Message-ID: <Pine.SOL.3.90.990209132536.281F-100000@ns1> Date: Tue, 9 Feb 1999 14:32:03 +0800 From: Chris Kwan <mailto:h1kwan@umcsd.um.edu.my> Subject: Re: Phone2phone To: mailto:DEVEL-L@AMERICAN.EDU
Since l have received more request sfor information, let me set this straight.There are two issues involved here and they are first whether this technology is more cost effective than using net2phone as an example of similar technology. The second is ease of use, ie not too much tech stuff. And perhaps a third worth mentioning is technology compability. That is many third world countries still use older technology which may not be compatible with new ones.
To do this you need to come up with a round figure how much is it costing you to use net2phone now and you need to check with which countries you call frequently. l am using net2phone as a comparison case since it is very popular and the cost is relatively low.
This technology which l mentioned for phone to phone through internet is mostly for private organisation since they have to purchase a dedicated system at their HQ and with another at their destination. So if you are based in US and wish to connect to a particular country and to a particular number this will be great for the most simple system. The whole set up will not cost more than USD 2000 (for initiating and terminating nodes) plus your own computers, your own phones and regular dialup internet access. My rough calculation is about USD 3500 a year assuming you have your own computers/normal phones and the extra is really for internet access. This translate to about 448 hours of usage vis-a-vis a normal internet to phone access at 0.13 per min (the mid low price for international call using net2phone rates). Or roughly speaking about 1.2 hours on the phone a day in a year. So to use this system you need to have at least 2 hours or more international talk time a day for a payback time of one year. After that it is free except for dial-up cost to your ISP.
So you need to calculate the amount of cost involved here by looking at your historical calls pattern and give allowance of increases from year to year.
l am currently working with other companies and NGOs to form a world consortium where they share the cost of this system in every country by making it a private system for these groups. All voice are encrypted so there is no problem. l call this the NGO NETWORK SYSTEM or NNS. l am also looking for ways to subsidise the cost by selling advertising space on the phone to phone system. My reward here is to see schools in rural areas having access to the internet which was my original plans.
The more people we have on board, the more calls we can do at a lower price since technically, the cost of making a call is not time dependent anymore and it is sunken cost. My working parameter is that the payback time should not be more than 3 years at most with the rest being internet access cost only.
However as it is a shared system, what it entails is some modification to the architectual so that everyone get their fair share of using the system. This system will use a combination of established technologies (avoiding patented ones), competitive bidding for leased lines as well using the Internet as the backbone or alternatively, up coming technology will be a wireless one and one that cuts out using telco's gateways completedly. l say this because the trend around the world is to increase local competition of telcos in many countries but a similar trend where telcos are combining forces in international gateways are also taking shape through mergers and so on. If this continue, it means they will collectively combine charges at International lines while lowering domestic ones. By shifting prices, they will still be able to survive. Developing countries users will be the losers since they will be paying for both at higher prices to compensate for buying technology from abroad.
Thanks and if you have further questions pls do not hesitate to email me. l will be away for the next two weeks though.
Regards
Chris Kwan
Lecturer/Consultant in Environmental Law and Internet Economics Institute of Postgraduate Studies and Research Tel: 603-7594410(DL) University Malaya, 50603 Kuala Lumpur Fax: 603-7594606 Malaysia
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