Telegroup Introduces Convenient New Long Distance Dialing in the Netherlands
Fairfield, Iowa, February 20, 1998 -- Telegroup, Inc., (Nasdaq: TGRP), a leading international telecommunications provider with more than 268,000 customers in 180 countries worldwide, today announced that it has introduced SPECTRA, a new service providing easy access to reduced rate long-distance services for customers in the Netherlands. Telegroup is one of the largest carriers of international traffic originating in the Netherlands.
This service, by which customers access Telegroup's long distance lines by dialing an easy four-digit code, is one of the first such services to be introduced in the Netherlands. SPECTRA provides callers in the Netherlands access to Telegroup's Intelligent Global Network (TIGN) and is a low-cost alternative to service provided by the Dutch PTT telecommunications company. Because SPECTRA alleviates the need for long access numbers and PIN codes, customer response during the eight weeks in which this service has been in place has been significant.
"Not only does SPECTRA improve customer convenience, but it allows Telegroup to offer the important new feature of domestic long distance service within the Netherlands," noted Paul Gelderloos, Telegroup's Country Coordinator in Holland. "This is an important feature for business customers and will improve our penetration of that market."
Dr. Gelderloos added, "As the first alternative telephone service provider in the Netherlands, we have developed an established customer base with excellent name recognition, particularly in the residential market. By tying together convenience dialing, existing international calling services and our new domestic long distance service, we will maintain this leadership position. "
"SPECTRA also gives us an excellent platform to become a customer's designated long distance carrier of choice when the Netherlands introduces equal access to alternative long distance providers, which is expected in 1999," Gelderloos stated.
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Telegroup Introduces Convenient New Dialing
Clifford Rees, Chief Executive Officer of Telegroup, added, "We continue to implement our global strategy of providing convenient, low-cost long distance alternatives to residential and business customers throughout the world. Although low-cost, code access services such as SPECTRA are well known throughout the United States, they represent a revolutionary consumer concept in many other parts of the world."
Mr. Rees continued, "Our strategy has been to penetrate international markets by initially offering very basic cost savings products and over time, migrating customers to more convenient methods of dialing. This is a strategy that has already been successful for Telegroup in countries such as Australia. Australia and New Zealand, have both experienced successful implementation of the SPECTRA service."
Mr. Rees concluded, "Ultimately our goal is to have Telegroup become the primary, alternative long distance provider in many countries around the globe. Improving ease of access with a four-digit code is an important step in this migration."
Telegroup is a leading global alternative provider of long distance telecommunications services. The company offers a broad range of discounted international, national, and enhanced telecommunications services. In addition, Telegroup offers value-added wholesale services to over thirty domestic and international telecommunications carriers. The company has achieved its significant international market penetration by developing what it believes to be one of the most comprehensive global sales, marketing and customer service organizations. Telegroup operates a reliable, cost-effective, digital, facilities-based network, the Telegroup Intelligent Global Network, which consists of a central network operating center, twenty switches, five enhanced service platforms, owned or leased capacity on seven digital fiber-optic cable links, and leased parallel data transmission capacity connecting Telegroup's switches to each other and the network of other national and international carriers. Telegroup had revenues of $238.5 million for the first three quarters of 1997.
This press release contains certain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expansion of SPECTRA service and Telegroup's achievement of its business strategy and objectives. Telegroup's actual results might differ materially from those projected in forward-looking statements as a result of numerous factors including without limitation, the Company's success in developing its business plan and acquiring additional financing needed to meet this plan, foreign currency fluctuations, termination of certain operating agreements, and changes in tax law. Those and other risks are described in the Company's filings with the Securities and Exchange Commission.
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