LONDON -- Gamma Telecom, the UK's fastest growing alternative service provider, is installing Marconi Corporation plc's (London: MONI and NASDAQ: MRCIY) next-generation SoftSwitch platform to deliver Internet Protocol (IP)-based services and meet confirmed and forecast growth requirements from its indirect reseller channels.

The operator has begun the process of replacing its existing Time Division Multiplexing (TDM) infrastructure with next-generation Marconi SoftSwitches; a process that will be complete by the end of 2005. Once implemented, this will enable Gamma's resellers - operating in the small to mid-sized enterprise (SME) market - to offer new IP services to their customers.

The Marconi SoftSwitch infrastructure will allow Gamma Telecom to continue to support existing Carrier Pre-Select and Indirect Access customers without the need to invest in additional legacy technology, while enabling the carrier to be one of the first to implement an end-to-end next-generation network. In particular, it will allow the operator to offer resellers the ability to provide new services to the SME market, such as instant messaging and new voice services, as well as hosted IP Private Branch Exchange services, such as IP Centrex. As demand for these new services grows, the flexibility of the Marconi SoftSwitch will allow Gamma Telecom to keep pace with market demands with minimal capital outflow.

"The Marconi SoftSwitch presents us with the opportunity to invest in a next-generation platform that will deliver significant operating and capital costs savings while supporting new services," said Phil Corbishley, chief executive officer of Gamma Telecom. "In the first phase of our investment programme, we have begun to deploy Class 4 variants of the SoftSwitch to expand our existing network capacity before moving on to Class 5 PSTN replacement. This strategy will enable us to continue to support existing revenue streams, while offering a new breed of IP services for our resellers to provide to end users."

Marconi Corp. plc

Gamma Telecom Ltd.