March 31, 2004

Azea surfaces to boost submarine fiber capacity

By John†Walko
CommsDesign.com
Mar 29, 2004

LONDON ó Azea Networks, a start-up based here that is pioneering a novel way of increasing the capacity of submarine fiber optic networks. announced today (Monday 29th March) it has completed trials with Cable & Wireless that indicates a 16-fold increase in an existing system, and has also proved that bandwidth can be unlocked in line with customer demand.

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Gambling Ban Struck Down

The U.S. ban on online gambling is counter to international law and violates World Trade Organization accords on commercial services, the WTO ruled. The ruling agreed with a complaint filed last July by the Caribbean nation of Antigua and Barbuda. Antigua-based Internet companies handle one-fourth of online bets in a global industry worth $6.1 billion, and about one-sixth of Antigua's $200 million annual revenue is derived from it. "We intend to appeal and will argue vigorously that this deeply flawed panel report must be corrected by the appellate body," said Richard Mills, a spokesman for U.S. Trade Representative Robert B. Zoellick.

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Costa Rica's Leader Predicts OK on Trade

TRACI CARL

Associated Press

SAN JOSE, Costa Rica - Costa Rica's president predicted that legislative bodies in the United States and Central American nations will approve a new free trade agreement within the year.

In an interview with The Associated Press on Tuesday, President Abel Pacheco said he was optimistic the Central American Free Trade Agreement, or CAFTA, would bring trade and jobs to the region, even though it requires Costa Rica to open up its state-run telecommunications and insurance industries to competition.

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March 18, 2004

Innovative Telephone asks EDC to renew tax benefits

By TIM FIELDS
Friday, March 12th 2004

ST. THOMAS - Innovative Telephone has applied to the Economic Development Commission to renew its tax benefits.

Last week, the company announced it will invest $100 million in improvements to the territory's telecommunication infrastructure in the next five years.

The telephone company's previous five-year EDC benefit period expired Sept. 30. It applied to renew in February.

The EDC is under the umbrella of the Economic Development Authority. It offers tax breaks to encourage corporate investment in the Virgin Islands, and about 100 companies now are receiving EDC tax breaks territorywide.

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Editor's note: The VI Daily News and Innovative Telephone are both owned by Jeffrey Prosser.

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Verizon Dominicana Uses MetaSolv to Automate Delivery of Broadband Services

Dominican Republic Incumbent Operator Automates Order-to-Activation Process,
Dramatically Improving Time to Service for DSL Service Offering

PLANO, Texas, March 16 /PRNewswire-FirstCall/ -- MetaSolv Software, Inc.,
a global leader in comprehensive service fulfillment solutions for next-
generation communications service providers, today announced that Verizon
Dominicana, the largest communications service provider in the Dominican
Republic, has successfully deployed a comprehensive suite of MetaSolv software
solutions to automate fulfillment of Digital Subscriber Line (DSL) service.
The operations support system (OSS) solution, currently in production at
Verizon Dominicana, includes MetaSolv's comprehensive order management,
network resource management, and service activation capabilities as part of a
complete end-to-end solution.
"With MetaSolv's comprehensive end-to-end software capabilities, we have
reduced our time to deliver DSL service by 65 percent, resulting in improved
customer service as well as faster time to revenue," said Carlos Risi, OSS
manager, Verizon Dominicana. "This dramatic improvement has enabled us to
further distance ourselves from our competition, making Verizon Dominicana the
clear market leader for broadband service in the Dominican Republic."
The solution delivered to Verizon Dominicana includes MetaSolv's unique
integrated service fulfillment solution, which includes proven order and
network resource management capabilities coupled with a multi-vendor, multi-
service service activation platform. This combination enables service
providers to automate the complex ordering process, track and manage all
network and service resources, culminating in the activation of the service
requested by the customer.
MetaSolv's network resource management solutions have been deployed at
more than 115 service providers, and enable regulated and unregulated
ordering, management of provisioning processes, and full network engineering
and planning abilities. MetaSolv's highly scalable service activation
capabilities, deployed at more than 65 global service providers, support
hardware elements from multiple vendors. Both capabilities support
traditional and next-generation services, including Voice, VoIP, DSL, Mobile,
ATM, Frame Relay, Optical and IP.
"The Verizon Dominicana deployment is another great example of what
differentiates MetaSolv as a leader in providing complete OSS solutions. Our
automated order-to-activate capabilities enable Verizon Dominicana to reduce
service delivery times and increase customer satisfaction -- producing
measurable business results," said Joaquin Molina, vice president, Caribbean
Latin America region, MetaSolv. "We are pleased to have extended our software
deployment at Verizon Dominicana with this critical project, and we look
forward to adding greater value by enabling the automated delivery of
additional services."

About Verizon Dominicana
Verizon Dominicana, is the leader in the Dominican Republic for providing
a wide spectrum of telecommunications services for voice and data delivery
services (Full Service Provider). The company invests upwards of $200 million
annually to improve to the country's telecommunications infrastructure.
Verizon is considered an exemplary corporate citizen by the community and
continuously demonstrates its commitment to the country through projects such
as Virtual Classrooms for Education (Aulas Virtuales para la Ensenanza) and
sponsor the Santo Domingo 2003 Pan-American Games . For more information,
visit our website at http://www.verizon.com.do .

About MetaSolv
MetaSolv, Inc. (Nasdaq: MSLV) is the global leader in comprehensive
service fulfillment software solutions for communications service providers.
MetaSolv's multi-service order management, network resource management, and
service activation capabilities automate the order-to-activate provisioning
process for next-generation IP-based wireline and mobile service providers.
More than 180 global service providers -- including Brasil Telecom, Bell
Canada, BT, Cable & Wireless, Nextel, O2, T-Mobile, Vodafone, and others --
use MetaSolv's solutions to achieve increased revenues, reduced costs, and
enhanced customer service. MetaSolv is a global company, headquartered in
Plano, Texas.

MetaSolv is a registered trademark. The MetaSolv logo and MetaSolv
Solution are trademarks of MetaSolv Software, Inc. All other trademarks are
property of their respective owners.

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Cell Phone Service to Set Sail; AT&T Wireless and Maritime Telecommunications Network Join to Make Wireless Phone Service Available on Cruise Ships

MIRAMAR, Fla. & REDMOND, Wash.--(BUSINESS WIRE)--March 16, 2004--
Announcement is a First for the U.S. Wireless Industry

In a first for the U.S. wireless industry, AT&T Wireless (NYSE: AWE) and Maritime Telecommunications Network (MTN) announced today that cruise ship passengers may soon enjoy the convenience of using their wireless phones while at sea.

The companies have formed a joint venture, Wireless Maritime Services, to develop and launch an innovative and affordable communications offering that will rely on a combination of satellite and wireless services to provide the cruise line industry and its passengers with on-board wireless service. The joint venture will combine MTN's expertise in providing satellite services to the cruise industry with AT&T Wireless' expertise in delivering wireless services to consumer and business travelers. Financial terms were not disclosed.

"We look forward to our joint venture with AT&T Wireless delivering truly global mobile service to ships in international waters," said David Kagan, Chief Executive Officer of MTN. "Using this service, staying in touch will be as convenient for cruise ship passengers as pressing the send key on their own mobile phone."

"We will make it possible for cruise passengers to place and receive calls, use short message service, and access the Internet using their own wireless phones, just as they do at home," added Jordan Roderick, President of AT&T Wireless International. "We offer our customers the largest global voice and data coverage area of any North American carrier, and through this agreement we hope to extend service to the high seas."

Today's announcement is in keeping with MTN's goal of offering only the most innovative and versatile communications capabilities to its clients. By entering into this joint venture, MTN -- known for such industry firsts as its Internet Cafes, WiFi, and newspaper service at sea -- will bring wireless communications to passengers' own phones. This will enable MTN to offer its clients, including virtually all of the premier passenger cruise corporations, new and exciting ways to communicate instantly and reliably on board vessels from all corners of the world.

MTN, based in Miramar, Florida, is the leading provider of satellite-based communications, networking, and other services to the cruise and offshore oil and gas industries. AT&T Wireless, based in Redmond, Washington, provides extensive wireless coverage in North America, including advanced voice and data services throughout much of the Caribbean, Puerto Rico, and the U.S. Virgin Islands.

AT&T Wireless uses GSM technology, the global standard for wireless communications, which serves nearly 70 percent of the world's wireless users. The company has an ever-growing list of roaming agreements around the world, currently enabling its customers with GSM/GPRS devices to make voice calls in more than 130 countries and access data services in more than 50 countries. In addition, many subscribers to wireless carriers outside the U.S. can use their GSM phones to roam on AT&T Wireless' network when visiting the U.S. and parts of the Caribbean. These subscribers may also be able to take advantage of the new offering from Wireless Maritime Services.

The companies are currently working with several cruise lines and expect to introduce the service later this year.

About Maritime Telecommunications Network

Maritime Telecommunications Network, Inc. (MTN), the leader in maritime communications, provides broadband solutions for voice, data, Internet and compressed video services to the cruise and offshore industries using state-of-the-art VSAT technology. MTN is focused on cost-effective, high-speed satellite solutions while maintaining the highest standards of quality and availability. MTN's Digital Seas Internet product, the first Information Technology concession, provides turnkey Internet Cafes and Wi-Fi Hot Spots to the cruise and offshore Industries. MTN was acquired last year by an investor group led by Falconhead Capital. More information on MTN is available at www.mtnsat.com.

About AT&T Wireless

AT&T Wireless (NYSE: AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 21.980 million subscribers as of December 31, 2003, and revenues of more than $16.6 billion over the past four quarters, AT&T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally. More information on AWS is available at www.attwireless.com.

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Telecom merger plus for region

Monday 15, March-2004
The group of entrepreneurs who partnered with AT&T Wireless when it sought a licence to operate in Barbados says its investment has not been compromised by Cingularís take-over of AT&T.

Word of this has come from Adrian Elcock, managing director of Exclusive Lighting, who represents the partners BFF Communications, a group comprising Everson Elcock & Co. Ltd., Firgos Property Holdings and SRM Architects. The other investor is Clico Holdings Ltd., the majority local partner.

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March 15, 2004

TELECOM CEO: V.I. NEEDS COMPETITIVE ENVIRONMENT

March 15, 2004 -- Joseph Fergus, founder and chief executive officer of Communication Technologies (COMTek), one of America's fastest-growing technology companies, says the territory's economic potential can be fully realized only by providing a competitive business environment for telecommunications and other technology companies.
†††
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March 13, 2004

Welcome to AT&T

published: Friday | March 12, 2004

AT&T, THE telecommunications giant whose pedigree dates back to the invention of the telephone by Alexander Graham Bell in 1875, is to be the fourth cellular provider in Jamaica, paying $360 million for the privilege of becoming a member of the club which will now comprise Digicel, Cable and Wireless and Oceanic Digicel (originally Centennial).

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March 11, 2004

SAVVIS Expands Latin American Presence Via Agreement With Telefonica; SAVVIS Now Offers Intelligent IP Services In Eight Latin American Nations and Puerto Rico

March 10, 2004 07:55 AM†US Eastern Timezone

ST. LOUIS--(BUSINESS WIRE)--March 10, 2004--SAVVIS Communications Corp. (NASDAQ:SVVS), a leading global managed IP and managed hosting services provider, today announced an agreement with Telefonica USA, a subsidiary of global telecommunications leader Telefonica S.A. (NYSE:TEF). The agreement enables SAVVIS to expand its presence in eight Latin American nations, including more than 40 major cities, as well as Puerto Rico.

Under the terms of the deal, Telefonica USA will link SAVVIS' Miami-based network hub with its Latin American network enabling SAVVIS to offer its industry-leading Intelligent IP Networking(SM) and managed hosting services in Argentina, Brazil, Chile, Colombia, El Salvador, Guatemala, Mexico, Peru and Puerto Rico, and to expand its current customers' ability to connect directly with those regions.

"Telefonica is committed to providing multi-national companies with access to the Latin American region, and this agreement is an example of just that as SAVVIS seeks to become a major player in the region," said Anthony de Lima, executive vice-president of Telefonica USA. "Enabling SAVVIS to expand its physical infrastructure will bring added value to customers in Latin America, and will without a doubt increase opportunities for both companies."

"Interconnecting with the Telefonica network enables SAVVIS to significantly expand delivery of managed IP VPN services to and from the Latin American market and will play an important role as we continue to diversify our revenue base," said Jack Finlayson, president and chief operating officer of SAVVIS. "In addition, the deal will result in corporate users in Latin America having access to advanced services beyond the point-to-point, frame relay connections and public Internet choices that, until now, have been their only alternatives."

About Telefonica USA

Telefonica USA is headquartered in Miami, Florida, with regional offices in New York City and is a leading provider of global corporate communications and managed data center services. Telefonica USA is responsible for developing business solutions for USA headquartered customers to be delivered in Miami, Argentina, Brazil, Chile, Colombia, Peru, Mexico, Puerto Rico, and other Latin American and Caribbean markets. Telefonica USA is a subsidiary of Telefonica Data Corp., S.A., and part of Telefonica, S.A. the world's leading communications operator in Spanish and Portuguese-speaking markets, with a potential market of over 550 million people. With more than 94 million customers, 157,000 employees worldwide, and revenues of over US$29 billion, it is one of the world's largest providers of communications services. Telefonica offers services in 40 countries.

About SAVVIS

SAVVIS Communications (NASDAQ:SVVS) is a global IT Utility provider that leads the industry in delivering secure, reliable, and scalable hosting, network, and application services. SAVVIS' strategic approach combines the use of virtualization technology, a utility services model, and automated software management and provisioning systems. This allows customers to focus on their core business while SAVVIS ensures the quality of their IT infrastructure. With its recent acquisition of the assets of Cable & Wireless America, SAVVIS becomes one of the worlds' largest providers of IP computing services and the world's third largest provider of hosting services. For more information about SAVVIS' Managed Utility Services, visit: http://www.savvis.net. For more information about SAVVIS' end-to-end media services platform including WAM!NET, visit: www.wamnet.com.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from SAVVIS' expectations. Certain factors that could affect actual results are set forth as risk factors in SAVVIS' SEC reports and filings, including its annual report on Form 10-K for the year ended December 31, 2003, as filed with the Securities and Exchange Commission on February 24, 2004, and all subsequent filings. SAVVIS assumes no obligation to update or supplement forward-looking statements.

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Net2Phone Reports 2nd Quarter Fiscal 2004 Results; 11th Consecutive Quarter of 40%+ Gross Margins; Signs Three Caribbean VoIP Deals

March 09, 2004 04:00 PM†US Eastern Timezone

NEWARK, N.J.--(BUSINESS WIRE)--March 9, 2004--Net2Phone Inc. (Nasdaq: NTOP), a leading provider of retail Voice over IP (VoIP) services, today announced results for the second quarter of fiscal 2004 ended January 31, 2004.

Financial highlights for the quarter and recent achievements include:

-- NGS reports second consecutive quarter of segment income exceeding capital expenditures

-- 11th consecutive quarter of gross margins above 40%

-- 1000th cable telephony subscriber installed in Puerto Rico in eight weeks of market deployment

-- Three Caribbean agreements to deliver a suite of VoIP solutions

"The results of this quarter demonstrate that we are successfully continuing on the path we had mapped out two years ago. Once again NGS segment income exceeded its capital expenditures and NCT continues its steadfast progress in our cable telephony initiative," said Stephen Greenberg, CEO of Net2Phone. "Our recent successes in the Caribbean - exclusive partnerships with two cable operators and an incumbent phone company - serve as a regional microcosm for Net2Phone's opportunities to empower service providers globally with incremental revenue and customer retention tools by deploying VoIP in their markets."

Revenue for the company for the second quarter totaled $19.8 million, as compared with $20.4 million in the prior quarter and $23.1 million in the second quarter of fiscal 2003. Gross margin for the second quarter was above 40% for the 11th consecutive quarter at 43.3%, as compared to 46.3% in the prior quarter and 46.7% in the second quarter of 2003.

Net loss for the second quarter was ($9.5) million compared to net income of $5.1 million in the prior quarter (the income was primarily attributable to the resolution of various matters with respect to our ADIR subsidiary, resulting in a one-time gain of $12.2 million) and net loss of ($9.2) million in the second quarter of 2003. The second quarter loss of ($9.5) million in fiscal 2004 includes $2.3 million of non-cash services provided by IDT. This is the first time the company is incurring this expense based on a Memorandum of Understanding (MOU) executed by IDT and Net2Phone on October 29, 2003. The expense reflects 356,000 shares of Net2Phone Class A stock that were earned by IDT during the second quarter and will be issued and released to IDT based on the terms of a definitive agreement contemplated by the MOU and expected to be executed in the next few months. Net income (loss) includes certain non-operational, non-cash and/or non-recurring items that management excludes in assessing the company's performance. As a result, the company also reports net income (loss) before special and non-cash items(1) (adjusted for depreciation and amortization, minority interests, other income, interest income, non-cash compensation, non-cash services provided by IDT, gain from litigation, inventory obsolescence expense, non-recurring selling, general and administrative expenses and restructuring, severance, impairment and other items), which excludes the impact these aforementioned items have on the company's financial results.

Net loss before special and non-cash items for the quarter was $3.1 million, compared to $2.6 million in the prior quarter and a loss of $3.4 million in the second quarter of 2003. Net income (loss) before special and non-cash items is not a term defined by generally accepted accounting principles (GAAP) and may not be comparable to other similarly titled measurements used by other companies. Such non-GAAP measures should be considered in addition to, and not as a substitute for, performance measures calculated in accordance with GAAP.

The company believes that net income (loss) before special and non-cash items provides investors with a measure of the company's operational and financial progress that corresponds with the measurements used by management. Management uses this measurement, instead of net income (loss), as a basis for allocating resources and making other daily operating decisions. The accompanying table includes a detailed reconciliation of net income (loss) reported in accordance with GAAP to net income (loss) before special and non-cash items.

Capital expenditures during the second quarter were $1.6 million, compared with $1.3 million in the prior quarter, and $1.4 million in the second quarter of 2003. The company reported cash, cash equivalents and marketable securities of $138.8 million as of January 31, 2004, including $25.9 million of restricted funds.

Net2Phone Global Services (NGS)

NGS revenue for the second quarter was $19.7 million, as compared to $20.4 million in the prior quarter and $23.0 million in the second quarter of fiscal year 2003. A significant factor in the revenue decline resulted from the company's exit from the US disposable calling card business. The company had been scaling back its efforts in this historically high-revenue, low-margin business for the past two years by raising its prices and allowing this revenue stream to run off. NGS reported segment income of $1.1 million this quarter, exceeding its capital expenditures by $0.2 million, representing the second consecutive quarter of successfully managing its business profitably. Segment income (loss) is the net income (loss) before special and non-cash items directly attributable to the segment's operations less the allocation of certain corporate expenses.

Earlier this month, NGS announced a two-year exclusive agreement with Telecommunications Services of Trinidad and Tobago (TSTT), 51% government owned and 49% owned by Cable & Wireless, to deliver a suite of co-branded VoIP solutions throughout Trinidad, including calling cards, prefix dialing services, (similar to 10-10 services in the US), and Internet telephony call shop services.

Net2Phone also unveiled its strategy to offer VoiceLine, hosted broadband telephony services that will be marketed to service providers globally. By offering VoIP solutions to their residential and small office/home office (SOHO) subscribers via Net2Phone, service providers can rapidly generate incremental revenue as well as deliver added value, features and functionality to their customers, thereby retaining existing customers.

In that regard, Net2Phone announced that it has signed a Memorandum of Understanding with The Cable of St. Kitts, the only cable operator on St. Kitts, to deliver residential broadband telephony service to its customers. The Cable will also sell customers prefix dialing service throughout St. Kitts, thereby maximizing telephony revenue and leveraging the same infrastructure and technology that is supporting its residential broadband telephony offering.

These partnerships build on Net2Phone's strategy to offer hosted VoIP solutions to partners globally, enabling them to expedite their time to market while benefiting from outsourcing their deployments to a provider that has the technical expertise, robust back-office and worldwide network to support multiple services on a single platform.

The rollout of new services, such as VoiceLine, combined with continued penetration into newly liberalized telecommunications markets, is expected to result in increased revenue over time as well as expanded operating margins on a segment basis. By laying the groundwork for new services utilizing existing infrastructure and technology, NGS can continue to innovate while limiting the extent of required up-front investments in capital expenditures.

Net2Phone Cable Telephony (NCT)

After beginning the rollout of Liberty VoiceLinks in conjunction with Liberty Cablevision of Puerto Rico in mid-December, more than 1,000 telephony subscribers have been installed to date. As announced in October 2003, Net2Phone signed a full production agreement with Liberty Cablevision of Puerto Rico to deliver managed VoIP telephony to its subscribers. The companies plan to support the 1,000 subscribers through the spring, at which point they intend to expand the marketing throughout Liberty's footprint in Puerto Rico, which reaches more than 300,000 homes.

Net2Phone's cable voice platform utilizes PacketCable compliant standards and permits cable operators like Liberty Cablevision of Puerto Rico to deploy toll-quality residential telephone service over their existing cable network. The company also has signed a memorandum of understanding with Cebridge Connections, the 12th largest cable operator in the US, and is currently negotiating final contractual terms.

About Net2Phone

Founded in 1995, Net2Phone is a leading provider of retail VoIP services globally, comprised of two wholly owned subsidiaries. Net2Phone Global Services ("NGS") provides consumers and small businesses globally with bundled voice and enhanced services either directly or via partners. Its robust hosted services platform enables service providers, including high speed data providers, wireless providers and telecommunications operators, with a host of VoIP solutions - including residential broadband telephony, calling cards, prefix dialing and enterprise services globally. The same platform supports Net2Phone's more than 100,000 consumer and corporate users in the US as well as hundreds of thousands more overseas. Net2Phone Cable Telephony ("NCT") provides cable operators with a turn-key solution to deliver residential phone service to their subscribers. While the opportunities for each unit differ, each division relies on quality partners for distribution and each utilizes a centralized platform to deliver retail services at a low incremental cost. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: L; LMC.B) and IDT Corporation (NYSE: IDT; IDT.C). For more information about Net2Phone's products and services, please visit www.net2phone.com.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Press Release and in the Company's Annual Report on Form 10-K for the fiscal year ending July 31, 2003 and its other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.
(1) The schedule accompanying this release provides reconciliations to
generally accepted accounting principles (GAAP) for all non-GAAP
financial measures mentioned in this release.


Note: Net2Phone CEO Stephen Greenberg will host a conference call at 4:30 p.m. EST today. The call-in number is 800-446-2782. The call can be accessed at http://web.net2phone.com/about/investor/ or www.vcall.com
Net2Phone, Inc.
Condensed Consolidated Statements of Operations
(unaudited)

(All Numbers in 000's
except EPS Calculation) 2Q04 2Q03 1Q04 1H04 1H03
Jan. 31, Jan. 31, Oct. 31, Jan. 31, Jan. 31,
2004 2003 2003 2004 2003
------------------ -------- ------------------
Revenue $19,812 $23,051 $20,405 $40,217 $46,999
-
Direct cost of revenue 11,243 12,286 10,948 22,190 26,228
Selling, general and
administrative 11,589 14,563 12,573 24,162 28,223
Depreciation and
amortization 2,659 2,375 2,488 5,147 4,856
Restructuring,
severance, impairment
and other items 833 703 195 1,028 5,876
Settlement of Cisco
litigation - 395 - - (58,034)
Non-cash compensation 2,155 2,693 1,841 3,996 4,349
Non-cash services
provided by IDT 2,254 - 2,254 -
------------------ -------- ------------------
Total cost and expense 30,733 33,015 28,045 58,777 11,497
------------------ -------- ------------------

Income (loss) from
operations (10,921) (9,964) (7,640) (18,561) 35,502
Interest income, net 660 599 216 875 1,399
Other Income (loss) 740 (10) 12,523 13,263 6
Income (loss) before
minority interests (9,521) (9,375) 5,099 (4,423) 36,907

Minority interests - (134) - - 24

Net income (loss)
available to common
stockholders $(9,521) $(9,241) $5,099 $(4,423) $36,883

Net income (loss) per
common share-basic and
diluted $(0.13) $(0.15) $0.08 $(0.07) $0.62

Weighted Average number
of common shares used
in the calculation of
basic net gain/(loss)
per common share 71,059 59,804 60,250 65,647 59,574

Weighted Average number
of common shares used
in the calculation of
diluted net gain/(loss)
per common share 71,059 59,804 63,160 65,647 59,643
------------------ -------- ------------------

Cash, cash equivalents
and marketable
securities* $138,803 $111,578 $87,915 $138,803 $111,578
Fixed assets (net) 21,133 29,375 22,233 21,133 29,375
Total assets 176,772 166,623 126,435 176,772 166,623
Total Stockholders'
Equity 142,753 98,243 84,212 142,753 98,243
------------------ -------- ------------------

* Includes Restricted Cash of $25.9 Mil., $23.1 Mil., $23.8
Mil. as of Jan 31, 2004; Jan 31, 2003; and Oct 31, 2003
respectively.

Net income (loss)
available to common
stockholders $(9,521) $(9,241) $5,099 $(4,423) $36,883
EXCLUDING
---------
Minority interests - 134 - - (24)
Other Income (loss) 740 (10) 12,523 13,263 6
Interest income, net 660 599 216 875 1,399
Depreciation and
amortization (2,659) (2,375) (2,488) (5,147) (4,856)
Inventory obsolescence
expense (556) - - (556) -
Non-recurring SG&A
expense 648 (415) (480) 168 (415)
Settlement of Cisco
litigation - (395) - - 58,034
Restructuring,
severance, impairment
and other items (833) (703) (195) (1,028) (5,876)
Non-cash compensation (2,155) (2,693) (1,841) (3,996) (4,349)
Non-cash services
provided by IDT (2,254) - - (2,254) -
------------------ -------- ------------------
Net income (loss)
before special and
non-cash items $(3,112) $(3,383) $(2,636) $(5,748) $(7,037)
------------------ -------- ------------------


SEGMENT INCOME (LOSS)
---------------------
The following table summarizes the operating performance of
Net2Phone's business segments:

Net2Phone Global
Services (NGS) $1,135 $831 $1,338 $2,473 $1,297
Net2Phone Cable
Telephony (NCT) (2,136) (1,958) (2,074) (4,211) (3,904)
Corporate / Other (2,111) (2,256) (1,900) (4,011) (4,430)

------------------ -------- ------------------
Total $(3,112) $(3,383) $(2,636) $(5,748) $(7,037)
------------------ -------- ------------------

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Cell competitors can't agree on rates in Cayman

Observer Reporter
Wednesday, March 10, 2004

The three cellular service providers in The Cayman Islands - Digicel, AT&T Wireless and Cable & Wireless (C&W) - have told the regulators there that they were unable to reach an agreement on what price to charge each other for terminating calls on each other's line.

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March 8, 2004

DIGICEL DIVING INTO FIBRE OPTICS

Cellular company Digicel is seeking to build a Pan-Caribbean fibre optic network and bypass the sole network currently owned and operated by rival Cable & Wireless.

The fibre optic investment, which is estimated at between US$40-80 million, will not only vastly improve Digicelís handling capacity and speed, but it will allow the company to enter into a segment of business that still remains the exclusive preserve of Cable & Wireless. At present, companies that offer Internet services and international calls must go through C&Wís optic fibre network to connect their customers to the rest of the world.

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Net2Phone to Provide Telephony Services for Third Caribbean Service Provider; The Cable of St. Kitts Selects Net2Phone to Deliver VoIP Services Island-Wide

NEWARK, N.J. & St. Kitts--(BUSINESS WIRE)--March 8, 2004--Net2Phone (NASDAQ: NTOP), and The Cable of St. Kitts today announced a memorandum of understanding to deploy a suite of Net2Phone's VoIP services, including Net2Phone VoiceLine, throughout the Federation of St. Kitts and Nevis.


The Cable, the only cable operator in St. Kitts, will offer its customers in St. Kitts Net2Phone's VoiceLine residential broadband telephony service over its cable network. Net2Phone VoiceLine is the company's SIP-based broadband telephony service, enabling service providers to offer competitive local, long distance and international inbound and outbound phone services with advanced features utilizing their existing infrastructure (See "Net2Phone Unveils SIP Solutions for Broadband Providers" released earlier today). The Cable will also market prefix dial international services to customers without broadband allowing them to benefit from the cost savings associated with Net2Phone powered VoIP services. Consumers and businesses federation-wide will be able to access The Cable's competitively priced international service by dialing a three digit access code in a similar manner to the 10-10-xxx dial around services in the United States.

All of these services draw on Net2Phone's SIP (Session Initiated Protocol) hosted services platform that allows the development and support of multiple voice applications and back office integration tools all using the same infrastructure. The result is that service providers are able to maximize their telephony revenue by offering more services.

"We could not be more pleased with our relationship with The Cable to deliver affordable quality communications solutions for the people of St. Kitts and Nevis," said Stephen Greenberg, CEO of Net2Phone. "While it is our third agreement in the region - after Liberty Cablevision of Puerto Rico and C&W-owned TSTT - this is far from the last, as we are continuing our Caribbean strategy to empower service providers with value-added VoIP services."

Under the brand "The Cable Powered by Net2Phone," Net2Phone VoiceLine will offer The Cable's customers features such as call waiting, caller ID, voice mail and online account management tools as well as competitive international calling plans.

"With the help of Net2Phone, we can now give our customers the triple play of voice, video and data," said W.R. Ewing, CEO of The Cable. "Employing Net2Phone's technology and expertise in our telephony deployment provides us with both speed to market and the ability to deliver multiple affordable telephony services throughout St. Kitts and Nevis."

Following the execution of the definitive agreement, The Cable expects to deploy the VoIP telephony service and offer prefix dial services by the second half of 2004 throughout the Federation of St. Kitts and Nevis.

About Net2Phone

Founded in 1995, Net2Phone is a leading provider of retail VoIP services globally, comprised of two wholly owned subsidiaries. Net2Phone Global Services ("NGS") provides consumers and small businesses globally with bundled voice and enhanced services either directly or via partners. Its robust hosted services platform enables service providers, including high speed data providers, wireless providers and telecommunications operators, with a host of VoIP solutions - including residential broadband telephony, calling cards, prefix dialing and enterprise services globally. The same platform supports Net2Phone's more than 100,000 consumers and corporate users in the US as well as hundreds of thousands more overseas. Net2Phone Cable Telephony ("NCT") provides cable operators with a turn-key solution to deliver residential phone service to their subscribers. While the opportunities for each unit differ, each division relies on quality partners for distribution and each utilizes a centralized platform to deliver retail services at a low incremental cost. Traded on the NASDAQ under the symbol NTOP, Net2Phone's strategic partners and investors include Liberty Media Corporation (NYSE: L; LMC.B) and IDT Corporation (NYSE: IDT; IDT.C). For more information about Net2Phone's products and services, please visit www.net2phone.com.

About The Cable

Founded in 1983 The Cable has offered Cable Television Services on the island of St. Kitts for more than twenty years with its cable TV network passing more than 98% of homes and businesses on the island. Its Network has recently undergone substantial rebuilding and upgrading, including the provision of a fiber optic ring around the island bringing high speed IP Services within reach of all Cable Television Customers.

The Cable was recently awarded a Telecommunications License allowing it to provide a full range of telecommunications services in The Federation of St. Kitts and Nevis in competition with the incumbent monopoly operator Cable & Wireless St. Kitts and Nevis Ltd. Consequently The Cable has entered into an Interconnection Agreement with the incumbent to enable provision of seamless telephone service between customers of both networks.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward- looking statements involve risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Factors which may affect the Company's results include, but are not limited to, the Company's ability to expand its customer base, the Company's ability to develop additional and leverage its existing distribution channels for its products and solutions, dependence on strategic and channel partners including their ability to distribute the Company's products and meet or renew their financial commitments, the Company's ability to address international markets, the effectiveness of the Company's sales and marketing activities, the acceptance of the Company's products in the marketplace, the timing and scope of deployments of the Company's products by customers, fluctuations in customer sales cycles, customers' ability to obtain additional funding, technical difficulties with respect to the Company's products or products in development, the need for ongoing product development in an environment of rapid technological change, the emergence of new competitors in the marketplace, the Company's ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation, the Company's ability to manage growth, obtain patent protection, and obtain additional funds, general economic conditions and other risks discussed in this Report and in the Company's other filings with the Securities and Exchange Commission. All forward-looking statements and risk factors included in this document are made as of the date hereof, based on information available to the Company as of the date thereof, and the Company assumes no obligation to update any forward-looking statement or risk factors.

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AT&T Wireless finalises local partnerships

AT&T Wireless Services has announced its partnerships with Clico International Life Insurance Limited (Clico) and BFF Communications, LTD, a local consortium of Barbadian investors, to build a business that will offer mobile voice and data services in Barbados and the West Indies. The company said the venture will offer services and rate packages specifically tailored to the needs of Barbadians. In addition to Barbados, Clico will partner with AT&T Wireless on a regional basis in the Eastern Caribbean markets.

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Cubans enter wireless age Reuters, 03.01.04, 10:17 AM ET

HAVANA, March 1 (Reuters) - Cuba will offer cell phone service to local residents for the first time, the official media reported on Monday, as the Caribbean island scrambles to modernize its telecommunications.

"Starting the second half of the year the population will benefit from the installation and distribution of cellular telephones, a service up to now available only in dollars," Villa Clara province's official weekly, Vanguardia, said.

"In the future the basic development of telecommunications will be cellular and wireless," Vanguardia reported.

The island's 11.3 million people have almost no access to mobile phones. Cell phones are available to tourists and other foreign visitors.

The way was cleared for the wireless network late last year when fixed-line operator Empresa Nacional de Telecomunicaciones de Cuba SA (Etecsa) took over state-owned Celulares del Caribe (C-Com) and joint venture telefonos Celulares de Cuba SA (Cubacel), paying the state's main partner, Canada's Sherritt International Inc. , around $35 million, and another investor $8 million.

The two cell phone companies had exclusive rights to frequencies and had balked at offering services in local pesos, which have no value outside the country.

State-owned Etecsa, in which Telecom Italia S.p.A. has a 29.29 percent interest, now has a monopoly on Communist-run Cuba's telecommunications.

The Communications and Information Technology Ministry reported in 2003 that it would quickly distribute up to 300,000 cell phones.

Industry sources said the peso-priced wireless network will be subsidized through high-cost dollar services to foreigners and charges slapped on incoming calls from the United States, where many residents have relatives.

Cuba's telecommunications are among the least developed in Latin America and the Caribbean. The government reported at the close of 2002 that there were 710,000 operating lines, for a density of 6.3 per 100 inhabitants.

A foreign industry supplier said the government wanted to develop a wireless network priced in pesos, not dollars, as new technology had made it cheaper and quicker to install wireless versus fixed-line systems.

Copyright 2004, Reuters News Service

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Digicel pumps US$30-m into Cayman operation

Steven Jackson
Friday, March 05, 2004

Regional telecoms service provider Digicel, is investing US$10 million to extend its cell and land line services in The Cayman Islands, having already spent US$20 million to set up a GSM service in that country.

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Orca Takes KooKu to Canada

VANCOUVER -- Orca Wireless Solutions Ltd., a Canadian based WiFi solutions provider has teamed up with KooKu Ltd., a virtual network of independently hosted 802.11x wireless Hotspots, to introduce and promote KooKu's services to the Canadian, US and Caribbean markets. This partnership strengthens KooKu's position as a truly global wireless hotspot provider and will give Orca Wireless the ability to offer end-user access to a global roaming enabled hotspot network. Orca Wireless will promote the service to locations such as hotels, conference centres, cafes and popular venues in Canada, USA and the Caribbean.

Orca Wireless' strategy will be based on KooKu's business model that allows for revenue sharing based on access time sold and also the length of time that end users spend accessing the internet through each hotspot. KooKu is based on a prepaid system of payment which allows complete flexibility of service provision and removes the requirement for credit checks, credit card support, etc. Any 802.11a/b/g or fixed line Ethernet device can be configured or virtually upgraded to operate on the KooKu network. Solutions can be built up from single node sites (coffee shops), through multi-node sites (hotels and conference centres) to enterprise-wide solutions (hotel groups) with the service being provided for both temporary and permanent installations.

Keith Brown, Orca Wireless' Managing Director said: "This partnership will give Orca Wireless the opportunity to expand the KooKu network throughout Canada, USA, and the Caribbean. and provide a WiFi service that is tailored to the requirements of both the Host and End User with minimal impact and maximum return to the host. We are confident the KooKu business model is suitable for these markets and we look forward to adding locations to the expanding portfolio of KooKu global sites."

Jeff Martin, Sales Director of KooKu said, "We are pleased to welcome Orca Wireless to the KooKu family. Orca staff have undergone training at the KooKu head office, allowing them to provide the full range of services offered by KooKu. Several projects are already in progress, proving that KooKu has made the right decision in partnering with such a professional organisation as Orca."

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Innovative Communication Commits $100 Million To Capital Investment

Thursday March 4, 8:33 am ET

WEST PALM BEACH, Fla., March 4 /PRNewswire/ -- Innovative Communication Corporation's wholly owned telephone company will spend $100 million over the next five years on capital projects in the U.S. Virgin Islands, it was announced today by Jeffrey J. Prosser, chairman, president and CEO.

"We want our Innovative Telephone Company to have the state-of-the-art technology and infrastructure to better serve our business and residential customers," Prosser said. "This means protecting the system against the ravages of Mother Nature, having dual route network connectivity that provides maximum redundancy both on-island and off-island, expanding and enhancing support systems for improved customer service, and expanding and upgrading outside plant facilities -- shorter loops, more fiber, more underground construction -- to increase performance, reliability and the ubiquitous deployment of broadband services.

"Our investment will make the U.S. Virgin Islands even more attractive for businesses dependant on telecommunications to relocate to St. Croix, St. John and St. Thomas," he added.

Headquartered in St. Croix and privately owned, Innovative has operations throughout the U.S. and British Virgin Islands, Sint Maarten, Saint-Martin, Guadeloupe, Martinique and France.

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