【正文】 phony is just in its initiative stage and it will increase very quickly. In China, there are 5 licensed IP phone service providers, but they just offer PhonetoPhone service. There is not a service provider like Net2phone in the United States. We will provide PCtoPC, PCtoPhone, PhonetoPC, as well as PhonetoPhone service in China by cobranding with China Net. As China is entering into the WTO, it means the opening up in tele area, and it also means the business opportunities. According to the time schedule of the opening up, the valueadded tele service will be the first to allow foreign petitors in. Before the foreign petitors in, the market will be opening up to internal panies. It is a great opportunities for us. Our strategy is to cooperate with existing IP phone service provider to offer the IP telephony service. Our partner will be China Net. We will take advantage of China Net’s work resource and strong market development capability to deploy our services. We will provide PCtoPC, PCtoPhone and PhonetoPC service and resell China Net’s PhonetoPhone service. User needs to download the free client software before using our services. The size of the software is small. ? PCtoPC Service Our PCtoPC service is free to users. ? PCto Phone Service We will charge users for this service. It could be monthly fee, and could be prepaid. We have designed IP 800 service for Small and Medium Enterprises. The SMEs can receive customer calls from PCs through phones and just pay limited monthly fee. ? PhonetoPC Service We will charge users for this service. Users will use our address system. Our voice portal number will be the access number. We will provide some enhanced call control services, such as call forwarding, call waiting etc. User can make a PhonetoPC call at first. If the PC is not active, user can choose leaving voice message or making a PhonetoPhone call. Our charge for PhonetoPC service will be much cheaper than that for PhonetoPhone calls. The price for PhonetoPhone calls is decided by the supervisory government. We will share revenue with incumbent IP phone service provider. For the users making international calls, it is a chance to save money. For Web based call centers, it is a way to cut down the cost. We will provide Web800 service. Confidential Intway 8 In addition, we will provide Instant Voice Messaging, online chat, IP conferencing services. ? Virtual Phone Line Service If the called user is connected to the Inter via phone line, the line will be busy and others cannot call in. This service is to provide a virtual phone line solve this problem. If the called user is on line, we will transmit the phone call to his/her PC. The feature will be the following: ? Caller ID notification. The caller ID will be promoted on the screen of the PC. ? Call pickup. User can pick up the call through the PC. ? Voice mail. User can choose voice mail option ? Fax. User can receive fax through the PC. ? Outgoing call. User can make outgoing call through the PC. The benefit to the users is that there is no need to install a second phone line. This service will be wele by China’s costsensitive individual users and families. Voice Enablement Currently, the eCommerce websites and munity websites do not support interactive voice conversation, voice chat, voice portal and other voice enabled features. For eCommerce websites, the major munication method with customers is the . It is not realtime and not that effective as the voice conversation. For munity websites, if they had the voice chat function, users will be more like to surf. And the voice portal can enlarge the user base. If our technologies were employed, these websites could have these attractive features to gain more customers and reduce customer churn. We are to be an Applications Service Provider or enabler. We provide the technologies platform, outsource it to the websites, and charge them with license fee and usage base fee. Our technologies platform will be including Click2Talk, chat, conference, IP800, Web800, integrated messaging, voice portal, etc. 3 Revenue Model We have designed various revenue model for each service. Voice Portal Ine source: ? Usage Fee We bill the user at his/her phone number. We add a premium to the normal phone call charge, and it is usage based. In China, a normal local phone call cost RMB or USD per minute. We plan to charge the users at RMB per minute. Normally the information query services like 168 and 268 charge RMB to RMB . It is far more expensive than ours. ? Voice Advertising We add a five seconds voice advertisement to a call session. According to IDC, the voice advertisement charge could be higher than normal Inter advertisement charge. Because actually the users are dedicated during a session and the advertiser do know how many people are listening Confidential Intway 9 to the advertisement. In the US, the charge ranges from $40 to $100 per CPM. The normal Web advertising charge is only $5 to $25 per CPM. Our CPM rate will be RMB160 Integrated Messaging This service we provide will be free of charge. Some panies charge a fee for this kind of service, for instance, in the US charges $5 per user per month. Since we can get revenue from each phone call, we will not charge a fee for this service. So the revenue model for this service is: ? Usage fee ? Web adverti