CallWave delivers VoIP applications via Level 3 backbone services

After going from stealth mode for the last three years to a publicly traded company 45 days ago, VoIP application provider CallWave is now working with Level 3 Communications LLC, a subsidiary of Level 3 Communications, to manage local inbound and termination services for its consumer and small business customers.

CallWave purchased Level 3’s (3)VoIPSM Local Inbound service and (3)Voice Termination service to use in conjunction with its Nevada-based, proprietary softswitch to deliver its call-bridging and call-screening subscription services to markets across the U.S. Level 3 also will provide CallWave customers with local numbers in the area codes of their choice.

CallWave offers VoIP application services on a subscription basis that add features and functionality to the telecommunications services used in mainstream homes and small offices. CallWave software allows subscribers to bridge calls between landline, mobile and Internet services through relationships with the major carriers in the U.S., whereby calls that are not answered or set to call forward on a busy signal are sent to CallWave’s softswitch in Reno, Nev., where it manages the call on behalf of the customer.

"We can put the call back out on the phone network and bridge it to the customer’s cell phone in real time. Or, we can bridge it onto the Internet and find the customer via our presence management-based software client that runs on their PC," said Dave Hofstatter, CEO of CallWave.

The CallWave solution consists of the PC software that is downloadable through its Web site and a central server in Nevada. "So it is a very low capital intensive software application business," Hofstatter said.

CallWave’s strategy is that the generational changes in the architecture of the network will not only enable new generations of applications built around a VoIP architecture, but that those applications can be brought to market by carrier-independent third parties.

CallWave’s 825,000 customers pay on average $5 per month in subscription fees to be able to manage their calls better and to bridge those calls across multiple access technologies.

"We’re kind of an Internet content provider except our particular application is telephone call information, including the real time call being moved over the Internet," Hofstatter said.

The Level 3 relationship will allow CallWave to transport calls over an IP-based network backbone while providing them with additional local numbers. It also will help them open up new application markets.

CallWave also partners with Earthlink, which co-brands CallWave service and offers it free for 30 days on a trial basis. However, the CallWave service does not require subscribers to make changes in their access provider. "That’s a point of distinction between our application business model, which is carrier agnostic, vs. that of a carrier who requires that you first use their transport before getting access to their enhanced services," Hofstatter said.