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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: topwright who wrote (29680)	3/8/1998 6:11:00 AM
From: Darren DeNunzio	Read Replies (3) \| Respond to of 41046

Those are some interesting points on the IP telephony industry. And as for my opinion.... There are three reasons that IP telephony growth has been, and will remain sluggish: 1) BANDWIDTH 2) BANDWIDTH 3) BANDWIDTH So here is what the major ISP's are doing.... Sprint has increased its IP backbone bandwidth fourfold to OC-12 (622 Mbps) links from its current OC-3 (155 Mbps) connections. The first link ran at 622 Mbps between Anaheim and San Jose, Calif., They will bring up additional OC-12 connections throughout 1998 where demand indicates the need for them. Sprint also touted the fact that its new network connections will use packet-over-SONET (POS) technology, which is more efficient--with only 5 percent overhead (network routing information)--than competing technologies such as Asynchronous Transfer Mode (ATM) over SONET, which runs with between 20 and 25 percent overhead. MCI is one of several ISPs that run backbones using ATM, which although is less efficient than POS, it allows for more flexible load balancing. SONET(Synchronous Optical Network), is a fiber-optic transmission system for high-speed digital traffic that can sustain multiple-gigabit-per-second throughput. MCI is currently upgrading its IP backbone to dual OC-12 links, which will be completed this year. MCI said it doubled the core circuit capacity of its Internet backbone to dual 622 megabits per second and added over 4,000 access ports to accommodate Internet traffic growth. MCI plans to add an additional 6,000 Internet access ports and increase its backbone core circuit capacity even further to 2.5 gigabits per second by year-end 1998. MCI also introduced new Wavelength Division Multiplexing (WDM) technology that also doubles the capacity of its fastest network links without the cost of adding new cables, and allows the equivalent of over 1 million voice calls to be carried over a single pair of optical fibers. (geeez) UUNET, for its part, has completed an upgrade to its major connections to OC-12. PSINet said it will expand its network capacity over the next two years to run on OC-48 (2.4 Gbps) optical fiber connections. So with all of these improvements...Where is the bandwidth? Well it seems that one reason is while other ISP backbones, including MCI's and UUNET run at OC-12 levels, the majority of the current internet networking hardware is limited to OC-3 network interfaces. (really cool huh!) Or, perhaps it is that the Internet backbone is mainly owned by the big telco's. Could it be possible that they are aware of the impact that IP telephony will have on their profits ? Hell yes they do.... Just think about this... Of the 7 billion dollars that MCI made last year, 4 billion was from the sale of bandwidth. Enough said.