To: md1derful who wrote (58 ) 1/5/2000 1:32:00 AM From: Steve Fancy Respond to of 593
Internet Phone Company Net2Phone, Panasonic Set To Offer Web Telephone Dow Jones Online News, Jan 5, 2000 00:10 hrs By Rebecca Blumenstein, Staff Reporter of The Wall Street Journal NEW YORK -- Internet phone company Net2Phone Inc. and Panasonic Consumer Electronics Co. are planning to launch a line of telephones that feature a special button to connect to Internet phone networks. The pact, expected to be announced today, could widen the reach of Internet calls by making it easier for consumers to dial into the lower-cost Internet networks. Until now, companies such as Net2Phone have been able to get callers onto their service only by registering them online and asking them to dial special access numbers. (Internet calls routed from computer to computer generally do not require such a code.) The agreement with Panasonic calls for a new line of "One Touch" cordless phones that will allow consumers to choose between their regular long distance service and Net2Phone by pressing an Internet button on the phone. It will be the first Internet-enabled telephone introduced by Panasonic, one of the world's largest phone manufacturers. The phones are expected in stores by May with a price tag of $70 to $80. "This is our first attempt to introduce a simple product that sends voice over the Internet at a reasonable cost," said Mike Roshandel, business development director for Panasonic, a unit of Japan's Matsushita Electric Industrial Co. The phones will be on display at the International Consumer Electronics Show this week in Las Vegas. Net2Phone, Hackensack, N.J., which went public in July, has recently signed a string of agreements to widen the availability of its service with companies ranging from America Online Inc. to 1-800Flowers.com Inc. AOL is one of Net2Phone's biggest investors. "This is really the start of a new set of devices that are comfortable and easy to use," said David Greenblatt, Net2Phone's chief operating officer. "We expect this to be a significant part of our revenue because the hardware will be an enabler for our services." Still, as regular long-distance rates fall to as low as five cents a minute plus monthly fees, some wonder if the appeal of Internet calling will be worth the hassle. Internet calls generally cost less because they are routed over the public Internet network in packets that don't tie up a single line, such as traditional circuit-switched calls. But Internet calling has been tagged with quality concerns because there are sometimes problems with reassembling those packets of information. Panasonic officials say teaming up with Net2Phone resolves many of those concerns because the calls will be routed using Net2Phone's Internet backbone and technology. Copyright (c) 2000 Dow Jones & Company, Inc. All Rights Reserved.