SAN ANTONIO, Feb. 17, 2005 (PRIMEZONE) -- ATSI Communications, Inc. (OTCBB:ATSX) announced today that it has signed an agreement with NexTone Communications to expand its NexTone-powered VoIP network. The Company will expand the port capacity on its NexTone Multiprotocol Signaling Switch ("MSW") and Multiprotocol Session Controller ("MSC") by 50 percent and extend the term for support services provided by NexTone through February 2006. Since implementing the NexTone system in June 2004, ATSI's VoIP minutes of use ("MOU") has increased by 763 percent. Due to the dramatic growth in its core VoIP business, the Company required a system expansion to set the stage for continued growth for the remainder of its current fiscal year.
Arthur L. Smith, CEO of ATSI stated, "The scalability of NexTone's product was a critical factor in deciding to purchase the technology. We reached our revenue and call volume objectives with the current system as evidenced by our significant growth during the 1st and 2nd quarter of this year. We expect to have the expanded capacity operational within a week and will stay the course, continuing to build our core VoIP business."
ATSI deployed the NexTone MSC in San Antonio, Texas. This solution lowers equipment costs, simplifies network operation and provides faster service turn-up, enabling ATSI to use its VoIP gateways more efficiently while realizing CAPEX and OPEX cost savings. In traditional VoIP networks, interoperability issues require that carriers dedicate one or more gateway ports to each of its customers. NexTone's FlexPeer technology provides multi-vendor interoperability and enables carriers to share port resources with multiple customers. ATSI is also utilizing NexTone's Network Analysis and Reporting System ("NARS") that provides a comprehensive set of management tools to engineer and streamline traffic routing tables.
ATSI Communications, Inc. is an emerging global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America, with an emphasis on Mexico. ATSI believes that it has clear advantages over its competition through its strategic partnerships with established foreign carriers and network operators, interconnection and service agreements, and its unique concession license in Mexico.
About NexTone Communications
NexTone Communications develops carrier-grade products that deliver scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology has been installed by more than 200 service providers worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies, such as reduced interconnect "turn-up" time and simplified network operations. For its ability to anticipate the growing need for multiprotocol session control and its impressive market traction, NexTone was awarded the 2004 Frost and Sullivan Market Penetration Leadership Award. The company is headquartered in Gaithersburg, Maryland, USA with domestic and International sales offices worldwide. For more information, visit www.nextone.com.
This news release contains forward-looking statements. These statements describe management's beliefs and expectations about the future. We have identified forward-looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. More detailed information about ATSI Communications, Inc. is available in the Company's public filings with the Securities and Exchange Commission.