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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 78.42

+1.9%

Dec 19 9:30 AM EST

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To: RetiredNow who wrote (30804)	12/29/1999 11:18:00 PM
From: telecomguy	Read Replies (3) of 77400

Won't go into lot of details as you guys will just pooh pooh my post anyway.........but I know ITXC, Net2Phone, GRIC, etc. and here is what you should really know (which is actually funny if there weren't such a exaggeration). Most of these so called Internet Telephony players traffic is actually carried on the regular STANDARD CIRCUIT SWITCHED PTT network.......I know because I've been in negotiation with all of them and when I confronted them on this, they all admitted that the destination routing is all done through traditional Carrier network capacity that they buy from AT&T, Sprint, MCI, etc. There is so much bullshit in this IP Telephony, it's really a joke. If you talk to any of these IP Carriers and try to negotiate wholesale prices, you will find that they are in many cases actually HIGHER than the traditional Carriers! Why? Because it's only the first leg (the leg that brings the call from the PC-Internet node to their US gateway switch that is using Internet to packetize voice......the more costly destination leg is all traditional Carrier network. These companies put the IP Telephony spin to make their company sexy to the Wall St. venture caps but the reality is that they are 10% IP and 90% traditional voice network. Eventually they will deploy more IP nodes but right now, it's more PR than reality. Sorry to always interject reality -- but it's important to know the truth. By the way, as I've told you guys before Internet Telephony is already a non-starter as the wholesale spot pricing in the traditional Carrier market is tumbling down to levels where it doesn't make any sense to do IP Telephony! Like 2.5 cents from New York to London, England. Try to route calls through Internet Telephony at prices much lower than that -- you will lose your shirt. Happy investing Data People!

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