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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
October 20, 1999
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Date of Report (Date of earliest event reported)
STARTEC GLOBAL COMMUNICATIONS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 000-23087 52-2099559
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(State or other (Commission (IRS Employer
jurisdiction of File No.) Identification
Incorporation) No.)
10411 Motor City Drive
Bethesda, Maryland 20817
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
301-365-8959
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Not applicable
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(Former name or former address, if changed since last report)
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<PAGE>
ITEM 5. OTHER EVENTS.
The Company previously issued the accompanying press releases (i) Startec
Launches Arab Virtual Community and Free Internet Service, and (ii) Startec
Rolls Out Clarent-Based IP Telephony Clearinghouse and Network.
Item 7. Financial Statements and Exhibits.
99.1 Press Release dated October 20, 1999.
99.2 Press Release dated November 1, 1999.
(2)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Report to be signed on its behalf
by the undersigned thereunto duly authorized.
STARTEC GLOBAL COMMUNICATIONS CORPORATION
By: /s/ PRABHAV V. MANIYAR
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Prabhav V. Maniyar
Senior Vice President and Chief
Financial Officer
Dated: November 9, 1999
(3)
<PAGE>
Exhibit No. Description
- ----------- -----------------------------------
99.1 Press Release dated October 20, 1999
99.2 Press Release dated November 1, 1999
(4)
<PAGE>
EXHIBIT 99.1
Startec Launches Arab Virtual Community and Free Internet Service
First in a Series of 9 Ethnic Online Communities Launched In Conjunction
with Free Internet Service for Select Customers
BETHESDA, Md., Oct. 20 /PRNewswire/ -- Startec Global Communications
Corporation (Nasdaq: STGC - news), a global communications company targeting
ethnic communities worldwide, today announced the launch of its new Arab virtual
community, the first in a series of nine planned ethnic virtual communities. The
communities are offered under the name eStart, a new on-line brand of Startec,
and can be accessed at www.estart.com. In addition to the virtual communities,
Startec announced free Internet service to its high volume, dial- one customers.
Over the next 12 months, eStart plans to launch eight additional
virtual communities, each targeting a distinct ethnic community, including the
Turkish, Iranian, South Asian, Chinese, Russian and Central European, Israeli,
Latin American and East Asian communities. As successive communities are
launched, each one will be accessible on the eStart Web site through a gateway
page that allows users to select an ethnic community and language preference.
The introduction of the virtual communities and free Internet service
mark the beginning of a new strategic initiative for Startec, which has emerged
as an industry leader in the underserved ethnic telecom markets in the United
States, Canada and Western Europe. In the two years the Company has been public,
it has transitioned from a dial-around (10-10-719) telephony company to a global
facilities-based communications company offering a bundled suite of services to
its customers, including domestic and international dial-one long distance and
prepaid cards. Now, free Internet service will be marketed to high volume,
dial-one customers who spend a minimum of US$60 per month on domestic and
international long distance with Startec. With 10 years of ethnic marketing
experience, Startec plans to leverage its ethnic marketing skills, customer
knowledge and international network of agents and media partners to create a
series of ethnic virtual communities with in-depth, local content. The Company's
existing customer base of Arabs and other ethnic communities in the U.S., Canada
and Western Europe enables Startec to promote the Arab and forthcoming virtual
communities to a targeted audience that knows and trusts the Startec brand.
(1)
<PAGE>
"We are very excited about our concept of creating virtual communities
under one brand. We believe that this greatly enhances our model and catapults
us into a unique position in the Internet space. We are confident of rapidly
leveraging our network of agents and media relationships to aggregate cultural
content for eStart," said Tony Das, Senior Vice President of Corporate and
International Affairs of Startec, and head of the eStart initiative.
The Arab virtual community features culture-specific content,
interactive applications such as online forums on family, religious and
political issues, communication tools and e-commerce opportunities.
"Our vision is to provide our ethnic customers with more than just
Internet access," said Ram Mukunda, Founder and Chief Executive Officer of
Startec. "We seek to provide them with a single destination on the Internet for
obtaining in-depth, local content relevant to their home cultures, under the
umbrella brand of eStart. Within each virtual community, there will be content,
communication tools and a platform for our customers to create additional online
resources for use by other members of the community. The Arab market is one of
our strongest, and we are pleased to offer them a better Internet experience."
eStart will also enable online advertisers and merchants to target the
Arab community, which has a high percentage of computer ownership and is rapidly
increasing its use of the Internet. In the near future, eStart will expand the
site by offering an ethnic e-commerce bazaar, in-language content and search
functions, free email, instant messaging, bulletin boards and many other
features. As additional communities are launched, advertisers and merchants have
an opportunity to reach an even greater online ethnic audience.
"We believe we have a very powerful model. Free Internet service
bundled with dial-one service will provide us with the opportunity to increase
our revenue per customer. Connecting our Internet customers to our virtual
communities allows us to offer them a value-added Web experience tailored to
their specific cultural interests. By leveraging our existing customer base, we
believe we are uniquely positioned to capture significant market share of page
views, creating a strong platform for future advertising and e-commerce
opportunities," said Ram Mukunda.
(2)
<PAGE>
About Startec:
Startec Global Communications Corporation is a facilities-based
provider of communications services to ethnic communities in North America and
Europe. Startec is building a state-of-the-art network optimized for Internet
Protocol technology with an emphasis on connectivity to the emerging economies
of the world, allowing it to integrate voice, data, Internet, and video services
on a seamless network. Once completed, Startec's network will provide
connectivity from points originating in the U.S., Canada and Europe and
terminating in the emerging economies on an ATM/IP network. The Company's class
of common stock is traded on The Nasdaq National Market under the symbol "STGC."
Other than historical information contained herein, certain statements
in this release are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1994. Forward-looking statements in
this release involve a number of risks and uncertainties including, but not
limited to, changes in market conditions, government regulation, technology, the
international communications industry, and the global economy, availability of
transmission facilities, management of rapid growth, entry into new and
developing markets, competition, customer concentration and attrition, and the
expansion of the global network. These risk factors are discussed in further
detail in the Company's SEC filings.
Further information on Startec Global Communications Corporation can be
obtained from its Web site at www.startec.com.
(3)
EXHIBIT 99.2
STARTEC ROLLS OUT CLARENT-BASED IP TELEPHONY CLEARINGHOUSE AND NETWORK
REDWOOD CITY, California and BETHESDA, Maryland, November 1, 1999 -
Clarent(TM)Corporation (Nasdaq: CLRN), a worldwide leader in providing carrier-
grade, phone-to-phone Internet Protocol (IP) telephony solutions, and Startec
Global Communications (Nasdaq: STGC), a facilities-based provider of
communications services to ethnic communities in North America and Europe,
announced today that Startec has installed the first phase of a global IP
telephony clearinghouse into the emerging economies utilizing Clarent
technology.
To date, Startec has installed 20 IP telephony gateways with access to 17
countries, including Russia, Poland, Paraguay and Hong Kong. Utilizing Internet
Protocol, the industry standard for tracking Internet addresses and routing data
traffic enables Startec to provide high-quality connectivity into emerging
economies and to exchange IP traffic with carriers worldwide. Startec's global
IP telephony clearinghouse is planning to be seamlessly integrated with
Startec's traditional voice network and is a strategic component of its
communications strategy to offer a broad range of services globally to its
ethnic customer base. Startec recently completed testing its IP gateways and
plans to become an IP clearinghouse supplier in early 2000.
"The establishment of the global IP network and clearinghouse will allow
Startec to greatly expand its communications reach around the world and improve
the quality of communications to the emerging economies," said Richard Heaps,
Chief Operating Officer, Clarent Corporation. "We believe that Startec is
increasing its strategic advantage by successfully selling a variety of
communications services to ethnic markets in the United States and overseas."
"The ability to carry IP traffic into the emerging economies marks an
important milestone for Startec and will allow us to become vertically
integrated into many of the emerging economies," said Ram Mukunda, Founder and
Chief Executive Officer of Startec. "By combining our two core competencies, the
deployment of next-generation technology into the emerging economies and an
expertise in ethnic marketing, we are creating a sustainable advantage for
Startec and significant value for our shareholders. Adding IP capabilities to
our network positions us to become a leading provider of communications services
to ethnic consumers."
Startec has already established relationships with a number of
Clarent-based IP telephony service providers around the world.
(1)
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Forward Looking Statements
This release may contain forward-looking statements regarding Clarent's
products, business, customers or other factors that may affect future earnings
or financial results. Such statements involve risks and uncertainties, including
but not limited to potential issues relating to interoperability, inability to
introduce new products, ability to retain key customers, changes in market
conditions, government regulations, the international communications industry,
technological changes and other factors, which could cause actual results to
vary materially from those expressed in or indicated by the forward-looking
statements. These risks and uncertainties are described further in the risk
factors discussed in Clarent's quarterly report filed with the Securities and
Exchange Commission on August 16, 1999 and in Startec's quarterly report filed
with the Securities and Exchange Commission on August 16, 1999.
About Clarent Corporation
Clarent Corporation is a premier provider of scaleable, IP telephony
products to carriers and internet service providers around the world. Clarent's
intelligent architecture and the Clarent Command Center enable Clarent products
to route, manage, inter-connect and terminate high volumes of calls for service
provider customers including the world's largest long distance telecommunication
companies. According to a Cape Saffron report published in 1999, more minutes
travel across Clarent-enabled networks worldwide than those of any other
equipment supplier. *
Founded in July 1996, Clarent is headquartered in Redwood City,
California and has offices in major cities in Asia, Europe, Latin America and
North America. Additional information about Clarent is available at
http://www.clarent.com.
About Startec
Startec Global Communications Corporation is a facilities-based
provider of communications services to ethnic communities in North America and
Europe. Startec is building a state-of-the-art network optimized for Internet
Protocol technology with an emphasis on connectivity to the emerging economies
of the world, allowing it to integrate voice, data, Internet, and video services
on a seamless network. Once completed, Startec's network will provide
connectivity from points originating in the U.S., Canada and Europe and
terminating in the emerging economies on an ATM/IP network. The Company's class
of common stock is traded on The Nasdaq National Market under the symbol "STGC."
(2)
<PAGE>
Further information on Startec Global Communications Corporation can be
obtained from its Web site at www.startec.com.
Contacts:
Amy Wright
Clarent Corporation
Tel. 650/481-1743
Email: [email protected]
Prabhav V. Maniyar
Startec Global Communications
Tel. 301/767-3944
Email: [email protected]
Press Contact:
Steven Fielding
Phase Two Strategies
Tel. 415/772-8451
Email: [email protected]
###
Clarent is a registered trademark of Clarent Corporation in the United States
and other jurisdictions. All other company or product names mentioned may be
trademarks or registered trademarks of the respective companies with which they
are associated.
*Cape Saffron "Global IP Voice/ Fax Market 1999". Cape Saffron is an UK-based
research group focused on the international voice market.
http://www.capesaffron.com
(3)
