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To: Don Johnstone who wrote (781)6/13/1999 10:27:00 PM
From: Marc  Respond to of 1622
 
Everyday Internet - VoIP - Onward Into the 21st
Century!

by Paul Anthony Thomas, Contributing Editor

Not since 1969 (the appearance of touch-tone
dialing and High Quality/Multiple Function
telephone systems) has an industry changing
revolution hit Telecommunications like
Voice-Over-IP (also know as Computer Telephony
and VoIP). With VoIP technology, the internet
promises to have the entire planet, (including
satellites) communicating for free by 2005.

Today, there are three ways to make a phone call
on the net:

1.Anyone with a PC/modem setup and the
correct software on each end can place a
low quality phone call. Companies that
work in this arena are: MPlayer.com
[MPTH], NetSpeak [NSPK], and VocalTec
[VOCLF]. The quality is not great today,
but it is getting better.
2.Larger companies are installing
Voice-Over-IP in their intercompany
Intranets, allowing all employees to talk
over their networks. Companies that
provide services and equipment in this area
include: Intel [INTC], Motorola [MOT],
Texas Instruments [TXN], Dialogic [DLGC]
and HyperCom [HYC]. Also numerous
privately owned companies like eFusion,
Telogy Networks, Starvox and VipNet.
3.Phone carriers are installing Internet
Routers and Hubs to connect telephone
systems through their global networks,
eliminating tariffs and expenses that once
ruled the telecom business. Companies
that are using this technology to cut
expenses include: AT&T [T], British
Telecom [BTY], MCI/Worldcom [WCOM]
and General Telephone [GTE].

Recent market changing deals in this arena
include:

Long Distance companies have reduced
domestic long-distance charges to as low
as 4 cents per minute.
Intel announced the purchase of Dialogic
(big in PC Sound Boards and VoIP
Technology) for $44 when the stock was
trading at $33, indicating that big players
are willing to pay a premium to enter into
this burgeoning market segment.
Intel purchased a major stake in Clarent
and eFusion (private VoIP companies).
Clarnet and eFusion are both candidates for
IPO's in the near future.
Texas Instruments announced the purchase
of Telogy Networks.
Teltran [TLTG] became a fully reporting
public company.

Industry insiders estimate that the VoIP market
will grow from annual sales of $200,000,000
(Million) in 1997 to over $17,000,000,000 (Billion)
by 2002. That represents an 85 fold increase in 5
years (1700% per year).

I believe that everyone in the developed countries
of planet earth will be talking (visually and vocally)
on the Internet, at the speed of light, for free by the
year 2005. As this arena matures, fortunes are
going to be made by the equipment makers and
service suppliers. Transport providers like BTY,
WCOM, GTE and T will also profit handsomely as
expenses decline.

VoIP is the wave of the future and is in its infancy
now. To play the future in this market, look at
MPTH, HYC and WCOM. Watch for Public
Offerings from Clarnet and eFusion in the next 6
months. Also, visit The Launchingpad.com and
review the IT index.