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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: Stephen Balbach who wrote (2189)	3/16/1998 9:19:00 PM
From: Sauron	Respond to of 5650

Good questions. 1. First, IP telephony as generally talked about by ISPs is really no more than an attempt to avoid access charges which are about 2.6 cents per minute on a normal call. If you assume that this arbitrage will eventually be prevented by FCC policy, the advantage of IP telephony on domestic L.D. calls is minimal. Remember, the transport cost of a call is maybe 1 cent/minute or less. The real game for phone companies is controlling selling and marketing expenses. 2. WDM is something that tapes place at the physical layer (Layer 1). It is just a way of increasing the capacity of fiber. Switching takes place at layer two. Traffic can be circuit switched or packet switched whether or not WDM is used.