SOURCE: Nettel Holdings

January 30, 2007 09:48 ET

AVOP Gears Up for Activation of New Suppliers on Its Network

PORTLAND, OR -- (MARKET WIRE) -- January 30, 2007 -- Nettel Holdings, Inc. (OTCBB: NTTL), Berlin and Frankfurt Stock Exchanges (NT7, WKN 727487), AVOP division gears up for activation of new suppliers on its network.

As reported in a previous press release, progress from telecom sales over the past two quarters has been overwhelmingly positive. Current buyers are very satisfied with our performance and consistency. They have been placing orders for additional telecom minutes at a much larger volume than what our current suppliers can provide. We have received firm commitments from these buyers for over 2 million minutes per day valued at about $100,000.

Since that announcement, we have signed up and activated a large number of direct suppliers that will be able to meet the volume and rates requirement of our current buyers. However, besides meeting the volume and rates criteria, suppliers will have to also meet our minimum requirement in the following areas: call duration, call completion ratio, voice quality, and traffic reliability (how often does this supplier's route go down).

This can only be done by sending large amounts of minutes daily over a period of time directly from AVOP to the supplier's gateway. Over the past few days, AVOP have started to send a high volume of live test calls daily to each of these suppliers. During the test, AVOP sent between 60-70k minutes per day per supplier to different destinations globally. These are actual live calls that AVOP received directly from different buyers. For good, reliable results, the test period can last anywhere from 7-8 weeks. Please note even though we are calling it a test period, all minutes processed are recognized as good revenue for AVOP.

Each day account managers monitor progress reports on each supplier for voice quality, call completion ratio, call duration, and route reliability. Account managers also give out constant feedback to each supplier on progress and areas where they need to improve. At the end of the test period, we estimate only about 20-30% of the suppliers will meet our minimum criteria. The success percentage is very much industry standard.

Many of our buyers are large major residential and business long distance carriers. AVOP is committed to offering the highest quality to all clients, regardless of long or short term needs. We don't always look for suppliers with the cheapest rate or the largest volume. Sometimes, we may choose to send calls to suppliers with only 10% profit margin but have good quality versus a supplier with 18% profit margin but have bad quality. However, because of AVOP's unique business model in offering the seller same day payment terms, we tend to get a much larger number of suppliers with good quality and rates versus if they have to wait 15-30 days to get paid, plus we get access to a much larger pool of suppliers.

In addition, to prepare for the anticipated traffic, AVOP today commissioned three additional Cisco as5800 servers for placement at a third collocation center for additional redundancy.

Nettel has dedicated the past 2 years to research and development of our networks, technologies, and personnel, paying particular attention to equipment upgrades as needed. According to Michael Nguyen, CEO of Nettel Holdings, "We keep a watchful eye on spending habits while acquiring state-of-the-art features and maintaining the highest standards of quality."

For additional information on AVOP, please visit our website at

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