NEWARK, N.J.-IDT Corp. said it will reorganize its fixed wireless Winstar/IDT Solutions division.
The group will focus on providing private line services, wholesale service, spectrum leasing and backhaul services to telecommunications companies and mobile and fixed-line carriers.
Under the reorganization, IDT will no longer provide retail communications services to commercial customers, but the company will retain its wholesale, government and state contract customers.
“We recognize that the future of telecommunications is quickly moving away from traditional wired service towards new technologies,” said Howard Jonas, IDT’s chairman. “Winstar/IDT Solutions’ fixed wireless assets and technology are perfectly positioned to play a critical role in the development of these technologies, including Wi-Fi and cellular backhaul.”
The reorganization will also mean the elimination of unprofitable business services and staff reductions, and Winstar’s assets will be integrated into IDT Telecom’s U.S. network.
It is likely to cost $50 million, according to IDT, which said $25 million has already been reserved. The company expects each of its divisions to achieve positive cash flow from operations by the end of the first quarter of fiscal 2005.
