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Computers cut calling costs: VoIP brings savings to foreigners living and working in Mexico.


When the home office of the Houston Chronicle needs to reach their correspondent in Mexico, Ioan Grillo, they dial a local Houston number.

[ILLUSTRATION OMITTED]

The call is routed over the Internet via the Voice over Internet Protocol See Internet and TCP/IP.

(networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol.
 provider Vonage, the signal passes through Ioan's voice adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers.  modem and into his telephone, and he answers the call in his Mexico City Mexico City
 Spanish Ciudad de México

City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi
 apartment. The Chronicle pays for the conversation just as it would any other call in the local Houston area.

Conversely con·verse 1  
intr.v. con·versed, con·vers·ing, con·vers·es
1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak.

2.
, when Ioan needs to call back to Houston, or when he needs to interview someone in Washington, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  or London, he uses his Vonage service to make those calls at a fraction of the price he used to pay to conventional telephone provider Telmex.

"The quality of the calls through Telmex is fine," says Ioan. "The problem with Telmex is the price of international calls; they're just way too expensive."

To give an idea of how much he is saving through Vonage, Ioan says his monthly Telmex bills have gone down from 5,000 pesos to about 1,000. His Vonage bill runs about 350-450 pesos a month.

"For me, there's one factor and one factor alone (for using Vonage over conventional service)," says Ioan, "and that's price."

Ioan Grillo is one of the millions of people worldwide who are turning from conventional phone service to Voice over Internet Protocol, or VoIP--a technology that uses data networks rather than telephone cables to facilitate efficient and inexpensive person-to-person communication.

New Jersey-based Vonage--Ioan's provider and the market leader for broadband telephone See IP phone, softphone and VoIP.  service in the United States--reports a rapidly growing customer base of over 600,000, while the largest of the VoIP providers, Europe's Skype, counts more than 35 million subscribers worldwide.

And as the market grows, new startups with names like Qovia and CosmoCom are popping up to offer VoIP service, while established telecoms and cable providers like AT & T and Cablevision are quickly getting in on the act themselves.

Those who live and do business in Mexico are jumping on the VoIP bandwagon band·wag·on  
n.
1. An elaborately decorated wagon used to transport musicians in a parade.

2. Informal A cause or party that attracts increasing numbers of adherents:
 as well. While Vonage says it cannot accurately track how many of its users are in Mexico, Skype counts 318,000 subscribers here--with that number growing rapidly.

A 'Godsend'

Ron Mader, an American ex-pat who lives in Oaxaca and runs the environmentally oriented o·ri·ent  
n.
1. Orient The countries of Asia, especially of eastern Asia.

2.
a. The luster characteristic of a pearl of high quality.

b. A pearl having exceptional luster.

3.
 Planeta.com website, tried several VoIP providers before settling on Skype. Now he's an enthusiastic proponent One who offers or proposes.

A proponent is a person who comes forward with an a item or an idea. A proponent supports an issue or advocates a cause, such as a proponent of a will.


PROPONENT, eccl. law.
 of the service--and of VoIP in general.

[ILLUSTRATION OMITTED]

"Skype, for me, has been a godsend god·send  
n.
Something wanted or needed that comes or happens unexpectedly.



[Alteration of Middle English goddes sand, God's message : goddes, genitive of God, God
," he says. "And the potential VoIP has for reshaping business and cultural relations will be revolutionary in Mexico."

First and foremost, Ron sees the financial savings offered by VoIP as the technology's most outstanding feature.

"What happens when I, with my global enterprise Planeta, want to call someone in England or Australia? I mean, it's absolutely outrageous using Telmex," he says.

But with his VoIP service, Ron can make PC-to-PC calls to any other Skype user in the world for free, while PC-to-conventional phone calls to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Europe or Asia cost only a few pennies per minute.

Another feature that makes Skype attractive to users in Mexico like Ron Mader is that unlike most VoIP providers, the service is entirely browser-based. That means that users do not need to import any special modem or other hardware to use it--an 80-peso generic headset Headphones combined with a microphone. Used in call centers and by people in telephone-intensive jobs, headsets provide the equivalent functionality of a telephone handset with hands-free operation. Many people use headsets at the computer so they can converse and type comfortably.  was all the equipment investment Ron needed to get started with Skype.

"Everything with Skype is designed to be simple," explains the company's spokes-person, Kelly Larabee. "And so all you do is download it "Download It" is Clea's debut single. It was released in the UK on September 22, 2003 and missed the top 20 charting at #21. The single had average promotion, being performed in shows like Top of the Pops. , install it, and it works. In fact, that was our first slogan A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose.

Slogans vary from the written and the visual to the chanted and the vulgar.
: 'It just works.'"

"One of the reasons we've been successful is that we think that there are a lot more computer-un-savvy people than savvy," she continues. "And so everything is designed to be as easy to use as a browser browser

Software that allows a computer user to find and view information on the Internet. The first text-based browser for the World Wide Web became available in 1991; Web use expanded rapidly after the release in 1993 of a browser called Mosaic, which used
."

Quality Can Be A Compromise

The biggest complaint users mention about Skype is the quality of the calls.

"I've had some people tell me that when I talk to them via Skype, I sound like I'm at the end of a long hallway with something draped drape  
v. draped, drap·ing, drapes

v.tr.
1. To cover, dress, or hang with or as if with cloth in loose folds: draped the coffin with a flag; a robe that draped her figure.
 over my head," says Ron Mader, during a Skype-to-conventional phone conversation in which his voice quality fluctuates between clearly intelligible and sounding ... well ... like he was at the end of a long hallway with something draped over his head.

"The problem is that the caller Caller may refer to one of the following:
  • Caller (telecommunications), a party that originates a call
  • Caller (dancing), a person that calls dance figures in round dances and square dances
  • Caller to Islam, the Islamic equivalent of a Christian missionary
 can't tell what his/her voice sounds like at the other end, and so I always make sure to tell people, 'If you can't understand me, let me know and I can repeat or try to enunciate better.'"

Vonage user Ioan Grillo has no complaints about the quality of his VoIP calls.

"I might even say that the (Vonage) service is slightly better than Telmex for international calls--and it's definitely no worse," he says. "Occasionally, there's a little bit of Internet interference, but generally, no problems."

But another Mexico City-based Vonage user, Jason Lange, has had problems of varying severity with the quality of his VoIP calls.

"When the Internet connection was good (through his Internet provider Internet provider - Internet Service Provider  Cablevision), the sound quality was pretty much the same as a regular call," says Jason. "There were times when it would mess up and, if it was at a crucial time, I'd have to call back on my land line. But all in all, it was pretty good."

That is, it was pretty good until mid-April, when suddenly Jason could no longer hear the voice of his callers--though they could still hear him. At that point, he encountered the headache of trying to get customer support from a company with no formal operations in Mexico.

"I spent like an hour on my land line--a really expensive call--and in the end (Vonage customer support in the United States) still couldn't tell me what was going on," he says.

Jason himself was fairly convinced the problem originated with his Vonage voice adapter modem, and the company agreed to exchange modems for free. But because Vonage only ships within the United States (it also will only bill U.S. credit cards), Jason says he will have to fly back to the United States in order to make the exchange.

Though he still remains committed to VoIP ("It's just nice to not have to ask people to make a super long-distance call"), Jason says he's considering switching services, perhaps to one of the local providers that offer Internet telephone service See VoIP.  from here in Mexico.

One advantage to Mexico's Avantel, c-Go, and other domestic services like them is that they offer a subscriber package that includes both VoIP and broad-band Internet access See how to access the Internet. . That way, a user can avoid paying one bill for Internet and another for Internet phone service See VoIP. .

And of course, another advantage of going with a local provider is that it makes modem delivery, customer support and product exchanges much easier.

The Telmex VoIP Controversy

Jason Lange is not the only Vonage user in Mexico who has experienced a sudden degradation in his VoIP calls. Posters to several web bulletin boards during March and April reported a similar phenomenon.

But in the opinion of many of the posters--as well as a spokesperson for Vonage--the culprit was not the company's modem, but Telmex. The telephone monopoly, they alleged, was trying to eliminate competition from the VoIP provider by "choking Choking Definition

Choking is the inability to breathe because the trachea is blocked, constricted, or swollen shut.
Description

Choking is a medical emergency. When a person is choking, air cannot reach the lungs.
" bandwidth to Vonage calls to the point that voices were unintelligible UNINTELLIGIBLE. That which cannot be understood.
     2. When a law, a contract, or will, is unintelligible, it has no effect whatever. Vide Construction, and the authorities there referred to.
.

"What Telmex is doing is they are looking at their customers' behavior, in terms of looking at what IP addresses they are using and what kind of traffic is going over that broadband network," says Brooke Shulz; director of corporate communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise.  for Vonage. "And so if they see you using Vonage, they basically take your broadband speed and slow it way down to prevent the call quality from being usable USable is a special idea contest to transfer US American ideas into practice in Germany. USable is initiated by the German Körber-Stiftung (foundation Körber). It is doted with 150,000 Euro and awarded every two years. ."

Telmex has flatly denied the allegations and suggests that any reported problems stem from compatibility issues with the Vonage voice adapter modem.

"Telmex cannot be held responsible if third-party devices are incompatible incompatible adj. 1) inconsistent. 2) unmatching. 3) unable to live together as husband and wife due to irreconcilable differences. In no-fault divorce states, if one of the spouses desires to end the marriage, that fact proves incompatibility, and a divorce  with our services," said a spokeswoman for the company's public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most  department.

Many Vonage users--even those whose Internet service provider Internet service provider (ISP)

Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password.
 is the Telmex-owned Prodigy--report having no problems. But for its users in Mexico that have had issues they feel are related to their Internet service provider or Telmex, Vonage recommends satellite Internet as an alternative.

VoIP Vice-Versa

For those who make most of their international calls from Mexico to one particular number in the United States or Canada, some VoIP services in those countries allow their members to create "virtual" phone numbers in Mexico.

That way, a caller in this country can dial a local number and be connected to a telephone in the United States or Canada. This can result in tremendous savings on regular calls back to the home office, or just to home.

When Ron and Martha Young of Atlanta, Georgia, got fed up with the escalating costs of their traditional BellSouth service, they switched over to Vonage--without having to change their Atlanta phone number in the process.

At the same time, they added a virtual Mexico City number to their Vonage service for an additional US$4.99 monthly fee. Now, when their son Jim, who lives and works in Mexico City, wants to talk with his parents, he calls them on a local Mexico City exchange.

When the Youngs were with Bell-South, says Ron, "we used to get 15 or 20 minutes of calls from Jim a couple times a month, and even that was costing us US$100."

"But now," says Martha, "I can e-mail Jim any time and say 'call me' and he can do it very easily and affordably."

"We were spending a fortune calling Jim in Mexico and having him call us from Mexico," says Martha, "and this (switch to VoIP) has just been great, I can tell you. It's really wonderful."

Jonathan Clark (jonclark500@yahoo.com) is a journalist based in Mexico City.

RELATED ARTICLE

International VoIP Providers

Skype

www.skype.com

PC-to-PC calls between Skype users are free, and there are no sign-up or monthly fees. To call from Skype to a conventional phone in the United States, Mexico City or Monterrey, it's 2 US cents/minute. Calls to other areas in Mexico are about 8 cents/minute.

Vonage

www.vonage.com

One Vonage plan offers unlimited U.S. and Canada calls for US$24.99/month. Another US$14.99/month plan includes 500 monthly minutes to the United States and Canada and 3.9 cents for additional calls in those countries. With both plans, calls to Mexico range 7-11 U.S. cents per minute. Vonage also offers small business plans for US$39.99 and US$49.99/month.

Lingo

www.lingo.com

This provider has Mexico phone numbers available. Unlimited U.S. and Canada calling with residential packages at US$19.95/month, business packages at US$49.50. Calls to Mexico are 5 cents/minute.

eGlobalPhone

www.eglobalphone.com

Unlimited U.S. and Canada calling with residential packages at US$19.95/month, business packages at US$49.50. Calls to Mexico are 5 cents/minute.

AT & T CallVantage

www.usa.att.com/callvantage

Unlimited U.S. and Canada calling with residential packages at US$29.99/month, business packages at US$49.99. Calls to Mexico City are 7 cents/minute.

WhistlerTel

www.whistlertel.com

Unlimited U.S. and Canada calling with residential packages at US$24.95/month, business packages at US$49.95. Calls to Mexico City are 7 cents/minute.

VoIP Providers In Mexico

Avantel NetVoice

www.netvoice.com.mx

Unlimited broadband Internet access Broadband Internet access, often shortened to just "broadband", is high speed Internet access—typically contrasted with dial-up access over modem.

Dial-up modems are generally only capable of a maximum bitrate of 56 kbit/s (kilobits per second) and require the full use of a
 (256 Kbps) plus unlimited local VoIP telephone calls for 699 pesos/month. Calls to the United States and Canada are 2.3 pesos/minute; calls to Europe are 5 pesos/minute.

VOX

http://voxip.com.mx

This service requires a one-time 499-peso activation activation /ac·ti·va·tion/ (ak?ti-va´shun)
1. the act or process of rendering active.

2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme.

3.
 fee. Then, with a 99 peso/month plan, VOX-VOX calls are free, local calls are 1.25 pesos/minute, long distance calls to other Mexico numbers and to the U.S. and Canada are 1.3 pesos/minute, and Europe is 5.4 pesos/minute. With a 599 peso/month residential plan or an 899 peso/month small business plan, calls in Mexico are free, U.S./Canada calls are 1 peso/minute, and Europe is 5 pesos/minute.

e-Go

www.ego.net.mx

E-go offers high-speed wireless internet through a 699 peso/month package that includes local calling via VoIP. An additional 300 pesos/month gets 100 minutes of calls to the U.S. and Canada.
COPYRIGHT 2005 American Chamber of Commerce of Mexico A.C.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:DOING BUSINESS
Author:Clark, Jonathan
Publication:Business Mexico
Geographic Code:1MEX
Date:Jun 1, 2005
Words:2108
Previous Article:Prospects for growth: politics, the markets and economic stability.(ECONOMICS & POLITICS)
Next Article:Telecoms wars: Telmex facing tough competition on the ground.(DOING BUSINESS)
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