1. In this Issue
P1 Message from the CEO
P2 Customer Corner
P3 Industry News andTrends
P4 Regulatory Corner
P5 Voice from the Industry
P5 VoIP Logic:News & Notes
MESSAGE FROM THE CEO
(WRITTEN BY ROBERTO ROJAS, VICE PRESIDENT ENGINEERING, VOIP LOGIC)
Understanding the impact of Cloud computing for VoIP
The term “Cloud Computing” has taken the technology world by storm over the past 12
months. Wikipedia defines cloud computing as “a paradigm of computing in which dynami-
cally scalable and often virtualized resources are provided as a service over the Internet” (for a
more detailed definition of cloud computing please see the Voices from the Industry section at
the end of this newsletter). In the context of VoIP, the Cloud is a means by which carriers and
service providers can offer infrastructure components and application platforms to customers
cost-efficiently and as required (”on-demand”). But how do we tell hype from reality? And, is the
Cloud truly relevant to the world of telecommunications service delivery?
In the VoIP industry, companies with a cloud-based offering go to market with a suite of services
designed to fit their target enterprises’ and consumers’ perceived requirements. From collocation
services in premium sites across the world to Class 4 wholesale and Class 5 retail infrastructure, to
platforms and software in different regions around the world, we need to understand the challenges
of sourcing the cloud components of these services.There are three relevant categories.
Infrastructure-as-a-Service (IaaS): Resources that are delivered as a service, including power, hard-
ware, bandwidth and core network components, are integral in providing managed services and
‘cloud’ infrastructure. Items such as Power, UPS, generator options, network components, CPU, data
storage, backup and disaster recovery procedures, etc., should all be evaluated. Further, service
providers may offer their customers access to a portal to view the health of the Cloud Network
component(s) for more transparency.
Platform-as-a-Service (PaaS): Selecting the platform on which you launch yourVoIP services is cen-
tral to the reliability and security of your cloudbased offering. A recognized best-of-breed manufac-
turer will deliver a trusted, scalable and redundant platform coupled with ongoing engineering and
technical support process and expertise to ensure stability. VoIP Logic relies on several experienced
best-of-breed hardware and software vendors.The strength of known platform vendors is their
proven track record. These relationships help us, and our carriers and service providers, score
relatively higher in end-user satisfaction.
Software-as-a-Service (SaaS): These types of applications are typically accessed from the Internet
via browsers. There are generally policies set in place by the operator that provide the necessary
reliability, flexibility and resiliency. For instance, the security infrastructure and policies that the
SaaS provider has implemented can minimize vulnerability to fraud. Adequate protection for
security such as denial of service (DOS) “attacks”, hi-jacked IP addresses or domain addresses,
unauthorized traffic, etc. is also a substantial consideration.
It makes sense to partner with an IaaS, PaaS and/or SaaS provider when a carrier or service
provider has extensively researched their own requirements and the capabilities of their
network, the platforms and the managed services provider. (Writing an RFP is ideal.)
There are clear advantages (see VoIP Logic’s Q3 2009 newsletter on disaster recovery)
to offset not owning and operating your own infrastructure. With a good cloud ser-
vice, while you can make numerous configuration decisions, those responsibilities will
nonetheless require on-going attention and a full understanding of all aspects of a
VoIP service offering.
VoIP Industry Newsletter
Volume 1: Issue 5
Q4 2009

2. Customer Corner
A conversation with Fidel Salgueiro, Gerente General
(General Manager)
Tellmeaboutyourcompany.
We operate in four countries: In the US with OPEXTEL, based in Miami; Co-
lombia with Fortaleza;Venezuela with our flagship 123.com.ve; and Panama with
Fortaleza. 123.com.ve is 100 employees and has revenues of approximately $US
45 million per year.
Please tell me more about your business offering.
InVenezuela we offer long distance services (both national and international), wholesale
and retail services, Internet, and value-added services. In addition, we are a 3com, NOR-
TEL and CISCO partner, allowing us to include IP–PBXs as well as national and interna-
tional services to our customers.
In the US, we offer wholesale and retail services, including IP-PBX services, and hosted
and IP-PBX appliances. Our focus is on telephony applications that are integrated with
the Internet.
Our readers always enjoy any “out-of-the-box” nuggets about your Company
that you’d care to share.
We have been interested in open source and working on integration applications for quite
a while. 123.com.ve as a company dedicates 15% of our revenue to research and develop-
ment.
Currently, we will show applications like an IMMERX, an Interactive CRM, or our prepaid
platform based on ASTERIX, or even our IP-PBX hosted solution, wholly developed by our
internal technical team. We feel that keeping up with the technology is an important part of
learning to use it more effectively.
Can you prognosticate about the future? Describe any current industry trends
to which 123.com.ve is responding.
We see the competition with voice 2.0 and easy convergence of IPTelephony with all kinds
of other applications.
We’re closely watching the adoption of services such as Skype (which according toTelege-
ography concentrates 8% of the worldwide international long distance traffic), Peerio, and
PhoneGnome. How long before the majority of existing customers in the IP Networks
change to these new models?
More broadly speaking, we’re interested in areas such as voice apps, IT Applications for
Voice,Voice Web Applications, and XML Web-based API Developments.There is a lot
going on. This is clearly an exciting time forVoIP and for telephony.
How has VoIP Logic been of service to you?
Our experience working with VoIP Logic has been very good. We have received
excellent attention and positive results when we confront technical challenges.
By working in conjunction with VoIP Logic specialists, we have witnessed great
improvement in how we use our Genband platform, which in turn has resulted
in our offering a better service to our clients.
We hope to continue growing withVoIP Logic and receiving the personalized
and always on-time attention thatVoIP Logic has given us.
http://www.123.com.ve/
123.com.ve is a 100 percent Venezuelan
company, founded in 2006 when ENTEL
Venezuela was acquired by Venezuelan
local investors. A young, dynamic tele-
com company with innovative ser-
vices based in a secure and reliable
NGN Network, 123.com.ve pro-
vides integrated solutions for voice,
video and data. The Company
also offers services for National
and International Long Distance,
Data Solutions, Internet Access,
Unified messaging, Call Cen-
ters,Web and Voice 2.0 appli-
cations among many other
related services through their
three business units for dif-
ferent markets: 123hogar,
123Telecom and 123Global.

3. P3
AT&T EXTENDS VOIP TO 3G NETWORK FOR
IPHONE
AT&T announced it has taken the steps necessary so that
Apple can enable VoIP applications on iPhone to run on
AT&T’s wireless network. Previously,VoIP applications on
iPhone were enabled for Wi-Fi connectivity. For some
time, AT&T has offered a variety of other wireless de-
vices that enable VoIP applications on 3G, 2G and Wi-Fi
networks. AT&T this afternoon informed Apple Inc. and
the FCC of its decision...[Read More]
AN ESSENTIAL GUIDE TO THE CLOUD
Maria Spinola, “An Essential Guide to Possibilities and
Risks of Cloud Computing — A Pragmatic, Effective and
Hype-Free Approach For Strategic Enterprise Decision
Making“...[Read More]
MOBILE VOIP COULD TRANSFORM MOBILE
LANDSCAPE, REPORTS IN-STAT
MobileVoIP is moving beyond its initial function as a new
mechanism to get inexpensive international calls, reports
In-Stat (http://www.in-stat.com). While Mobile VoIP still
poses a direct threat to operator voice revenue, it also
represents a dynamic new capability that promises nu-
merous applications. In-Stat projects that by 2013 Mobile
VoIP applications will generate annual revenues of $32.2
billion, driven by over 278 million registered users world-
wide.
CLOUD COMPUTING: MISUNDERSTOOD, BUT
REALLY NOT THAT COMPLICATED A CONCEPT
The problem here, and the reason that so many of these
mainstream articles get it so wrong, is they’re trying to
explain cloud computing as a consumer-oriented phe-
nomenon, and it’s basically not...[Read More]
FOR AN ENTERTAINING PERSPECTIVE ON THE
CLOUD: WHY LARRY ELLISON HATES CLOUD
COMPUTING
O2 ALLOWS MOBILE VOIP USE,
LAUNCHES NEW WHOLESALE
BROADBAND OFFERING
German mobile operator O2 Germany has
announced it has started to allow voice-over-
IP (VoIP) use on its wireless network. Previ-
ously all four of the country’s mobile network
operators have tried to block VoIP applications
such as Skype, which allow customers to make
cheap long-distance calls via broadband internet
connections. ‘We are one of the fastest and most
modern mobile data networks in Europe and our
customers should be able to experience that with-
out restrictions,’ said O2 Germany’s marketing direc-
tor, Lutz Schuler, adding, ‘By opening our mobile high
speed network for VoIP services, we are setting new
benchmarks for mobile internet.’...[Read More]
IDC: CLOUD COMPUTING MARKET TO REACH
$44B IN REVENUE BY 2013
The report found that the current worldwide revenue
for IT cloud computing services stands at $17.4 billion, a
number that will jump to $44.2 billion by 2013.
In addition, the five-year growth outlook shows an annual
growth rate of 26 percent, which is six times faster than
the rate of traditional on-premise IT offerings...[Read
More]
WHITE PAPER:
Cloud Computing Use CasesWhite Paper...[Download
PDF]
Industry News and Trends
> ClickToView

4. VoIP Regulatory Issues
VOIP AND TAXATION
ANDREW ISAR, PRESIDENT OF MILLER ISAR, INC.
In the US, few interconnected Voice over Internet Protocol (iVoIP) regulatory
compliance issues carry as much risk as failure to contribute to the federal
Universal Service Fund (USF). Federal and state USFs, in the states which have
adopted them, were created to subsidize telecommunications service costs for eli-
gible low income subscribers, educational and health care facilities, and those living
in “high-cost” rural service areas. Section 254(d) of the federal 1996 Telecommuni-
cations Act established an obligation on all telecommunications service providers to
contribute to the USF.
In response to growing concern over dramatic increases in the use of VoIP services and
Internet Protocol (IP) networks that were not contributing to the USF and resultant im-
plications for maintaining universal service support, on June 21, 2006, the FCC released
“Interim Modifications” to its universal service fund contribution process and a Notice
of Proposed Rulemaking that expanded the universal service contributor base to iVoIP
providers. The FCC determined that 64.9 percent of aVoIP provider’s revenue would be
considered jurisdictionally interstate/international for purposes of imposing assessments.
All iVoIP providers must now:
1. Register as an FCC Form 499A filer. FCC Form 499A is the annual form used to report
jurisdictional revenue;
2. Assess USF surcharges on end users in accordance with the FCC’s established quarterly
USF “contribution factor” – 12.3% for 4Q09 – multiplied by the combined interstate/
international portion (64.9%) of iVoIP service charges;
3. Report total interstate/international iVoIP revenue annually on or before April 1 of each
year and quarterly on the FCC Form 499Q by the first day of the second month fol-
lowing the end of each quarter if estimated annual contributions exceed $10,000; and
4. Remit USF contributions as billed by the USF administrator, the Universal Service Ad-
ministrative Company (USAC).
Failure to comply will result in substantial non-compliance penalties and compounding
interest. iVoIP providers have been spared from state USF contributions, though pending
action by the Nebraska Public Service and Kansas Corporation Commissions before the
FCC may broaden state USF requirements. USF compliance is imperative, but can be ac-
complished in a virtually revenue-neutral manner. It is critical that iVoIP providers ensure
that they are meeting their reporting and contribution obligations to keep their opera-
tions running smoothly and profitably.
Andrew Isar is President of Miller Isar, Inc. www.millerisar.com.
253.851.6700 aisar@millerisar.com
Founded in 1991, Miller Isar, Inc. concen-
trates on the telecommunications indus-
try. Headquarted near Seattle,WA,
with offices in Philadelphia, PA, Miller
Isar focuses its practice on Regula-
tory Compliance, Public Policy, and
Business Practices, as they relate to
Regulatory obligations.

5. P5
If you listen to reports from the Cloud computing in-
dustry, you are probably confused by now. Larry Elli-
son makes fun of ‘cloud’ as a branding technique, serious
government agencies launch serious initiatives to use or
harness the‘cloud’, and we all know someone who uses a
server that they don’t own or manage which, technically,
probably is a ‘cloud’ service. In this piece, I’d like to pro-
vide some of the broadest definitions for Cloud Com-
puting and take a look at how what they mean is indeed
different from all of the things ‘cloud’ used to be called.
For a definition, the National Institute of Standards and
Technology is a good place to start.
Cloud computing is a model for enabling convenient,
on-demand network access to a shared pool of con-
figurable computing resources (e.g., networks, serv-
ers, storage, applications, and services) that can be
rapidly provisioned and released with minimal man-
agement effort or service provider interaction.
Another source is theYankee Group. I recently attended
a great webinar called “Pinning Down the Cloud,” where
Yankee Group analysts defined the ‘cloud’ as “…scalable,
virtualized information services provided on demand
over the Internet with multitenant capability, service-level
agreements (SLAs) and usage-based pricing.”
This is essentially the same definition as the NIST defini-
tion but with a hint at the pricing model.
So what is the big deal about the ‘cloud’? It sounds like a
rehash of ASP, Hosted, Managed Services and SaaS.What
do these services really offer?
Two real advantages I have seen currently available in the
‘cloud’ pertain to CPU and server storage.Amazon, with
its Elastic Compute Cloud (EC2), has for a number of
years been building a virtualized server infrastructure in
the ‘cloud’.The company claims that with Amazon Web
Services (AWS), customers can “requisition computing
power, storage, and other services–gaining access to a
suite of elastic IT infrastructure services as your business
demands them.” EMC and others have pioneered ‘cloud’
data storage, where meta-data files allow information to
be maintained over a cloud of dispersed servers on de-
mand. The advantages gained through cloud servers, and
cloud storage-as-services that live up to the new ‘cloud’
moniker, are that businesses can flexibly choose develop-
ment platforms or programming models, and then scale
growth in a cost-effective manner respective to compa-
ny need. Elasticity, then, is the operative word regarding
CPU and server capacity.And in both realms, growth and
flexibility are infinite and on-demand, seemingly, provid-
ing cost-effective options for growing
businesses.This is where the noteworthy
values lie for companies hoping to explore
full- or partially virtualized infrastructures.
There are a lot of examples of services us-
ing the word cloud but which look suspiciously
like managed services or SaaS. The problem
in VoIP, for instance, is that it is very difficult to
virtualize use of server resources for specialized
applications that require complex and/or numer-
ous settings manipulations.There is also the issue of
the network that ties together VoIP services in the
cloud:What are the fundamental components? Who
are service providers? Are they reliable? What is the
“glue” that holds them together in a coherent fashion?
So, in other words, not all clouds are created equal.
One idea gaining traction in the market is that the pri-
vate cloud will provide an interim way for businesses to
tap the power and savings in specific areas like telepho-
ny. Managed IP bandwidth starts to make sense for using
federations of cloud services. Mike Altendorf, founder of
Conchango, in a recent CIO Magazine article comment-
ed on the promise and limitations of the private cloud.
Altendorf’s piece essentially validates larger scale adop-
tion of cloud computing models, saying that the cost sav-
ings make it work, but we should look for ‘private cloud’
groupings of IT services providers in the near term.
Whether public or private, the cloud seems to offer a
versatile and cost-efficient model for certain types of
services.To determine which IT services might prosper
in a ‘cloud’ model, it is valuable to look to those that
adapt easily to virtualization because of inefficient pat-
terns of usage or to those that have better version
releases frequently. One example might even be as
basic as dial tone—cloud dial tone. I suspect there
are other instances, and would like to open up the
conversation to you.I would like to hear your ideas
on this and other areas where you thinkVoIP and
the Cloud will shape the future of telephony.
Richard Scullin, Founder, MobileEd.org
richard@mobileed.org
Voice from the Industry

6. sales@voiplogic.com
www.voiplogic.com529 Main Street, Williamstown, MA 01267 Phone: 310-279-4700
Key Contacts
Sales:
sales@voiplogic.com
Technical support:
support@voiplogic.com
Careers:
jobs@voiplogic.com
Partnerships:
partners@voiplogic.com
Press inquiries:
press@voiplogic.com
VoIP Logic: News & Notes
NEWS:
VoIP Logic Release: VoIP Logic Announces BroadSoft Integration
Network World: IT Expo West spotlights services and growing market
TelephonyOnline: VoIP Logic Continues to climb up Inc 5k:Rated #62AmongTelecoms
VoIP News: VoIP Logic snaps up Sundial Network
Inc. Magazine: Inc. Magazine unveils exclusive list of America’s fastest-growing private
companies - the Inc. 5000. VoIP Logic ranks No. 1,925 on the 2009 Inc. 5000 with 92%
revenue growth from 2007 – 2008; three-year rise of 165% - September 15, 2009
ThePrePaidPress: 5 Minutes with Micah Singer, CEO ofVoIP Logic -ThePrePaidPress
EVENTS:
VoIP Logic will attend the following industry gatherings in the coming quarter.
Please feel free to contact us in advance to set up a meeting: michael@voiplogic.com
October:
Broad Soft Connections 2009:
October 25-28, 2009
Scottsdale,AZ
http://www.broadsoft.com/connec-
tions/2009/about.htm#_blank
Andicom 2009
October 28-30, 2009
Cartagena de Indias, Columbia
http://www.andicom.org.co/#_blank
January 2010:
PTC 2010
January 17 - 20, 2010
Hilton HawaiianVillage
Honolulu, HI
http://www.ptc.org/ptc/
ITEXPO East 2010
January 20-22, 2010
Miami Beach Convention Center
Miami Beach, FL
http://www.tmcnet.com/voip/conference/