from yahoo thread:
NET2PHONE is a RULEBREAKER!
by: turbo_light (27/M/Santa Clara, CA) 94109 of 94110
The following is an analysis of how NTOP meets the criteria of a RULE BREAKER as defined by the Motley Fools
Important and emerging industry:
Internet Telephony certainly qualifies as an important and emerging industry. International Data Corporation estimates that the number of Internet users worldwide will grow from approximately 140 million at the end of 1998 to 400 million by the end of 2002. These users are increasingly using the Internet as a communications tool. In regards to the Internet telephony business, TeleGeography, a market research firm, estimates that the international long distance market will grow from $26.8 billion in 1998 to $79.0 billion in 2001, with consumers and businesses making an estimated 143.1 billion minutes of international long distance calls in 2001.
Sustainable advantage gained through business momentum, patent protection, visionary leadership, or inept competitors:
Net2phone's sustainable advantages lie in its bundling agreement with Netscape, marketing alliances with Geocities, Yahoo.com, Excite, Snap.com, ZDNet, IBM, Compaq, etc. A market leader, NTOP has fastest growing user base, now exceeding 280K. Its much larger competitors, such as MCi and AT&T, are slow to react because if they lower their prices to the level of NTOP's international long-distance rates, they stand to erode their revenue.
Good management(youth, visionary, smart marketing.
) and smart backing:
NTOP's management and that of its parent company, IDT Communications are young, ambitious, and visionaries. IDT's founder, Jonas Howard, obviously knows better than most people what it takes to go from "zero to millions." He wrote that book! Talking about smart backing, NTOP has received recognition and investments from industry giants. After the IPO, AOL will be owning 5.4%; Softbank owning 10.8%; GE owning 5.4%.
The stronger the consumer appeal, the better; to attract, to habituate, to profit, and to protect.
IDT is trying to create such widespread consumer appeal that it wants to become the name in the internet telephoney industry as AT & T to the telephone. That's why it has been in marketing alliances with Yahoo, Netscape, Excite, Snap.com, ZDnet, IBM, Compaq in a massive attempt to reach out to tens of millions of consumers and to habituate and profit!
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