by NetworkIP include e.Prepaid Calling Cards, e.Prepaid Long Distance, e.Prepaid 1+ Long Distance, e.Prepaid Internet, e.Conferencing and e.Cable. NetworkIP has projected fiscal year 2000 revenues of $200 million.