As discussed in the "Industry Comparisons" section, there are some free advertising-supported products available. There are other companies that offer "low budget" products by reducing the quality. The most common method is "over-subscription" of the service and/or bandwidth. Simply stated, companies offering large-capacity rooms for a low price are assuming that the capacity will not be used. We believe that is a poor strategy and does not respect the customer's needs. This section will look more closely at those two aspects.

• Oversubscribing the service is when a company has a limited number of concurrent users available from their supplier. They may have a 500-user license but sell 5,000 seats hoping that no more than 500 will try to access the system at any one time. In this example, the 501st person is out of luck, even if no one is in their particular room. This is similar to when an airline sells more seats than the jets can accommodate because they assume some travelers will not show up. Voxwire™ does not oversubscribe the service. Every seat if fully funded. A company offering a voice product should always post their service subscription ratios. It makes a huge difference if you are going to sell the product to companies that must be able to count on the service.

• Oversubscribing the bandwidth is when a company sells more customers than their fixed bandwidth can accommodate. Bandwidth is the size of the "pipeline" through which the product passes. Using the airline analogy further, multiple jets can take off from the same runway as long as they are not doing it at the same time. Similarly, over-subscription of the bandwidth is an acceptable procedure because people will not be using the voice product 24 hours a day. For a global company like Voxwire™, at any given time, half of the world is asleep and not all of the customers who are awake will be using the service. Also, because we offer a business-class product, bandwidth demand will relax in the evening which is prime time for consumers. Companies that offer primarily a consumer-version product concentrate all their demand in the evening. Voxwire™ is known for the industry's best quality because we fund the necessary bandwidth for dependable global access 24 hours a day, 7days a week.

The Economics of Bandwidth
As you compare VoIP offerings, you can easily determine whether or not the offer makes sense using their own prices and capacity. For example, with a quick Internet search for Tier-One connectivity, you will find that a quality T-1 bandwidth connection costs about $1000 per month. There are cheaper providers, but they are Tier 2 and 3 connections that do not accommodate the high quality throughput required for high quality voice packet transmission.

A T-1 has a capacity of 1544 concurrent kilobits per second (kbps). About 25% of that is used for peaks; so only 75% can be calculated for concurrent usage leaving only 1158 kbps for voice transmission. Quality voice transmission requires about 15 kbps. That means that a T-1 can support about 150 simultaneous users (capacity divided by the quality setting). If you divide $1,000 by 150 you will see that it costs about $6.50 per user per month for fully subscribed bandwidth. Please note, that is the cost per "user" not per "room".

A 50-person room would cost $325 per room per month. So in order for a company to offer a 50-seat room for $15 per month ($180 per year) they would have to oversubscribe about 22 to 1 with nothing left over for operations. After commissions, royalties, merchant charges, taxes, co-location, servers, insurance and personnel, most of these companies budget about a $1 per month per room for bandwidth which is a 350 to 1 over-subscription rate. We have found that most companies offering these services also cut the voice quality down to bare minimum levels that result in broken transmissions. This causes significant customer dissatisfaction and high cancellation and dropout rates. If they are using a yearly sales model, they collect all the money up front, then face dissatisfied customers who demand their money back or issue a "charge-back" on their credit card.

If they are also offering video, application sharing, and full-duplex, the bandwidth consumption can easily triple. if not quadruple. These make appealing offers to the uninformed, but, like the so-called free advertising-based programs, they do not create customer satisfaction.

Voxwire™ does not believe that is good business. We will gladly provide demonstration opportunities so you can test the MeetingRoom to your complete satisfaction before you make a purchase decision. You will always be able to count on the bandwidth necessary for superb quality when you need it.