Net2Phone sells the gateways to other service providers. Net2Phone s customers include a large contingent of small to medium-size International businesses and about 12 regional Bell operating companies and PTTs. You d be surprised how many telcos are using IP telephony and not telling anyone. Calls made from the U.S. to any other location cost 8 cents per minute if a call can be completed via a Net2Phone VOIP-enabled route. Calls made via routes that cannot be served by the VOIP network are subject to competitive circuit-switched rates.
Customers consult a Web-based rate sheet to determine the cost of the calls.
They prepay Net2Phone and their accounts are debited. We believe that one of the things that the Internet is going to make possible is a world phone company. To justify the business, you have to be able to provide international calls. Customers primarily use the service to talk to one another, but Net2Phone is not basing its strategy on cheap international voice alone. Video, multimedia, conference calling and integration with e-commerce are the applications that will fulfill Net2Phone s plans for growing its business, Greenblatt explains.