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Technology Stocks : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: vinh pham who wrote (12975)	8/12/1999 2:28:00 AM
From: Steve Fancy	Read Replies (1) \| Respond to of 30916

Spain's Telefonica Reportedly To Form Joint Venture With IDT Corp. Dow Jones Online News, Thursday, August 12, 1999 at 02:16 (Published on Wednesday, August 11, 1999 at 23:13) NEW YORK -(Dow Jones)- Spanish telecom giant Telefonica SA has agreed to form a wide-ranging joint venture with IDT Corp., a telecommunications company that offers Internet-based telephone services, to market telephone and Internet service to Spanish speakers in the U.S. and Latin America, the New York Times reported Thursday. The companies plan to announce the venture Thursday, executives said. Madrid-based Telefonica will own a bare majority of the joint venture, according to people close to the deal. It will try to use IDT's billing and customer relationship systems to provide stronger prepaid calling card offerings in Latin America and perhaps prepaid cellular service. In the U.S., the venture may try to link IDT's (IDTC) Nuestra Voz Internet service with Telefonica's Ole! Web portal service. Hackensack, N.J.-based IDT intends to invest about $10 million in the venture initially, executives close to the deal said, though that figure could increase sharply if the venture's first initiatives succeed. In addition to the joint venture, IDT has also agreed to acquire 10% of a project begun by Telefonica to lay an underwater fiber optic communications cable around Latin America, executives close to the agreement said. The cable, which will include connections from Chile to the United States, is meant to be completed in a few years at a cost of about $1.5 billion. IDT's investment will be somewhat less than $150 million, however, because some of the $1.5 billion will be raised through debt financing, the executives said. IDT has also agreed to buy at least $100 million worth of communications services from the overall undersea cable venture over five years, the executives said. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.