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Net2Phone Dials Up IDT for Cable Telephony

IDT Corp. will team up with Net2Phone Inc. to provide telephony services to cable operators under an agreement announced Wednesday.

Under terms of the deal, IDT -- directly or through one of its subsidiaries -- will provide local and interexchange network access, termination, origination and other related services, drawing on its resources as a licensed local, long-distance and international telecommunications provider.

In exchange, Net2Phone will grant IDT shares of its class-A common stock, which will vest at the rate of 1.38 million shares per year for five years, subject to certain performance standards to be met by IDT. The shares will be placed in escrow to ensure the aforementioned performance standards.