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: Secret_Agent_Man who wrote (2394)	1/27/1999 7:16:00 AM
From: Frank A. Coluccio	Read Replies (1) of 3178

Hi Byron, sorry I missed this post earlier. You ask: >My question is how do you establish your own network if you're not laying cable along major routes but just installing switches here and there.< Very carefully. They must either acquire the line facilities on a rental basis, or serve as a common switching infrastructure for other carriers. There are too many different types of arrangements to answer with one that fits all sizes. More often than not, a carrier org will fill several different profiles >>How is this cost savings achieved?<< The ultimate cost savings are achieved when the company either owns the fiber or does an IRU deal with one of the fiber barons. Otherwise, they wind up paying up to as much as 10 times more for the line side when T1 rentals are added up at the end of the day. This one factor alone may be significant enough over time to be a primary factor in separating the winners from the losers in the long haul sector. Of course, a way around this is to make maximum use of the Public Internet, but then you will suffer on the quality scale, and remain unattractive for mainstream business and even personal purposes (except for the most price sensitive), until better prioritization and other QoS features are introduced. >> What is it about the simple fact of having switching equipment in some major cities that lowers cost. Won't you still be billed over intercontinental and transcontinental routes by the major network players? << To answer the first part, see my preceding paragraph here. For the second part, VoIP of the facilities rental and Internet types by their very nature (the way they are configured with gateways etc.) evade the international settlement and accounting rate radar screen, for the most part, hence the reason behind their major attractiveness to next gen (and increasingly top tier) carriers in the first place. Secondly, the FCC appears to still be committed to leaving the VoIP sector alone for the time being here in the states, which adds to the motivation for carrier orgs to enter and expand their presence in it even further. See the following post concerning domestic treatment of this subject. Regards, Frank Coluccio

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