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Net2Phone Unveils Wi-Fi VoIP Strategy; Net2Phone To Enable Service Providers With Wi-Fi Telephony, Extending Mobility And Flexibility of VoIP
[April 22, 2004]

Net2Phone Unveils Wi-Fi VoIP Strategy; Net2Phone To Enable Service Providers With Wi-Fi Telephony, Extending Mobility And Flexibility of VoIP

NEWARK, N.J. --(Business Wire)-- April 22, 2004 --

IDT to deploy Wi-Fi phone service utilizing Net2Phone's platform

Net2Phone (NASDAQ: NTOP) today announced plans to deliver a suite of wireless VoIP solutions to service providers globally, enabling them to empower residential and corporate users worldwide with mobile VoIP applications. Building on its recently announced VoiceLine broadband telephony offering, Net2Phone's wireless VoIP solutions will offer service providers SIP-based hosted wireless telephony services that can be sold to their customers as an enhancement to their existing product set.

Wireless VoIP extends the existing reach of voice and data services by removing the necessity for copper or fiber last-mile access to the Internet. Net2Phone routes all calls over wireless IP networks to its SIP-based platform, which performs call management, provides Class 5 features, billing, provisioning and enhanced services and distributes the infrastructure required for interconnecting onto and off of the PSTN network. Net2Phone offers service providers an affordable mobile telephony solution together with a complete set of features and functionality, including inbound and outbound calling with phone number selection, call waiting, caller ID and voicemail.

The company also announced that its first customer, IDT Corporation (NYSE: IDT), a leading multinational carrier and technology company, plans to deploy commercial Wi-Fi phone service in a series of locations throughout the United States. The Ironbound area of Newark, New Jersey will be the first area covered and will enable users in residential and affordable housing to bypass local phone companies and make domestic and international phone calls via a wireless connection to the Internet.

Demand for wireless IP local area networks or Wi-Fi (802.11) continues to grow, with Pyramid Research projecting 700 million Wi-Fi users globally by 2008. Wi-Max, an extended wireless broadband network reaching as far as 25 miles, is becoming a viable alternative for customers to receive high-speed Internet access in rural areas and in areas where wired broadband is not an option because of low high-speed data availability. By extending its retail VoIP offerings to the wireless environment, Net2Phone can ride the wave of wireless broadband deployments by offering a bundle of telephony in conjunction with a high-speed wireless data offer.

"Net2Phone's wireless solutions remove the tether associated with VoIP, delivering the flexibility of a cellular phone anywhere in the world there is a Wi-Fi hotspot, without the need to be tied to a cell phone carrier, " said Stephen Greenberg, CEO of Net2Phone. "Net2Phone is well positioned to ride the burgeoning Wi-Fi network explosion to offer consumers and businesses affordable mobile telephony solutions."

Wireless VoIP Partnership Opportunities

As Net2Phone is an enabler for service providers, globally, Net2Phone can also seamlessly integrate its front and back office systems, including its billing platform, into its partners' infrastructures, thereby facilitating a unified bill for high-speed data, telecommunications and other services. Target partners include:

-- Wireless ISPs (WISPs): With more than 30 million US homes that cannot access cable or DSL service, Net2Phone can offer WISPs telephony services as a bundle to their high-speed wireless product, both within local wireless environments, such as cafes and airports, as well as Wi-Max deployments throughout entire cities.

-- Rural Opportunities: Residents in rural areas may benefit from broadband Internet access as well as competitive telephony service. With more cities and municipalities offering their populace extensive long-range wireless networks in their locales, Net2Phone can offer full featured inbound and outbound calling capabilities within those networks.

-- Wireline High-Speed Data Providers: Net2Phone can empower high-speed data providers, such as cable and DSL operators, with mobile telephony solutions, thereby extending the reach and flexibility of their broadband telephony service.

-- Wireless Home Networks: Within a home networking environment, users can roam throughout the house with a Wi-Fi phone. End users can then use the Net2Phone service anytime they are within a hotspot, either at home or on the road.

-- Public Hotspots: Customers can take their Wireless VoiceLine account and phone number and roam onto any open hotspot to place and receive calls. This strategy is very similar to the RBOC's strategy of offering their DSL customers free data roaming on their hotspots to further extend their value proposition to their customers.

-- OEMs

-- Cell Phone Manufacturers: Net2Phone is also in discussions with cell phone manufacturers that are creating dual mode cell phones for both cell phone and VoIP usages.

-- PDA Manufacturers: PDA manufacturers can also add software to their devices that can enable a wireless PDA with phone functionality using Net2Phone.

Layer incremental SIP telephony services

Net2Phone can also enable its partners to offer to their subscribers, residential telephony services, prefix dialing services and calling cards. By marketing multiple telephony services to their subscribers using one unified account and platform, partners can maximize their telephony revenue per subscriber.

About Net2Phone

Net2Phone provides PacketCable, SIP and wireless VoIP solutions around in the world. As leaders in enabling telecom service providers and cable operators with turn-key hosted VoIP telephony services, Net2Phone has routed billions of retail VoIP minutes globally, servicing more than 100,000 users in the US as well as hundreds of thousands of more overseas. Net2Phone's hosted SIP platform provides partners with residential broadband telephony, calling cards, prefix dialing and enterprise services in over 100 countries. Net2Phone's PacketCable platform provides cable operators with the ability to deliver a primary line replacement service with guaranteed QoS and features such as E911. 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

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 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. A related IDT Corporation press release is available, please refer to Business Wire story #5255, April 22, 2004.

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