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

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

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From: carreraspyder	3/6/2005 5:43:56 PM
	of 30916

Telecoms and Technology: Colombia (ntop) (trend for net2phone?; interesting telecom motivation/decision) March 4, 2005 5:14pm Business Latin America Bogotá’s telecom has allied with a US Internet phone service provider. Empresa de Telecomunicaciones de Bogotá (ETB, the city-owned telecoms company) began to offer its dial-up and high-speed Internet subscribers with the option to make domestic and international long-distance calls using so-called voice over Internet protocol (VoIP) through Net2Phone. Although ETB will hold formal exclusivity on the use of Net2Phone services in Colombia, the Bogotá telecoms company acknowledges that there will be no controls or restrictions to individuals desiring to access Net2Phone’s web directly. ETB is also aware that the US company will continue to offer lower tariffs, but it expects to counterbalance its service with more quality, plus the opportunity for users to pay in local currency and only once at the end of each month. In any event, ETB’s move is essential to prevent it from continuing losing share in the long-distance market. Company officials estimate that the agreement with Net2Phone will allow a dramatic reduction in tariffs. For example, the cost of a call from Colombia to the US would decline from US$0.30-0.85 a minute to US$0.14/minute. According to Colombia’s telecoms regulatory commission, domestic long-distance traffic dropped by 20% between January 2002 and September 2004 as providers—ETB, Orbitel and the state-owned Telecom-Colombia—lost market share to mobile telephone and internet protocol users. Government regulation grants exclusivity rights to ETB, Orbitel and Telecom-Colombia for the exploitation of long-distance services, but the protection of these rights has proven difficult. ***** web.net2phone.com

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