IDT *(idtc) following this new issue?* Message Board

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Technology Stocks : IDT *(idtc) following this new issue?*

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To: Diamondhead who wrote (12935)	8/11/1999 8:11:00 AM
From: Hawaii60	Read Replies (1) of 30916

Diamond, 1. The prepaid card business is already a high margin business. One of the reasons is it utilizes off peak circuits with discounted rates. The more competitive domestic rates become. The cheaper off-peak usage becomes and therefore IDT's already high margins on this traffic will expand. 2. Calling card prices will not go down. This is a cash cow business with a captive audience. We are not talking about the AT&T calling cards you might carry in your wallet here. We are talking about calling cards sold in over 100,000 locations to primarily ethnic folks who do not have access to normal credit facilities and use the cards to call home. This is a huge business. 3. A price war in the domestic market helps IDT because you can bet they are part of the solution. Not the problem. Do you think FON is offering these cheap rates without IDT and NTOP's assistance? I think not. 4. Finally, please bear in mind that something like 95% of NTOP's business is INTERNATIONAL. A lowering of domestic rates will not effect profitability or margins whatsoever. If anything they use it as a loss leader to attract International customers.

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