Priceline Unleashes Long Distance Service

Expanding on its unique “name-your-own-price” business model,, Inc. Monday introduced its
long distance phone service, which is set to launch in early 2000.

The service will make it possible for U.S. clients to name their own price
for Internet protocol-based communications to almost anywhere in the world
with no strings attached. (PCLN)
plans to expand its telecommunications services further to offer a
name-your-own-price business-to-business long distance service later in the

Net2Phone Inc., a leading
provider of voice-enhanced IP telephony, is the first company to join
Priceline’s impending service, pledging an $18 million participation
fee in the three-year agreement. Priceline customers will name their
own price for phone-to-phone international and domestic long distance calls
over Net2Phone’s (NTOP)
IP network. decided to offer long distance service after 43 percent of
those who answered a survey indicated interest in the company’s potential venture. makes these savings possible because its Net pricing system
creates network efficiencies for telecommunications providers, the company said.

“Internet protocol is the future of communications and will continue to
reduce the cost structure of providing this service,” said Daniel H.
Schulman, president and chief operating officer of “Given
this trend,’s unique demand collection system offers a
win-win solution for customers and telecommunications companies. For the
first time, customers can use the Net to price their calls.” will offer a few long distance service plans, including:

  • Domestic time blocks — customers may name their own price for
    blocks of 60 minutes, 120 minutes or more of long distance time
    for interstate calls

  • International time blocks — clients may name their own price for
    blocks of long distance time for calls to a specified country

  • “Call Anywhere” program — customers may name their
    own price for blocks of time that can be used to call multiple
    designated locations

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