Its an all out Tug-O-War>
( BW)(IDT)(IDTC) IDT Launches "Project David"; New
Telecom Solution Offers Full-service Communications
Services Incorporating Dedicated Internet With IP-based
Phone Calls
Business Editors
HACKENSACK, N.J.--(BUSINESS WIRE)--June 29, 1998--
3.5 cent/minute domestic rate and 10 cent per minute international
rates to Latin America, Asia, Europe, and Middle East
Leading 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.
Designed to break down archaic and outdated "Goliath"-like networks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.
"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
Project 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.
By 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
IDT 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
After 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.
"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
Through 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.
"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
This 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.
The 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
IDT 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.
Except 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. |
