VoIP Inc. Enters into Peering Deal with Google
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[January 30, 2006]

VoIP Inc. Enters into Peering Deal with Google

By ROBERT LIU
TMCnet Wireless and Technology Columnist
 
VoIP Inc. said its VoiceOne Communications subsidiary has executed a direct peering relationship with industry powerhouse Google Inc. for voice-over-IP interconnection services at multiple locations, sending the tiny Pink Sheet Nasdaq stock soaring in Monday trading.


 
The company said its VoiceOne unit entered into a master agreement with Google back in September 2005. The original pact called for a period of trial usage to determine compatibility, VoIP Inc. said in a regulatory filing with the Securities and Exchange Commission.


 
In October, a series of purchase orders were issued for the production of VoIP traffic to be interconnecting with other carriers. As a result, VoIP Inc. “anticipates that material sales of its service will commence during 2006.”
 
No comparable revenue was recognized during the year-ago period.
 
The news helped push VoIP Inc.’s stock up more than 30 percent.
 
Companies are required to make Form 8-K filings with the SEC for any corporate developments that could have a “material” impact on their business. As evidenced by the filing, the peering arrangement is more likely to be material to VoIP Inc., rather than to Google.
 
A spokesman for Google had no immediate comment.
 
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Robert Liu is Executive Editor at TMCnet. Previously, he was Executive Editor at Jupitermedia and has also written for CNN, A&E, Dow Jones and Bloomberg. For more articles, please visit Robert Liu's columnist page.

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