tit for tat...IDT Launches "Project David"; New Telecom Solution Offers
Full-service Communications Services Incorporating Dedicated Internet
With IP-based Phone Calls
BusinessWire, Monday, June 29, 1998 at 07:48
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Designed to break down archaic and outdated "Goliath"-like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.
CONTACT: IDT Public Relations
Sarah Hofstetter, 201/928-2882
or
IDT Investor Relations
Ilan Slasky, 201/928-4316
KEYWORD: NEW JERSEY
INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED
INTERACTIVE/MULTIMEDIA/INTERNET
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