Net2Phone, AT&T strike network deal
By Jeffry Bartash, CBS MarketWatch
Last Update: 2:10 PM ET Aug 31, 1999
NewsWatch
Earnings Surprises
BASKING RIDGE, NJ (CBS.MW) -- AT&T on Tuesday said it struck
a five-year with Net2Phone that will expand the global reach of the
Internet phone provider.
Under the deal,
AT&T (T: news,
msgs) will provide
Net2Phone space in
17 countries to the
long-distance carrier's
so-called gateways,
allowing Net2Phone
to provide service in
those new territories.
Another 12 countries could be added to the agreement eventually, the
companies said. AT&T will also help manage Net2Phone's
Internet-based network.
The agreement is worth $100 million for AT&T.
Net2Phone allows users to make long-distance calls over the Internet at
far lower costs than wireless or regular phones.
"By effectively utilizing AT&T's robust network and co-locating our IP
telephony gateways at their points of presence, we can now offer better
service and lower cost to our customers as well as expand our IP scope,"
said Mordy Rothberg, executive vice president of Net2Phone.
The Net2Phone (NTOP: news, msgs) service can be accessed by
computer, fax and even by phone. Founded in 1997, the company
already has 250,000 customers and is one of the Internet sectors hottest
stocks.
In recent trading, shares jumped 5 7/8 to 78 1/2. The stock has nearly
tripled since going public in late July. See Thom Calandra's StockWatch |
