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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 75.19

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Jan 16 3:59 PM EST

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To: Bill who wrote (31549)	1/27/2000 12:31:00 PM
From: telecomguy	Read Replies (3) of 77400

VoIP is managing voice traffic using IP protocol using packets. Usually this type of traffic is routed through managed PRIVATE network with proper QoS (quality of service. In other words, it's just another transmission technology that is contending with ATM and other forms of network transmission methods. VoIP is NOT free precisely because you have to have managed bandwidth through private data networks. Internet Telephony on the other hand is the hacker installing a VocalTec software and duplexed sound card on his PC routing his voice calls through the PUBLIC Internet making PC calls to other PC's which also must have the same Vocaltec software and be 'on' running the Vocaltec application. There are companies who are claiming to install server gateways using Lucent/Vocaltec platform to connect POTS (every day phone) through the local PSTN network and use the Internet to back-haul the international traffic through Internet..............the reality is that to install & manage thousands of POP's necessary to have end-to-end Internet Telehphony requires hundreds of billions of $$ and possibly decades to implement even assuming that the local regulators are just going to allow all these cowboy entrepreneurs to siphon off traditional telephony traffic OFF their beloved gov't owned PTT (great source of revenue for the local Gov'ts). Also in Europe, every local call is metered so even if you called into the local gateway server in some closet running off a PC, punching in the pin, and finally connecting to the remote server/PC, every second is costing the caller local rates which is not cheap (the last mile problem). In the case of UK for example, I can deliver a call from NY to London for under 2 pennies per minute at the wholesale level.................the cost of local call just to get to the Internet telephoney gateway server is close to this cost.....where is the economics of this model?

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