Net2Phone and Telefónica Conclude Agreement to Mutually Develop Telephony Solutions for Cable Network Operators
The two companies will jointly present a managed cable-based telephony solution at Anga Cable

Munich, May 9, 2006 – Telefónica Deutschland GmbH and Net2Phone, a worldwide provider of voice services and technologies, have agreed on an extensive Voice-over-IP (VoIP) alliance. The relationship is focused on the mutual development of a new telephony solution for cable television operators of any type and size. Allowing cable operators to concentrate on the marketing of the telephony offering, this collaborative effort will ensure full service support and technical operation – from billing and call termination to the provisioning of geographic area codes. The outsourcing of the technology and management enables cable operators to drastically reduce their investment and consequently offer their customers full-featured telephony services at competitive rates and quickly bring their product to market.

Cable operators can obtain information about this association at the Anga Cable Trade Fair for Cable, Satellite and Multimedia, which will take place in Cologne from May 30 to June 1, 2006. Telefónica and Net2Phone will present a showcase in hall 10.2, booth 10A.

Both companies bring comprehensive VoIP and platform expertise to the collaboration to provide cable network operators with PacketCable and SIP-enabled broadband telephone services based on Telefónica’s high-performing network infrastructure. Net2Phone supports cable operators with counseling and services ranging from the establishment and upgrading of the network to the provision of billing solutions. At the same time, the company supports the implementation of various additional services like call forwarding, 3-way calling, voicemail, and also acts as an interface to Telefónica. Telefónica is responsible for the termination of calls via its IP-based network to the public switched telephone network (PSTN) and, as the case may be, for transporting incoming calls from the PSTN to the respective cable operator. In addition, Telefónica delivers local telephone numbers. The company provides geographic telephone number blocks across Germany enabling consumers to use their respective area code for phone calls.

“The alliance with Telefónica in Germany enables us to further expand our worldwide activities“, says Liore Alroy, CEO of Net2Phone. “The use of Telefónica’s infrastructure for opening the German cable market for our services is another demonstration of our efforts aimed to win strategic partners for the establishment of high-quality VoIP services.“

“The demand for VoIP has consistently increased. The cable technology is the ideal alternative to other broadband access services to the internet“, says Dr. Winfrid Meusel, Vice President Wholesales, Telefónica. “Net2Phone’s worldwide and long experience in cable technology and in the realization of telephony services optimally complements our expertise in technical platform management and the realization of voice over a broadband-based infrastructure“.

Telefónica Deutschland GmbH
Telefónica is one of the leading providers of integrated data and telecommunication solutions for business customers in Germany. The brand Telefónica reflects high flexibility and quality based on the company’s network infrastructure which stretches all over the country as well as the connection to the worldwide network of the Spanish parent company.

The company’s business activities comprise narrow and broadband Internet access, location networking via Virtual Private Networks (VPN), telephony as well as value added services like Voice-over-IP and security solutions. Based on the company’s network infrastructure, Telefónica is able to provide a broad range of products and solutions specifically tailored to small and medium-sized businesses in Germany. Monitoring provided by an internal Network Control Center 24 hours, seven days a week as well as a nationwide Service Group ensure Telefónica’s customers permanently high and secure availability of the network and services.

More information about the company is available at: www.telefonica.de .

About Net2Phone
Net2Phone provides PacketCable, SIP and wireless solutions around the world. As a leader in turnkey hosted VoIP telephony services, Net2Phone has routed billions of VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands more overseas. Net2Phone provides partners with a SIP-based broadband telephony solution, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a high quality primary line-type service with features such as emergency calling. For more information about Net2Phone's products and services, please visit www.net2phone.com.