As is the case with most technology-related industries, the face of telecommunications is swiftly evolving. Major developments in the telecommunications sector are transpiring even as you read this, due to a technology at the forefront of this industry's progress, namely VoIP, "Voice over Internet Protocol."

VoIP means that the technology used to send data over the Internet is now being used to transmit voice as well. The technology is known as packet switching. Instead of establishing a dedicated connection between two devices (computers, telephones, etc.) and sending the message "in one piece", this technology divides the message into smaller fragments, called 'packets'. These packets are transmitted separately over a decentralized network and when they reach the final destination, they're reassembled into the original message.

VoIP allows a much higher volume of telecommunications traffic to flow at much higher speeds than traditional circuits do, and at a significantly lower cost. VoIP networks are significantly less capital intensive to construct and much less expensive to maintain and upgrade than legacy networks (traditional circuit-switched networks). Since VoIP networks are based on internet protocol, they can seamlessly and cost-effectively interface with the high-technology, productivity-enhancing services shaping today's business landscape. These networks can seamlessly interface with web-based services such as virtual portals, interactive voice response (IVR), and unified messaging packages, integrating data, fax, voice, and video into one communications platform that can interconnect with the existing telecommunications infrastructure.

Industry experts see VoIP as a tool that will become the standard platform for the international calling market. At present, VoIP constitutes 2% of the international calling market, estimated by Frost and Sullivan, a prominent marketing research group, at $325 billion for the year 2000. That is approximately 50% of the total telecom market value of $700 billion. We strongly believe that the profit realization VoIP will trigger in the global telecommunications industry will dwarf the impact of the now ancient "digital revolution" of 20 years ago.

As with any promising new technology, a myriad of companies are trying to climb aboard the VoIP bandwagon. Currently, however, the industry is characterized by a high degree of confusion. Most companies, including large resource-rich national and international telecommunications carriers, are experiencing enormous difficulty in building effective international VoIP networks. They are unable to harness the power of VoIP or effectively communicate the benefits of VoIP to their customers. United American Corp, Inc. has the foresight and vision to recognize how this blossoming technology will succeed.