Internet telephony is an emerging technology designed to permit people to make long distance phone calls, using either their personal computers or ordinary telephone handsets as receivers and the Internet as the communications channel. Generally, firms developing Internet telephony intend that the technology will provide an alternative to ordinary long distance telephone service, without any long distance charge or for a charge substantially lower than the customary charge. Moreover, Internet telephony may support anonymous long distance telephone services, and some chat rooms are seeking to incorporate Internet telephony features into their programs. To date, consumers have failed to embrace the technology. Many agree that the voice transmission is poor and, in most cases, is not real time. Furthermore, most Internet telephony software applications require that callers have compatible hardware and software to use the system. In short, the technology is newly emerging, and the Company does not believe it poses a competitive threat in the immediate near term. However, it is possible that, should the technology improve and become a part of the PC mainstream, the technology could pose a substantial competitive threat to the Company's business.