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News Release 2003

January 16, 2003
IXO
Fusion Communications Corporation


Fusion Ties Up with NPO "IXO" to Provide IP Phone Services to Local ISP Users
Fusion IP-Phone Made Available to Users of NTT's FLET'S ADSL and B-FLET'S Services

Fusion Communications Corporation has created a partnership with IXO, a non-profit organization also known as the "Chiiki-kan Kosoku Network Kiko" (Inter-regional High-Speed Network Organization). IXO's membership consists of major local ISPs (Internet Service Providers) throughout Japan, and Fusion will provide these local ISPs with support for introducing the IP phone service.

The IP phone service will be launched on March 1, 2003 as "FUSION IP-Phone for IXO" (or the name of the local ISP), and will be provided as an optional service for subscribers to member ISPs through FLET'S ADSL and B-FLET'S (fiber optic) lines provided by NTT's regional companies. This will be the first time that NTT's FLET'S infrastructure will provide the access lines for FUSION IP-Phone, making coverage possible to a broad area nationwide.

The service allows subscribers to different local ISPs nationwide to initiate and receive calls to and from each other and from subscribers of other providers that use FUSION IP-Phone at no charge.

At present, IXO has 22 member firms (as of January 15, 2003), with a total subscriber base of about 500,000, but membership is set to expand in 2003 to 47 ISPs (one in each prefecture) for a local ISP network that covers one million subscribers. The number of users being targeted for FUSION IP-Phone for IXO is approximately 150,000.

Local ISPs offer unique services rooted in their local area and contribute to the advancement of IT in each region, but year by year it is growing more difficult for them to compete against the major national ISPs. There is also growing demand for the use of IP phone services among broadband line subscribers, and as the major ISPs gear up to provide the service, local ISPs will also need to provide IP phone services to their users as an added-value service.

Under such circumstances, IXO's partnership with Fusion will allow the organization to serve as a liaison for the introduction of IP phone services by local ISPs that are members of the NPO. The ability for participating ISPs to offer FUSION IP-Phone for IXO will help to ensure the healthy development of local ISPs nationwide. This plan will deepen ties among local ISPs and promote their introduction of IP phone services, thereby improving services for users and contributing to the advancement of IT at the regional level.

Fusion aims to establish growing ties with more network partners to offer FUSION IP-Phone as a high-quality service with even greater convenience.

Main features of the FUSION IP-Phone for IXO Service are:

1. Available through ordinary fixed-line telephone sets
Through the use of a special adapter built into the ADSL modem, an ordinary telephone can be plugged in to use the service, with no need to own a computer.

2. Special "050" IP phone number allocated
Users obtain a special "050" IP phone number from the Ministry of Public Management, Home Affairs, Posts and Telecommunications, allowing incoming and outgoing calls to be made among users with "050" numbers. In the summer of 2004, "050" numbers are scheduled to become capable of receiving calls from ordinary (non-IP) telephones.

3. No charges for calls between users
There will be no per-minute charges for calls between users of this service, and calls to non-IP telephones will be provided at the low rate of 8 yen per 3 minutes to anywhere in Japan.


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