IDT Corp. has formed a spectrum-leasing unit within IDT Solutions to focus on leasing spectrum to telecommunication and wireless service providers. The move follows the Federal Communications Commission ruling that allows spectrum licensees to enter leasing arrangements with other companies.
IDT Solutions is the marketing arm of Winstar Holdings L.L.C., a wholly owned subsidiary of IDT Corp. that holds commercially licensed fixed wireless spectrum throughout the United States.
“As one of the biggest holders of commercially licensed spectrum in the nation, IDT will now be able to generate revenues from these assets,” said Brian Finkelstein, chief executive officer of IDT Solutions/Winstar. “Our ability to lease spectrum represents an additional stream of revenue that will accelerate our move toward profitability.”
IDT bought Winstar’s assets for approximately $42.5 million after the company went bankrupt in 2001 and has been struggling to bring those assets to profitability ever since. IDT originally planned to increase the overall size of Winstar’s fixed-wireless network by refocusing on its biggest markets where it hoped to compete with wireless carriers.
