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Letter
from the President
 Welcome
to our inaugural edition of the IDT Carrier Services newsletter.
It has been an exciting year here at IDT. Our new management team
is dedicated to working with you so that you continue to be successful,
profitable and armed with even more revenue generating products
and services for your customers. We are excited about the direction
we are headed with the acquisition of Net2Phone, the pioneer and
industry leader in the VoIP arena; our partnership with VeriSign
which provides you with innovative messaging, roaming and premium
content services; and several exciting hosted solutions. These include,
for example, VoIP Telephony for your retail and business customers,
the Fixed Mobile Convergence bundle (FMC) and our recently launched
Managed Services for MSOs and other service providers.
IDT's
hosted solutions make implementation quick while keeping deployment
costs low. By removing the need to build and maintain your own
service delivery platform, IDT's suite of VoIP and Mobile products
enables you to offer leading edge technology services while saving
time and investment capital. Clearly, IDT is no longer your grandmother's
minutes carrier; rather, today IDT Carrier Services is your total
solutions provider.
I
hope that you enjoy this newsletter and the opportunity to learn
about the amazing changes we are making to offer you more profit
generating solutions. At IDT, we remain connected to our strong
past, even as we evolve to meet your needs in this most dynamic
marketplace.
Warm
regards,
Avi Lazar
President of Wholesale and Emerging International Businesses
About
IDT Carrier Services
 IDT
Carrier Services (CS) is proud of its heritage as one of the world's
leading wholesale international minutes carriers. Year after year,
Telegeography ranks us as one of the top 3 international minutes
carriers. In addition, Total Telecom ranked IDT (October 2006
issue) in its Global 100 list of largest network providers. With
over 500 carrier relationships, including the world's top tier
carriers, IDT continues to be a towering presence in the wholesale
minute space.
CS
is indeed minutes and much more. As a complete Solution Provider,
CS provides Operators with full turnkey products (Voice, VoIP
and Mobile) that can be offered to their retail and business customers.
When speed to market is important, CS Hosted Solutions is the
logical alternative. With IDT's proven experience and global partnerships,
Operators can rely on our hosted solutions to generate new revenues
without carrying the heavy CapEx burden that is normally required.
The IDT value proposition is certainly enticing - low risk and
high potential reward. The CS suite of hosted solutions includes
Voice Solutions, VoIP Solutions, and Mobile products such as inter-carrier
SMS and MMS services.
Additionally,
IDT CS is an incubator for products and services that our customers
desire but may not have the time or resources to develop. With
IDT's global customer base, we enjoy an inherent scalability that
enables us to dedicate the necessary resources to develop your
company's product of choice. Again, the value proposition is clear
- IDT shoulders the burden of development, you enjoy the new revenue
streams.
IDT-Net2Phone
Merger
 IDT
Corporation and Net2Phone Inc., a leading VoIP enabler for service
providers, merged earlier this year.
Net2Phone
provides SIP and wireless hosted solutions to carriers across
the globe. As a leader in turn-key hosted VoIP telephony services,
Net2Phone has routed billions of VoIP minutes globally, servicing
hundreds of thousands of customers worldwide. Now as IDT, we will
provide additional global reach and accelerate the customer uptake
of these highly sought after hosted VoIP solutions. The combination
of IDT's global reach and Net2Phone's best in class technology
provides our customers with the high confidence and ease of access
to enter today's fastest and most dynamic market.
With
Net2Phone's addition to the IDT family, customers can now take
advantage of award-winning products and services such as VoiceLine,
VoiceDirector, VoiceAccess and VoiceCafe.
News
from Around the Globe
The
Americas
The CS Miami Office recently closed the first sale of
IDT's newly released Collocation Service. With many more deals
already in the pipeline, IDT Collocation is proving to be a valuable
asset to our carrier partners worldwide.
 IDT
Collocation Service offers its customers a secure, reliable and
aggressively priced managed space with the ability to interconnect
to premium telecom networks. It also boasts a carrier neutral
space within South Florida's premier carrier hotel and enables
customers to deploy and operate critical communication equipment
for immediate access to high quality carriers 24/7.
IDT
Collo in Miami, Florida is strategically located to serve North
America, Latin America, and the Caribbean with high bandwidth
connectivity. IDT Collo enables carriers to achieve rapid interconnection
with key service providers also located in the hotel.
For
those who seek high capacity interconnects with Tier 1 partners,
IDT Collo offers premium service and advanced technology at an
attractive price point.
To
learn more regarding this topic, please contact Meg Collin +1
973 438 3696 or email meg.collin@corp.idt.net.
Europe
Our CS team is now present in 8 countries. We are ideally
set up to serve our ever-increasing base of European Carrier Partners.
IDT Europe continues its explosive growth, adding 25 new carriers
in the last 3 months alone, in addition to our already very comprehensive
roster of carrier relationships. Additionally, CS recently rolled
out its hosted VoIP and Mobile solutions across Europe, with many
qualified opportunities in the product pipeline.
The
European team has been organized into regional groups (Northern,
Southern, Germany/Eastern Europe) to meet the diverse needs of
our expanding customer base. We also have created a team focused
on the special needs of new business relationships.
 New
UK Office
Our UK headquarters have moved to a new office in London! Come
visit us at: IDT Global Ltd, IDT House, 44 Featherstone Street,
London EC1Y 8RN. Phone: +44 (0) 20 7549 6000.
 New
Mideast Office
We have just opened our office in Dubai to serve you better. Operating
from the commercial and high tech hub of the Middle East, IDT
is a strong network of PTT and mobile interconnects. Stop by when
you are in town: Jebel Ali FreeZone, LOB 16, Office 134, Dubai,
UAE, PO Box: 213461. Phone: +971 4 8819773\
Middle
East/Africa (MEAF) Expansion
Recognizing the tremendous value that IDT has brought to the region,
MEAF carriers increasingly have been taking advantage of IDT's
products and services. Continuing the brisk expansion of our family
of telecom partners, we proudly welcome Carrier Partners from
Kenya, Sudan, Ivory Coast, UAE, Saudi Arabia, Zimbabwe, Turkey,
Bahrain, and Nigeria. Whether its our hosted IP services, services
for mobile operators, Managed Services or IDT's traditional voice
product, MEAF operators are lining up to take advantage of the
Carrier Services product portfolio.
Asia
IDT Asia sets record high minutes With ever increasing demand
by Asian carriers for interconnects with IDT and its international
switching facility, IDT Asia has reached a record high of 170M
minutes per month of traffic and is well on track to surpass the
2 billion minutes mark by the end of the fiscal year.
IDT
Asia Star Search
In addition to providing debit platform services for one of the
largest carriers in the Philippines, IDT currently offers calling
cards in Hong Kong, Korea and Singapore, and as we go to print,
is launching sales in Australia and Japan. IDT Asia is supporting
the search for the next singing sensation in Hong Kong. IDT's
Tawag Na's prepaid calling card, which is used to access the Konek
Pinoy information service, will be the exclusive ticket to enter
the Tunog Pinoy Star Search competition. Contestants must record
their songs on the Konek Pinoy platform using an IDT Tawag Na
phone card. The Grand Champion will receive a recording contract
with VIVA Records plus a Hong Kong-Philippines roundtrip air ticket.
IDT
selected as preferred provider of Western Union
Western Union, the global leader in money transfer services, has
launched its "Instant Phone Time" loyalty program in
Hong Kong, Australia and New Zealand, and IDT was selected as
Western Union's preferred provider in the Asia Pacific region.
Market
Trends
Without
a doubt, the VoIP trend continues to grow in multiple sectors.
If VoIP began as a transport method for many carriers, those same
operators today are asking how they can build a subscriber and
enterprise customer base in the face of rising VoIP competition.
Given
the explosion of VoIP service providers, today's carrier must
devise strategies to quickly address the growing threat. True,
today's total fixed line subscriptions number an impressive 1.5
Billion. But that total has remained relatively static ("Hot
Telecom 2006"). By contrast, worldwide VoIP subscriptions
at the end of FY'05 were only 24 million, but grew almost 65%
for the year. Remarkably, IP retail telephony revenues grew a
full 89% in '05 ("Point Topic 2006"). In the business
sector, IPBX orders and installations are growing briskly. In
the US alone, IPBX installation will outpace traditional PBX installs
in the next 6 months, and close in on the $4 billion revenue mark
("TIA; Infotech"). In this shifting landscape, traditional
telecoms are facing opposing forces: the desire to retain and
capture new customers by entering the VoIP space, and the complexity
of creating an end to end VoIP service offering including all
the operational support systems such as billing and provisioning.
According
to IDT CS Senior Vice President Robby Schiff, "we found that
the simple answer to the carriers' paradox is a complete hosted
VoIP solution, where the carrier does not have to build a new
phone service from the ground up thus avoiding CapEx, engineering
and other business process challenges associated with a new service."
Furthermore, hosted solutions enable operators to quickly enter
markets while the burdens and risks are primarily shouldered by
the hosted service provider. Adds Schiff, "this analysis
continues to be proven out."
Since
the summer, when IDT began its worldwide rollout of hosted VoIP
solutions, the sales force has filled the pipeline with dozens
of qualified opportunities. As the trend toward VoIP progresses
with no halt in sight, it is clearly those operators that understand
how to play in the space while minimizing their exposure who will
truly reap the rewards that VoIP has to offer.
Business
Briefs
- IDT
celebrated the 5th year of its listing on the New York Stock
Exchange, since it's move from NASDAQ, by ringing the Bell on
the trading floor. The March 16th event celebrated IDT's many
accomplishments but the spirit of the day was clearly focused
on the future.
- March,
2006 - IDT Corporation sold its Corbina Telecom division, which
operates a licensed full-service telecommunications business
in Russia, for approximately $146 million USD.
- IDT
climbed to 698 from 705 on this year's Fortune 1000 list. (April
17, 2006) IDT was favorably featured in Barron's magazine (May
29, 2006).
- "IDT's
assets are worth more than it's getting credit for, " the
magazine says. "It's not a stretch to say that 'IDT's four
divisions,' (Telecom, Spectrum, Net2Phone and Capital) are worth
$1 billion. Add that to the $1 billion in cash and that gets
you at least $25 a share."
- September
29, 2006 - IDT Corporation completed the sale of IDT Entertainment
to Liberty Media Corporation for an estimated $500 million,
and will participate in 25% of its appreciated value over the
next 5 years.
- October
12, 2006 - IDT closed the sale of IDT's U.K.-based Toucan consumer
phone services business to Pipex Communications plc (AIM: PXC.L)
for £20m in cash and £4m in Pipex stock.
- October
17, 2006 - IDT Telecom launched TúYo Mobile in Los Angeles,
California. TúYo Mobile phones and recharge cards are
available at hundreds of retail outlets throughout Los Angeles
and Orange County.
- IDT
has deployed over 230 switches on four continents with seven
international gateway switches. Additionally, IDT has a global
distributed softswitch platform, a fiber optic backbone network
and capacity on 17 different cable systems worldwide.
Getting
To Know Us:
Meet Max Silbershatz
 Tell
us a little about your role.
As VP of Business Development, my role is to work with carriers
worldwide. I help them to identify which of our VoIP solutions
would best enable them to capture new customers, increase customer
Average Revenue Per User (ARPU) and decrease churn.
Now
that IDT and Net2Phone have merged, tell us about what new products
are available.
IDT offers its customers a robust suite of VoIP solutions for
every regional and demographic market segment. Our VoiceLine broadband
telephony service is a full Class 5 phone line replacement solution
for the residential and SOHO market. For the Small to Medium enterprise
market, we have the VoiceDirector full-featured IP PBX and VoiceAccess
VoIP trunking solutions. We also enable partners to offer more
traditional products, such as calling cards and call shop solutions.
Would
you share with us a success story?
Gladly. We have successfully deployed services with carriers worldwide,
including: The Caribbean, Philippines, Colombia, Brazil, in the
Mideast and many more.
About
two years ago, we launched calling card services with Cable &
Wireless in the Cayman Islands. As a result of the businesses'
success, C&W expanded their product set to include a Broadband
Telephony solution, branded "NetSpeak". C&W's objective
for this service was to sell end users a bundle of voice and data
services which enabled C&W to differentiate their offerings
from competitors. The voice component included an unlimited calling
plan and an international phone number, all for a fixed monthly
price. C&W was able to increase their customer ARPU due to
the fixed monthly price of the service. The program was so successful
that we now serve all 13 Caribbean territories of C&W. To
see the product "live," visit .
What
does IDT offer in the converged space?
We offer a Fixed to Mobile Convergence (FMC) solution particularly
attractive to mobile carriers. The solution helps mobile carriers
create a competitive advantage and capture new market share from
fixed line providers. The solution can be deployed in phases.
Carriers can offer dual mode WIFI/Mobile phones as well as international
DIDs to subscribers with existing mobile phones.
How
can companies learn more about these opportunities?
If you would like to learn more about our services, please contact
your local IDT account representative to schedule an introductory
call with our team.
Partner
Spotlight: VeriSign
 IDT
Telecom and VeriSign, a leading provider of intelligent infrastructure
services for the Internet and telecommunications networks, recently
announced a multi-year agreement to jointly market advanced services
to mobile operators.
IDT
Telecom will offer VeriSign's Inter-Carrier Short Messaging Service
(SMS), Multi-Media Messaging Service (MMS) and Voice Roaming Settlement
and Exchange services in the emerging markets of Eastern Europe,
Africa, Asia, Central America and Latin America. The services
will facilitate interoperability between disparate carrier networks
and devices.
The
combination of IDT's extensive market reach in emerging markets
and VeriSign's managed communications services will enable mobile
operators to introduce innovative messaging, roaming and premium
content services that can help increase revenue and loyalty.
"International
and domestic phone companies rely on IDT for our efficient, reliable
and cost-effective routing solutions," said Yona Katz, CEO
of IDT Telecom. "Now in conjunction with VeriSign, IDT can
provide mobile operators more comprehensive solutions that meet
advanced voice and data networking needs."
"VeriSign's
intelligent infrastructure services are playing a significant
role in the growth of next-generation communications, commerce
and content for wireless and wire line providers globally,"
said Vernon Irvin, Executive Vice President and General Manager,
VeriSign Communications Services. "This relationship with
IDT Telecom will help VeriSign add customers in fast-growing emerging
markets such as Eastern Europe and Africa."
Upcoming
Conventions & Trade Shows
IDT
Representatives will attend the following conventions and trade
shows:
January 24-26, 2007
Fort Lauderdale, FL
January 31, 2007-February 1, 2007
Albuquerque, NM
February 12-15, 2007
Barcelona, Spain
February 14-17, 2007
Honolulu, HI
March 13-14, 2007
Istanbul, Turkey
March 15-21, 2007
Hannover, Germany
March 20-22, 2007
San Jose, CA
March 28-29, 2007
Sao Paulo, Brazil
April 12-13, 2007
Istanbul, Turkey
April 22-25, 2007
Abu Dhabi, UAE
Your
Chance to Win an iPod Nano
 To
enter, simply send your vCard to
carrierserv@corp.idt.net by January 15, 2007.
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