Vistula Communications Services, Inc., a global supplier of flexible and reliable Voice over IP ("VoIP") services to major telecommunications carriers, cable operators and Internet Service Providers, announced that it has partnered with HFCL Infotel Ltd. (HITL), the first private telephony operator in Punjab, a region in Northern India and the east side of Pakistan, to launch the first niche consumer VoIP service in India.



Under the terms of the agreement, Vistula will integrate its V-Cube VoIP platform with HITL's network, giving HITL a turn-key consumer VoIP service to market to retail and business clients. The system will be fully hosted and managed by Vistula. HITL is expecting to launch the Vistula-enabled VoIP service in Q1 2006. Additionally Vistula will be providing HITL with a pre-paid calling card solution which will give customers the ability to easily pay for international calls from virtually any computer terminal. The cards will be available at various retail outlets across Punjab initially and subsequently to other markets across India.

"The combination of Vistula's proven success in the VoIP industry, the fact that we can expect to launch the service within weeks of signing the contract and the calling card solution, which we believe has a great potential in India, were the most exciting propositions for us in choosing Vistula," said Mahendra Nahata, Chairman of HITL. "With Vistula's help we'll be able to bring the first niche VoIP service of its kind to India that will certainly attract customers both domestically and internationally. We are confident of an excellent customer response to this service which will be initially marketed to more than 300,000 of HITL's already large subscriber base in Punjab."

Vistula's V-Cube based system will provide HITL with a customer web portal, soft-phone downloads and full VoIP on-net and off-net capabilities. In addition, V-Cube's new billing capabilities will also integrate seamlessly with HITL's existing billing platforms. Vistula will be building and managing the system for HITL as well as providing them with round the clock support.

"We are delighted to have been selected by HITL as their supplier of VoIP services to this market. HITL is a rapidly growing telecommunications company in India with a state-of-the-art network in Punjab. Their knowledge and expertise in providing telecommunication services will ensure a successful and timely implementation of this project. India's VoIP market is valued at nearly $2.8 billion, and by fully leveraging our V-Cube platform, HITL will be well positioned to capture a sizeable chunk of this underserved market," said Rupert Galliers-Pratt, Chairman and Chief Executive Officer, Vistula Communications. "This project with HITL is the latest in a string of major global deals and effectively supports our position as one of the leading suppliers of VoIP services and solutions to major carriers and Internet Service Providers around the world."