AT&T, Net2Phone Team Up for International Telephony

Aiming to widen the international telephony market, AT&T Corp. and Net2Phone Inc. Tuesday partnered to bring Net2Phone’s Internet telephony services to AT&T’s global network.

Under the terms of the five-year agreement, AT&T (T) will provide Net2Phone (NTOP) access to its Global Network Services, enabling Net2Phone to deliver its PC-to-telephone services to 17 countries, with future expansion planned.

AT&T will also provide collocation services for Net2Phone servers at AT&T’s points of presence (POPs) in those countries.

No financial details of the deal were disclosed, but the companies said that revenue from the contract is expected to exceed $100 million over five years.

“By effectively utilizing AT&T’s robust network and co-locating our IP telephony gateways at their points of presence, we can now offer better service and lower cost to our customers as well as expand our IP scope,” said Mordy Rothberg, executive vice president of Net2Phone.

In addition to its PC-to-phone utilities, Net2Phone’s Voice over IP tools provide phone-to-phone, fax-to-fax, and voice-enabled e-commerce solutions to consumers and businesses worldwide.