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Technology Stocks : Ezenia! (VSVR)
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To: Matthew S. Aas who wrote (483)7/21/1997 11:41:00 PM
From: Steve Bunning   of 890
 
Videophones for the Mass Market?

If videophones become a mass market product then it seems as if VideoServer would benefit substantially.

The long term trend seems to be in that direction as hardware is getting less expensive and standards permit equipment from different vendors to interoperate. It will be a while before videoconferencing becomes a mass market item, but if it at least becomes more popular for businesses to use, then as equipment sales climb the volume curve, equipment prices will drop to the point individuals might consider buying.

Besides the equipment expense, another major problem for the mass market is the price of bandwidth. Most individuals don't want to pay for an BRI ISDN (128K bps) line in their home and 28.8K bps videoconferences aren't really that good. Additionally, people won't want to pay "long distance" charges for their personal video calls. For true mass market appeal, bandwidth is going to have to become less expensive (i.e., through the Net.) The good news is many people think that's going to happen (Gilder's Fibersphere idea), but this is longer term. In the short run, we have to hope for growth in the business sector.

I must be a true believer as when "the price ls low", I think about buying more rather than selling.
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