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 Frontier and IDT Ink $52 Million, Long-Term Capacity Deal
New York, NY (FALL INTERNET WORLD) - October 7, 1998 - Frontier
Corporation (NYSE: FRO) and IDT (NASDAQ: IDTC) jointly announced
today Frontier will supply IDT with nationwide network capacity,
in a $52 million long-term bandwidth and maintenance deal. The
agreement gives IDT additional network facilities that will enable
it to rapidly expand the range and reliability of its IP and voice
services, as well as lower its existing network costs.
IDT preferred to partner with Frontier, an integrated data and
voice
communications company, as opposed to a purely fiber company,
due to the significant cost benefits, including interconnects
and fiber routing
management. The agreement provides for an OC-3 backbone with DS3s
to other major cities. IDT will now be able to offer broader band
IP telephony,
national long distance and 10xxx services, reduce 800-origination
costs, and provide originating and terminating carrier traffic
in all major cities.
"Through this relationship with Frontier, we expect to route
more calls on
our network and cut our costs substantially," said Howard
Jonas, IDT's
Chairman and CEO. "Since IDT has become a facilities-based
carrier, we have reduced overall costs significantly, and have
migrated much of our traffic on our own network, which is much
more cost-effective than utilizing a
leased network. We look forward to a prosperous relationship with
Frontier,
where we can better utilize each other's facilities, strengths
and key
relationships in future agreements."
"The Frontier Optronics Network provides our customers the
most flexible and scalable data network in the industry,"
added Frontier CEO Joe Clayton. "Because we view all network-based
communications as data, we are able to offer our customers a national
fiber infrastructure designed for today's communications needs
and tomorrow's more complex network applications. This agreement
reinforces that the Frontier Optronics Network will drive Frontier
into the future, as we continue to partner with full-service
telecommunications companies such as IDT."
Connecting more than 120 metropolitan areas around the nation,
the Frontier Optronics Network uses the most advanced fiber optics
with DWDM. This future-proof design creates "liquid bandwidth,"
scalable architecture giving the network virtually unlimited capacity.
Upon completion, the entire Optronics network will exceed a capacity
of 460 Gbps. Such capacity can service any or multiple applications
customers may deploy to support their business goals, now and
well into the future.
"There's more to a network than just fiber in the ground,"
said Jonas. "We
are very impressed with the Optronics Network that Frontier has
today, and
how they are designing it with its customers' future growth opportunities
in
mind. Combined with the flexibility of the company's management
team,
Frontier is a perfect partner for our expanding company."
Frontier Corporation is one of the leading providers of integrated
communications services -- including Internet, IP and data applications,
long distance, local telephone and wireless -- to business customers
nationwide. The self-healing Frontier Optronics NetworkSM provides
customers with faster transmission speeds, greater bandwidth capacity
and unrivaled reliability. For more information, visit the Frontier
Optronics Network web site at http://www.optronics.net and the
Frontier web site at
http://www.frontiercorp.com.
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, Net2Fax, and Click2Talk. For more information
about IDT's Internet telephony services, please visit www.net2phone.com.
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.
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