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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Scott C. Lemon who wrote (690)6/3/1998 1:06:00 PM
From: LAWRENCE C.  Read Replies (1) of 3178
 
Scott, a key point you make is that you measure the impact of changes you make by adding the cache.
The carriers will measure the amount of traffic over their nets. Individual subscribers will buy either a certain amount of bandwidth or bandwidth on demand according to some schedule.
Customers will have levels of service available to them. This might be in the form of a dedicated level of service or bandwidth on demand. There are many private nets that handle data already. VoIP will be another feature.

MULTIMEDIA DATA: Multimedia already flows over many data networks. Although sometimes it is not handled well. When my segment of the LAN saturated the repeater I had a big problem. (I've managed LAN segments that were part of large networks.) All the users in my building could not use that ethernet cable to connect to other segments of the LAN because the traffic was more than the repeater could handle. We had to add a bridge before the repeater to reduce the amount of traffic coming across to the repeater in our building. Managing traffic growth is a major part of a LAN/WAN manager's responsibiles. One way we handled high demand traffic flows was to put high demand local traffic flows onto their own segment of the LAN.

VoIP
Handling VoIP is what's relatively new.

Home User Market:
Essentially the home user has many level of service related choices:
how fast a modem the user buys,
how fast a data rate the home user's equipment can handle
what kind of data rate can the user get with his ISP: regular modem, cable modem
in the case of AOL whether to call through a local number which may take several busy signals before getting through, to call a number which is a units call, or to pay for a premium service connection

In the case of a cable user, the cable company would have to decide how to allocate it's bandwidth. But in any case providers will have to monitor traffic flow and watch for bottlenecks as the ISPs have to do now. Many of the internet problems are bandwidth at the internet site problems. Popular communication sites with a large number of users like AOL or SI require a lot of bandwidth.

Digital PCS
Perhaps VoIP companys will offer companies with digital PCS low international calling rates to/from it's customer's cell phones. It will collect the monthly fees plus additional revenue for the low international calling rates. Then you don't have a pipeline problem to the customers for voice. It is common to see people using cell phones in malls or car phones. As Digital PCS usage costs drops, Digital PCS becomes more attractive to more users. In this niche you already have fraud management at that level.

In any case we will have a hybrid network of VoIP communication and traditional data communication links.
Lucky Lawrence
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