Voice-on-the-net (VON), VoIP, Internet (IP) Telephony Message Board

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

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To: Frank A. Coluccio who wrote (839)	6/25/1998 5:31:00 PM
From: Daniel G. DeBusschere	Read Replies (2) of 3178

You are right - the data transmission on coax is analog- However, the point I am trying to make is that pricing on circuit switched networks is usually based on as DS-0 equivalent. Because a DS-0 equivalent (i.e. 64kbps) is only 1/100th of the data rate needed for video, then video transport becomes expensive if pricing is based on the DS-0 equivalent circuit price. If they are both carried on the same transport, switched by the same routers (Not TDM circuit switch) then how is voice going to be priced and how is video going to be priced? Sprint says that it will be priced by the bit transported or the data packet transported (somewhat like X.25). Either voice calls are going to be dirt cheap or video calls are going to be very expensive. Carriers that have big voice revenues must be worried about how they recover from the apparent big decrease in what used to be DS-0 equivalent voice calls. I mean equivalent cost per bit will have to be reduced by 95+ percent if video and other high band width consumer and e-business applications are affordable. Right??

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