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To: FUZFO who wrote (1237)	3/2/1998 12:20:00 PM
From: DHB	Respond to of 1629

Telcos Wake Up To Internet Fax Threat ( 2/27/98; 3:00 PM EST) By Andrew Craig, TechWeb Internet faxing is growing rapidly, and telephone companies will lose this booming business to ISPs unless they offer the service to customers, according to several analysts at a European ISP conference this week. The telcos are wrongly counting half the call time mounted by fax traffic as voice traffic, said John Sidgmore CEO of Uunet Technologies, one of the world's largest ISPs. Sidgmore spoke at the Internet Service Provision '98 conference in Amsterdam Wednesday. "The Internet is not just something [the telcos] are going to miss as a niche market," he said. "They're going to miss out on core business." The Internet telephony market is projected to grow from 2 million users in 1996 to 16 million users by 2000, according to International Data Corp., in Framingham, Mass. But Internet faxing will have a major impact on the telcos this year, Sidgmore said he believes. Sending faxes over the Internet has become a more attractive proposition for most people because it's less sensitive than voice traffic to time and quality issues, said Stewart Anderton, a senior consultant at London-based researcher Ovum. "The adoption curve of fax over the Internet may be quicker for corporates than voice," Anderton said, adding that most telcos are probably aware of how quickly fax traffic is growing. That growth is around 10 percent a year despite e-mail's popularity, said Mor Sela, marketing communications manager at Israeli Internet fax company ArelNet. And when the major telcos get involved, as they are expected to do this year, the greatest impact of Internet faxing will be felt. c 1998 CMP Media, Inc.