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SIP trunking is becoming more of a focus for service providers. One key issue many service
providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

When connecting enterprises to SIP trunks directly via the Internet, carriers must resolve issues
created by the enterprise firewall and traverse the NAT to connect to the customer’s Local Area
Network (LAN) while also maintaining security. Since carriers deploy SIP trunks on a mass scale, the
need to offer customers a guaranteed solutionthat works seamlessly, and is secure, is all the
more critical.

Traditional firewalls are designed to block unwanted, or unrecognized, traffic. When a traditional firewall
sees SIP communication – voice, in the case of SIP trunking -- the firewall will not recognize that traffic
and, as a result, block it. In addition, NAT breaks SIP. SIP is an application layer protocol at layer 7 of
the OSI model, whereas NAT is created at the transport or layer 4 of the OSI model. Since the two are
in no way connected, NAT will always frustrate the introduction of SIP into a network.

When using SIP, it is necessary to employ an enterprise border element like the Ingate SIParator, that
can provide the necessary functionality to resolve these problems. A benefit of the Ingate is that it will
not only allow the SIP traffic through but will do so in a way that protects the network (the Ingate
Firewall) or just the SIP traffic itself (the SIParator). Either way, Ingate technology is the safest way to
enable a SIP trunk installation.

NAT Traversal - Critical for Service Providers

What is SIP Trunking?

eBook

The Scoop on SIP Phones

An in-depth look at how SIP phones
are revolutionizing the VoIP industry

In today’s environment, SIP phones are becoming ubiquitous – bringing extended support,
expandability, reduced hardware costs and increased savings on monthly phones bills to companies
everywhere. One company at the forefront of this wave is Panasonic, a leading provider of SIP
phones. SIP technology allows you to route your calls over the Internet, permitting companies to
enjoy a vast array of benefits.

In this e-book from Panasonic, you'll learn about how Panasonic has emerged as a leading provider
of SIP phones, why SIP is being touted as the “wave of the future,” and where the industry is
headed. Here we’ve compiled a selection of the top news stories, features, and white papers, from
the past few months to demonstrate the depth and breadth of the SIP phones solutions
Panasonic offers.

Panasonic Makes Big Splash in SIP Phones Space

When you hear the company name Panasonic, some things that might come to your mind are images of your flat
screen TV, your snazzy digital camera or your Blu-ray Disc player. But business decision makers ought to be aware
that Panasonic is also a provider of leading edge SIP phones – a market Panasonic first dived into last year.

“Panasonic small business PBXs are number one in North America for the under 40 extension segment,” Kim
Murtagh, product manager for SIP Endpoints at Panasonic, told TMCnet when asked why the company first entered
the SIP phones space. “Given the fact that hosted/open source PBX markets are experiencing rapid growth,
Panasonic felt the timing was right to introduce its SIP phones, starting with its SIP cordless models and now
expanding to SIP corded models.”

Panasonic quickly gleaned the benefits of introducing SIP phones to customers, particularly since these phones offer
lower cost alternatives in a world in which every dollar counts and increased productivity is a top priority.

Panasonic's SIP phones allow businesses to route calls over the Internet, through VoIP, which guarantees them
reduced hardware costs and increased savings on monthly bills. SIP phones are the “wave of the future,” according
to company officials, and Panasonic is one company that is positioning itself to remain at the forefront of this trend.

When asked how Panasonic distinguishes itself in the SIP phones market, Murtagh said, “As one of the largest
communications and system technology providers in the world, Panasonic continues its market leadership with SIP
phones.”

“Panasonic SIP phones are certified by Digium’s Asterisk and BroadSoft’s Broadworks and are designed with small
and medium businesses in mind,” she added. “As business needs change, Panasonic’s SIP phones offer flexibility
and expandability. All Panasonic SIP phones support HD Voice (G722 Codec).”

In fact, its partnerships with BroadSoft and Digium – major players in the hosted and open-source PBX
market – have helped Panasonic remain competitive in the market. From the get-go, Panasonic saw the value in
being certified with both companies and, since the launch, Panasonic has been aggressively working with other
hosted/open source platforms to achieve interoperability.

Some other unique features of Panasonic’s SIP phones include: noise reduction technology; lower power
consumption; HD Voice in all series models; and a two-year warranty.

By Carrie Schmelkin,TMCnet Web Editor

As Panasonic continues to make its splash in the SIP phones market, the company is eager to see how the space
unfolds. One trend Panasonic has noted is that the rapid growth of the hosted IP telephony market and the emer-
gence of open standards based on SIP have meant that the market is looking for additional solutions to complement
the traditional PBX approach.

“We are also seeing more and more business having a need for mobility in the workplace,” Murtagh said.
“Panasonic utilized our expertise in DECT Cordless to develop the SIP Cordless Phone System. This phone system
gives small business mobility with key feature functionality they expect all while maintaining the reliability, and flexibility
for which all Panasonic products are known.”

So what can we expect from Panasonic and its SIP phones for the rest of 2011?

“Panasonic has an exciting roadmap for the rest of the 2011 year,” Murtagh said. “Panasonic will have
introduced at least a dozen SIP models within 2011-12. Panasonic is committed to expanding its line of
products in the standards-based VoIP SMB market.”

Panasonic Makes Big Splash in SIP Phones Space

By Carrie Schmelkin,TMCnet Web Editor

Panasonic Rolls Out New Series of Corded SIP Phones

Panasonic broadened its portfolio of business-centric solutions recently by launching a new line of corded desktop
SIP phones for the small and mid-size business sector.

The new models, dubbed the UT Series, will provide end users with all of the next-generation communication
features associated with IP telephony, and at an extremely competitive price.

Panasonic's corded SIP phones are exceptionally flexible and scalable, and are interoperable with a wide range of
SIP-based IP PBX platforms and Hosted Service Providers. Certified by BroadSoft on Broadworks and Digium's
Asterisk, each of the four new models includes support for Power over Ethernet and high definition audio (G.722
codec).

The cost savings associated with routing the calls over the Web is further supplemented by the SIP phones' low
power consumption. When not in use, the phones fall into Eco mode and draw less than one watt of power.

"The benefits of a standards-based approach, such as with SIP phones, are especially compelling in today's
business environment where every dollar counts and flexibility and reuse are highly desirable," Bill Taylor,
president of Panasonic System Networks Company of America, noted in a statement.

"Panasonic's SIP phones are designed to be expandable at no additional cost, without sacrificing quality," he added.
"Our phones are also easily provisioned and interoperable, allowing the customer to expand their
communication capabilities as their needs grow."

By launching the four phones, KX-UT136-B, KX-UT133-B, KX-UT123-B and KX-UT113-B, Panasonic is adding to
its established line of cordless SIP models, which provide similar functionality and support.

The KX-UT123-B and KX-UT113-B models are the line's two most competitively priced desktop phones. Each
model sports a three-line LCD display and is accompanied by a two-year limited warranty. The KX-UT113 is
equipped with one Ethernet port, while the KX-UT123 has an additional port and a backlit graphical display. Both
models include a comprehensive phone book and support for multi-party conferencing, among other features.

Panasonic's most advanced corded SIP phones – the KX-UT136-B and the KX-UT133-B – each contain 24
programmable feature/functionality keys and two Ethernet ports for connecting a secondary device. The
KX-UT133-B boasts a three-line backlit graphical LCD display, while the KX-UT136-B is loaded with a six-line backlit
LCD.

All four models can be easily configured and provisioned to grow with a company's needs. In addition to being
extremely user friendly, the SIP phones provide industry-leading voice quality and bandwidth utilization.

By Beecher Tuttle, TMCnet Contributor

In addition to being able to enjoy reduced hardware cost and increased savings on monthly phone bills,
businesses can reap a variety of other benefits when opting for SIP phones. Panasonic is one company quickly
making a big splash in the SIP phones market, particularly through its SIP cordless phones, which are certified by
both Broadsoft and Digium.

Recently, TMCnet sat down with Kim Murtagh, product manager of SIP Endpoints at Panasonic, to talk about why
SIP phones are so beneficial and which companies can truly benefit from this innovation.

TMCnet:

What are some of the main benefits of SIP phones?

Murtagh:

The benefits of SIP are especially compelling in today's business environment where every dollar counts

and increased productivity is a top priority. Panasonic's SIP Phones are easy to use and powerful at the same time.
Benefits include: affordable and cost effective; elimination of primary rate interface (PRI’s) subscription; efficient
bandwidth utilization; delivers both voice and data through the same connection; flexibility; multiple extensions; and
reliable and clear multimedia communications.

TMCnet:

What types of companies can benefit most from SIP phones?

Murtagh:

Panasonic SIP phones are well-suited to the needs of small to mid-size businesses, retail and profes-

sional services (i.e. legal, medical, dental, accounting, engineering/architects etc.) as our products have the features
and flexibility that businesses need to compete and scale as they grow.

Small to medium size businesses can take advantage of hosted/open source PBX with Panasonic SIP Endpoints
because they provide a lower total cost of ownership. The business can be more nimble with these new
technologies by growing as they add or remove new employees without having to purchase or lease a large
proprietary system

TMCnet:

Please explain why SIP phones are commonly referred to as the “wave of the future.”

Murtagh:

SIP Endpoints with a hosted/open source system allow business owners to take advantage of the many

benefits offered by new cloud and IP-based technologies.

TMCnet:

What gives the Panasonic SIP cordless phones an advantage over other SIP phones?

Murtagh:

The Panasonic brand is known for its reliability, flexibility, expandability and innovation and leverages a

long history of designing products that the consumer in all of us finds easy and intuitive to use as no one likes
learning how to use new equipment.

Panasonic Talks SIP Phone Benefits with TMCnet

By Carrie Schmelkin, TMCnet Web Editor

The Panasonic SIP phones boast outstanding voice quality and a range of productivity-boosting features.

On our cordless models, DECT 6.0 ensures no interference with wireless networks and the
convenient cordless design eliminates the need to run dedicated network wiring to each employee workstation.

Our phones are ideal for both home office and small to mid-sized businesses and are:

- Easy to install for IT and PBX distributors/dealers and carriers

- Easy to use for users

- High quality voice/speaker phone

- Compatible with Digium’s Asterisk and BroadSoft’s Broadworks®

TMCnet:

How can SIP phones particularly help small businesses?

Murtagh:

Panasonic SIP phones are especially compelling in today's business environment where every dollar

counts and flexibility and reuse are highly desirable. Panasonic's SIP phones are designed to be expandable at no
additional cost, without sacrificing quality, are easily provisioned and interoperable, allowing businesses to scale up
their communication capabilities as their needs grow.

Panasonic Talks SIP Phone Benefits with TMCnet

By Carrie Schmelkin, TMCnet Web Editor

Continued on the next page

SIP phones are definitely the new big kid in town when it come to phones, particularly since SIP phones offer a
plethora of benefits including noise reduction technology; lower power consumption; HD Voice in all series models;
and multi-year warranties.

SIP phones are SIP user agents that are responsible for the traditional call functions of a telephone such as answer,
dial, reject, call transfer and hold/unhold. SIP phones can be implemented either as hardware devices or a
softphones. SIP has quickly become a standard telephony platform, particularly thanks to the rise of 4G.

SIP phones have become the perfect mobility solution for small business and home offices as the phones offer
immediate cost savings thanks to reduced hardware; improved customer service because of added features such
as call transfer and 8 DID Ring Tone; stronger survivability, as the phones provide real-time communications and
ISP-enhanced intelligent communications; and scalability, as the phones meet all mobility needs. SIP phones are
also touted for their ability to be expandable; provide extended support; offer easy use; and support a variety of
codecs.

SIP communications is an industry that has quickly burgeoned, particularly because of the growing availability of
open source PBXs and hosted service offerings. SIP phones allow businesses to route calls over the Internet,
through VoIP, which guarantees them reduced hardware costs and increased savings on monthly bills. SIP phones
are the “wave of the future,” according to many industry experts.

Many SIP leaders attempt to distinguish themselves in this competitive market place by making sure that their SIP
phones are certified by Digium’s Asterisk and BroadSoft’s Broadworks, in particular. Other SIP providers will ensure
that their SIP phones boast: noise reduction technology; lower power consumption; HD Voice in all series models;
and multi-year warranties.

What are SIP Phones?

By Carrie Schmelkin, TMCnet Web Editor

Panasonic System Networks Company of America, a long-time leader in premises-based telephone system
hardware for small and mid-sized businesses, has entered the cloud-based or hosted communications market with
the new Panasonic Cloud Business Phone System.

Panasonic is responding to its small business customers who are looking for an easily managed solution that does
not require a large capital investment or complex installation and management. To meet this need, Panasonic has
partnered with software provider BroadSoft, offering the new Panasonic Cloud Business Phone System for
businesses with up to seven employees. The offer is comprised of Panasonic’s KX-TGP551 SIP Cordless Phone
System, a corded handset base station and up to six associated cordless handsets at the customer premises, with
BroadSoft’s BroadWorks switch providing the call control as a hosted service.

The benefits of cloud-based or hosted services are well-defined. Such solutions are gaining popularity, or at least
garnering high interest among businesses, as a way to reduce equipment costs and ensure reliability, redundancy
and disaster recovery. Hosted or cloud solutions eliminate the hassle of deploying on-premises equipment that
requires ongoing administration and maintenance. The security of a fixed-rate (pay-as-you-go), quickly deployable
hosted solution is appealing, particularly in a challenging economic environment.

System/Service Components

Panasonic KX-TGP551 ships with the base station (with corded handset) and one KX-TPA50 cordless handset
($299.95 MSRP), serving two users out of the box; five additional KX-TPA50 handsets can be added for a total of
six cordless handsets. In addition, the TGP551 base unit has six Busy Lamp Field (BLF) buttons that show which
handsets are in use. These same buttons can also be used as One Button Transfer keys, allowing a receptionist, for
example, to easily transfer a call to one of the cordless phones.

The system supports up to seven employees (users) in all. Since the base system comes with one corded phone
and one cordless phone, just one additional cordless phone has to be purchased to support three users. Four
additional cordless handsets can be purchased as needed. One line or hosted voice connection (direct phone
number) supports up to three simultaneous calls, so a single hosted voice connection can support all seven users
with one main business number and six extensions. Each cordless handset can be provisioned as an extension
(e.g. 555-5000 Ext. 1, 555-5000 Ext. 2, etc.) or as a unique phone number (e.g. 555-5001, 555-5002, etc.); the
system supports up to eight unique phone numbers. Incoming calls are routed accordingly, either through the main
base station to the correct extension or directly to the unique phone number.

Panasonic Cloud Business Phone System
Targets Very Small Business

By Sandra M. Gustavsen, Analyst, Business VoIP

If desired, one or two additional hosted voice connections can be purchased to provide a second and third
direct phone number. This is convenient, for example, to a home-based business that may want to segregate
personal (home) phone calls from business calls, or a small office with three departments that require separate direct
phone/main numbers and separate voice mailboxes.

Set-up is simple. The base station is plugged into an Internet broadband connection on the customer premises, and
the service and phones are activated easily online. Additional hosted voice connections (lines) and telephony
features are configured using an online Web-based tool.

System Features

- Unlimited local and domestic long distance calling (international calling is available for an additional cost)

- Voicemail and voicemail-to-email

- Call forwarding to a cell phone

- E911

- Auto Attendant (additional cost)

- Music-on-hold (basic, non-customizable music is free; customizable music is $3.99 per month)

- 3-way calling (5-party with optional conference server)

- Call block/call restriction

- Call waiting with Caller ID

- Call hold

- Call hunting

Availability and Pricing

The Panasonic Cloud Business Phone System (KX-TGP551) is available as of August 2011 at the following online
stores: Amazon.com, BestBuy.com, OfficeDepot.com, Staples.com and Frys.com, as well as Fry’s Electronics retail
stores. Suggested retail price for a basic package with one corded phone and one cordless phone is $299.95, plus
$39.95 per line (hosted voice connection) per month with each line supporting three simultaneous calls ($25
one-time account setup fee). As a SIP-based system, the KX-TGP system (first introduced in May 2010) is
specifically designed for the SIP-based open source PBX (News - Alert) market and hosted SIP environments.
KX-TGP is currently tested and certified with BroadSoft’s BroadWorks hosted PBX switch and with Digium’s Asterisk
open source PBX software. Panasonic is currently confirming interoperability across other switches, such as the
Metaswitch hosted platform and the FreeSWITCH open-source telephony platform, but certifications are not yet
complete (KX-TGP is not available for Panasonic’s own KX-NCP or KX-TDE PBX systems at this time.)

What are SIP Phones?

SIP phones are increasing in importance and adoption, and TMC is covering the field closely. There were some
noteworthy events recently, let’s get you caught up on them.

TMC’s Sandra Gustavsen reported that Panasonic System Networks Company of America, a long-time leader in
premises-based telephone system hardware for small and mid-sized businesses, entered the cloud-based or
hosted communications market with the new Panasonic Cloud Business Phone System.

The offer is comprised of Panasonic’s KX-TGP551 SIP Cordless Phone System, a corded handset base station and
up to six associated cordless handsets at the customer premises, with BroadSoft’s BroadWorks switch providing
the call control as a hosted service.

Peter Bernstein noted that TMCnet’s recent webinar, “The Benefits of SIP Communications via the CLOUD – A
Primer for Small and Medium Sized Businesses,” featuring Panasonic National Manager, SIP Endpoints, Michael S.
Chase, delved into the details of a question SMB executives should be asking themselves: “Is now the time to
seriously consider purchasing SIP phones to leverage the power and flexibility of emerging Cloud computing
capabilities?”

The webinar answered with an emphatic yes.

As Chase stated, “SIP Communications via the cloud combines the technological innovations of application hard-
ware and the power of the network to enable advanced capabilities that improve efficiency and reduce cost for tens
of thousands of small to mid-sized business around the world…..without the need to purchase and own a
communications platform.” He emphasized that, “The “intelligence” of the platform is on the network (in the cloud).”

The session detailed:

- The business benefits

- Determining if SIP via the Cloud is right for your company

- Why now is the time to think about implementing SIP and leveraging the Cloud

- How to get started with SIP via the Cloud if you have not already

Catching Up with SIP Phones

Also this past week, TMC’s Rajani Baburajan wrote that Covista Communications, a provider of telecommunication
services, announced at ITEXPO West 2011 that it completed interoperability testing with Panasonic’s Session
Initiation Protocol (SIP)-based cordless phone system (KX-TPG500, KX-TGP550, KX-TPA50) and launched its
flagship product code named “My Office in a Box” for the small office home office (SOHO) customers.

My Office in a Box is a family of communications solutions that offers instant office communications with ease of
use, sophisticated features, and affordable price, company officials said. Offered as a bundled cloud based solution,
My Office in a Box enables users from any technical background to reap the benefits of VoIP.

The solution integrates the best in Panasonic SIP DECT 6.0 technology to offer a reliable, multi-handset mobility
solution for SOHO customers. It integrates a set of high-end PBX telephone systems with the convenience and cost
savings of VoIP to offer features like automated attendant, unified communications, business continuity, and savings
up to 50 percent on their telecom bill.

My Office in a Box is a pre-configured solution, so it does not require cabling or professional installation, thereby
making it a true plug and play experience for the small business user

Catching Up with SIP Phones

TMCnet’s recent webinar “The Benefits of SIP Communications for Small and Medium Businesses in the Pure IP -
Open Source Environment,” featuring Steven L. Greiwe, Panasonic ASM Eastern Region, explored how the powerful
combination of SIP with Open Source communications and collaboration options is changing the landscape in the
small to medium business (SMB) markets and creating sustainable competitive advantage. Highlighted in a fast-
paced, insight-packed session were:

- SIP and Open Source – how they work

- Advantages of an Open Source approach

- Evaluating if SIP and Open Source are right for your business or organization

- Get starting with SIP-based Open Source solutions

Greiwe started with a provocative statement: “SIP communications via Open Source combines the technological
innovations of application hardware and the power of the network to enable advanced capabilities that improve
efficiency and reduce cost for tens of thousands of SMBs around the world…..without the need to purchase
expensive vendor products, services, and licenses own a communications platform. The intelligence of the platform
is designed by you and supported by many for free.”

He then went on to discuss the ease-of-use of getting started, and the long list of tangible benefits of SIP/Open
Source solutions:

- Reduced Costs: This means hardware, software, licensing costs, and overall IT and voice

communications expenses. In addition, with open solutions you pay only for what you use

- Scalability

- Posted enhancements done by a community forum made up of experts from various fields

- Enhanced linkage with other systems without vendor constraints on code modification

- Bugs in Open Source software also tend to get fixed immediately

- Ease of implementation

- Skilled and proven approaches to solving problems

- Creation of an even playing field for SMBs with larger competitors

In other words, a freedom of what used to be called the “tyranny of proprietary architectures” based on tools and
APIs that are SMB friendly.

Panasonic Highlights Benefits of SIP in Pure IP
- Open Source Environment

Projected savings from putting in SIP End Points and connecting them via pure IP with Open Source environments
on various servers (including those hosted in the cloud) range from 40 to 60 percent. This does not include a
calculation of the additional value-added from new functionality.

Greiwe observed that the installed base of a broad swath of legacy SMB communications devices and capabilities
are targets for the smart SMB to consider displacing. The top four listed included:

- Key System or PBX (News - Alert) replacement

- Voicemail server

- Conferencing server

- Call Center ACD queue

Pondering this list and the rest of the items on it presented in the webinar, leads to interesting questions about the
rate of transformation taking place in the technology serving the SMB market. It also raise issues about the rate at
which new solutions are likely to be adopted by SMBs to correctly align the way in which they interact internally, with
partners and particularly customers in a very dynamic and converging world with significant economic challenges.

If you are an SMB, regardless of your size or even technical sophistication, you have probably watched what is
going on in the way the world of communications and collaboration is being literally revolutionized and asking: “Is
SIP/Open Source for me, and where do I turn and what do I need to know about how to get started?

Greiwe says doing your homework on SIP and Open Source is critical. He cites www.asterisk.org,
www.sip-communicator.org, www.voip-info.org, and www.sipfoundry.org as places to get educated. For the
uninitiated, Asterisk is a complete PBX solution developed by a community of full time developers and several part
time contributors. The SIPfoundry (News - Alert) is the open source community behind a number of SIP-based open
source VoIP projects. Some of their best known projects include sipX and reSIProcate (a complete SIP protocol
stack for use in application development).

Panasonic Highlights Benefits of SIP in Pure IP
- Open Source Environment

Effective and timely customer service is vital for small- and medium-sized business to compete in an economy
where consumers demand more for every dollar that they spent. Unfortunately, SMBs can often find themselves at a
disadvantage when it comes to customer service resources.

Such was the case with MFASCO Health & Safety, a Michigan-area wholesale distributor of first aid and safety
products that didn't have a business phone solution capable of connecting their customer service representatives
with shipping and inventory personnel.

The result was a flawed system where contact center reps needed to put customers on hold and physically walk
down to the warehouse to give accurate answers on inventory or shipping status. As one can imagine, this led to
significant hold times and less than ideal customer service.

"Customer service advisors are constantly leaving their desks to walk back to the warehouse and verify if a particular
knee brace is in stock or how many rolls of athletic tape are in a bin," Mark Brinker, vice president of Sales and
Marketing, noted in a recent case study.

"As a result, our customers were having to wait longer than they preferred while our service reps were getting tied
down to the phone," he added. "What we needed was some kind of mobility solution that would work with a hosted
phone service so they could get up and take the phone with them."

The answer was an SIP Cordless Phone System by Panasonic, a longtime leader in the SIP end points space. The
system, when coupled with hosted PBX service from Vocalocity, enabled MFASCO employees to access all the
next-generation communication features of a big-business phone system without the hassle and cost of an
on-premise legacy solution.

With the SIP Cordless Phone System in place, MFASCO customer service reps can buzz down to warehouse or
shipping personnel on another line, or walk down to the warehouse themselves while on the cordless phone.

The VoIP solution's DECT technology allows employees to communicate with other portable handset users and the
base unit without tying up one of the physical lines, leaving them open for more customers to call in.

"We have three lines but if all are busy, the customer service rep can still page the shipping department with an
urgent change," said Brinker. "The battery life is good and the range surprised us. We regularly walk up to 100 feet
and transmission is strong and clear with excellent sound quality."

Adopting the SIP end points solution has helped the first aid distributor improve efficiency, enhance customer
service and allow for further growth. MFASCO can add more users by purchasing relatively inexpensive handsets
and adding them to the system without any wiring or installation.

In addition, MFASCO only pays Vocalocity a flat monthly fee for the service.

Improving Customer Service with a SIP Phones System
from Panasonic

The revenue earned by providers of North American SIP and VoIP trunking services “is roughly $2 billion,” according
to Elka Popova, Frost & Sullivan program director.

In 2010, the North American VoIP access and SIP trunking user base expanded at a rate of 65.6 percent and
reached 7.2 million users, says Popova. The installed base is expected to experience a compound annual growth
rate of 35 percent to reach 59.1 million users in 2017 and generate service provider revenues of $7.44 billion.

At the moment, about 85 percent of sales are generated by organizations with 500 or fewer employees, considered
to be small business by some, small and medium business by others.

It can be complicated to describe small and medium business SIP trunking and IP telephony revenues, for several
reasons. A SIP trunk is a “voice service,” sometimes providing features, sometimes just the access to the long
distance voice networks.

The Frost & Sullivan study, aside from including both U.S. and Canadian markets, defines “VoIP access” as services
including VoIP trunking (converged access lines connecting with TDM enterprise telephony platforms) as well as
Session Initiation Protocol (SIP) trunking (converged access lines connecting with IP telephony platforms).

The study also includes “basic VoIP access” services (converged access lines connecting with low-end key systems
or directly with telephony endpoints).

The forecast does not include Time Division Multiplexing Centrex, Centrex IP, or hosted IP telephony (IP
Centrex/hosted IP PBX services.

So the Frost & Sullivan forecast includes both SIP trunking and “converged” IP telephony access, sometimes known
as “integrated access.” That’s an important qualification. Other researchers, such as at Infonetics Research, point
out that T1 lines are still the most commonly used trunking service today, and will be in 2013. T1 still dominant

SIP trunking adoption has been robust in 2010 and 2011, though. Popova’s own forecasts would suggest
significant SIP trunking growth. SIP trunking grew more than 100 percent in 2010.

Revenue from SIP trunking services to businesses is forecast by Infonetics to grow at a phenomenal 52 percent
compound annual growth rate (CAGR) from 2011 to 2015. 52 percent CAGR to 2015

So the $2 billion estimate for 2011 and the $7.44 billion estimate for 2017 include both SIP trunking and converged
access.

The nuance here is that included within the “trunking” forecast are some amount of “line side” features that might
otherwise be considered features of a hosted IP telephony service.

North American SIP and VoIP Trunking Market $2 Billion

Frost & Sullivan includes within the small office and home office segment those organizations with five to 100
employees. Others might call that the “small business” or “micro-sized” segment.

The mid-sized business segment includes organizations with 100 to 499 employees, according to Frost & Sullivan.
Others will refer to this segment as “small business” as well.

The large enterprise segment includes organizations with 500 or more employees, according to Frost & Sullivan.
Some might say that is a “medium business” segment.

Some might wonder why SIP trunking hasn’t grown even faster than it has. “The gap is hard to explain,” says
Popova. “Sometimes a SIP trunking provider doesn’t support the customer’s call control platform; sometimes the
service level agreements are not right; in other cases there are important incumbent relationships and SIP trunking
isn’t offered by those providers,” says Popova.

In other cases, buyers might simply not be comfortable buying from a smaller provider, Popova says.

Enterprise buyers are different from small businesses in several ways, and one difference is that larger companies
might be more inclined to adopt hosted applications relating to video, mobility or fixed-mobile convergence, with
value-added disaster recovery or security features, she says.

North American SIP and VoIP Trunking Market $2 Billion

The power of VoIP technologies can give small businesses the tools to compete with larger organizations that have
near limitless communication budgets. A perfect example of VoIP's clout can be seen in Panasonic's new SIP-based
Expandable Cordless Phone System, which offers all the next-generation functionality of today's top communication
technologies, and at a fraction of the price.

The Cordless Phone System, known by model number KX-TGP550, comes with a corded handset base station and
one cordless handset. However, as many as five more cordless handsets can be cost-effectively added to the
system – each with its own DID number. This makes the SIP end points system a perfect fit for smaller organizations
that need their communication technologies to grow alongside the company.

In addition, the SIP Cordless Phone System allows up to eight distinct phone numbers and can support as many as
three simultaneous network calls. Each handset can have its own number, or users can group certain phones
together so that they all ring when specific numbers are dialed. This enables small offices to create different
departments within an organization.

As an example, a company can establish numbers for sales, service and IT, and can couple them together through
the corded handset base station, which offers one-touch call transfers. In this way, the base station acts as a "mini
receptionist." Best of all, internal calls and intercom conversations don't take up any bandwidth.

When the system is hooked up with a hosted PBX service, users can enjoy convenient carrier services like call
forwarding, voicemail and many other features. The system can also be used as a wireless terminal for larger SIP
deployments.

Panasonic's DECT technology ensures the highest level of phone quality, all without the need to connect a LAN
cable with every telephone. And the quality and long battery life of the cordless handsets provides the "always on"
mobility that most small businesses demand.

Other exciting features include three-party conferencing, call waiting, distinctive ringing, wide band audio and a sleek
menu-driven user interface on a large, white backlit LCD display.

And, because it is a VoIP phone system, small companies can enjoy reduced hardware costs and the potential for
huge savings on their monthly bill.

Making Your Small Business Look Big with Panasonic's
SIP Cordless Phone System

In today's economy, it has become increasingly common for organizations of all sizes to have a distributed
workforce, where a large percentage of employees work from remote or home offices. While this model provides a
number of benefits, it also has the propensity to make an organization look less unified and professional if they don't
have a capable communication system in place.

Show Dog Store, an Arizona-based online retailer and distributor of grooming and pet-care products, recently found
itself in this exact situation, where an incoming caller would be received by a live receptionist and then be given the
cell phone number of service rep on the other side of the country.

"This didn’t give the professional appearance we wanted not to mention being terribly inefficient," Show Dog Store
President Larry Bowe noted in a recent case study. "Even when the call did get routed to my or another team
member’s cell phone, because we’re in home offices, we’d sometimes miss the call if we were in another room.”

So Bowe went out to the market to find a cost-effective, scalable and reliable way to link home-office workers using
a single, centralized phone system, and the Panasonic SIP Cordless Phone System is what he came away with.

With the SIP end points system in place, the retailer was able to enhance its communication efficiency while also
providing service reps with all the next-generation functionality of big-business systems. Best of all, the Panasonic
SIP Cordless Phone System required only a minimal investment and moderate, consolidated monthly payments.

These low costs are made possible by the fact that the system is combined with virtual PBX service from Vocalocity,
which hosts everything offsite. This means that customers like Show Dog Store get all the next-gen communication
features like dial-by-name directory, multiple extensions, automatic call forwarding to mobile devices, one-touch
transfer and conferencing – all at fixed monthly pricing plans.

In addition, the online retailer now maintains an automated single point of contact, giving callers the appearance of a
unified, cohesive organization.

"We liked the idea of going cordless for a great price," said Bowe. "We got lots of phones for not a lot of money
because the cordless handsets are relatively inexpensive. And because we have handsets throughout our home
offices, reps never miss a call. All in all, it’s a perfect solution."

Online Retailer Links Home Office Workers using
Panasonic's SIP Cordless Phone System