(Just a CBS Update on Story) IDT's Net2Phone dials RealNetworks
Web phone firm strikes co-marketing deal
By Steve Gelsi, CBS MarketWatch
Last Update: 4:31 PM ET Feb 8, 1999
Silicon Stocks
Tech Report
HACKENSACK, N.J. (CBS.MW) -- IDT's Net2Phone said Monday it reached a
co-marketing deal with RealNetworks to offer its phone service over the personal computer to
more than 50 million RealNetworks customers.
Seattle-based RealNetworks (RNWK) will market IDT's
Net2Phone (IDTC) as a brand that enables users to make phone
calls from their PCs to any telephone in the world at reduced
rates, in the RealStore and on RealNetworks international web
pages.
Shares of IDT rose 3/16 to 16 5/16 on Monday. RealNetworks
dropped 3 3/4 to 65 1/4.
Net2Phone enables voice data transmission over the Internet's
packet switched network until it reaches traditional telephone
lines. There, the signal is converted to the circuit switched
network used by telephones, enabling the signal reception by any
phone in the world.
"RealNetworks is an ideal partner for Net2Phone, especially since all of their customers have
multimedia PCs and are very Internet savvy," David Greenblatt, chief operating officer of
Net2Phone, said in a statement.
Selling points for RealNetworks customers include two-way audio streaming, and low-cost
phone calling of 4.9 cents per minute on domestic calls.
IDT's Net2Phone will get space for its brand on RealNetworks' home page and e-commerce
area. In return, IDT will share revenue from its phone service with RealNetworks, an IDT
spokes person said.
The deal with RealNetworks follows Net2Phone relationships with Yahoo!, Excite, IBM
Global Services, Creative Labs and broadcast.com.
IDT has made news on Wall Street lately on talk that the provider of telephone and Internet
access may take its Net2Phone public.
IDT doubles as an Internet service provider, along with its role as a Web phone service
company. |
