Interesting news out on IDTC:
( BW)(IDT)(IDTC) IDT Launches "Project David"; New Telecom Solution
Offers Full-service Communications Services Incorporating Dedicated
Internet With IP-based Phone Calls
ÿÿÿÿBusiness Editors
ÿÿÿÿHACKENSACK, N.J.--(BUSINESS WIRE)--June 29, 1998--
ÿÿÿÿ3.5 cent/minute domestic rate and 10 cent per minute international
ÿÿÿÿrates to Latin America, Asia, Europe, and Middle East
ÿÿÿÿLeading the charge in the convergence of voice and data networks,
IDT Corporation (NASDAQ: IDTC) today unveiled a new plan to market a
corporate solution enabling businesses to send both voice and data
traffic over IDT's robust IP network, resulting in drastically reduced
costs for the enterprise customer. The new corporate package, entitled
"Project David," will be available to companies in 10 major metro areas
beginning July 1, 1998.
ÿÿÿÿDesigned to break down archaic and outdated "Goliath"-like networks
and pricing, Project David brings change and innovation to the
forefront. While the world's attention is diverted by mega-mergers which
will take years to implement, Project David is available today, and is
utilizing advanced technology to incorporate voice and data onto one
robust IP network, which the Company believes will result in reduced
prices and more flexibility in the telecom marketplace.
ÿÿÿÿ"IDT has always believed in providing its customers with low-cost,
high-quality alternatives for their telecom services. We've been revered
as telecom trailblazers, and love the opportunity to present
technological breakthroughs and network improvements," said IDT's CEO
Howard Jonas, who has been called both an "Edisonian visionary" by
Forbes Magazine and a "corporate rebel," by Wired Magazine.
3.5 cent domestic/ 10 cents international
ÿÿÿÿProject David, which will include 3.5 cent-per-minute voice-over-IP
phone calling domestically and an average 60% discount on international
calls, is designed to enable MIS managers to fully integrate all
communications services under one network, and enable flexibility and
integration of voice and data networks. Rates to Europe, Asia, Latin
America, and the Middle East/Africa are as low as 10 cents per minute to
certain destinations in each continent.
ÿÿÿÿBy incorporating voice over IP directly into their PBXs, IDT
dedicated users can dial "9" to get out on a traditional phone line, and
"7" to get out on an Internet telephony line, enabling toll-quality
transmission over dedicated lines.
Half-Price High-Speed Internet Access
ÿÿÿÿIDT corporate dedicated users will get up to twice the speed of
current national dedicated ISPs at half the price of current national
dedicated providers. For example, UUNet charges customers $2,245 per
month for a full protected T-1 on a two-year contract, while IDT charges
only $1,050 for the same service. By connecting corporate users to IDT's
DS3 backbone via dedicated lines, the high-speed connectivity will allow
calls to be carried at full toll-quality.
"Bit" Pricing vs. Minute Pricing
ÿÿÿÿAfter evaluating the cost benefit of charging calls by the bit
rather than by the minute, IDT has concluded that by charging IDT's new
low rates, it will cost end users significantly less to buy by the
minute than to pay by the bit. While some companies plan to introduce
"bit" pricing later in the year, IDT is bringing this low cost service
to the corporate customer today.
ÿÿÿÿ"Many companies can offer dedicated Internet service or phone
service, and some can even offer voice over IP service, but NO ONE can
provide the full-service solutions that IDT can today," said Jonas. "By
fully integrating our telecom, Internet, and Internet telephony
services, we will revolutionize the industry with phenomenal speed,
exceptional quality, and unbelievable prices."
Pure convergence; Full Integration
ÿÿÿÿThrough IDT*s new corporate plan, companies will be able to route
both data and voice efficiently over a single dedicated IP line,
enabling reliability, speed, scaleability, and security. Businesses will
be able to make phone calls, send faxes, and run multiple applications
on the Internet at fast speeds through a single connection -- and at
tremendously low rates. Web sites will load instantly, phone calls will
go through clearly, and all services can be maintained on IDT's managed
network.
ÿÿÿÿ"MIS managers are going to love this because you can put everything
onto one flexible network," said Hal Brecher, IDT's Executive VP of
Operations. "Historically, reliability and price have been the two
primary factors affecting the decision making process when it comes to
both telecom and Internet, and now we can provide both dependably
through this innovative program. By offering a 40-60% discount on
dedicated service and a 50-70% discount on phone service, this clearly
positions us as a full-service communications company, and we expect a
strong response to this new program."
IDT: Revolutionary Telecom Pioneers
ÿÿÿÿThis is not the first innovative program brought to the
communications arena by IDT. IDT invented international callback, was
the first to bridge the Internet with the traditional telephone network,
introduced the first flat-free Internet pricing, and was the first to
roll out a nationwide Internet-based long distance service.
ÿÿÿÿThe 10 metro areas targeted by the program will be New York, Boston,
Miami, Washington, DC, Chicago, Philadelphia, San Jose, Los Angeles,
Houston, and Atlanta. More cities will be rolled out in the coming
months.
About IDT
ÿÿÿÿIDT 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 and Net2Fax.
ÿÿÿÿExcept 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.
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