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Technology Stocks : I-Link Inc (ILNK), VoIP Telephony

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To: Michael Paul Langley who wrote (305)2/21/1999 11:06:00 AM
From: Frederick Smart  Read Replies (1) of 417
 
I Posted This on Yahoo in Pieces.....

That's the great benefit of SI. They have larger space to post info....

>>Independent reps like to point to I-Link's proprietary voice compression algorithms as giving the company a big competitive advantage.

The following tutorial shows that even the slowest DSL circuit will support more calls on a copper wire pair than I-Link will with an ISDN offering. It is also worth noting that strong
compression is available from lots of sources --- everybody has strong compression.>>

jyamasaski:

It's become very apparent that your contributions to this board are laced with an anti-I-Link bias that's connected in someway to your experience with one or more pf I-Link's "independent Reps". I am sorry you've had a bad experience and that this bias prevents you from seeing the forest from the trees even in the "PhoneZone" article you shared below....

>>Imagine being able to order a single circuit which provides your office with multiple voice phone lines plus high speed access to the Internet. Such a beast will be coming to your market sooner than you might think, thanks to DSL (Digital Subscriber Line) technology.>>

Sprint's ION network is having a ton of problems right now. There will be numerous locally based companies that will give the majors fits in their attempt to enter this market. I-Link is on the leading edge of capturing the energy, focus AND product behind this revolution. I-Link's networking focus will ensure that it's message becomes a local driven message.

Last night my wife and I were in northern Illinois along the boarder with WI having dinner with another couple. By the end of the evening the talk switched to the problems of living in a little town - specifically with GTE and the antiquated phone service they have to put up with. There are thousands of clients who want a better local solution than GTE. The I-Link story has some compelling integration opportunities that can play into these problem markets.

>>DSL is currently being promoted as the next big thing for high speed Internet service. What few people know is that DSL is also going to revolutionize how basic telephone service (dial tone) is delivered to both home and business users. The reason is simple, using DSL you can deliver many simultaneous phone calls over a single physical circuit.>>

Sounds great and I know that limitations with ISDN are out there, but I also know that I-Link is not ignorning DSL. Even with ISDN, I-Link's C4 beats DSL's capacity hands down - see below.

>>Voice over DSL technology provides phone companies with a cost effective way to deliver more service over existing facilities. Rather than provisioning individual circuits for each phone line, many calls can be multiplexed onto a single DSL line, which doubles as a high speed data circuit for internet access.>>

Great!! Competition validates I-Link's business model. FREE advertising. I love it! I-Link will be ready sooner than the ION's of the world with a more attractive pricing and compensation model to virally get their product out faster, etc.
Now, let's examine DSL per the article....

>>DSL Line Calls Without Calls With ADPCM Calls With Strong
Speed Compression Compression Compression



384Kbps 4-6 8-12 up to 40
768Kbps 8-12 16-24 up to 80
1100Kbps 16-18 32-36 up to 110
1500Kbps up to 24 up to 48 up to 150

Table 1 - Call Carrying Capacity Of DSL Lines Based On Speed And Type of Compression Used

The table above illustrates how effective Voice over DSL can be in conserving the use of copper pairs (circuits). A single 384Kbps DSL line can deliver up to 12 simultaneous calls while also providing high speed data service without compromising audio quality (ADPCM compression doubles the capacity of a circuit without noticeably degrading audio quality). This is more than adequate for a typical small office (up to 20 or 30 people). By upgrading the speed of the DSL line, or by installing additional DSL lines, the user can easily add additional data or voice capacity.>>

Per the above reference, funny, but this sounds like LESS service with higher charges than what I-Link's C4 is proposing. Read on.....

>>Voice over DSL equipment combines voice and data traffic in a manner similar to multiplexers for T1 and Frame Relay circuits. Voice calls are digitized and compressed. This information is interleaved with ordinary data traffic. The reverse process is carried out on the other end of the circuit. The difference
between Voice over DSL and other technologies is cost. A typical 384Kbps DSL line costs less than $200 per month.>>

So for $200/mo I can get 4-6 lines out of the typicall local line or 8-12 with ADPCM compression with "some" degradation in voice quality which is "not noticeable".

Where does I-Link's C4 sit? They have 24 lines coming into the box - not 4-5 or 8-12 - for voice, internet, data, etc. - all for perhaps roughly $80 per month - including the lease on the C4 box - AND with Internet access included.

Seems I-Link has their bases covered here. What's the "missing Link"? Perhaps there superior compression technoligies. Just one guess. You and others might want to check this out.

>>Voice over DSL : How Does It Work

Voice over DSL is a "back room" technology, meaning it will be largely invisible to its users. The telephone carriers will provide end users with a black box which converts one or more DSL lines into 10BaseT Ethernet (data) and POTS (analog voice) ports. Therefore, your existing office equipment (LAN/Ethernet hubs, phone system, etc) can be easily connected to the service.>>

Now here is where a great opening exists. Apps residing on servers connected to LAN/Ethernet hubs connecting to either an I-Linked DSL or ISDN line become less valuable once linked to virtual space via a C4 connection. The whole server-centric world of internet apps opens up to these businesses. I-Link is there now and will be there in the future with an expanded array of communication apps that reside on a user-friendly console that consolidates more and more of the fragmented apps that reside in PC's across LANS. Being in this space for people to "plug in" NOW is of great importance. I-Link will be there. A huge strategic leg-up on the competition.

>>Voice over DSL equipment combines voice and data traffic in a manner similar to multiplexers for T1 and Frame Relay circuits. Voice calls are digitized and compressed. This information is interleaved with ordinary data traffic. The reverse process is carried out on the other end of the circuit. The difference between Voice over DSL and other technologies is cost. A typical 384Kbps DSL line costs less than $200 per month. A T1 or Frame Relay line outfitted for high speed data will cost upward of $1000 to $2000 per month, a big difference. DSL is also easier to install because you can adjust the data rate (the closer you are to a telephone company central office, the faster the line can run).>>

Just as a point of comparison, Teligent and others are going the microwave route in this competition, offering up wireless T1's that begin at roughly $500/mo - again, that's equivalent to 24 phone lines....same as I-Link's C4. Pretty good, huh? Am I missing something. I think we can sell this. Word of mouth for this stuff will be huge. Thanks to I-Link's technology.....

>>One of the vendors pioneering this space is Jetstream Communications (http://www.jetstream.com). Some of our readers may remember Jetstream's FrontDesk product (this was an innovative ISDN based phone system for small/home offices). Jetstream is now working on voice over DSL hardware which will be sold to local and long distance phone companies.>>

Let's take a peak at JetStream for a moment.....

From their website.....

>>Now Competitive Local Exchange Carriers (CLECs) can capitalize on voice and data convergence--and serve the small and mid-size business markets more easily than ever.

Jetstream is an innovative, new company with a powerful solution for CLECs seeking to offer compelling voice and data services to small and mid-size businesses. With the CPX-1000 voice gateway and revolutionary Unity access network architecture, Jetstream enables CLECs to quickly, easily, and profitably penetrate the $46 billion small business communications market.>>

Sounds like this is right up I-Link's alley. Quite a huge market. EVERY small business will HAVE to have a piece of this. $46 billion....hmmmmmm.

Continuing with JetStream website information.

>>Unity Access Network Architecture: Voice and Data Convergence Reaches the Mainstream

Jetstream has created a new architecture that allows CLEC's to deliver integrated voice and data services over Digital Subscriber Line (DSL) access networks. The Unity access network architecture is a standards-based, end-to-end solution that lowers the cost of service delivery to the point where CLECs, for the first time, can profitably serve small and mid-size businesses.

At the heart of Unity is Jetstream's CPX-1000. This large-scale voice gateway resides in a CLEC's central point of presence (POP), allowing local service from the CLEC's own Class 5 switches to be delivered over the packet-based Unity access network.

The Unity architecture also incorporates standard DSL Access Multiplexers (DSLAMs) and ATM switches, already available from multiple sources, as well as new ATM-based Integrated Access Devices (IADs). The new Unity-compliant IADs, supplied by Jetstream and several other manufacturers, reside at the subscriber's premises; connect to a DSL circuit; and provide standard local telephone service via up to 16 POTS ports, and Internet service via an Ethernet connection.>>

Again, take a look at I-Link's C4. The simplicity of the technology and I-Link's plan for rollout means that this IS a solution for end users, not the CLEC's or local Bells to leverage. CLEC's and local Bells will make JetStream THEIR revenue stream BEFORE they allow end user clients in on the leveraged pricing and service benefits.

>>Only Jetstream has the singular focus of helping competitive service providers seize new opportunities. The CPX-1000 and Unity architecture enable CLECs, for the first time, to deliver on the promises of deregulation to the small business market. >> I'm sure glad that's their focus. Make the CLEC's and RBOCs rich first. I-Link is going all the way to end users. That's where the growth is right now. It's the internet, stupid.

Now back to the original article.....

>> How Will Voice DSL Affect You?

The primary benefit this technology offers is cost. Competitive local phone companies can now deliver more service to customers using fewer copper wires. Since they must lease these wires from the incumbent local phone company (i.e. Baby Bell), this has a direct cost benefit for carriers, and hence their subscribers. This will also make it much easier to deliver business grade phone service to locations which do not have extensive wiring in place.>>

This is I-Link's vision. They are ahead of this curve. We have an incredible opportunity to STRIKE this market BEFORE the corporate pyramids try to control this for themselves. Now back to the article.....

>> For example, let's suppose you move into an older building which was never wired for a lot of phones (a warehouse for example). You have something like four analog phone lines running into the facility, not nearly enough for your intended use of the space. Each of those four analog lines can be reconfigured as a DSL line. Assume the building is relatively far from the central office, so you can't get the highest speed, and have to settle for 384K per line. By converting all four analog lines into 384K DSL lines, you would have a total of 1.5Megabits of data carrying capacity, enough to carry 24 simultaneous phone calls while still leaving plenty of room for high speed Internet access. Plus, you can do this without rewiring the building, an important consideration both for you, and for the carrier providing the service.>>

Again, if you can get out of the forest on this, you will see that ONE analog PSTN line with I-Link's C4 will deliver the equivalent of using DSL across 4 analog lines.

Keep in mind that MOST DSL lines will be FAR from the central office so DSL will have to settle for 384K per line - at $200 per pop. And just in the above example, the article uses FOUR analog lines as the reference point - this is in sych with the 4-6 equivalent lines that that can deliver quality without compression - see the above table.

And now for the closer.

>>The real benefit for users is choice, and therefore price. This technology will enable more companies to offer competitive local dial tone. This means more choice for buyers, and ultimately lower prices for local communications services.>>

Sounds like I-Link's "Evolution To the Revolution" is right upon us.

jyamasaki, for as much time as you spend chasing your tail with I-Link, one wonders why you continue to sit on the fence with this stuff. This is an incredible opportunity. This IS a revolution. I-Link IS there. The time is NOW.

I will quietly say....go!
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