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August, 1997
Volume 6, Issue 12

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Telcos Losing 15% Of Business Due To Internet Telephony

VocalTec Offers 80% Discount On Long Distance Via Internet

Pay Booths For Internet Access

France - Schlumberger Unveils Europe’s First Web Payphone

THE TRANSFORMATION OF TELECOM CHANNELS

The rise of the Internet may have heralded the information age, but it may also cause the gradual demise of the telecom industry as we know it. Internet telephony is undergoing a massive transformation that is reshaping how calls are sent and the tariffs charged. With costs dropping dramatically internationally, telemarketing calls from abroad may become more practical and cost less than direct mail. And with the combination of low phone rates and world wide access to the Internet, the traditional pay phone booth has already begun to change in appearance and functionality.

This month MWT reports on the impact Internet telephony will have on regular telcos, on an Israeli company pioneering Internet telephony services, and two new payphone booths that connect callers to the Internet and the World Wide Web.

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Telcos Losing 15% Of Business Due To Internet Telephony

According to Schema, the UK’s independent telecoms consultancy company, as much as 15 percent of normal international voice telecoms traffic will soon be lost by the telcos as Internet telephony services start to take off. The rise of Internet telephony will become very real within the next few years. Already there has been the announcement of new fax services over the Internet and the situation will only get worse with time, according to Robin Duke-Woolley, a spokesperson for the company.

Duke-Woolley said that a substantial proportion of international PSTN call revenue — worth nearly US$ 15 billion a year within the European Community alone — is under threat as telephone services, fax services and voice mail all move towards the Internet.

"This will not happen immediately. However, it will become an increasing trend over the next one or two years. Telcos must start to plan now for the new cost structure for international call tariffing," he explained.

According to Duke-Wolley, the popularity of e-mail has already exceeded that of fax messaging, as the use of PCs grows. Many large companies, he noted, are now choosing to send the bulk of data over the Internet, finding it much more economical than the traditional fax-to-fax method.

Schema says the switching of such companies to services offered by Internet-based operators is also due to Internet telephony services offering direct phone-to-phone connections at a fraction of the cost of international dialling across telco links.

Such services, the company claims, are now possible by routing between dial-up gateways which convert the voice into packets for Internet transmission and then reconvert the signal to normal voice at the receiving end.

(Contact: Schema +44-171-497-0708)

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VocalTec Offers 80% Discount On Long Distance Via Internet

More than two years ago, the Internet telephone was a new and exciting Internet phenomena, but in practice users experienced configuration problems, erratic connections and audio quality, and complicated software. Today, VocalTec in Herzaliya, Israel, a leader in Internet telephony, says the technology is much improved and ready to connect with standard phones at savings reaching 80 percent on long distance calls.

VocalTec’s announcement begins with a new version of Internet Phone Release 5., the Internet telephone program "provides better audio and video quality, more reliability and easier to use software," said VocalTec spokesperson.

In conjunction with Release 5, VocalTec also announced an Internet/ Telephone network based on a new provider term called "Internet telephony service provider" (ITSP). The combination of software and ITSP access allows users to connect their personal computers (PCs) to standard home and business telephones. The ITSP system is called VocalTec’s NextGen Telephony Program.

To access VocalTec’s ITSP network users must have Release 5 and an existing Internet service provider. From a World Wide Web site, users register (for free) with an ITSP which provides phone access to the geographical area a user wants to call. For a fee charged against a credit card, users can then place a call to any phone number in the ITSP’s area.

Internet Phone Release 5 sells for $49.95. More information is available at http://www.vocaltec.com.

(Contact: Jo Lee, VocalTec Communications, tel 201-768-9400)

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Pay Booths For Internet Access

Atcom/Info, a vendor of public Internet access systems, says it has perfected an access device that fits into a public payphone, for people who absolutely must check in for e-mail, stock market quotes or to conduct other Internet-based tasks. The access system, called a Payphone Cyberbooth, replaces standard pay telephones in locations such as airports.

"By fitting in a standard payphone enclosure, the Payphone Cyberbooth reduces the space required to provide the public with high-speed access —a real plus for locations where space is at a premium," Neil Senturia, the firm’s CEO, stated. "By using fewer and smaller components, the Payphone Cyberbooth reduces capital equipment, installation and maintenance costs."

Senturia said the privately held firm already has "about 200" Atcom/Info systems installed in places including the Dallas-Ft Worth, Seattle, La Guardia, and Chicago airports.

"We expect to have 500 installed by the end of the year, and hope to have 2,000 within about 18 months - we’re on target to do that," he said. "We have substantially more public access booths than our nearest competitors."

Senturia said the new payphone-sized devices consist of an 800x600 screen, keyboard, and mouse. Asked how the firm secures the public devices against vandalism, he said it had not been a problem.

"We’re not going to be on a sidewalk in the Bronx," he added. "We’re designed to be in a public space, but inside. It’s unattended, but we do remotely monitor it, "using what he described as a single network approach with patent-pending technology to allow central administration.

Senturia said using Atcom/Info access points costs 33 cents a minute, paid through credit cards or prepaid phone cards. The average online session currently lasts 11 minutes, he said.

Atcom/Info Cyberbooths are targeted for high-traffic facilities throughout the United States and the world, including airports, hotels, convention centers and other public places. Further information is available on the Web at http://www.atcominfo.com.

(Contact: Anna Chan, Atcom/Info, tel 619-699-4000)

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France - Schlumberger Unveils Europe’s First Web Payphone

Schlumberger Electronic Transactions has launched its Web-compatible payphone in Europe following pilot tests earlier this year in Canada.

According to officials with Schlumberger, the Web-compatible payphone is a device that provides the means for French telecoms operators to deliver powerful new services, and create new roles for street phones.

The TelWeb phone which supports voice, fax, e-mail, and interactive intranet/Internet communications across ISDN (integrated services digital network) links to the exchange. The ISDN payphone is the first unit to squeeze advanced multimedia technology into the compact and familiar shape of a phonebooth.

The TelWeb uses a large touch-sensitive color LCD (liquid crystal display) screen for interaction with users, presenting choices by means of graphical dial pads, keyboards, buttons, icons, and menus. The screen is polarized for privacy, allowing head-on reading only. Payment is via a card reader, accepting magneticstrip or chip-based bank or phone cards.

According to company officials, Web compatibility is at the heart of the new terminal, allowing telecom operators to provide completely new services, and attract new types of customer. This capability, the company claims, is viewed as particularly relevant for central and high traffic sites such as stations, tourist attractions, and colleges. A TelWeb unit installed in a tourist center, for example, could offer information and booking services for theaters and events, and advertising for restaurants and tours, and be able to print tickets, maps or special offer vouchers once a transaction is completed.

Business people on the move could also use the phone to send or receive faxes, to log in and check their e-mail via the Internet and send replies using a virtual keyboard.

Optimized for installation in semi-supervised environments such as concourses and malls, the phone’s exterior is vandal-resistant through features such as an ABS handset, reinforced cord, thick metal casing, and shock-absorption around the LCD screen. A highly-rugged version is available as an option for more exposed locations.

Schlumberger’s TelWeb payphone is based on product technology pioneered by Absolu Technologies of Canada, and pilot tested on a 60-phone network with Quebec Telephone. In the Quebec trials the payback is estimated by Schlumberger to be around 18 months.

Schlumberger’s Web site is at http://www.slb.com/et.

(Contact: Stephane Tanguy, Product Manager, Schlumberger +33-1-4746-5857)

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