DIL:CA V.DIL

Management Discussion and Analyisis

[johnrambo]

The particular area of interest is below both the long and short term objectives of the company.  What they mean by short /long is another question.

The short term objectives of the Company are:
-• to launch with existing Partners in Europe to generate revenue;

-• to file Patents internationally; and

-   to further develop the sales funnel and increase market reach.

The Company’s long term objectives are to: 

-• acquire subscribers primarily in Europe to be accomplished by executing existing Partner rollout

plans on schedule and moving into new markets where Partners operate;

-• develop new technologies (and intellectual properties) and introduce them into the VoIP

marketplace to be achieved by continuing research and development projects that enhance and

compliment existing technologies; and

-• be profitable and cash flow positive by using Digifonica’s unique business approach to generate

revenue, profit and positive cashflow for Digifonica and its Partners.


FURTHER

The Company has spent four years developing a VoIP network and a number of partners sales and self

management tools. It has built an entire VoIP platform; undergone a successful technology audit in

November 2006 with favorable results; deployed two nodes, one in England and one in Canada; created

tools to allow its partners to market and sell the service; signed seven partner contracts; conducted two

successful partner pilot programs; and filed certain United States Patent Applications.

Digifonica's management team is well known in the telecommunications sector and has created a sales

strategy allowing it to focus on efforts with partners who have established brand identity, products and

services. Research supports that there are many opportunities ahead for VoIP and Digifonica has

positioned itself well to be able to offer attractive services and products into this market.

John J. Rambo