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Fonality PBXtra the world’s largest commercial Asterisk deployment

Chris Lyman, my pal over at Fonality (and their Founder/CEO) told me that Fonality will soon announce its position as "the world's largest commercial Asterisk deployment." Them's some mighty BIG claims!  But I have no doubts it's true. Well, maybe a few doubts. I would have thought the Linux gurus that download and install Asterisk for free, would as a whole be the #1 commercial Asterisk deployment. Chris stated, "It is important to distinguish between free Asterisk downloads and the 1,000 companies that have actually purchased PBXtra to run their business," Chris Lyman said."There is no secret why Fonality is leading the Asterisk market: we've extended Asterisk far beyond its base feature set, added tons of stability code and provide our customers with 24-hour support."

Chris told me that more than 1,000 SMBs with 15,000 employees have purchased and deployed Fonality's PBXtra, an Asterisk-based IP-PBX that began shipping in October 2004 and which is now averaging more than one million calls per week across its PBXtra platform.
 
PBXtra is less expensive and easier to deploy than all other major PBX offerings on the market today. The price advantage comes from open source technology and the deployment ease comes from an intuitive, web-based interface designed for the average business owner. PBXtra combines simplicity of installation with depth of features, providing SMBs with an enterprise-class PBX for 40 percent to 80 percent less than competitive offerings.

Fonality's PBXtra product line includes enterprise-class features such as telecommuting, branch office support, voicemail-to-email, click-to-call, VoIP, softphones, support for IP and analog phones, call recording, conferencing and advanced call center functionality. In addition to PBXtra Standard Edition and Call Center Edition, Fonality also offers PBXtra customers HUDpro, (Heads-up Display Professional) its real-time call control and presence management application.

PBXtra is available direct from Fonality or through a Fonality reseller. Pricing starts at $995 for the PBXtra Standard Edition server with unlimited licenses, or $2,935 with ten phones. PBXtra's Call Center Edition, which allows for distributed call centers, is $1,995. HUDpro is $995 for an unlimited seat licenses with support for Windows, Mac and Linux desktops. For more information about PBXtra, HUD or becoming a Fonality reseller, visit www.fonality.com.

See Also:
Fonality, an Asterisk solution passes 20 million calls
Fonality Asterisk-based IP-PBX breaks out of stealth mode

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Written by VoIP & Gadgets Blog on August 17th, 2006 with no comments.
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Asterisk Receives VC Funding

AsteriskOn Wednesday, Digium, founder of the open-source Asterisk IP-PBX will announce its first round of VC funding – receiving $13.8 million from Matrix Partners. Matrix Partners was JBoss' initial investor, also an open-source solution - a Java application server. Matrix's expertise in open source was one of the deciding factors for deciding to invest in Digium. Asterisk is now at 1 million Asterisk users compared to 1/2 million at the beginning of the year - a phenomenal growth spurt and with over 1,000 downloads per day.

The funding will help the continued growth of Digium and Asterisk, especially in launching new offerings for the enterprise communications market, ranging from small to large businesses. Profitable since 2002, Digium has experienced 100% growth in each of the last several years.

"We believe Digium has the potential to become one of our most successful open source companies, as every company in the world relies on telephony and the use of PBXs in order to run their businesses,” said David Skok, a general partner at Matrix Partners and JBoss board member. "As companies continue to be attracted to the cost savings and powerful new capabilities of Voice over IP, the opportunity for Digium becomes massive. Digium is definitely in a position to become the next big open source company, behind Red Hat, JBoss and MySQL. Their current revenues, profitability, and growth rates are extraordinary.”

Update: 11:44am Wednesday
I just had one other important thought with regards to this VC funding. Mark Spencer, the founder of the open-source Asterisk movement and Digium wasn't beholden to anyone else due to any sort of major financial investment. While I am pretty certain that Adtran gave some funding to Digium, I don't think it was on the scale of this multi-million dollar funding. I hope that Mark, the Asterisk guru and "telecom rebel extraordinaire" won't have to change himself or the company too much to accomodate Matrix Partners' wishes. Let's hope Matrix Partners has a pretty much "hands off" policy, except to help grow Digium and Asterisk.

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Written by VoIP & Gadgets Blog on August 8th, 2006 with no comments.
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Another IP-PBX company bites the dust?

After the news that Zultsys was going out of business, only to hear that they are being resurrected, word from two sources is that a well-known IP-PBX company may be on its last legs. I don't want to disclose who it is at this point without some further investigation. No point causing a company harm from what is just rumor at this point, but I will keep you posted.

This got me thinking though. What happened to the days when there were dozens of PBX manufacturers? Sure there are still many around, but many are hurting, and some have gone belly-up, such as Comdial, Praxon, and others. You have inexpensive open-source IP-PBXs such as as Pingtel and Asterisk that are just as feature-rich as the "big boys" (Nortel, Toshiba, Avaya, Cisco) at 1/8th the cost or less. How can a large company with hundreds of employees and with vastly larger overhead compete with a small nimble company like Digium, the founder of the Asterisk open-source movement?

Will open-source communications systems inevitably kill the major PBX manufacturers? Hard to say, but open-source sure didn't do SCO UNIX any favors when the "free" Linux O/S came on the scene. The days of proprietary communications are over, which also means more competition and smaller margins. In telecom it's SIP that is opening the doors for small start-ups to innovate without being blocked by proprietary and predatory tactics. Only the nimble with the best features, best value, best marketing, and best support will survive the long haul.

On a related note I recently discovered PostPath, a Microsoft Exchange Server alternative, which is the first to implement Exchange network protocols on a Linux email server and the first to let you use your existing Outlook clients with no disruption. According to this article, benefits of selecting the PostPath Server include avoiding vendor lock-in, saving money, increasing performance by 5x, improving resilience, and increasing flexibility and innovation. According to the article, by moving to PostPath you can slash software, storage and infrastructure costs by 75%. We have Exchange Server at TMC and have experienced our share of Exchange Server failures resulting in email loss. Disaster recovery for Exchange Server is just that - a disaster. We've had some outages that took 2 days to entirely fix. Postpath, while not open-source or free, is a Linux-based solution that is less expensive and they claim more reliable with quicker disaster recovery.

Now if only I could have a 100% open-source, IP-PBX, with Exchange Server functionality, built-in web server, Jabber/IM server, collaboration capabilities, mobile phone email synching (e.g. Blackberry), and just about any other communications method, all on a turn-key platform with each component interoperating/integrating - then life would be good.

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Written by VoIP & Gadgets Blog on August 8th, 2006 with no comments.
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Another SoftPBX Launches

The traditional PBX is dying a death by million cuts. Open source Asterisk has already bottled PBX into an easy to download, but slightly hard to configure open software package. Thought it is not a major issue anymore. There are tons of other options. And now comes another player, this time from Belgium with their own twist on a SoftPBX. Checkout SIPCat, and come back with your thoughts.

Written by Om Malik on August 6th, 2006 with no comments.
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Microsoft and Nortel to co-develop IP-PBX

Microsoft and Nortel announced an alliance as part of Microsoft's overall unified communications push. Nortel said it expects more than $1 billion in new revenue over the life of the four-year pact, under which the companies will work together on research and development and partner on sales and marketing. I was on their streaming "virtual press conference", which hosted both Microsoft's and Nortel's CEOs. Both CEOs participating certainly demonstrated their committment to this major partnership.

Their goal is to combine Nortel's network quality and reliability with Microsoft software's ease of use and to accelerate the availability of unified communications. "Nortel and Microsoft have each led fundamental transformations in their own market - Nortel's digital innovation and Microsoft's software on every desktop," said Mike Zafirovski, president and CEO of Nortel. "By combining our unique strengths, Microsoft and Nortel will accelerate the delivery of unified communications - delivering to our customers a higher-quality user experience, with greater reliability and lower total cost of ownership. That's where we can make a real difference."

We are investing together because the communications industry is at an inflection point," said Steve Ballmer, CEO of Microsoft. "We will have deep collaboration in product development with Nortel, allowing us to rapidly deliver high-quality, highly reliable solutions that will support mission-critical communications. The opportunity for our customers is fantastic. We will enable them to realize tremendous economic and business benefits from unified communications."

"This is a gutsy play for Nortel - accelerating the move of our voice technology into software and working with the world's software leader as part of our broader business strategy to transform the company into a software and services leader," Zafirovski said. "From this transaction, we believe we can capture well beyond $1 billion in new revenue, ramping up with increased momentum through 2009 via professional services, voice products and applications, as well as data pull-through in the enterprise."

"Unified communications will drive the next major advance in individual, team and organizational productivity in today's 24x7, always-connected and increasingly mobile work environment," said Jeff Raikes, president of the Business Division at Microsoft. "Our software-based approach puts people at the center of communications through a single identity across e-mail, voice mail, voice over Internet protocol (VoIP) call processing, instant messaging and video, and intuitively embeds communications capabilities into people's everyday work processes, including the Microsoft Office system and third-party software applications."

Microsoft and Nortel said that under the deal, which has an option to be extended, that they will jointly sell the advanced unified communications solution and integration services. The plan is to develop a training and incentive program for the companies' sales teams. Microsoft and Nortel will build a joint channel ecosystem using both companies' systems integrator, reseller, and service provider relationships.

Microsoft has been looking for a hardware partner to go up against Cisco and their unified communications platform. Certainly Microsoft has chosen a strong hardware partner to offer a comprehensive unified communications suite that includes VoIP, presence, mobile, and other functionality. It's worth mentioning however that Nortel has suffered from an accounting scandal in 2004 and the telecom downturn that started in 2001. It remains to be seen if Nortel's Zafirovski can turn around one of the largest telecom equipment manufacturers in the world when cheaper, open-source solutions such as Asterisk are nipping at the heels of all the IP-PBX manufacturers.

Shares of Nortel on the New York Stock Exchange rose >5% to above $2.

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Written by VoIP & Gadgets Blog on July 18th, 2006 with no comments.
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IP-PBX market numbers continue to shine

Interesting IP-PBX stats within Infonetics's Enterprise Telephony report that shows IP-PBXs continued growth even with a generally slower 1st quarter. They also list the current IP-PBX market leaders (Cisco is listed as #1). I'd be curious the stats for "hosted IP-PBXs" that use SIP trunking with no customer premise IP-PBX equipment. My bet is that market is growing as well.

Overall PBX/KTS revenue down 2%, IP PBX up 1% in 1Q06

Despite a seasonally down quarter for the overall enterprise telephony market, the slow and steady move from circuit switching technology to packet switching technology remains evident, with worldwide TDM system revenue falling 11% and IP PBX revenue inching up 1% between 4Q05 and 1Q06, says Infonetics Research in its latest Enterprise Telephony report.

Combined, worldwide TDM and IP PBX systems revenue dipped 2% to $2.1 billion in 1Q06, but is 15% higher than a year ago. Annual revenue is forecast to grow to $11.4 billion in 2009, driven by strong IP PBX sales worldwide as more organizations move to voice over IP. Between 2005 and 2009, IP PBX revenue is forecast to jump 82% while TDM revenue plunges 88%.

"The overall enterprise telephony market was not immune to the first quarter blues, but the IP PBX category managed to eek out a small quarterly gain" said Matthias Machowinski, directing analyst at Infonetics Research. "We recently talked with 450 companies in North America about their voice infrastructure plans, and the results clearly indicate a steady move to VoIP, which will put this market on a nice steady growth trajectory over the next few years."
 
1Q06 Highlights
   -  In EMEA, the top IP PBX system line shipment vendors are Alcatel, Siemens, and Nortel
   -  The top IP PBX system vendors in North America are Cisco, Avaya, and Nortel in a very close race: Cisco was just in 3rd position the previous quarter, and the difference in 1Q06 market share from 1st to 3rd is less than 2 points
   -  Cisco leads the IP phone market, with 39% unit market share; the next closest competitors are 3Com and NEC, who are tied for 2nd
   -  Hybrid PBXs account for 63% of PBX line shipments; by 2009, they will account for 78%, up from 61% in 2005
   -  45% of PBX/KTS systems revenue comes from EMEA, 30% from North America, 19% from Asia Pacific, and 7% from CALA

Infonetics' report tracks IP deskphones, IP softphones, TDM PBX/KTS systems, and hybrid and pure IP PBX systems and IP PBX shipments by system size (2-40, 40-100, 101-400, 401-1K, and 1K+ lines) in North America, EMEA, Asia Pacific, CALA, and worldwide. Companies tracked include 3Com, Aastra, Alcatel, Avaya, Cisco, Ericsson, Inter-Tel, Mitel, NEC, Nortel, Polycom, ShoreTel, Siemens, snom, Sphere, Swyx, Toshiba, Vertical, Zultys, and others.

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Written by VoIP & Gadgets Blog on May 30th, 2006 with no comments.
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ShoreTel 6.1 new IP-PBX features

ShoreTel 6.1
ShoreTel announced version 6.1 of their IP-PBX which delivers feature-rich IP key system functionality to branch offices and small businesses. Many competing IP-PBXs, Cisco included have neglected or have limited "key system" functionality in their IP-PBX line, which is why ShoreTel does well in the retail and service industries. Also very unique to the ShoreTel product is that it's a single product that targets small businesses all the way up to large businesses with 10,000 employees. Competing solutions have separate products often with separate development divisions and code that is not easily integrated and a migration path that requires a forklift upgrade. In fact, Shoretel is the only IP-PBX that I am aware of that scales from 10-10,000 seats simply via a licence software upgrade. It's an impressive system that TMC Labs hasn't reviewed in a long time. I'll have to add them to the TMC Labs review queue. I spoke with ShoreTel last week to learn more about their announcement being made later today.

Foremost, ShoreTel 6.1, a new version of their flagship product, and three new ShoreTel IP phones were launched today. With this introduction, ShoreTel claims to offer the only key system emulation that is part of a single hardware and software platform that spans all levels of key system and PBX functionality - again addressing the needs of organizations with 10 to 10,000 employees. As I previously explained, other solutions include distinct products for different sizes of companies, forcing folk-lift upgrades when customers move between platforms, and impacting customer service levels by requiring partners and customers to support multiple, complex products.

“Being able to emulate the key system that our employees are used to in one integrated IP phone system with all the PBX capabilities is very important to our business,” said Jason Reed, IT manager at Grubb Properties. “The scalability across multiple sites and ease of installation of the ShoreTel system is also necessary because we frequently set up temporary offices. For example, we will be setting up an office in June for six months for a new real estate development and need to extend ShoreTel 6.1 with the new key system capabilities to that location.”

ShoreTel 6.1 introduces new key system capabilities that combine the features users in this market expect with the flexibility, manageability, usability, and cost-effectiveness of ShoreTel’s unique VoIP technology. The star of this latest release is the ShorePhone IP 212k, an ergonomic IP key system telephone with 12 programmable buttons, exceptional audio quality, and big LCD display.

“ShoreTel 6.1 is an ideal voice platform for many branch offices, retail chains, and small businesses that require key system behavior from their phones,” said Steve Timmerman, vice president of marketing. “The ShoreTel platform offers attractive price points for all sizes of offices and continues to feature the ease of use and management that keep our customers satisfied.”

Other features debuting in this new ShoreTel release include a gigabit IP phone, the IP 560g; a new staff IP phone, the IP 230; expanded support of international requirements; Centrex flash capabilities; personal-assistant and Caller-ID enhancements.

The new ShorePhone IP 212k key system phone has 12 self-labeling programmable buttons that use tri-color LEDs to make paper labels a thing of the past. There are eight hard keys—for Transfer, Conference, Intercom, Redial, Voicemail, Hold, Options, Directory—and two soft keys. A high-contrast LCD display is vertically oriented to mimic the look and feel of a key system telephone.

ShoreTel 560 IP phone
The ShorePhone IP 212k key system phone enables very fast call handling through a new type of extension called a bridged call appearance. Designed for businesses with shared call answering requirements, this extension is programmed onto buttons on multiple phones, with a button for each call. As a result, calls can be answered, held and retrieved among multiple phones very quickly.

“We are using the key system capabilities and multiple call appearance on the 212k for our warehouse facilities so that anyone can answer a call,” said Ernie Maheu, network engineer at Quaker Fabric, one of the largest producers of upholstery fabric in the world. “This is the best way to handle calls in a warehouse environment because we can answer a call from any phone, and other people will know the call is active. If another person in the warehouse needs to handle the call, it can be placed on hold and picked up by that person.”

The brick-and-mortar constraints of other key system solutions are eliminated by ShoreTel’s unique distributed call control architecture, which allows bridged call appearances to span locations and thus virtualize key system behavior across the enterprise. The bridged call appearance extension can also be programmed on the ShorePhone IP 560, IP 530, IP 230, and BB 24, and docked in the Operator Call Manager interface to allow key system behavior on PCs.

Designed as a branch office solution or for single-site businesses, the ShorePhone IP 212k accommodates up to 12 lines. If more lines are needed, the solution can be expanded to an impressive 108 lines by using it in combination with as many as four ShorePhone BB 24 button boxes.

Small offices can also benefit from a new Centrex flash feature in ShoreTel 6.1 that reduces trunk requirements. One of the buttons on a ShoreTel IP ShorePhone can be programmed for Centrex flash, and then users simply push it to flash an ordinary analog loop start trunk and access Centrex service features. This includes initiating Centrex conference calls.

With Centrex flash, external calls can be transferred to external numbers without tying up trunks for the duration of the transferred call. Without this capability, a small office with four trunks would have to tie up two of them—half the office’s trunk capacity—to accommodate these external transfers.

Another new ShorePhone model being introduced with ShoreTel 6.1 is the IP 230, which offers complete functionality for a very reasonable price. Targeted at general office workers and ACD agents, the ShorePhone IP 230 features 3 programmable buttons supported by green LEDs, and a high contrast LCD display providing four display lines plus a fifth line for four soft keys.

The ShorePhone line is also being extended at the high end with the IP 560g, a gigabit phone aimed at graphics-intensive desktops equipped with gigabit Ethernet drops. It is built upon the existing IP 560 with an upgraded Ethernet switch that supports 1 Gbps operation. The IP 560g ShorePhone features six programmable buttons with tri-color LEDs, and a backlit LCD screen that accommodates six lines of display plus four soft keys.

Like the IP 212k, the ShorePhone IP 230 and IP 560g have eight hard keys, self-labeling buttons that eliminate the need for paper labels, and PoE support. All three are available in black or silver with an optional wall-mount kit, and feature the same ergonomic design and high-quality audio with integrated speakerphone as the entire ShorePhone line.

International Enhancements

ShoreTel 6.1 adds Ireland to the growing list of international dialing plans supported by ShoreTel. Thanks to ShoreTel’s unique distributed architecture, a company with offices in the US and Ireland can have a single system image spanning the globe.

Another enhancement in ShoreTel 6.1 exposes the QSIG interface to the ShoreTel Director, ShoreTel’s system management tool, making it easier to configure PRI tie lines to third-party devices such as legacy PBX systems. This addition is driven by requirements in parts of Europe where QSIG, rather than Euro-ISDN, is the standard for PBX-to-PBX networking.

Pricing and availability

ShoreTel 6.1 and the ShorePhone IP 230 are available now. ShoreTel 6.1 is a free upgrade for customers with a maintenance contract. The new ShorePhone IP 230 lists for $259 US. The new ShorePhone IP 212k key system phone lists for $299 US and is scheduled to be available at the end of May. The ShorePhone IP 560g lists for $429 and is scheduled to ship in August. Through a separately-priced advance replacement program, customers can purchase the IP 560g now and get regular IP 560s to use in the interim until they can be swapped with IP 560g’s.

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Written by VoIP & Gadgets Blog on May 14th, 2006 with no comments.
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Signate, an Asterisk provider, bites the dust?

Signate is a provider of Asterisk-based solutions that apparently is going through major problems. I've been getting lots of emails asking if I know what is going on with them, so I did some research. Word through the grapevine is that they are about to go belly-up - but this is still unconfirmed. Their former CEO left and when I tried to reach their new CEO Paul Mahler and I got an automated voice message telling me to email Paul@paulmahler.com. It also mentioned that if I left a voicemail he would never get it. His work email also bounces back so I am guessing he is no longer with the company.

I then tried to reach an operator and was immediately put into voicemail. I talked with Joe Fabiano, one of our sales reps, and Joe emailed my pal Garrett Smith (SmithonVoIP) since Garrett's VoIPSupply.com company is a distributor of Signate. If anyone would know, a distributor would. Well, Garrett did some research of his sources and he told Joe, "According to my sources they are toast."

Is this a case of the Asterisk ecosystem growing too fast, with too many players trying to get into the Asterisk game? With free Asterisk offerings such as AsteriskNOW, trixbox, and inexpensive solutions from Fonality, Digium, and other providers - some hosted - some CPE, it will be interesting to see who survives and who doesn't. Considering Asterisk is an open-source solution, adding enough value and margin to Asterisk is a tricky business to remain profitable, especially when you consider that open-source advocates tend be very thrifty (cheap?) when it comes to paying for software.

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Written by VoIP & Gadgets Blog on January 1st, 1970 with no comments.
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Digium podcast of Mark Spencer’s new role

Mark Spencer, founder of the Asterisk movement, lead off the conference call by saying, "Today is one of the most exciting days in the history of the company." Them's some mighty big words! Mark explained that this came about while searching for a COO and VP of Business Development and they were then approached with something even more exciting.

Mark explained why Digium hired a new CEO and why Mark changed his role within Digium. Mark, "When you start a company and you're just one person, you have to do everything yourself and that is the history of Asterisk got started really - because I needed my own phone system and they were too expensive to go out and buy one. But as you grow, you have to start delegate stuff out.  The easiest thing to delegate out in the beginning is to delegate stuff you're bad at and don't enjoy doing. Delegating stuff you're good at but don't enjoy doing.  Then there is stuff you enjoy doing but are still bad at doing. Lastly and the most difficult part is delegating away stuff that is very enjoyable to you and that you have a propensity for doing well. Digium has reached a size that that was a decision I had to make." (Note: I'm typing this during the call, so the exact quotes may be a bit off)

Mark added, "While hopefully I've done a (cough - nervousness? I think its modesty since he didn't want to toot his own horn) fairly reasonable job getting the company to this level, I felt that the part that is more interesting to me and that part where I can bring the most value to the community, employees, and the customers, was focusing on the technology and strategic vision of the company in the long run. When I had the opportunity to bring on someone who has an incredible operational background and whom I have a relationship of trust for the past 7 years, it was simply a very easy decision to make and to make this transition happen."

Bill Gates (Windows) role and title famously shifted and now Mark Spencer's (Linux) role has shifted. This  is all part of the 1st law of thermodynamics (conservation of energy) and keeping the universe in balance. That's my theory anyway. Mark Spencer is to Bill Gates was Neuman was to Jerry Seinfeld, what the Red Sox are the Yankees. It all makes perfect sense now. If Mark didn't change titles, the universe would explode.

Mark explained that Danny Windham "has been a board member since 2000 and actually has been with the company longer than any other employee has been. He was able to come on and be the CEO of the company and allow me to be able to focus on the community and the customers and the technology of the company in a much more focused way."

ADTRAN explained that they have a 7 year relationship with Digium, with a significant investment in Digium but a minority investment. Since I want to get this news up and let everyone listen to the conference call themselves, I'm going to post the entire conference call here as a podcast. I may update this post in a bit with some more interesting quotes.

Here's an MP3 podcast of the conference call:
Conference Call with Digium about new CEO

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Written by VoIP & Gadgets Blog on January 1st, 1970 with no comments.
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