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magicJack VocalTec and Telefonica in Latam deal

Staff writer |
magicJack VocalTec Ltd. has entered into a strategic commercial agreement with Telefonica. The agreement provides a framework under which magicJack products and services can be sold in multiple countries throughout Latin America.

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The agreement is subject to the completion of a country-specific agreement for each market. magicJack is currently working on a pilot to be launched in the second half of 2014. If the pilot yields positive results, magicJack plans to implement an accelerated rollout of magicJack offerings backed by aggressive marketing efforts in Central and South America towards the end of 2014 and into the beginning of 2015. The offerings will be co-branded with magicJack, with specific branding strategies to be set on a country-by-country basis.

"This agreement is a significant first step in implementing our international distribution strategy," said magicJack VocalTec President and CEO Gerald Vento.

"Through our longstanding relationship with senior leadership at Telefonica, we have the opportunity to significantly accelerate the near-term adoption of our device and APP in key markets in Latin America. Our focus is now squarely on making sure we finalize plans for the pilot. While it is too early to project financial results, based on our assessment of the markets so far, we are confident that we and

May 14, 2014 Telefonica can introduce strong offerings into the marketplace at compelling price points."

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