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

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To: Stephen B. Temple who wrote (2162)12/15/1998 8:36:00 AM
From: Frank A. Coluccio  Read Replies (2) of 3178
 
Stephen, I found the following clip particularly interesting.

>FCC Chairman William Kennard picked up on Kimmelman's comments, suggesting that AT&T might only target the upper 20 or 30 percent of the telephony market. But James Cicconi, AT&T's senior vice president for government affairs and federal policy, said Kimmelman was "just dead wrong. The whole [local telephony] deal is based on volume. <

It stands in contrast to T's earlier stated intentions this past January at their by-now-famous conference, to only use IP Telephony to divert the smallest customers to a lower overhead method of delivery. But now that they are talking local, things have logically changed.

They argued at the time that by making VoIP available to the least affluent, the most price sensitive of their subscribers, the ones who were actually costing them money to keep on board due to their paltry usage, that it would cut down on back office mailings and billing functions.

This was because they intended to do a browser-based subscription and payment scheme, circumventing the traditional, and more processing/manually intensive and expensive, forms of billings and mailings.

Customer interfacing, they argued, would be done solely on the Internet.

Regards, Frank C.
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