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New VOIP trend to give Telkom, cellphone companies a big headache - The Notebook Company

Johannesburg, 10 May 2004

As the number of wireless WiFi hotspots grows, voice over Internet Protocol (VOIP) is also going to grow rapidly in popularity and, with the latest software now available on the market, this emerging market is going to pose a big threat to cellular phone companies, MTN, Vodacom and Cell C - especially as users start making use of PDAs for VOIP communications.

This is according to Christopher Riley, CEO of Pretoria-based notebook and accessories retailer, The Notebook Company (www.notebook.co.za).

Riley said one of the latest software solutions on offer, called Skype, allows users to download software onto their laptops or PCs - and even PDAs - and communicate with similarly-linked users by making use of VOIP. "This software, developed by international software developer, Kazaa, is totally free. The user simply needs to communicate with other users via microphone on his PC or laptop - and he can communicate with them as long as he is online, and as long as the recipient has also installed the software."

Riley said this free software is now also suitable for PDAs, a development that is going to change the VOIP marketplace "forever".

"While Telkom claims VOIP is still illegal, at the end of the day they are not going to be able to stop this trend from growing. They might be able to slow it down a bit, but it is something that is going to prove very hard to police. Taking legal steps against each and every user is going to be an impossible task. Even if a few companies, or individuals are successfully prosecuted, this, besides making Telkom very unpopular, will not stem the tide. This emerging trend - which will undoubtedly become prolific in the future - also presents some very real challenges for the cellular phone companies."

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