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.