The August 1, 1996 issue of Investors Business Daily (page A6, Q&A section) they interviewed the COO of MCI (Gerald Taylor) regarding
Internet telephony.
In a nutshell, he goes on to say that MCI supports voice over the Internet because they are the biggest provider of Internet services today. MCI carries 40% of the world's Internet traffic, so if this really grows, it will be a big opportunity.
There was also concern about small long distance resellers losing
revenue from this practice. He goes on to say that they don't
look at voice over the Internet as replacing traditional services, they will coexist in the future.
One of the biggest differences between Internet voice and traditional
voice services involves the access charges. Of every dollar of revenue MCI gets, 46 cents goes to the Bell companies for access charges. Internet telephony doesn't have this. He goes on to say if they moved more of their traffic over the Internet, they would avoid these costs and it would be a more profitable service.
Regarding improving the communications backbone, he goes on to say that they are expanding their Internet system to keep up with the demand and nobody's going to spend billions improving the network without getting a reasonable return on that investment. You will begin to see a business class and tourist class for Internet usage. The business people will pay higher rates for better service.
Later,
Pirate
P.S. It would be nice to have some DCTC/FTEL shares just in
case, A.) FNet IPO, big $$$$ B.) The telephone GIANTS come knocking
at the FNet door someday in the future.
P.S.S. Do you think the underwriters are doing their homework regarding Internet telephony ? Betya that they are drooling
over the FNet business plan, especially when MCI approves of
voice over the Internet. Little FNet will grow like weeds.
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