Mr. Pink, I have previously addressed both the technology and valuation isses. Now I would like to talk about last mile issues. As I am sure you know this is the key issues with most ld carriers. For those that don't know, lets say that you buy a circuit from LA to NY, or better yet from London to Frankfurt. You have very agressive pricing taking you through RIU (right of usage0 and making fgood money. After the call reaches its destination you then hace to deal with the LEC (local exchange carrier) who will charge a termination fee that sometimes can equal the cost of the entire circuit. So, you can have the best most aggressive pricing possible. But, without favorable termination agreements. You will not make money. This is indeed where IDT really shines. I am pleased to inform you that IDT has the most favorable termination agreements of ANY carrier all over South America, to OMan, to Saudi Arabia and all of Europe. Indeed IDT's tates are so low that AT&T, Sprint and WCOM all pay us a fee to travel out network and terminate this calls because IDT' has more favorable rates. At the end of this post I will give you just a few examples of some of these agreements. They are with the largest monopolies in Europe etc. Now, one may ask themselves. Why does IDT get a more favorable rate than say AT&T. The answer is simple. If France Telecon gave a favorable rate to AT&T, they would want the same in return. Finally, IDT's business model has always had the termination rates for these calls prices in at FULL PRICE. Therefore as we develope these favorable terminattion agreements. They are gravy.
Hope this helps you with your final concerns and await any further questions. Now lets get long on this sucker and RUMBLEEEEE.
(BSNS WIRE) IDT Teams With Global Telecom Carriers
IDT Teams With Global Telecom Carriers
Business Editors/High Tech Writers
HACKENSACK, N.J.--(BUSINESS WIRE)--Jan. 29, 1999--
Deals with Deutsche Telekom, France Telecom, Telefonica, and
Swisscom N.A. help IDT's worldwide expansion
As part of the company's strategy to forge pacts with the world's
leading telecommunications providers, IDT Corporation (NASDAQ: IDTC)
announced today that it has signed agreements with four major
European-based telecoms to establish a direct fiber-optic connection
between the companies for international long distance service.
Through agreements with France Telecom (NYSE: FTE), Deutsche
Telekom (NYSE: DT), Swisscom N.A. (NYSE: SCM), and Telefonica (NYSE:
TEF), IDT will be able to provide better access and lower termination
rates to a number of countries throughout Europe.
According to TeleGeography '99, an industry trade publication,
among the world's carriers, Deutsche Telekom, France Telecom,
Swisscom, and Telefonica ranked respectively, 3rd, 5th, 8th and 16th
in terms of outgoing international traffic.
"Each of these carriers rank among the top twenty of the world's
largest telecoms, and we are very excited about the opportunity to be
working with such prominent and established carriers in the business,"
announced Jim Courter, president of IDT.
The agreement establishes direct channels between the companies'
international switching points and IDT's facilities in the United
States and United Kingdom. In Europe, IDT already has established a
strong presence in the U.K. with its facilities-based switch, and has
purchased more than 12,000 km of undersea cable connecting the U.S.,
Canada, and U.K. The company already has numerous operating agreements
with carriers worldwide, and plans to continue the worldwide network
expansion well as joint partnerships and operating agreements.
"These carriers have recognized the global expertise and
capabilities that IDT can provide, and have therefore chosen to
partner with one of the fastest-growing emerging multinational
emerging carriers," said Geoffrey Rochwarger, IDT's senior vice
president of Telecommunications. "The opportunities provided by the
deregulation of the European telecom marketplace has enabled us to
leap forward and capture market share in a short period of time, and
we hope to continue our strategy of entering markets as they allow for
deregulation."
IDT is a leading emerging multinational carrier that combines its
position as an international telecommunications operator, its
experience as an Internet service provider and its leading position in
Internet telephony to provide a broad range of telecommunications
services to its wholesale and retail customers worldwide. The company
provides its customers with integrated and competitively priced
international and domestic long distance, pre-paid calling cards,
Internet access and, through its Net2Phone product offerings, Internet
telephony services including Net2Phone Direct, Net2Fax, and
Click2Talk. For more information about IDT's Internet telephony
services, please visit www.net2phone.com.
Except for historical information, all of the expectations and
assumptions contained in the foregoing are forward-looking statements
involving risks and uncertainties. Important factors that could cause
actual results to differ materially from such forward-looking
statements, include, but are not limited to, the competitive
environment for Internet telephony, changes of rates of all related
telco rates and services, legislation that may affect the Internet
telephony industry, IDT's ability to operate the services described on
a large scale commercial level. For additional information regarding
these and other risks associated with the company's business refer to
the company's reports filed with the SEC.
--30--sw/ny* dn/ny
CONTACT: IDT, Hackensack
Public Relations: Sarah Hofstetter, 201/928-2882
Email: sarah@hq.idt.net
Investor Relations: Janine Kutliroff, 201/928-4391
Email: janinek@hq.idt.net
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
INTERACTIVE/MULTIMEDIA/INTERNET PUBLISHING
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