IDT Corporation Announces Formation of Spectrum Leasing Unit
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Newark, NJ, June 10, 2003 -- IDT Corporation today announced that it has formed a spectrum-leasing unit within IDT Solutions. The announcement is in response to the Federal Communications Commission’s (FCC) ruling that allows spectrum licensees to enter into leasing arrangements with other companies. The newly formed business unit will oversee the lease of spectrum to telecommunication and wireless service providers nationwide. IDT Solutions is a marketing arm of Winstar Holdings, LLC, a wholly owned subsidiary of IDT Corporation, (NYSE: IDT, IDT.C), a multinational carrier, telephone and technology company.
IDT, through Winstar, is the largest holder of commercially licensed fixed wireless spectrum in the United States, covering all 50 states. The area-wide licenses that Winstar holds provide an average of 615 MHz of capacity in the top 200 U.S. census markets. The Winstar spectrum portfolio includes ample millimeter wave spectrum in all major and minor markets. For example, the Company possesses over 1750 MHz of area-wide spectrum in the New York City metro area. With leased spectrum, telecom service providers will be able to expand and improve broadband connectivity, high-speed Internet access and local phone services. In addition, wireless companies can fill in cellular dead-zones, enhance existing infrastructures, and expand their offerings to rural areas.
“The FCC decision to make spectrum more readily available through leasing is a boon for telecommunication and wireless companies and a fantastic business opportunity for IDT,” said Jim Courter, IDT’s CEO. “Companies taking advantage of this newly available spectrum will be able to expand their telecommunications offerings and services that will benefit both businesses and consumers.”
“As one of the biggest holders of commercially licensed spectrum in the nation, IDT will now be able to generate revenues from these assets,” said Brian Finkelstein, CEO of IDT Solutions/Winstar. “Our ability to lease spectrum represents an additional stream of revenue that will accelerate our move towards profitability.”
IDT Solutions will launch a marketing campaign in the next 30 days to announce pricing and leasing options available to businesses.
IDT Corporation, through its IDT Telecom, Inc. subsidiary, is a facilities-based, multinational carrier that provides a broad range of telecommunications services to its retail and wholesale customers worldwide. IDT Telecom, by means of its own national telecommunications backbone and fiber optic network infrastructure, provides its customers with integrated and competitively priced international and domestic long distance telephony and prepaid calling cards. IDT and Liberty Media Corporation own 95% and 5% of IDT Telecom, respectively. IDT Media, Inc. is the IDT subsidiary principally responsible for the Company's initiatives in media, new video technologies and print media. Winstar Holdings, LLC is the IDT subsidiary through which we provide broadband and telephony services to commercial and governmental customers through a fixed-wireless and fiber infrastructure. In December 2002, we announced that the services provided by Winstar would begin to be offered under the name "IDT Solutions." Net2Phone, Inc., which we reconsolidated effective August 1, 2002, is a leading provider of high-quality global retail Voice over IP services, either directly or via a partner.
IDT Corporation common shares trade on the New York Stock Exchange under the ticker symbols IDT and IDT.C.
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate, “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by SEC Form 10-K (under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations”), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. These factors include, but are not limited to, the following not limited to, those described in our most recent report on: potential declines in prices for our products and services; our ability to maintain and grow our retail telecommunications services, particularly our prepaid calling card business; availability of termination capacity; financial stability of our customers; our ability to maintain carrier agreements with foreign carriers; effectiveness of our marketing and distribution efforts; increased competition, particularly from regional bell operating companies; our ability to manage our growth; competitiveness of our Winstar subsidiary; impact of government regulation; our ability to obtain telecommunications products or services required for our products and services; and general economic conditions, particularly in the telecommunications markets. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
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Jun 10, 2003 |
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