IDT Corporation (IDT) is a provider of point-of-sale terminal-based solutions, international money remittances and other financial technology, or fintech, offerings, cloud communications and traditional communications services.
The company’s businesses leverage one or more of its core strategic assets to serve differentiated markets with innovative offerings.
IDT’s key businesses are:
National Retail Solutions (NRS): Operates the leading point-of-sale, or POS, terminal-based platform for inde...
IDT Corporation (IDT) is a provider of point-of-sale terminal-based solutions, international money remittances and other financial technology, or fintech, offerings, cloud communications and traditional communications services.
The company’s businesses leverage one or more of its core strategic assets to serve differentiated markets with innovative offerings.
IDT’s key businesses are:
National Retail Solutions (NRS): Operates the leading point-of-sale, or POS, terminal-based platform for independent retailers in the United States, including convenience stores, bodegas, liquor, grocery and tobacco stores. NRS’ purpose-built integrated hardware and software solution enables these stores to operate and process transactions more effectively. Through its NRS PAY offerings, NRS enables these retailers to accept and process credit, debit, and electronic benefit transfer payments. Leveraging its POS platform, including its customer-facing screens and transaction analytics, NRS also provides advertisers and marketers with unprecedented reach into the U.S.’s predominantly urban, multi-cultural consumer markets;
BOSS Money: Provides international money remittance services marketed primarily to immigrant communities across the United States and Canada. BOSS Money makes it easy and convenient for customers to send money to friends and family in 50 countries in Latin America and the Caribbean, Africa, Europe, and Asia. BOSS Money transfers are initiated both digitally, through the popular BOSS Money and BOSS Revolution apps, and through a nationwide network of licensed BOSS Money retail agents who can accept cash payments;
net2phone: Operates a global, cloud platform that provides businesses in North America, South America, and many other countries around the world with unified communications as a service (UCaaS) offerings marketed under its Unite brand and contact center as a service (CCaaS) offerings under its uContact brand, as well as other, smaller offerings to enable intelligent business communications;
IDT Digital Payments: Provides a wide range of prepaid digital products, including mobile airtime top-up, mobile data bundles, digital gift cards, eSIMs and other offerings directly to consumers through BOSS’ retail and digital channels. (Mobile airtime top-up enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts.) IDT Digital Payments also serves the enterprise space via Zendit, its prepaid-as-a-service platform. Zendit enables businesses, entrepreneurs, and developers to offer prepaid digital offerings globally, including mobile airtime top-up, mobile data bundles, digital gift cards, eSIMs and prepaid utility payments;
BOSS Revolution (formerly BOSS Revolution Calling): Provides international long-distance voice service marketed primarily to immigrant communities in the United States and Canada. BOSS Revolution is provisioned through the popular BOSS Revolution app and ‘calling cards’ sold by a robust network of over 28,000 BOSS Revolution retail agents; and
IDT Global: Provides wholesale international voice termination, virtual numbers, and SMS termination solutions to telecoms worldwide. Through its IDT Express branded self-provisioning portal, IDT Global also serves small and medium businesses.
IDT also operates other, smaller businesses and offerings, including early-stage business initiatives and mature businesses in harvest mode.
Segments
The company has four reportable business segments: (1) National Retail Solutions, or NRS; (2) Fintech; (3) net2phone; and (4) Traditional Communications.
The NRS segment comprises the company’s NRS business.
The Fintech segment comprises the company’s BOSS Money remittance business and other, significantly smaller, financial services businesses.
The net2phone segment offers unified communications as a service, or UCaaS, and contact center as a service, or CCaaS, and other significantly smaller offerings that leverage the cloud to enable intelligent business communications.
The Traditional Communications segment includes IDT Digital Payments, BOSS Revolution, and IDT Global, as well as other small businesses and offerings, including early-stage business initiatives and mature businesses in harvest mode.
Strategy
The company operates a portfolio of interrelated businesses. Each of the businesses leverages one or more of the company’s core strategic assets. They include:
The company’s key brands, including NRS, net2phone, BOSS Revolution, BOSS Money, IDT Digital Payments and IDT Global;
The company’s nationwide network of more than 30,000 independent retailers who operate NRS’s POS-based platform and approximately 28,000 BOSS Revolution and BOSS Money retailers who utilize the company’s digital retailer platform;
The company’s customer base of more than eight million users, primarily in immigrant communities within the United States;
The company’s technology, global infrastructure and high-capacity transaction platforms;
Extensive VoIP and cloud services expertise; and
The company’s staff of approximately 2,300 dedicated personnel working in over 20 countries on four continents, including in-house technology and product development teams.
The company leveraged these assets to build its three high-margin, growth businesses — NRS, net2phone, and BOSS Money. Each of these businesses’ development has been principally organic and financed with the cash flows generated by the company’s more mature businesses, including IDT Digital Payments, BOSS Revolution and IDT Global.
The company’s IDT Digital Payments business provides prepaid digital offerings, principally mobile top-up, directly to consumers through BOSS’ retail and digital channels. The company also sells over 3,500 digital gift cards from around the world, as well as over 2,000 digital data-only eSIM plans to more than 150 countries. Through its Zendit enterprise platform, IDT Digital Payments enables businesses, entrepreneurs, and developers to offer over 16,000 prepaid digital offerings to their audiences globally.
The company’s BOSS Revolution and IDT Global businesses operate in the paid-minute voice communications market.
National Retail Solutions
NRS operates a network of POS terminals at independent retailers throughout the United States and has a small but growing presence in Canada. The NRS solution includes integrated hardware and software tools that enable these retailers to operate more efficiently and compete more effectively against larger retail chains.
The POS terminal’s hardware includes a cash register, barcode scanner, retailer and customer-facing hi-definition screens, a receipt printer, and a credit card reader. NRS’ integrated, proprietary software is offered to retailers as a service and provides operational tools, including inventory management, sales tracking, price book management, and other useful features. NRS technology teams continuously enhance the software and develop new features to better serve existing customers and facilitate expansion into additional retail market segments.
The primary market for NRS’ POS terminals is the independently owned convenience, bodega, liquor, grocery, and tobacco stores in the United States, many of which primarily serve foreign-born communities in urban areas.
NRS continues to increase the number of POS terminals active in its network. As of July 31, 2024, the NRS POS network included approximately 32,100 terminals. The company’s network of NRS retailers comprises the largest POS network serving convenience store retailers in the U.S. by a significant margin. NRS sells its POS terminals through the company’s and NRS’ own dedicated sales agents, through in-house telemarketing, and through strategic relationships with wholesale distributors.
NRS generates revenue from a portfolio of services for both retailers and third parties. The vast majority of revenue is generated by recurring services, including:
Merchant Services. Merchant services revenue is generated by NRS PAY, a service enabling retailers to accept and process payments made by credit cards, debit cards, electronic benefits transfer and other forms of electronic payment. The NRS PAY offering is attractive to retailers for several reasons:
For new customers / retailers, NRS incentivizes retailers to also enroll in NRS PAY by reducing the cost of the NRS POS hardware;
NRS PAY’s pricing model is straightforward and easily understood, NRS PAY does not charge hidden fees – a frequent sore point for retailers under contract to other providers;
NRS provides the NRS PAY equipment at no cost to the retailer; and
NRS PAY offers several credit card processing plans that include a cash discount offering, a standard plan and customized pricing.
NRS, though NRS PAY, operates as an independent service organization (ISO), acting as an essential, retailer-facing intermediary between NRS retailers and its payment facilitator.
At July 31, 2024, NRS had approximately 21,300 NRS PAY customers compared to approximately 15,800 a year earlier.
Display Advertising. NRS’ offerings participate in the retail media network advertising market, which is uniquely positioned to reach consumers at or near their point of purchase. Through its NRS Digital Media brand, NRS operates a nationwide, digital retail media platform. The platform leverages the 15-inch digital consumer facing display screens on each NRS terminal enabling advertisers to engage customers at the time of purchase. NRS Digital Media offers its large inventory of static and video advertisements, including video accompanying third-party provisioned content, extensive reach into the predominantly urban, multicultural consumer market served by NRS retailers. It markets its advertising inventory through both programmatic, and to a lesser extent, direct channels to consumer package-good sellers and other brand marketers, government agencies and non-profits.
Data and Analytics: NRS licenses its first party retail data from merchants operating the NRS POS system to consumer packaged goods brands, marketers, and other third-parties under its NRS Insights brand. This data captures product sales processed through the NRS POS at the transaction level including all scannable products identified with a universal product code (UPC), as well as items prepared or packaged in-house, i.e., brewed coffee, bakery, and food service. The data are provisioned based on the client’s formatting and business requirements and are typically ingested into broader sales and marketing data warehouses. NRS Insights’ data typically fill a blind spot in overall retail sales, as the independent retailer market that NRS serves is often either under-represented through common data syndicators or not included in their ‘tracked channels’. Additionally, because NRS retailers’ stores predominantly serve urban consumers, their shoppers over-index to multicultural demographics – a view that may be diluted or unavailable through other data providers and aggregators.
The NRS Insights data are used by licensees both tactically and strategically. Common tactical applications of the data include sales enablement activities such as identifying core item distribution voids and monitoring speed to shelf and adoption of new product launches. Popular strategic applications of the data include gaining competitive intelligence, informing research and development activities, and informing acquisition and merger strategies.
NRS Insights also provides analytical services to third parties, leveraging its data to answer high impact business questions including, but not limited to, advertising measurement, market-basket studies, inventory (SKU) optimization, and price elasticity.
Terminal-based software services. NRS offers retailers several pricing plans for its proprietary software solutions. These plans offer different levels of features depending on the retailer’s needs.
In addition to these recurring sources of revenue, NRS also sells its POS terminals to retailers.
NRS’ growth strategy includes:
Expansion of the company’s POS terminal network into new retail verticals enabled, in some markets, by the development of new POS hardware formats and software functionalities;
Subsidize the POS hardware, particularly for retailers who also enroll in NRS PAY;
For NRS PAY, conversion of current NRS terminal customers, particularly as contracts with their existing credit card processors expire, and conversion of existing NRS PAY customers to higher margin pricing plans;
For NRS advertising, integrations with new programmatic advertisers and the development of differentiated offerings that enable the company to more effectively leverage the unique strengths of the company’s platform;
Develop partnerships to provide NRS retailers with robust home delivery service options; and
Build out the NRS digital wholesale supply channel to provide NRS retailers with new cost-effective supply options.
Fintech
Fintech is consisted of BOSS Money and other, significantly smaller, financial services businesses.
BOSS Money enables customers in the United States and Canada to send money conveniently and affordably to third parties around the world. International remittances are a primary economic activity for the tens of millions of first- and second-generation immigrants in the United States. At July 31, 2024, BOSS Money provided its remittance service to 49 countries through approximately 1,300 payer entities and its payout network included over 235,000 cash payout locations worldwide in addition to bank deposits, mobile money wallets, credit to debit cards, and home delivery payout options.
BOSS Money is offered directly to consumers via the company’s digital channels, including the BOSS Money app and the BOSS Revolution app. To utilize the company’s digital channel, customers can charge their debit or credit cards or authorize ACH transfers from their bank accounts.
The company’s retail channel network comprises licensed and authorized BOSS Money agents nationwide. Customers can initiate transfers through a BOSS Money agent with cash, as well as with their debit or credit cards.
The company continues to build its retail origination network by using the company’s internal sales force to recruit new BOSS Money retailers, primarily focusing on retailers that already provision BOSS Revolution and IDT Digital Payments services. To qualify to provide the company’s service, BOSS Money retailers must meet certain stringent financial and other regulatory qualifications. The company also continues to enhance the BOSS Money retailer portal and platform to make transaction execution more convenient for retailers, the majority of whom host multiple remittance providers.
The company continues to expand its BOSS Money customer base at rates well above the domestic remittance industry’s average by marketing to the large BOSS Revolution customer base, as well as by targeting new customers directly, primarily through attractive fee and foreign exchange rate offers, through both the company’s digital and retail channels, but also through online, media and events advertising.
BOSS Money generates revenues from a per-transaction fee charged to the customer and from foreign exchange differentials. The company’s transaction costs include commissions paid when the transaction is initiated by a retail agent, payment to the international disbursing agent, banking, compliance and foreign currency exchange costs, and for digital transfers, credit and debit card processing fees.
BOSS Money’s growth strategy includes:
Expansion of the company’s international payout network with a focus on certain popular destinations in Africa and Asia;
Expansion of origination beyond the United States and Canada to the United Kingdom, and potentially over the longer term, to European countries with large immigrant populations;
Continued migration of the company’s BOSS Revolution and IDT Digital Payments customers from competitors to BOSS Money;
Further enhancement to the company’s BOSS Money app, BOSS Revolution app and retailer portal;
Increasing the number of BOSS Money retail agents; and
Addition of new features and offerings.
net2phone
net2phone enables its customers to transform their communications by leveraging its cloud platform to provide solutions that enable more intelligent, flexible and adaptive communications. net2phone operates in the United States, Canada, Mexico, Central and South America and Spain.
net2phone’s offerings include:
Unified Communications as a Service (UCaaS): net2phone’s Unite branded UCaaS service utilizes its cloud platform to provide conversational continuity across channels from any connected device – tethered or mobile – and to measure, manage and analyze those communications for enhanced insight and productivity. net2phone provides its UCaaS customers that convert from on-premise PBXs with advanced Internet Protocol, or IP, desktop phones and/or with a bring-your-own-device solution accessed through its integrated web portal and through net2phone’s mobile app. net2phone’s UCaaS service includes multi-channel communications with voice management features, unlimited domestic and international calling to over 40 countries, robust messaging and chat tools, voicemail to email transcription, client analytics, AI-powered functionalities, including instant call summaries and transcripts, internal team chat, the net2phone Huddle video conferencing service, and reporting and system management capabilities accessed through its online console. net2phone’s UCaaS service integrates seamlessly with business communication platforms (such as Microsoft Teams and Slack), leading customer relationship management, or CRM, services (such as SalesForce, Zoho and others) and text-based communications platforms. net2phone adds features, enhancements and integrations on a regular basis leveraging its agile development philosophy.
Contact Center as a Service (CCaaS): net2phone offers robust and integrated cloud CCaaS solutions under its uContact brand. uContact provides omnichannel contact center solutions including workflows, forms, reports, dashboards, CRM alerts, and monitoring for inbound, outbound, or blended contact centers. uContact also offers gamification components to improve employee efficiency and engagement. uContact is sold either as a stand-alone offer or as a bundled solution with net2phone’s UCaaS or SIP Trunking offerings.
Huddle: net2phone’s video and audio streaming solution, Huddle, is integrated with and provisioned through its unified communications offering, Unite. Huddle delivers a comprehensive feature set including phone dial-in conference options, robust user controls, single sign-on, noise cancelation, screen blur, Huddle reactions and complete on-the-go access. Huddle integrates fully with Google and Microsoft Outlook calendars. Conversations on Huddle are secure, and passcode protected.
Session Initiation Protocol (SIP) Trunking: net2phone’s SIP Trunking service provides high-quality voice channels from net2phone’s expansive VoIP network directly to the client’s on-premise IP-PBX. net2phone’s SIP Trunking service has been certified for compatibility with leading IP-PBX vendors such as Avaya and 3CX.
These offerings include advanced feature sets ideal for many mid-market scale businesses with 50 to 1000 seats.
Other net2phone differentiators include white glove customer service, integrations with third-party software and deep localization. net2phone’s global infrastructure, locally based sales and customer support teams and native language support, enable net2phone clients to retain the look and feel of localized customer and user experiences.
net2phone goes to market through a synergistic combination of channel partnership and direct to end-user sales with differentiated approaches tailored to each geographic market.
net2phone focuses primarily on an indirect go-to-market strategy in the majority of its markets, utilizing extensive networks of channel partners, including Technology Solutions Brokerages (TSBs), Tech Services Distributors (TSDs), Managed Service Providers (MSPs), and Value-Added Resellers (VARs) partners. This channel-centric approach enables net2phone to efficiently reach its extensive target market of midsize businesses, which rely heavily on these types of service providers to address their IT needs. net2phone’s partner channel is overseen by regional channel sales managers employed by net2phone.
net2phone is continuing to expand its direct-to-business channel in each of its markets through digital marketing, brand awareness campaigns, and participating in local and regional events.
Both net2phone’s channel partners and direct business customers choose its solutions because of the company’s user-friendly offerings, availability of in-house support agents, value proposition, and track record of reliability and stability. Channel partners value net2phone for its extensive customization capabilities, frictionless and rapid quote generation, and competitive compensation – backed by its dedicated channel sales team.
net2phone’s direct marketing to channel partners and end users includes search engine marketing, search engine optimization, third-party lead generation platforms, social media marketing, webinars, industry focused events, and other forms of demand generation.
net2phone’s indirect marketing funnels through its network of partners, technology distributors, and affiliates and includes tradeshows and local events, marketing development support for partners and other forms of demand generation, layered with ongoing channel sales training, proof of concepts and demos.
net2phone closely tracks its acquisition costs across both channels to ensure it is acquiring customers in a cost-efficient manner and consistent with its targets for return on investment.
net2phone’s growth strategy includes:
Expanded AI-powered functionalities to further leverage the large and improving capabilities of language models to drive quantifiable improvements in customer engagement and business performance across its Unite and uContact platforms, and its Huddle video conferencing feature. net2phone AI was initially introduced on net2phone’s platform in 2024, including instant call transcription and summarization features.
Across its offerings, net2phone plans to introduce burstable line capacity that allows a customer to temporarily increase their bandwidth to handle short-term traffic spikes, providing end users with the option to leverage net2phone’s robust network capabilities to temporarily exceed stipulated line limits, thereby enabling them to effortlessly add additional capacity during periods of brief demand volatility.
For its Unite customers, net2phone plans to provide integration with WhatsApp. With this integration – already available to uContact customers, clients will be able to send and receive WhatsApp messages on the net2phone portal.
Premium plan tiers: net2phone offers multiple tiered plans with differentiated functionalities and pricing for its UCaaS and CCaaS offerings. To meet the needs of its customers and enhance revenue per customer, sales efforts will focus on upselling premium feature sets to existing customers, as well as onboarding new customers on premium plans.
Focus channel expansion on MSPs and resellers: net2phone’s continuous product development makes its offerings increasingly attractive to larger, more complex organizations that demand more advanced feature sets. As a result, net2phone is focused on expanding its partnerships with both MSPs, who provision services to larger, more technologically demanding end users on a subscription basis, and resellers, who purchase services directly for subsequent resale, often under their own label, and who are responsible for customer onboarding and support.
Expansion of CCaaS: net2phone’s uContact branded CCaaS solution enables net2phone to expand its channel partner portfolio by adding partners that focus mainly or exclusively on the CCaaS space. uContact also expands net2phone’s total addressable market by allowing it to target larger enterprise accounts, business process optimization, or BPO, providers (outsourced call centers), and international contact centers, as well as entities that want an integrated UCaaS and CCaaS solution. net2phone expects CCaaS-driven opportunities will continue to increase its average user per customer considerably beyond what it experiences in the UCaaS space. In addition, Ucontact is expected to generate higher revenue per customer, while commanding stickier, longer-term relationships with customers.
Selectively pursue acquisitions and strategic investments: net2phone may continue to selectively pursue acquisitions and strategic investments to strengthen its platform with new capabilities and solutions, as well as to expand its position in its existing markets or to establish a presence in new markets.
Competition
net2phone’s most significant competitors in the UCaaS space include RingCentral, 8x8, Crexendo, Vonage, and Nextiva. Many of these companies offer more widely recognized brands, larger and more developed marketing and sales forces and/or channel agent networks, and more advanced product sets and solutions customized for specific market segments or verticals. These competitors’ offerings typically also support integration of their services with other well-known, third-party CRM vendors, as well as with various Google and Microsoft applications.
net2phone competes with large legacy vendors that offer on-premise contact center systems, such as Avaya and Cisco. Additionally, net2phone competes with vendors that historically provided other contact center services and technologies and expanded to offer cloud contact center software such as NICE, Five9, and Genesys. net2phone also faces competition from many smaller contact center service providers such as Talkdesk and Seranova, as well as vendors offering both unified communications and contact center solutions.
Traditional Communications
Traditional Communications comprises the following businesses:
IDT Digital Payments, which includes certain consumer prepaid offerings – primarily mobile top-up, which enables customers to transfer airtime and bundles of airtime, messaging, and data to international and domestic mobile accounts, and Zendit, its cloud-based prepaid-as-a-service platform, which enables businesses and developers to offer prepaid digital offerings globally through their apps and websites;
BOSS Revolution, an international long-distance calling service marketed primarily to immigrant communities in the United States and Canada;
IDT Global, a wholesale provider of international voice and SMS termination and outsourced traffic management solutions to telecoms worldwide; and
Other small businesses and offerings including early-stage business initiatives and mature businesses in harvest mode.
IDT Digital Payments
The substantial majority of IDT Digital Payments’ revenue is from sales of international mobile top-up services. IDT Digital Payments offers mobile top-up for approximately 185 different carriers in more than 100 countries, primarily in Latin America, the Caribbean and Africa. IDT Digital Payments leverages the company’s platform capabilities, the company’s distribution reach into foreign-born communities and the company’s relationships with mobile operators around the world.
IDT Digital Payments is sold through the BOSS platform primarily through three channels:
Direct-to-consumer, through the BOSS digital channel, including the company’s BOSS Revolution and BOSS Money apps, and the BOSS Revolution website;
Retail, through the company’s BOSS Revolution retail network including direct provisioning by retailers using the company’s BOSS Revolution retailer platform, NRS terminals and through mobile operator-branded top-up cards, and
Enterprise and wholesale, in which the company provision international offerings for other businesses through Zendit’s cloud-based prepaid-as-a-service platform.
IDT Digital Payments’ growth drivers include deployment of additional data-centric bundles to meet the growing demand for data from mobile phone customers in developing countries worldwide, the introduction of digital gift cards and e-sims, cross selling to the company’s BOSS Revolution and BOSS Money customers, expansion of the Zendit prepaid platform, and further expansion into the enterprise and wholesale market, as well as other regions.
Competition
IDT Digital Payments’ major competitors include:
International mobile operators, who seek to control more of their own distribution channel or create their own products that directly compete with IDT Digital Payments; and
Other service providers, distributors, and wholesalers, including DT One, Ding, and Recharge.com.
BOSS Revolution
BOSS Revolution is a prepaid international long-distance calling service marketed primarily to foreign-born and under-banked consumers in the United States and Canada, and a digital-only offering in Europe and Australia.
BOSS Revolution includes the company’s flagship ‘BOSS Revolution’ branded international long-distance prepaid calling service, as well as disposable hard cards sold under a variety of brands. In the United States, BOSS Revolution served, as of July 31, 2024, approximately 1.8 million customers per month.
BOSS Revolution is offered through the company’s digital channels – the BOSS Revolution app and website, and through the company’s extensive national network of BOSS Revolution retailers.
BOSS Revolution allows users to place international long-distance calls at affordable rates from the BOSS Revolution app or by calling an access number. Regardless of how the call originates, the company’s customers must first establish and top-up a prepaid BOSS Revolution account that is linked to their phone. Customers can open a BOSS Revolution account for free and top-up with a debit or credit card using the BOSS Revolution app, through the BOSS Revolution website (www.bossrevolution.com) or by phone, or with cash at any BOSS Revolution retailer. Once the account is established and a call is placed, the company’s platform recognizes the customer’s phone through its network-provided automatic number identification and seamlessly links each call to the corresponding BOSS Revolution account. Callers then enter their destination phone numbers. BOSS Revolution customers’ account balances are debited at a fixed rate per minute or at a fixed amount for calling plans to a specific country over a specified time period. In contrast to certain of the company’s competitors, BOSS Revolution does not charge connection, usage or breakage fees. BOSS Revolution’s per minute rates vary by the destination country, city, and whether the call is placed to a landline or mobile phone. Rates are published on the BOSS Revolution website and within the BOSS Revolution app.
Users of the BOSS Revolution app constitute the majority of the company’s customers as of July 31, 2024. At July 31, 2024, approximately 1.25 million customers per month utilized the BOSS Revolution app.
In the United States, the company distributes its BOSS Revolution hard cards and other retail products primarily through the company’s network of distributors that, either directly or through sub-distributors, sell to retail locations. In addition, the company’s internal sales force sells BOSS Revolution and other platform products directly to retailers.
At July 31, 2024, approximately 28,000 retailers per month utilized the company’s digital retailer platform to provision customers, the substantial majority of whom pay the retailer in cash. In addition, the company estimates that approximately 3,000 retailers resell the company’s disposable hard cards without utilizing the company’s retailer portal. BOSS Revolution retailers are typically independent retailers serving foreign-born communities with significant unbanked or under-banked populations.
The BOSS Revolution retailer portal can be accessed by any broadband enabled device. Through the portal, retailers can access the company’s platform to create accounts for new customers, add funds to existing customer balances and execute sales transactions. The platform provides the company with a direct, real-time interface with the company’s BOSS Revolution retailers to create a cost-effective and adaptable distribution model that allows the company to target and promote services directly to distributors and retailers, to introduce and cross-sell new offerings, and to rapidly adapt to changes in the business environment.
In the United States, the BOSS Revolution brand is supported by national, regional, and local marketing programs that include television and radio advertising, online advertising and grass roots marketing at community and sporting events. In addition, the company works with distributors and retailers on in-store promotional programs and events.
BOSS Revolution’s retail sales have traditionally been, and continue to be, strongest in the Northeastern United States and in Florida because of the company’s extensive local distribution network. The company continues to grow BOSS Revolution’s distributor relationships and expand BOSS Revolution’s retail network in other areas of the United States and Canada, including the Southwest and West Coast.
Competition
Outside the United States, the company also competes with large state-owned or state-sanctioned telephone companies. Many of these companies, including AT&T, Verizon, and T-Mobile, are substantially larger and have greater financial, technical, engineering, personnel, and marketing resources, longer operating histories, greater name recognition, and larger customer bases than the company does.
IDT Global
IDT Global is one of the larger wholesale carriers of international long-distance minutes in the world.
IDT Global’s telecommunications network is consisted of interconnections and commercial relationships that reach virtually every significant global telecom operator. These relationships enable the company to carry international telecommunications traffic to more than 200 countries around the world. IDT Global’s customers include the company’s BOSS Revolution and net2phone businesses, major and niche carriers around the globe, mobile network operators, and other service providers such as call aggregators. For many of these customers, particularly the major carriers, the company engages in buy-sell relationships, terminating their customers’ traffic in exchange for terminating the company’s traffic with them.
IDT Global offers competitively priced international termination rates at several quality levels. The company can offer competitively priced termination services in part because of the large volumes of originating minutes generated by the company’s BOSS Revolution business, the company’s global platform powered by proprietary software, the company’s team of professional and experienced account managers and market makers, and the company’s global network of interconnections and relationships with other telecom operators. IDT Global’s services are marketed and sold through the company’s internal account management team and the IDT Express digital portal. IDT Express focuses on delivering wholesale voice and direct inward dialing, or DID, services to small and medium size businesses domestically and internationally.
Traditional Communications terminated 8.0 billion minutes in fiscal 2024. IDT Global accounted for 5.7 billion minutes of the total Traditional Communications’ minutes in the year ended July 31, 2024 (fiscal 2024).
IDT Global has a significant number of direct connections to Tier 1 providers in North America, Latin America, Asia, Africa, Europe, and the Middle East. Tier 1 providers are the largest recognized licensed carriers in the country. Direct connections improve the quality of the telephone calls and reduce the cost, thereby enabling the company to generate more traffic with higher margins to the associated foreign locales. The company also has direct relationships with mobile network operators, reflecting their growing share of the voice traffic market.
In addition to offering competitive rates to the company’s carrier customers, the company emphasizes its ability to offer the high-quality connections that these providers often require. To that end, the company offers higher-priced services in which the company provides higher-quality connections, based upon a set of predetermined quality of service criteria. These services meet a growing need for higher-quality connections for some of the company’s customers who provide services to high-value, quality-conscious retail customers. As of July 31, 2024, IDT Global, through its wholesale carrier organization and IDT Express channel had more than 1,600 customers, including more than 280 carrier relationships globally.
IDT Global’s revenues are generated by sales to both postpaid and prepaid customers. Postpaid customers typically include Tier 1 carriers, mobile network operators, and the company’s most creditworthy customers. The majority of IDT Global’s prepaid customers connect via the company’s IDT Express portal. IDT Express offers the convenience of a mobile self-service portal paired with dedicated account managers backed by customer support. Prepaid customers are typically smaller telecommunication companies as well as independent call aggregators.
IDT Global also offers outsourcing services to help fixed and mobile telephony operators enhance the profitability and value of their international voice operations. IDT Global offers these operators customized solutions, including full outsourcing, handing all inbound and outbound calls with or without switch management, and hybrid arrangements whereby the operator retains certain routes or customers directly. Pursuant to these deals, IDT Global collaborates with the operators to provide a full range of international long-distance services to their respective customers in-country and overseas.
IDT Global is subject to intense revenue and margin pressure as communications globally continues to transition away from international voice calling to video conferencing and other collaboration platforms, low-cost or free messaging services, free peer-to-peer voice calls available when both parties utilize broadband connections, and flat-rate international long-distance plans offered both by the largest mobile network operators and niche mobile virtual network operators.
Communications and Payment Network Infrastructure and Technology Development
The company’s products and services utilize a combination of proprietary software and services, as well as technologies and services provided by third parties. The company has developed intuitive user interfaces, customer tools and transaction processing, and database and network applications that enable the company’s users to reliably and securely complete transactions and help the company’s customers and partners utilize the company’s suite of services. The company’s technology infrastructure simplifies the storage and processing of large amounts of data, eases the deployment and operation of large-scale global products and services, and automates much of the administration of large-scale clusters of computers.
The company’s technology infrastructure has been designed around industry-standard architectures to reduce downtime in the event of outages or catastrophic occurrences. The company strives to continually improve its technology infrastructure to enhance the customer experience and to increase efficiency, scalability, and security. The company’s platforms’ architecture enables the company to connect parties regardless of whether the transaction is occurring at a traditional physical location, online, or through a mobile device. The company’s platforms incorporate multiple layers of protection, both for continuity purposes and to address cybersecurity challenges. The company engages in multiple efforts to protect its software platforms against these challenges, including regularly testing the company’s systems to address potential vulnerabilities.
The company’s technology organization is responsible for the design, development, testing, and delivery of new software, technologies, and features of the company’s products and services, as well as the continued improvement and iteration of the company’s existing products and services. The company’s technology employees are distributed globally in the company’s Newark, Jerusalem, Guatemala, Warsaw, and Minsk offices. The company’s technology team consists of its software engineering, voice engineering, quality engineering, data warehousing, ML (Machine Learning) and AI (Artificial Intelligence) development, data engineering, systems, NOC (Network Operations Center), and operations teams. The company intends to continue to invest in the company’s research and development capabilities to extend the company’s products and services.
The company’s product offerings and go-to-market strategy continue to evolve, and the company expects its product offerings to continue to become available to customers at more frequent intervals than the company’s historical release cycles. The company’s Agile development methodology is characterized by a dynamic development process with more frequent revisions to a product release’s features and functions as the software is being developed. In addition, the company has implemented a holistic portfolio management process, which has improved transparency and efficiency across the portfolio through a recurring cadence of business reviews.
Regulation
The company’s telecommunications services that originate and terminate within the same state, including both local and in-state long distance services are subject to the jurisdiction of that state’s public utility commission, or PUC. The company is certified to provide facilities-based and/or resold long-distance service in all 50 states and facilities-based and resold local exchange service in 45 states.
In connection with the company’s international operations, the company has obtained licenses or are otherwise authorized to provide telecommunications services in various foreign countries. The company has obtained licenses or authorizations in Argentina, Australia, Belgium, Brazil, Canada, Chile, Denmark, Germany, Hong Kong, Italy, Japan, Mexico, the Netherlands, Peru, Singapore, South Africa, Spain, Sweden, Switzerland, the United Kingdom, and Uruguay.
The company’s consumer payment services offerings include BOSS Money and various network branded, also called ‘open loop’, prepaid card offerings. These industries are heavily regulated. Accordingly, the company, and the products and services that the company markets in consumer payment services, are subject to a variety of federal and state laws and regulations, including banking laws and regulations; money transmitter and payment instrument laws and regulations; anti-money laundering laws; privacy and data security laws and regulations; consumer protection laws and regulations; unclaimed property laws; and card association and network organization rules.
Intellectual Property
The company actively pursues the filing and registration of patents, domain names, trademarks, and service marks to protect the company’s intellectual property rights within the United States and abroad; in particular the company’s registered trademarks and brands: IDT, BOSS Revolution, BOSS Money, net2phone and zendit.
History
IDT Corporation was incorporated in 1978.
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