Abogados de Inmigracion

The difference with Skype is that SippyPhone uses standard initiation protocol (SIP), while Skype uses a proprietary protocol, Mordojovich explained.

While this makes SippyPhone more flexible as it can be interconnected with other IP voice services such as Vonage, the quality of Skype may be slightly better as it uses greater broadband width, Mordojovich said.

"We believe that in the long run, SIP is going to be the dominant technology worldwide... Skype is going to have to compete against all the other companies similar to RedVoiss throughout the world that use SIP," the executive said.

Nonetheless, the free service does not mark a move away from the paid service, similar to Vonage, that the company has been offering up to now.

"This [SippyPhone] service is only for use with a computer. The other RedVoiss service is for integrating with telephone and remote telephone services. There is still an important market that prefers to use a telephone," Mordojovich said.

RedVoiss' aim with the new service is to target the youth market. Mordojovich also believes that SippyPhone will act as an introduction to IP telephony.

"Hopefully it will encourage companies to adopt the full RedVoiss service, or install servers to receive 800 numbers for free, which currently cost companies a lot of money," Mordojovich said.

While communication via SippyPhone is free with other SIP services, there is a monthly charge for communication with public telephone services.

LEGAL OBSTACLES

RedVoiss expanded services this year to Canada, Argentina, Peru and Australia and is currently negotiating agreements to enter the Venezuelan and Mexican markets, Mordojovich said.

However, growth in 2005 fell short of expectations due to a long, drawn-out legal battle for interconnection with the broadband networks of fixed line incumbent Telefónica CTC Chile (NYSE: CTC).

The company's customer base has expanded only 40% in 2005, far from the 80% Mordojovich predicted at the beginning of the year. However, traffic has grown 100% among the corporate sector, which reflects the popularity of VoIP.

"The market has advanced slower than we expected due to inertia and problems resulting from the lawsuit we have with Telefónica. The problems in Chile, in which Telefónica has blocked our ports, are something that is very common in Latin American countries and is something that each country will have to resolve case by case," Mordojovich said.

"This lawsuit is going to set a precedent for the future use of broadband in Chile, and for potentially similar situations throughout Latin America," Mordojovich added.

RedVoiss does not expect a solution to the legal battle with Telefónica by the end of the year, he said. However, the issue seems likely to drag on.

Mordojovich believes that Telefónica's refusal to interconnect with RedVoiss is denying the country of US$1bn in VoIP business.