Businessweek

IDT Corporation, a multinational holding company, operates primarily in the telecommunications industry. Segments The company’s segments include Telecom Platform Services and Consumer Phone Services, which comprise its IDT Telecom division; and All Other. TELECOM PLATFORM SERVICES This segment provides telecommunications services, including prepaid and rechargeable calling products, and international long distance traffic termination, as well as various payment services. This segment markets and distributes multiple communications and payment services across four business categories: Retail Communications Retail Communications category provides international long-distance calling products primarily to immigrant communities worldwide, with core markets in the United States and Europe. These products include the company’s primary Boss Revolution Pinless product (an international calling service sold through the Boss Revolution payment platform), as well as various traditional disposable calling card brands, including Boss, La Leyenda, and Feliz, and mobile apps, including PennyTalk. For the year ended July 31, 2012, the company launched Boss Revolution in the United Kingdom and Spain. The company sells its traditional calling cards under the La Leyenda, Boss, Playball, GOOOL, RED, Feliz, PT-1, and PennyTalk brand names, providing telephone access to approximately 230 countries and territories. It sells approximately 1,000 different calling cards in the United States and approximately 800 different cards internationally. Its calling cards are marketed primarily to the ethnic and immigrant communities in the United States, Europe, Asia, Latin America, and Africa. In the United States, the company distributes its products, including both Boss Revolution and traditional disposable prepaid calling cards, primarily through a network of distributors that, either directly or through various sub-distributors, sell to retail outlets throughout majority of the United States. In addition, it has an internal sales force that sells prepaid products directly to retailers. The company also sells its products online directly to the consumer. Retail Communications category also includes the sale of customized (private label) calling cards, which the company sells to retailers printed with the retailer’s name and logo for sale to their customers; IDT-branded calling cards, which are prepaid calling cards printed with the IDT, Entrix, or DSA logo and design that are sold to small and medium-sized retail chains, such as supermarkets, drug stores, and convenience stores, for resale to their customers; and rechargeable calling cards, such as PennyTalk, which are marketed to consumers and business customers nationwide that could be used by the U.S. callers to call internationally from any phone, including a cell phone. Wholesale Termination Services Wholesale Termination Services category terminates international telecommunications traffic utilizing the company’s proprietary least-cost-routing system, aggressive purchasing strategies, experience in provisioning circuits, and its high volume of international long distance telephone traffic to provide major carriers, niche carriers, operators, and call aggregators. During the year ended July 31, 2012, IDT Telecom terminated 30.8 billion minutes. IDT Telecom has various direct connections to Tier 1 providers outside the United States, primarily Tier 1 providers in Asia, Africa, and the Middle East. As of July 31, 2012, Wholesale Termination Services had approximately 600 customers. Including vendors, IDT Telecom has approximately 1,100 carrier relationships worldwide. Payment Services Payment Services category provides payment offerings, such as international mobile top-up (IMTU) and gift cards in both the United States and Europe. IMTU enables customers to purchase minutes for a prepaid mobile telephone in another country. IMTU is available in both traditional cards, as well as on the company’s Boss Revolution payment platform. Payment Services category also includes reloadable prepaid debit cards and bank identification number sponsorship services offered in E