IDC Names Net2Phone Leader in IP Telephony Services
Research by International Data Corp. Gives Net2Phone 39.4%
of Internet Telephony Marketplace, Double that of AT&T
Hackensack, NJ -- September 24, 1999 - Net2Phone (NASDAQ: NTOP)
has been named the leader in IP telephony services, according to
International Data Corporation (IDC).
In IDC's "IP Telephony Services: Market Review and Forecast, 1998
- 2004," released this month, Net2Phone (NASDAQ: NTOP) was named
the top IP Telephony Service Provider with 39.4% of the market share
in terms of minutes of use. The second largest provider was AT&T
Jens (NYSE: T) with 16.4% of minutes. According to the report, IP
telephony service revenue is expected to reach $480 million in 1999.
Revenue is expected to increase to nearly $19 billion by 2004.IP
telephony services internationally will remain the greatest share
of the market with 75%, or $17.25 billion of the IP telephony market
"This recognition re-affirms Net2Phone's lead in the marketplace.
We have achieved this through our strong commitment to providing
low-cost Internet telephony while still maintaining exceptional
quality and service," said Net2Phone CEO Howard Balter. "We expect
to continue to dominate the market."
"The numbers speak for themselves," said Mark Winther, Group Vice
President of Telecommunications for IDC and author of the report.
"The potential for Internet telephony is great, and Net2Phone has
a clear lead in this market due to its vast distribution channels
and technological lead."
Net2Phone is a leading provider of voice-enhanced Internet communications
services to individuals and businesses worldwide. Net2Phone enables
people to place low-cost high quality calls from their computer,
telephone, or fax machine to any telephone or fax machine in the
world. Net2Phone develops and markets technology and services for
IP voice and e-commerce solutions for the web and other IP networks.
For more information about Net2Phone's products and services, please
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements include, among other things, Net2Phone's expected operating
performance for the three months ending [October 31, 1999] and thereafter.
Actual results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among
others, the inherent uncertainty of financial estimates and projections,
the competitive environment for Internet telephony, changes of rates
of all related telco rates and services, legislation that may affect
the Internet telephony industry, and Net2Phone's ability to operate
the services described on a large scale commercial level.The forward-looking
statements are made as of the date of this press release, and Net2Phone
assumes no obligation to update the forward-looking statements,
or to update the reasons why actual results could differ from those
projected in the forward-looking statements. Investors should consult
all of the information set forth herein and the other information
set forth from time to time in Net2Phone's reports filed with the
Securities and Exchange Commission pursuant to the Securities Act
of 1933 and the Securities Exchange Act of 1934.
Vice President, Corporate Communications