I-Link Inc (ILNK), VoIP Telephony Message Board

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Technology Stocks : I-Link Inc (ILNK), VoIP Telephony

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To: Fred Puppet who wrote (34)	4/23/1997 3:55:00 PM
From: Ski	of 417

Hi Fred- You bring up a lot of good points 1. Currently, ILNK leases long-distance lines from MCI. They send analog signals like most everyone else does. >>>>> Thats true, but they said that is what they initially planned to do to build up a customer base. They have the "communication engines" set up already in several major cities. 2. They hope to get lots of customers all over the US. This has not happened yet. I doubt it ever will happen. >>>> This is where Steve and I know a couple of behind the scenes events that are scheduled to occur later this month that will create a huge customer base. 3. While they are sending analog signals they will continue to lose money. They will have to print and sell more stock to survive. >>>>> Maybe, maybe not. The digital will come along sooner that you might think. 4. If they eventually have lots of calls between two cities, with the current method they would have to rent lots of capacity from MCI. >>>>>When they get lots of calls, thats when it becomes cost effective to drop in a "engine" at the cities central office. I-Link also plans to use dialers to buypass the main CO switch. 5. They plan to digitize and compress all of the analog signals going to the same city. >>> Dont quite understand this one? 6. The equipment to implement these "communication engines" (modems) will cost a lot of money. They will have to print and sell new stock. >>>>That is a possibility unless they have some major investors. 7. They still need to pay for access the regular local exchange with a regular analog signal. >>>> Sure, but that is minimal and usually is a flat rate. 8. They save money because access to the local exchange is cheaper for a carrier of digital signals. This is due to the FCC regulations, not due to technology. This will change. The advantage will be lost. >>>>> True, but technology plays a part too since they bypass all the analog switches in a network that incurs a cost everytime they are hit. What the FCC will do in the future will always affect all telecom companies. 9. They also save money because the signal is compressed, and they have to rent less capacity from MCI. >>>> They evidently have developed some serious compression software to really dropthe cost of a call. 10. The cost to ILNK is not that of a local call. It is more because they still have to rent capacity from MCI. >>>>> As the customer base grows and more "engines" are in place, they will have to use less capacity. 11. The digital signal has a time delay proportional to the packet size. This lowers the conversation quality. There is no impact on fax quality. >>>>We do not know what technology they have developed as of yet. I'm sure they must have addressed this problem. Passing different sized packets through routers at different speeds have always been a problem in internet telephony. Also pushing packets down the same route using tcp/ip is another problem. They seem to imply that since they manage the intranet that they also manage the routing. Just dont know yet? 12. Other companies already offer software for internet telephony. Intel offers it for free. True internet telephony costs the customer the same as a local call. >>>> Yeah, but you need a computer and someone on the other end with the exact same software. Plus it is pushed onto the internet and not a managed intranet that dynamicly monitors bandwidth capacity. I think it is safe to say that there are a few more telephones in the world than computers. 13. All of the major long-distance carriers are testing digital links like ILNK plans to implement. There are no ILNK patents that can stop them. >>>>>Sure. Thats good business. Dont think the major carriers are going to move too quickly to canibalize there own multi-billion dollar profit networks to snuff out someone like I-Link. They make too much money as it is with the analog switches. They may offer these enhanced service but not with the multi-tierd marketing strategy I-Link will use. 14. The major long-distance carriers already have enough customers to make this work. They also have much larger R&D budgets. >>>>>True. Then again why. They will move on this if they see major movement away from their current networks that are already in place. 15. If these digital links are practical, the major carriers will implement them first. ILNK will have no cost advantage. >>>>> That just remeains to be seen. Timing is always a great advantage. Just remains to be seen how quickly I-Link can act and if they can pull this off at all. Fred, you make some very good statements and I dont expect you to agree with my responses. They are just another point of view. Good Luck in your ventures and expect to hear some news in a few days on some of I-Links marketing strategies. And no it has nothing to do with Wealthnet. Ski

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