IDT will provide local and inter-exchange network access, termination, origination and other related services to Net2Phone for the provisioning of cable telephony services. Net2Phone offers an outsourced managed replacement telecommunications service that cable operators can sell to their residential subscribers. Under the deal, IDT will provide Net2Phone Cable Telephony with its IXC and CLEC services at favorable rates. IDT will also support Net2Phone in its sales efforts to cable operators. In exchange for such favorable pricing, access to LEC and IXC facilities and exclusivity to market to cable operators, Net2Phone will grant IDT shares of its Class A common stock, which will vest at the rate of 1.38 million shares per year for five years, subject to certain performance standards to be met by IDT regarding the provision of such services.
The companies said their partnership would enable the delivery of features that raise the level of the consumer offering to that of replacement phone service, including but not limited to 911 service, CALEA, Operator Assisted Services, and procuring inbound telephone numbers. IDT’s network includes switching facilities in over 20 US cities and additional points of presence in more than 10 countrieshttp://net2phone.com
http://www.idttelecom.com
