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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: chip who wrote (40167)	3/10/1999 9:35:00 PM
From: Jack Colton	Read Replies (1) \| Respond to of 50264

Well, the voice over IP crowd has pretty much given voice a free ride in tomorrows world. Here is how it works.... What is the cost of bandwidth? This is the core underlying question. Let's compare the costs of bandwidth for 3 different applications. A voice call of 20 minutes, an FTP file transfer of 10 MB, and a 2 Hour Movie downloaded over some sort of broad band circuit. In yesterdays world: ---------------------- A long distance circuit switched voice call might have cost .25 cents per minute, or a total of $5.00 for 20 minutes of time. That price has already fallen over the last 4 years to only .10 per minute, for a cost of $2.00. An FTP over that same circuit, at 14.4KBPS would use 5555 seconds, at 28.8KBPS it uses 2777 seconds or 46 minutes which equates to $11.50 four years ago, and $4.60 today. A two hour full length movie, would take a 20MBPS circuit 2 hours, which on a 64KB voice channel would translate to over $225,000.00 at .10 per minute. Now in TODAY's WORLD, where voice is generally available below .10 per minute, with 7.9 cents offered by Cable & Clueless everyday. -------------------------------------------------------------- Your 20 minute circuit switched voice call costs 1.58. Your 10MB FTP @ 64KBPS costs 2.74. (there is turn around delay, so it's not just 10,000,000 times 8 bits per byte divided by 64000) Your 2 Hour movie, MPEG2 encoded, 64KBPS costs about $104.00. Now, in a broadband, packet switched arena of tomorrow, where a movie should cost 3 bucks but we will use $5.00 to be conservative: ---------------------------------------------------------------- Your 20 minute packet switched voice call costs $.015 Your 10MB File transfer costs $.10 And your 2 hour movie costs $5.00 (which is really much higher than any existing service - DSS @ 2.99, rentals at $2.50 AVG, DVIX @ $4.50 where you get the CD) so this is VERY conservative.... But the bandwidths are relative, and this example is significant. In tomorrow's packet switched world, voice will ride for free, or it will be an insignificant cost relative to the data transfers taking place. Does this make any sense? Hey, does anyone want to fire up Netmeeting, and Talk through the built in speakers and microphones in our laptops? Jack