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Net Phones Taking Off in the Third World

dipfan writes "Internet telephone technology is surging in popularity and starting to make a big dent in telephone revenues in the Third World, for a simple reason: cost. A call from Honduras to the US over the net is just 5 or 10 cents a minute at an internet cafe, compared with $1+ a minute through a telco, reports the Washington Post, which compares the situation to the US where internet telephony "is used mostly by college students and geeks" who have the time and energy to install the software."

71 of 173 comments (clear)

  1. Bandwith by BrianGa · · Score: 4, Insightful

    Be careful of bandwith issues. Bandwidth will always be a problem. No matter how much bandwidth you add, no matter how big you make your highways, no matter how much oil you drill, people will always use as much as you make, even if it means wasting it or creating enough traffic to degrade the whole thing. There is no substitute for efficiency. A better license can compensate for inferior technology to only a minor degree.

    1. Re:Bandwith by duffbeer703 · · Score: 2, Interesting

      Current market conditions do not support your assumptions.

      There is such a glut of bandwidth right now, telecom carriers do not anticipate adding additional fiber until 2010.

      --
      Conformity is the jailer of freedom and enemy of growth. -JFK
    2. Re:Bandwith by AnyLoveIsGoodLove · · Score: 2, Interesting

      This is bullsh*t. There is a HUGE glut of long haul fibre, but the metro areas are dying for more bandwidth. The congestion in places like NYC and DC is terrible. Does it matter if there's a glut of long haul fibre, if there is a "traffic jam" in your city?

      nortel / lucent / cisco are all selling metro optical gear a healthy pace. They are not selling any long haul fibre.

      The fibre "glut" is one of the biggest fallacies of the early 21st century.

      --
      "It's technical in a psychometric kind a way" -- C. Parish
    3. Re:Bandwith by duffbeer703 · · Score: 3, Informative

      Not quite.

      The telecoms, in case you haven't noticed, are all in the process of going out of business. Industry giants like AT&T and Global Crossing are beginning the slow slide into bankruptcy and decline.

      Metro optical gear is selling like hotcakes because the equipment allows companies to maintain their network without paying a huge premium to an upstream provider. Why should a firm pay $6000/mo for a connection when you can buy a $50,000 laser that has no monthly cost?

      --
      Conformity is the jailer of freedom and enemy of growth. -JFK
    4. Re:Bandwith by duffbeer703 · · Score: 2

      This is true.

      But, optical networks remove alot of the overhead of frame-relay or atm links from big telecom companies.

      Once you install a short-haul optical networking or other wireless technology, it is just another link in your LAN or MAN. We've been running a pilot to link government agencies in the state capitol with good results (and low ongoing expenses)

      In a medium to large organization, the existing IT staff combined with a maintainence contract can handle most issues as they come up.

      --
      Conformity is the jailer of freedom and enemy of growth. -JFK
  2. The whole idea of a telco is silly now by linzeal · · Score: 2, Interesting

    With enough upstream bandwidth not only will telcos be hurt but also content providers. You think the artificial 128k limit is there for any other reason? There is decades worth of dark fiber just laying in wait till the telcos and cable companies figure out how to charge you for it. The cost of the future infrastructure is mostly paid for though, they'll be sure to get their money back somehow.

    1. Re:The whole idea of a telco is silly now by chill · · Score: 3, Informative

      Currently the cost of switching equipment to hook up that dark fiber is still outrageous. I may be able to get an unopened FORE Systems OC3 ATM card for my PC off of Ebay for $10, but the telco isn't going to get that price. They need port density, support, reliability, features, etc.

      Cisco, Lucent, Nortel, etc. equipment for high-speed fiber is EXPENSIVE.

      --
      Learning HOW to think is more important than learning WHAT to think.
  3. User demographics by svindler · · Score: 3, Insightful

    I use Yahoo! Messenger to talk to a friend in the US regularly.
    I "call" from Denmark, and he is not a college student.
    Does that mean Denmark is a third world country or is my friend a geek?

    1. Re:User demographics by _ph1ux_ · · Score: 2

      I use Yahoo Messenger to talk to friends in sweden and germany.... works great.

      I started using it as even though i have an acceptable /minute rate to europe (given that i only call once every few months) - one time I had difficulty getting the call to complete, so i called up the long distance op (00) and asked her to place the call for me as i couldnt get it to connect.

      Then I received my bill, over $2.50 /min. WHAT!! It was never that high before. I called them up and started bitching, er escalating the issue. It turns out that sice I called the op (00) and had "assistance" placing the call that the rate went through the roof. UNACCEPTABLE I told MCI - no way am I paying this. I told them that no matter what was I accepting the rates for this call as had they told me of the incredible increase I would not have made the call, further that if it had been a decent rate I would be happy to pay it - but since they were raping me for 2.5/min they could kiss my ass. and I want a refund on my bill.

      They agreed to give me the refund. FIVE TIMES. but they kept billing me for it - and never actually refunded me the amount. So I didnt pay them and switched to sprint - and make all my calls overseas via yahoo messenger.

      I used to work for a VOIP co, and know a lot of cheap VOIP methods etc... but nothing beats totally free Yahoo. and the quality is good enough, especially since its free....

  4. Obvious by morie · · Score: 2, Insightful
    It is cheap, so who's going to use it first? People with little money! When I was a student, I always knew where to get my bargains as well (now my time is worth more than the discount I recieve), and most of these people have a lot less to spend!

    I am not particulary surprised at this.

    --
    Sig (appended to the end of comments I post, 54 chars)
  5. Telephone Companies by Dead+Penis+Bird · · Score: 3, Interesting

    And the telephone companies wonder why they are losing customers. They cannot compete against Internet telephony with regard to price. Why the telcos still charge those kind of rates always puzzled me, especially since calls are no routed by computers, at little cost.

    This is good for a lot of these countries, since families often have relatives scatteered around the globe, and can use a low cost method to stay in touch (besides written communication, of course).

    --

    If I weren't nailed to the penis, I'd be pushing up the daisies!

    1. Re:Telephone Companies by AnyLoveIsGoodLove · · Score: 2, Insightful

      I am disturbed by the serious lack of understanding of basic Telecom on Slashdot. Why do people pay for USD 20 + for basic service (dial tone) in the US? Simple. It works and is never down. You want 911 on a DSL line. No Way. I am not trusting my family's safety to some DSL line.

      3rd world countries are going to use the internet for phones, but it won't catch on a for a while (many many years) here in the US. The US is quality sensitive.

      How many people have tried to unplug your land line and have just a cell phone. It sucks, even in areas where coverage is good.

      Remember, the Telecom industry considers ethernet an immature techology.

      Telecoms are in trouble because the margins on Data products are a lot less than voice products. As they increased the mix of data products to stay competive, their margins went to the crapper.

      --
      "It's technical in a psychometric kind a way" -- C. Parish
    2. Re:Telephone Companies by maxpublic · · Score: 2

      How many people have tried to unplug your land line and have just a cell phone. It sucks, even in areas where coverage is good.

      I've done this and it doesn't suck at all. My coverage is great; I can make and take calls wherever I go. The quality of the line isn't that much different either.

      And no telemarketing calls.

      I'm glad I dropped my land line for a cell.

      Max

      --
      My god carries a hammer. Your god died nailed to a tree. Any questions?
    3. Re:Telephone Companies by cduffy · · Score: 2

      I've dropped my land line for a cell, and am thinking real hard about getting rid of that for pure VoIP when the (two-year) contract runs out in a few months -- I keep it turned off most of the time anyhow, as I hate getting calls when I'm trying to work. All I really need is an answering service and outgoing VoIP -- I always have bandwidth; need it for my work. (My reason for getting the cell phone in the first place was having a phone that wouldn't get a new number every time I moved, which I do about twice a year, sometimes more; VoIP does this just fine, and should be about half the price).

      I don't care about 911 -- never had to call it once, and I can't think of a plausible case where calling 911 and waiting/hoping for a useful response would be a better way to take care of my safety and that of those I live with than taking affirmative action anyhow. That is to say: if your family's safety depends on 911, your family isn't very safe.

  6. It's hardly limited to the "Third World" by tibbetts · · Score: 2, Insightful

    Speaking from personal experience, my stepfather (in Virginia) uses VoIP to talk to his brother in England. And it's not just because of cost (since both of them are senior-level managers at a telco and a hardware vendor, respectively), but also because most of the time, they're online and in front of their computers anyway.

    --
    :wq
  7. It's about god damn time! by petree · · Score: 4, Insightful
    It's about time we actually used this bandwidth towards something useful. This will most likely do one of two things:

    1) Decrease the costs of traditional telephone service because they will need to compete with net based services.

    2) Increase the costs associated with connections to the internet, because as people use more, the costs for everyone goes up.

    I'm not sure which will actually occur, but I bet with services such as this around, you'll see a lot of broadband companies upset because they will want their piece of the action. If the average user starts using his/her connection for phone services too instead of just downloading, why are people so confused when they hear about price increases such as this. To me, it just makes sense, more people will use it for more things==service costs more to provide.

    Now I'm just waiting for some level of QOS to implemented world wide for this sort of thing, that way my phone call doesn't wait for your warez. Know what I mean?

  8. 14c a minute here by tanveer1979 · · Score: 2, Interesting

    Here in India by telco its around 1$/min but on the net it is 14c and prices are dropping and soon may get to about 5c/min, I just hope quality improves :-)

    --
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    1. Re:14c a minute here by slykens · · Score: 4, Interesting
      I have an office in India to which I deliver VoIP via a private network connection for call center use. I estimate our minimum per minute cost to be less than $0.01 including equipment and line charges. (Assuming 100% utilization, even if we come down to 40% utilization we're at $0.025/min)

      And on top of that our voice quality is US toll quality or better, even with the quater second delay. If it were not illegal I would interconnect to the Indian PSTN and sell a calling card using excess capacity on my system.

      It *is* possible for the telcos to embrace VoIP or a similar packet voice technology and integrate it into their SS7 or ISDN networks. Other than corruption of the PTTs I don't see why it isn't being done to lower costs and improve quality where appropriate.

  9. hmmm.... by bemis · · Score: 3, Interesting

    seems odd that telco's would look at the popularity of "cheap" online alternatives and be upset, as opposed to altering their pricing schemes to be more appealing to "the populaces" ... ... just my two centabos.

    1. Re:hmmm.... by raju1kabir · · Score: 2
      seems odd that telco's would look at the popularity of "cheap" online alternatives and be upset, as opposed to altering their pricing schemes to be more appealing to "the populaces"

      For years, telcos in developing countries used international call charges as a sort of "tax" on emigrants. People would move out of the country, go live in the US or UK or Germany or wherever, earn a whole lot more money, and spend some of it calling their relatives left behind in the homeland. And then the exhorbitant settlement rate would funnel money back from overseas.

      Arguably, this is a good thing since it allows comparatively wealthy migrants to subsidize service to poor locals who would otherwise not be able to afford it. Of course, in practice the telcos are usually so incompetent that the money just gets wasted or disappears into various people's pockets.

      This changed a lot, of course, when the FCC unilaterally initiated settlement rate reform in 1998, one of the most brilliant pieces of public policy the US has ever pulled off. Now, the amount by which inbound callers can be gouged is strictly limited (hence the drastic decrease in international call costs that we've seen in the past few years).

      However, telcos are still free to gouge their own citizens, presumably carrying on the spirit of the earlier "tax" by indirectly siphoning away some of the money that these people's overseas relatives send home.

      Anyway, without the large sums received from hiked-up international call charges, many of these telcos would fall apart. In the current post-1998 climate, this might not be a bad thing - eliminating communications-cost friction certainly would bring about long-term productivity improvements in developing economies. But you can't expect the telcos to be excited about it.

      --
      "Patriotism is your conviction that this country is superior to all other countries because you were born in it." -- GBS
  10. Hate to be cynical .. by ProfMoriarty · · Score: 2, Insightful
    but since a lot of third-world governments run both the ISPs AND Telcos ... how long before they realize that they are losing money?

    When they attempt to shut it down, will anything like Peek-a-booty be able to come to the rescue?

    --
    Karma? Karma? I don't need no stinkin' karma.
  11. The Internet has had an impact for me to by pmancini · · Score: 5, Interesting

    The Internet has really turned communication on its ear. I have a friend in the Ukraine that I chat with almost daily and every weekend we set up NetMeeting and have a video conference for a couple of hours. It costs neither of us any extra than what we already pay for our internet connection.

    In fact the connection we get with NetMeeting is by far more reliable than using phones! Phone calls are (in my experience) about 25% likely to be unusable. They are also quite expensive. Even researching the best "10-10" numbers gets you down to about $0.22US per minute. Calling from Ukraine to the US is extremely expensive.

    The Internet has made a lot of things possible that just 5 years ago were out of the hands of most people. The economy of calling that far and that cheap is amazing. When I was a kid I always wanted a video phone. The Web Cam is it.

    I think the effect of wireless communication and integrated web communication will stall the growth of physical phone lines and we will start to see them disappear in a few decades. It seems to fit the natural order of how technology progressess. With 3G coming to Sprint PCS phones this summer and all the other carriers later this year and next year I predict that even how we connect to the Internet on a daily basis will change. I see the majority of IP traffic coming from wireless devices rather than desktop computers in 5 years time.

    1. Re:The Internet has had an impact for me to by Lumpy · · Score: 2

      too bad you use netmeeting...

      Youi shoud be using openphone. cross platform and uses the OpenH323 VoIP protocol that is supported by everything that is a true VoIP device or program. (Yes, I made a phone call with openphone over our companies phonesystem whis is a VoIP based system.. the Voice Server routed my call from my PC over the voice T1-s we have in place to a telephone in a office 75 miles from here. worked great.)

      --
      Do not look at laser with remaining good eye.
    2. Re:The Internet has had an impact for me to by 56ker · · Score: 2

      In fact the video conferencing on net meeting is far more stable than audio conferencing (when you'd think it'd be the other way round).

    3. Re:The Internet has had an impact for me to by Lumpy · · Score: 2

      http://www.openh323.org/code.html#windows
      is the place to start.

      it's a tiny program and if you know the ip address of the other end you do not need any server or VoIP gateway to communicate.

      --
      Do not look at laser with remaining good eye.
  12. Re:There are more important things they need by david+duncan+scott · · Score: 2
    Yeah, if Christianity could just take root in Latin America...

    Besides, cell phones are often more widely used in third-world nations. They're only luxury goods if you already have a copper network in place. I'm quite sure that if we had it all do over again here in the States, we'd build cell towers rather than run thousands of miles of wire, just as many people are "building" WiFi LANs in their homes rather than running Cat5 through the walls.

    --

    This next song is very sad. Please clap along. -- Robin Zander

  13. Re:There are more important things they need by mpe · · Score: 3, Informative

    Why are we sending cell phones, a luxury product if ever there was one, to Third World nations

    Because if you are starting from scratch it's a lot easier to set up a telephone system with cellular phones than it is to install lots of cable. It's also a lot quicker and cheaper to get a cellphone system back operational following a major natural disater or war.

  14. QoS is the big issue here by tomstdenis · · Score: 3, Interesting

    Telcos in Canada must be up for "five 9's" a year. Thats a law not just a slogan. ISPs do not. Its perfectly legal for an ISP to be up only twice a week for 45mins at a time.

    So the reason you pay 0.05$ a minute for a long distance call with your telco and next to nothing with an ISP [e.g. using some VoIP program] is because Telcos are reliable. I mean if I go and call a buddy in British Columbia I am fairly certain of a few things

    a) The call will go through
    b) The quality of the signal is consistent
    c) There is no lag or strong echoes

    If I call with an ISP I may not be able to reach him [e.g. local fiber problems.. stupid rogers], or my mic/speaker setup may sound too bad, or worse there may be annoying ping times.

    If all you want is an informal chat with a buddy then VoIP programs are ok. But if you need to conduct reliable communcation then telco's are about all you have to choose from.

    As towards third world countries perhaps the calls are so expensive because maintaining a relibable connection is costly.

    Tom

    --
    Someday, I'll have a real sig.
    1. Re:QoS is the big issue here by mindstrm · · Score: 3, Informative

      Yes, this is true.

      As for more third-world countries and the like... let me assure you....

      Okay, I live in Costa Rica. It's not even third world.. but my internet connection here is more reliable than my phone connection.

    2. Re:QoS is the big issue here by letxa2000 · · Score: 3, Informative
      As towards third world countries perhaps the calls are so expensive because maintaining a relibable connection is costly.

      Except in the worst third-world countries (which are technically, "fourth" and "fifth" world countries!), the technology is the same as that found in the U.S.

      The difference is they have crashing monopolies and there is a cultural tendency in Latin America to steal every last "peso" you can. The owners of the telcos pay top government officials so they won't regulate the telcos, and the telco owners and top government officials earn major bucks at the expense of the phone-using public.

      That's why calls are so expensive in Latin America, not because it is any harder to maintain a reliable connection.

  15. my 2 cents... (per minute) by supernova87a · · Score: 2

    I have come to the conclusion that the telecom companies in the US are fighting a losing battle -- trying desperately to milk the last dollars out of a market and hoping that people don't have enough information to know that they're getting cheated royally.

    Seriously, I get offers for long-distance in the mail for 7 cents a minute, or maybe 15 cents per minute "anytime", and they're trying to make it sound like they're doing me a favor. Then, when I decide that I'll go with a company like bigzoo for my long-distance needs, then they tack on some very dubious "taxes" and "surcharges" onto my bill to recoup their losses. I mean, I have to pay, not to have a long distance carrier! Is this fraud or what?

    The telecom companies know that they're fighting a losing battle. It would be nice if they got on board and tried to lead the technology revolution, instead of getting dragged behind it. But that's asking a little too much of them, I guess. In the meantime, let them get screwed for promulgating such a stupid business model -- preying on people's ignorance.

    Well, all the better for students and the less priviliged people around the world. Hopefully, at least in this aspect, the internet will set them free.

    1. Re:my 2 cents... (per minute) by nolife · · Score: 2

      then they tack on some very dubious "taxes" and "surcharges" onto my bill to recoup their losses

      Choices..
      I had this same issue with Verizon. I recently switched to AT&T calling cards that I got from from a warehouse club. Costco and Sams each have similar plans, Costco is MCI or Sprint, Sams is AT&T. Anyway I pay only .034/minute with absolutely no surchages, taxes, fees and limits, I can use them anywhere and they are rechargable via CC at the same rate.
      This is much better then the .05 I was paying with MCI home service that after fees, taxes and other mysterious sucharges averaged out to over .15/minute.

      To the point. After cancelling my MCI LD service on my line, I started getting extra charges by Verizon. $5/month for an interstate access fee, described via a customer service rep as "a fee authorized by the FCC that we charge because we [Verizon] are an interstate provider" and another fee for not having a LD provider, this was described as "a fee to block long distance calls, which could be avoided if I choose Verizon as my in-state LD provider" which in fact, has a higher per minute rate then my AT&T access card.
      These are added to the growing list of monthly charges that I also pay for being unlisted and unpublished, tone dialing, the ability to cancel call waiting, access to run lines via public "right-of-way" which happens to run past underground on MY PROPERTY (so I pay them to let them use my yard) and whatever else they decide to add.
      You can not win when it comes to the phone company.
      Sorry for the rant, the more I thought about this the more angry I got.

      --
      Bad boys rape our young girls but Violet gives willingly.
  16. Re:ABOUT TIME by letxa2000 · · Score: 5, Informative
    Say bye bye telcos.

    That's what I've been saying for years. VoIP, while still definitely in its infancy, is just as much the future undoing of the LD industry as P2P is the undoing of the (current) music industry.

    I hope those third world countries really save enough money from these large first world corporations to make a quality lifestyle change. I hope they take this opportunity to manage their own services and dont let USA bully and sanction and threaten their way into corporate control of the new technologies there.

    I'm an American but currently live in Mexico. I don't know what you're talking about in terms of "these large first world corporations." If you are implying that American telco companies are robbing the poor in third world countries you are sadly mistaken--at least in Mexico.

    Mexico has a terrible telephone monopoly, "Telmex." It historically has terrible quality and their prices are outrageous. It costs about 80 cents per minute for me to call the U.S. but only about 15 or 20 to call from the U.S. to Mexico. And Telmex is entirely a Mexican monopoly.

    In fact, a few years ago the phone monopoly was "broken" by the Mexican government and competition was introduced. Both MCI and AT&T entered the market, and we even have competition in local service in many parts of Monterrey. However, Telmex is still the monopoly. Since most people get their phone lines with Telmex they generally get new subscribers to sign-up for their LD service. AT&T and MCI are at a distinct disadvantage and have even considered leaving the Mexican market because Telmex maintains its monopoly in fact, if not in law.

    As is usually the case, problems in the third world--political and economic--are NOT the fault of the U.S. or other first-world countries. They are almost always the fault of powers closer to home. In this case, telco providers in Latin America make a killing because they either have a government-mandated monopoly, or the government allows competition but silently supports the original monopoly by not encouraging the competition or forcing the monopoly to act in non-monopolistic ways.

  17. How long until legislation? by Darth+Maul · · Score: 2

    I wonder if in a few years, when internet telephony takes off here in the States, we'll see the telco's trying to push new legislation to ban or regulate it to make up for their lack of flexible business model.

    You know, like the RIAA is doing? Gee, don't try to embrace new technology and make money off of it, just buy some legislation to make sure you may remain entrenched in your old ways...

    --
    --- witty signature
  18. pgpfone by u01000101 · · Score: 2, Interesting

    I use pgpfone, and I'm pretty happy with it. It's windows-only, but this drawback pales in front of the advantage of having a snooper-proof connection; I don't discuss state-secrets over it - I don't evan know *any* state-secret - but I grin each time I hear about "internet wiretapping" and "more powers to the cops"...

    --
    if you use a good enough junk-filter, slashdot.org will display a single, *blank*, page
  19. Reliability of service by totallygeek · · Score: 2
    Something that people need to consider is power. Don't forget that fiber cannot carry a charge, and therefore must be connected to powered equipment, unlike land lines. Not everyone has UPS equipment, generators, etc., and businesses (and some residents) need assurance of service in outages.

  20. not just geeks and college kids by Jacer · · Score: 2, Interesting

    i've set it up for my mom, grandma, sister, and uncle.........and myself.....lots of free calls being a poor, geeky college kid doens't leave much money for family communication, the dorm is too small, i want to go home..........i also want to take the 10mb connection with me!

    --
    --fetch daddy's blue fright wig, i must be handsome when i release my rage
  21. Re:Don't forget Monday were by mark_lybarger · · Score: 2

    i gotta say, that's a lot of freaking time on the phone there. talking for 500 minutes per month, ld on the phone? for personal home use? wow. that's over 8 hours.

    i gave up oon long distance after getting slammed by the phone companies (sprint, at&t). i currently have no long distance on the phone, and use a 20$ 500 minute calling card from sam's club to make a long distance phone call. portable minutes too (yeah, yeah, the pay phones jack on additional charges, but it's still portable.)

    personally i kinda like using voip to some degree (quick chats to family/friends), but it's a matter of a square peg through a round hole. ip isn't the be all end all. everyone is jumping on some HUGE internet hype and trying to put every service over ip. microsoft might have said it best when they said that IP may not be the best protocol for distributed applications.

  22. My recent experience of this... by jamieo · · Score: 2, Informative

    I've just come back from spending a month in Nepal, a very poor country with limited telecommunications facilities.

    In the larger cities (Kathmandu, Pokhara) you could call the UK over the internet for about 25-50Rs/minute. Using a traditional phone line costs 125-200Rs/minute. When I was there 10 years previous it was US$5/min!

    The exchange rate is something like 72Rs to US$1.

    The costs are differences aren't as much as this posting said, but it's still quite a saving.

    Personally I shopped around for a cheap real phone call (125-150Rs/min) as the quality was so much better.

  23. Voice from the trenches by Rogerborg · · Score: 4, Interesting

    I work on voice over IP telephony products, and I think that the market is ready to switch (pun intended).

    SME's are figuring out that they can use their DSL lines to make net calls and video conferencing, and they're starting to ask (big time) exactly why they're paying per minute to make voice calls. And telcos are listening, and worrying.

    There is a huge demand at the low end for true all-in-one products that encorporate an ethernet switch, DSL uplinks, a firewall and web server, handle IP-to-IP calls as well as IP-TDM, TWIF, ISDN (yuk), voicemail, door answer, that come with web browsing hardware phones and PC softphones and value added applications like videoconferencing. You would not believe the amount of software and hardware that we have in our current product; think 128Mb RAM, 128Mb compact flash, a 10 GB hard drive and a PCB that would make your head spin, in what's traditionally been a market for small (embedded devices.

    And we're not developing this stuff simply because it's fun; there's a real demand from SME's for it. Initially we intended selling these boxes at retail (unheard of for a full featured telecomms switch); we've backed off from that now, simply because telco's are so keen to sell them as part of packages, because they know that if they don't, we will sell them at retail, and they'll lose a stack of voice money.

    Note that the features that we enjoy today on residential lines - caller ID, call waiting, three party, callback - all came out of SME private branch exchanges. Telcos just realised that they could make extra money selling them to residential customers as well. They'll dig their heels in (hard) to stop us moving from TDM calls to VoiP, but - bearing in mind that once your call hits the local exchange, it hops to an IP backbone anyway - they can't hold out forever. Sooner or later, a residential provider will crack and start offering realistic VoiP to the home, and then all the rulebooks get ripped up. Roll on the day!

    --
    If you were blocking sigs, you wouldn't have to read this.
    1. Re:Voice from the trenches by Rogerborg · · Score: 3, Informative

      Uh, of course, I blinked and missed that residential VoiP is already here. Yeee ha!

      The TWIF-IP adaptor bundled with this service supports two analog 'phones. Whee. Now picture one that'll talk to any DSL or cable uplink, has a 10/100 switched hub supporting 8 IP devices ('phones, PC's, NAS) with a DHCP server built in, that supports 6 analog devices ('phone, fax, trunks), any number of PC screenphones, that has a fully featured call control that provides any service you could imagine (and quite a few that you've never dreamed of), stores 10Gb of voicemail, and supports full RAS services (i.e. you can dial in to your home, then hop out from there, like a mini-ISP), all with a multi-lingual web based front end that you can access locally or remotely over IP or diallup. You want one? You know you do. ;-) You can't get one yet at retail, but give us another 18 months for the telco's to saturate their SME's with these, and you might see a version hitting retail.

      --
      If you were blocking sigs, you wouldn't have to read this.
    2. Re:Voice from the trenches by vern4of7 · · Score: 2, Informative

      In the US voip is not moving at all at the enterprise level. The carriers got freaked out about started dropping their rates to prevent voip from being used for toll by pass domesticly. It does not provide a cost savings for corporations. If you notices Cisco's story on voip has changed, they are saying that you can reduce staff by having one common network with voice and data, you can reduce head count. There is no mention of the toll by pass.

      Currently medium and larger companies have the ability to negoitate better rates then the residential rates. This is pretty key for preventing/slowing the deployment of voip.

      The only easy savings that you can incurr from voip is conference calls. Most of the conference calling services are .17/min/line in the US. Pretty expensive. Using things like netmeeting or conference bridging features in voip systems you can significantly reduce this cost.

      While in tech circles there is demand for voip, nobody (finance, etc) cares about this technology. These people are just looking at bottom line cost.

    3. Re:Voice from the trenches by FattMattP · · Score: 2

      Care to define what a SME is?

      --
      Prevent email address forgery. Publish SPF records for y
    4. Re:Voice from the trenches by faeryman · · Score: 2

      small medium enterprise.

      --


      ,
      faeryman
    5. Re:Voice from the trenches by Rogerborg · · Score: 2
      • In the US voip is not moving at all at the enterprise level. The carriers got freaked out about started dropping their rates to prevent voip from being used for toll by pass domesticly. It does not provide a cost savings for corporations

      True. Sorry, when I said SME, I really meant Small enterprise, actually down at the mom and pop corner store (or gas station) level. There's a huge market down in the sub ten lines, and that's also where the customers live who don't really want a service contract, and are prepared to try out new solutions if it'll save then a few bucks a month. But you're right, VoiP is being used (today) as part of packages to preserve call revenue. Give it a year though.

      --
      If you were blocking sigs, you wouldn't have to read this.
  24. Speak Freely is a 100% free Internet telephone by PiotrK · · Score: 3, Interesting

    Speak Freely is a program that allows two or more people to conduct a real-time voice conference over the Internet or any other TCP/IP network. It supports a variety of compression protocols, such as GSM, ADPCM, LPC, and LPC-10. The cryptography-enabled version includes IDEA, DES, and limited PGP encryption capabilities for protecting the privacy of important voice conversations.
    http://www.speakfreely.org/

  25. Not when the Telco owns the fibers by Nurlman · · Score: 4, Informative

    I don't know abotu Africa, but in a lot of developing countries, the state-owned telco monopoly is also the gatekeeper of internet connectivity.

    I've had personal experience with the Republic of Palau in the Western Pacific. Palau National Commuinications Corp. owns the phone system, and also runs Palaunet, the only ISP on the island. (Good luck getting another ISP in when PNCC owns the access to the lines.)

    Result: internet telephone calls are prohibited on Palaunet. (It's easy-- watch for bi-directional high-bandwitdth traffic, instead of uni-directional. So simultaneously uploading and downloading on a P2P will get your account a once-over, but that's life in the Third World.) Instead, you're forced to pay the egregiously expensive long distance voice rates.

    Internet telephony only works if you've got an open communications industry. That's not true in a lot of developing countries, where the Government is footing the bill for all infrastructure, and wants to keep control of it for economic or political reasons.

  26. VoIP illegal in some countries by fruey · · Score: 5, Informative
    All VoIP termination is illegal in Morocco. You are forced in as many ways as possible to not use VoIP over your Internet connection. H323 I think is blocked already, or has been and was removed afterwards.

    VoIP termination is certainly illegal. Even though the phone company, who also have a monopoly on bandwidth, make money whatever you do. They're getting local call rates (Billed at $2 an hour inc taxes), bandwidth money from the ISP, and they still don't want to lose the international telephony deals, where they make ridiculous amounts of money.

    All over Europe, telcos don't want to lose lucrative internation traffic. Real third world countries (rather than emerging economies) have neither enough bandwidth nor the latency required to provide adequate VoIP anyway.

    However bandwidth in Morocco is pretty good. Check out www.tiboo.com for a site hosted in Morocco with high visits and reasonable serving of pages.

    --
    Conversion Rate Optimisation French / English consultant
  27. Who needs big Telcos anyway? by ogreinside · · Score: 2, Interesting

    Specifically Southwestern Bell.

    I can go on and on, but I'll tell you this: I do not have a phone at home anymore, and I have long since abandonded my much loved 5 static ips and dsl as well, in favor of dynamic-only port-80 blocked sometimes-slower-than-M$-fixes-security-holes cable modem.

    And I'm MUCH happier.

    I will never in my life use SWBell's services. If I am running from rabbid wolverines and my only chance of survival is to purchase SWBell local phone service, I'd rather dive into a swimming pool filled with double-edged razor blades, followed by having my face eaten off by said wolverines.

    I only make calls through dialpad, ($9.99 a month for 400 minutes). That's all my long distance AND all local calls. No incoming calls. My wife has gotten use to it. Sure beats $50/month for voice mail/caller id/call waiting/call waiting caller id/caller id call waiting calling/made up services to charge you extra in hopes you won't notice (slamming & cramming)/to just look at the caller id, and ignore the call.

    Yeah, maybe it's a pain in the butt to connect the handset everytime I need to make a call (that's what wireless+laptop is for), and 911 isn't supported (that's what cell phones are for). But at 2.5 cents a minute, (and best of all NO SWBell), I see no comparison. People just page me, and I call them back. It's a plus, because none of our friends/family have to use long distance to get a hold of us either.

    Oh yeah, and no spam calls/wrong numbers either...

    I haven't tried this out yet, but it allows you to connect a regular (cordless) phone to your computer, eliminating the wire-fumbling.

    OgreInsde

    --
    "The more you suffer, the more it shows you really care, right?" -Offspring
  28. South Africa by Hasie · · Score: 3, Interesting
    Here in South Africa we have a statutory telecommunications monopoly. That means that by law nobody but our telecoms monopoly is allowed to provide telecoms resources. This has led to incredibly high costs with a 24% increase in local call rates earlier this year, for example. Our data rates were (and probably still are) among the top ten most expensive in the world in US dollar terms despite the fact that all expenses are in Rand (a weak currency).


    This means that something like a net phone is a revelation in terms of cost. I have a friend who has been talking to his brother in Germany with a net phone for a while now. The only problem is that this is illegal because ISPs are not allowed to carry voice traffic! In fact the telecoms monopoly tried to destroy ISPs by citing a law that states that nobody is allowed to resell bandwidth. Fortunately the lost the case, but it was touch and go for a while.


    My greatest sadness is that new technologies promise so much for countries like ours, but our government makes horrible mistakes like legislating a monopoly. If we can just learn to embrace new technologies and learn from trends round the world, we can rapidly pull ourselves to the front out of the mire we are in at the moment.

  29. Latency by SloppyElvis · · Score: 2, Informative

    In my admittedly limited experience with internet telephony, I have found that latency has been more of a problem than bandwidth. Presumably, your cyber cafes or universities are going to have enough bandwidth to support people using the internet for telephone use. After all, file sharing consumes more bandwidth than streaming voice does, and practically every geek on campus has been exploiting that technology. Compression of telephone-range frequency is good, because the frequency range required is not broad in the general sense of the term. I'm not pretending to be an expert here, but this is the impression I have gathered from my readings (so flame it up, if you have to)

    However, IMHO, I have found it annoying to speak with people over the internet for the reason that the tempo of a conversation is often broken by having to wait for the person on the other side of the line to hear what you just said. I've taken this to be a latency-related issue, but hey I could be mistaken. At any rate, I'll stick with the telephone for now.

  30. I want rj-11 hookup, and a local phone number by peterdaly · · Score: 2

    Here is what I want:

    I want a service which will let me make phone calls to real phone numbers over my high speed broadband connection, using my existing telephone equipment (rj-11 cordless phone, etc.)

    In addition, I would like to be able to recieve calls on it, using a number which would be free for people who live close to me to call.

    Does such a service exist? I don't use my phone very often, and hate paying Verizon every month. I have a cable modem which usually gets very high thruput.

    -Pete

  31. Why are these people complaining about 80 cents? by Typingsux · · Score: 4, Funny
    I am calling and paying 3.99 a minute to speak to a girl I don't know, but she tells me I'm her boyfriend. Yea. That's it.

    --
    The above post is an editorial, the poster cannot and will not be held responsible for all or in part for it's contents
  32. There are other good ways to make cheap calls by JahToasted · · Score: 2, Interesting
    I live in Jamaica and am able to call my mother in Canada very cheaply ($0.08 a minute up to a maximum of $2.50 per call).

    Depending on which country you're in YMMV, but I have found that using the canada direct service is fairly reliable and cheap. Basically you call 1-800-222-0016, and that gets you a line in canada, from there you can just use a calling card to place the call. So basically the call isn't going to cost more than a call within canada.

    THe cool thing is seeing on the phone bill $50-60 in savings on a call that costs $2.50

  33. Cayman Islands Phone by Technician · · Score: 3, Interesting

    The Cayman Islands has a phone monopoly protected by the government. I lived there for 3 years. In US dollars it was close to 1.50 per minute to call the US. We quickly learned to send our relatives money and have them call us at .30 - .50 per minute. The Cayman Islands likes to brag about being upscale by having the highest number of fax machines per capita. The reason for the large number of fax machines is due to the cost of a phone call. Nobody calls the states to get put into voice mail hell. They send a fax instead. Now that internet has reached the islands, I expect e-mail to replace fax unless spam gets too expensive to receive. Long distance charges are a good fax spam filter.

    (begin RANT) Even 800 consumer service numbers are billed. I picked up my first copy of Windows 95 upgrade while there. (it was a few years ago) After installing it, it couldn't find the CD drive it was installed from, the modem, or the sound card. At 1.50 per minute for service, I simply chose to wipe the drive and recover the old OS from backups. I finaly upgraded after I returned to the US. An hour on the phone would have cost about what the upgrade cost. Dialup internet was about .30 per minute US. TOS prevented voice over internet. Needless to say very little browsing was done. Eudora was popular as the only client on many machines as a cheaper fax alternative. Connections were just long enough to send/receive mail. I never composed online. You can check out the current rates and terms of service at www.candw.ky The prices are not US dollars. 1.25 US will buy one CI dollar.(/RANT)

    --
    The truth shall set you free!
    1. Re:Cayman Islands Phone by Technician · · Score: 2

      I just surfed over there and checked the rates.
      More current info may be useful. Here is what I found.

      10 hrs/mo is $17
      20 hrs is $27
      30 is $36
      50 is $50
      unlimited is $79
      For all plans there is an additional $35 setup fee plus additional charges on all except unlimited plan.

      ISDN is avaliable in a 10 hr and 20 hr/mo package.

      Rates are in CI dollars. These rates are the Dial up rates. Would you pay over $100.00 US per month for unlimited dial up?

      I also think they have some serious bandwidth problems. Surfing to candw.ky is like surfing into most .edu domains.

      --
      The truth shall set you free!
  34. And here's what I want... by KjetilK · · Score: 2, Interesting
    Since everybody's posting their ideas for future phones, here's what I want:

    I want my computer to be a single point of access to phones. I want it to automatically choose the cheapest method for me, whether it is a local call over standard phones, VoIP, or something else.

    There has to be some hardware involved, for instance, I guess I need a card that is capable of making a call over the classical phone lines. Could a modem be used for this?

    Then I could have a single front-end in my house, for example, I'øø have a Bluetooth access point, connected to the computer. Then I have a Bluetooth headset lying around. If I put it on, there is voise recognition, so that I can say "call ma", and if the cheapest call to ma happens to be a local telephone call, the computer will use the telephone card to make that call. If it happens to be VoIP, it makes a VoIP call, if I have to call on her cell phone, it dials that number.

    This "while-we're-waiting-for-VoIP" card that I have in mind, anybody know if that's easy to make?

    --
    Employee of Inrupt, Project Release Manager and Community Manager for Solid
    1. Re:And here's what I want... by bluGill · · Score: 2

      Its what service you have. Calling ma may be a free telco call, but if you pay $40/month for the line, and only use it to talk to ma, for 10 minutes a month, you are paying far more than to pay $.50/minute for the most expensive voip line which is otherwise you cheapest alternative. (costs made up)

      The problem is you have to know at the start of the month. I don't know who I'm calling 30 days from now. It dad suddenly has a heart attack I'll probably be on the phone with mom for hours and I'm better off with a telco line, but normally I don't talk that much so I'm better off without. Good luck finding a comptuer that can perdict the future.

  35. Calling Honduras by truthsearch · · Score: 2

    Damn... I have to pay 10 cents a minute to call (via telco) the next state which is only a few miles away. But I can cut the middle-man and call the drug smuggler directly in Honduras for the same price! Mmmmmmm.... technology...

  36. Reminds me of something.. by Mike+Hicks · · Score: 3, Interesting

    I recently read a short article that was written by a Jamaican back in 1995 or 1996. It discussed the availability of e-mail in Jamaica at the time. It turned out that e-mail was mostly being used to contact people outside of the region, and it wasn't being used to communicate locally.

    I just wonder if this technology would do anything to foster local communities, rather than just connecting people over great distances. Certainly, talking to a relative who is away is important, but it's important to look at what can be done to improve the local infrastructure as well.

  37. Re:ABOUT TIME by afidel · · Score: 2

    Yeah I remember back in the mid 80's being in a Ford plant's telco/server room and asking my guide about a piece of equipment I had never seen before, turns out it was a piece of telco switching equipment, telmex was so bad that Ford had it's own private telephone co for talking to their mexican plants!

    --
    There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  38. Enlarging the installed base by Webmoth · · Score: 3, Informative

    Here in the U.S. internet telephony will probably take quite a while to catch on. Why? Because landline rates are cheap (at least compared to the rest of the world). Also, the quality of American landlines tends to be high, at least better than internet telephony.

    So why is it so cheap? Because of the large installed base. The most expensive part of the infrastructure -- the copper "last mile" -- is already in place, and has been for nearly a hundred years. For the most part, that copper is already paid for. Plus, there is a lot of competition.

    By sake of example, my long distance carrier, Opex, charges me $0.045/min for interstate and $0.09/min for intrastate calls. International rates are reasonable.

    In third world countries, there isn't a very large installed base. The cost of installing new copper is high, and in many cases equipment is still being paid off. Plus, many countries have telco monopolies that charge whatever they feel like. So naturally, people will turn to promising alternatives such as internet telephony. When I was in Guatemala two years ago, it seemed there were more cell phones than landline phones. Cell towers were everywhere, it seemed. (On a side note, I walked thru a village where the houses were mud huts with no running water... but they had TV's and cell phones... priorities???)

    Summarizing: U.S. landlines are higher quality than internet telephony and at reasonable cost; 3rd world landlines low quality high cost; might as well try VOIP.

    --
    Give me my freedom, and I'll take care of my own security, thank you.
  39. Its called a cell phone by bluGill · · Score: 2

    You don't need rj-11. You need a good net connection (check out wireless), and a good voice connection.

    Seriously, I pay the same amount as a voice line for a phone that has a number not where I live, but where the people who call me live, and free long distance anywhere in the US, free roaming (but no service outside of cities, but still everywhere I travel) I get caller id, unlisted number, and voicemail included, all of which are extra charge for a regular phone.

    I don't care who provides my service (though if I have a choice I will choose someone who isn't lobbying goverment for laws I don't like) I care that I get good service. One number to call that always reaches me is nice. (I do not always answer the phone).

    1. Re:Its called a cell phone by peterdaly · · Score: 2

      Who do you get service through?

  40. Re:Don't Say "Third World" by dipfan · · Score: 2, Insightful

    A more accurate definition of the origins of the term Third World:

    THIRD WORLD -- the economically underdeveloped countries of Asia, Africa, Oceania, and Latin America, considered as an entity with common characteristics, such as poverty, high birthrates, and economic dependence on the advanced countries. The French demographer Alfred Sauvy coined the expression ("tiers monde" in French) in 1952 by analogy with the "third estate," the commoners of France before and during the French Revolution-as opposed to priests and nobles, comprising the first and second estates respectively. Like the third estate, wrote Sauvy, the third world is nothing, and it "wants to be something." The term therefore implies that the third world is exploited, much as the third estate was exploited, and that, like the third estate its destiny is a revolutionary one. It conveys as well a second idea, also discussed by Sauvy, that of non-alignment, for the third world belongs neither to the industrialized capitalist world nor to the industrialized Communist bloc. The expression third world was used at the 1955 conference of Afro-Asian countries held in Bandung, Indonesia. In 1956 a group of social scientists associated with Sauvy's National Institute of Demographic Studies, in Paris, published a book called Le Tiers-Monde. Three years later, the French economist Francois Perroux launched a new journal, on problems of underdevelopment, with the same title. By the end of the 1950's the term was frequently employed in the French media to refer to the underdeveloped countries of Asia, Africa, Oceania, and Latin America.

  41. Zambian Cellphones by ahoehn · · Score: 2, Interesting

    Four weeks ago I was in zambia, and met the looseing major presidential canadate in the most recent election. When I asked him what his plans were now, he said that since looseing the election he's been getting in wireless communications. He proceded to gush about the benefits of cell phones and how zambia was deepley in need of a rural cellular network. It was a bit etherial to be hearing this in the midst of a country where starvation is not uncommon.

    --
    Mod my comments down. It'll be fun.
  42. Re:Don't Say "Third World" by atomico · · Score: 2, Informative

    I have always thought that "Third World" is a term coined during the Cold War, when a huge lot of countries which did not want to be aligned either with US-led or with USSR-led countries started a real movement, championed by India, if I am not wrong.

    This was happening in the sixties, when all these countries were immersed in de-colonisation processes. Sadly, what they have in common today is mainly their poverty (but not all of them!).

    In this context, the "First World" were the US allies, while the "Second World" were the Communist countries.

  43. Re:There are more important things they need by maxpublic · · Score: 2

    Finding Jesus is the only way out of the cycle of poverty and he ain't reachable by cell phone.

    Given that he's verifiably dead I'd hazard there's a good reason you can't reach him by cell.

    Max

    --
    My god carries a hammer. Your god died nailed to a tree. Any questions?
  44. 3rd World Beats 1st World Again by 4of12 · · Score: 2

    Funny, the way that the 3rd world is leading the charge in this particular area of new technology: VoIP.

    It reminds of what was going on back in the early 1990s, when cell phone markets in India and other countries were booming, largely because cell phones provided so much more reliable service than the creating infrastructure of their land line telephone system.

    I've heard that the cell phone business in many African countries is still lucrative, screwy government policies notwithstanding.


    --
    "Provided by the management for your protection."
  45. Telcos still own the plant by GunFodder · · Score: 2

    While long distance carriers are already in trouble telcos that own the physical plant (the actual phone lines) are still in good shape. While their margins may shrink we still need them to maintain the plant.

    Smart telcos will stop differentiating between phone and data service and provide one pipe with a protocol that supports both high latency/high bandwidth applications like internet access and low latency/low bandwidth applications like telephony. DSL is already kinda like that, except that it is viewed as an add-on rather than an integral part of the service.

    The key part is integrated billing, where the bandwidth is not differentiated between data and phone services.

  46. They will be banned by rbreve · · Score: 2, Insightful

    I am from Honduras, there is a law here that says that Hondutel (the only goverment telecom company) is the only one that can regulate international calls. Internet cafes can sell internet access, but they cannot sell phone calls, most of them are charging for phone calls not internet access, they could me banned and closed.

    This is a monopoly created by the government.

    There have been cases in which some people install a satellite link between honduras and the USA, install local telephone lines in Honduras, and sell phone cards in the states.

    The long distance called would only costs the local call price (2 cents a minute plus the satellite link) and you could charge 40cents a minute for a long distance call from USA to Honduras. So you only need 20 local telephones lines and a satellite link to make a lot of money (if you dont get caught)

    You can make up to 1 million dollars in 6 months..

    Sorry for my english...
    rb.