RSL Launches Internet Phone Service For Europe
LONDON (Reuters) - RSL Communications said its subsidiary Delta
Three launched a European Internet telephone service which will
slash the cost of calls.
RSL said the venture uses technology developed with Swedish
telecommunications giant Ericsson.
"The service is available in Britain today, and should expand to
reach 14 European countries and over 40 globally by the end of the
year," Richard Williams, president and chief executive officer of
RSL COM Europe, told a news conference.
According to Elie Wurtman, chief executive of Delta Three, the
Internet telephone service can offer price savings of up to 75
percent for high priced long distance service.
"Examples of potential savings include rates of 36 pence to
Argentina and Brazil, compared with BT's (British
Telecommunications Plc ) day-time rate of 131.85 pence," Wurtman
told the news conference.
It can even undercut cheaper long-distance services provided by
companies like WorldCom Inc by up to 40 percent, Wurtman said.
To use the service subscribers must purchase pre-paid phone
cards or pre-paid accounts. They dial a toll-free number, insert their
account number, then dial the call. They don't need to own a
computer.
As each call is made, the system tells the subscriber how much
time is left on the card or account, and how much cash is left.
A 30 second call from London to Ridgefield, Connecticut, by this
reporter debited a five pound card by just seven pence (12 cents).
The calls are routed to a local Internet service provider,
compressed into data packets, and routed to an Internet service
provider near the call's destination. They are then turned back into
traditional voice on regular local circuits which dial the call.
Delta Three claims the voice quality is as good as regular
telephones.
"We are the first company to offer Internet Telephony as a real
product for European consumers and slash the cost of international
calling," Wurtman said.
Delta also offers a personal computer-to-telephone service.
RSL Communications of New York was founded by Ronald S.
Lauder, a member of the Estee Lauder cosmetic family.
RSL has said that its main target for Internet telephony is small and
medium business, which spend nearly $60 billion annually
worldwide on long-distance telephone calls, half of that in Europe.
By 2000 this spending should rise to more than $100 billion, RSL
said, and at least 30 percent would be travelling via the Internet.
Other major world players in Internet telephony include Deutsche
Telekom AG which has bought a 21 percent stake in Israeli pioneer
VocalTec Communications Ltd. |
