Letters to the Editor
Merchant responds to Cable& Wireless
Dear Sir:
Following the recent communication receivedby ourselves and the entire community of Internet users this morning,I am compelled to respond to this latest act of the monopolisticgiant - Cable & Wireless - not only on our behalf, but alsothe entire community who have been affected by this latest moveby Cable & Wireless to stifle ways and means that local businessesand families must find, in an effort to reduce the oppressivecosts we continue to pay for overseas telephone services.
It would seem to me, that they have made a grave mistake in theiractions last Friday night (July 28, 2000) by the temporary blockingof the Net2Phone.com site on the grounds of what they term as"violation of their terms and conditions."
This latest draconian move is a very cowardly and oppressive attemptto fool, use, abuse, and bully the people of the Cayman Islands.
For years people have been crying about the rates and their attemptsat rate reductions has been less than acceptable. C & W haslowered them in one area and increased them - rebalanced themas they say, so that the residential users are now paying more,while the businesses are supposedly paying less in another. Thetruth is - no one really benefits.
C & W's rates have been way too high, and a small reductionwill not cut it. Many of us now know what the wholesale ratesare, we know that the rates have been set artificially high, sothere is really no reduction. Internet customers are paying theirway. The Internet is not cheap, but many people have found a wayto use the Internet to reduce their long distance charges. Hereare some examples:
1. E-mail - (No more faxes, which was a very high cost to manypeople each month. It also cuts into mail costs. (Let's bringthe Post Office into this and show how it has also eaten intoTHEIR revenue.)
2. Voice - By using computer programs such as Net2Phone, Dialpad,PhoneFree, Microsoft Netmeeting, Yahoo chat, Caribe chat, andmany other Internet based chat solutions to talk and communicatewith others, instead of the traditional method ... all perfectlylegal over the Internet.
3. Video - By using programs such as Video mail, Netmeeting andother packaged communications software, people have been ableto reduce long travel by having video conferencing in their homeor office. (Now let's bring the airlines into this.)
It also seem that there is a COMPLETE lack of understanding ofthe technologies by C&W in the Cayman Islands as far as certaintechnology is concerned:
A computer cannot directly transmit voice over the Internet -It transmits DATA.· An IP-Hotline is a device that goesinto your computer that allows you to transmit DATA over the Internet,not voice.· A Yap Jack is a computer made small enoughwith a V.90 modem that allow DATA to be transmitted over the Internet.·An IP-Max is a computer that connects the network that sends DATAover the Internet.· DialPad uses the IP-Hotline, or somemicrophone and speaker to transmit DATA over the Internet.·Delta three uses similar hardware on the computer to also transmitDATA over the Internet.
Since none of these bypasses the Cable & Wireless network,they are all perfectly legal computer equipment for customersto use to transmit DATA over the Internet.
Now, since Cable & Wireless has done this action, it is clearthat it has very little concern for the people and businessesof the Cayman Islands.Cable and Wireless in their "Informationto Internet users" has maintained that "this is whatwe have done since 1966...." a rather very selfish attitude,and people have had enough. Everyone knows what has been donesince 1966, and they have had enough. Many have called it thebig "rip off." If they did not, they would not havebeen actively looking for alternatives.
Yes, price reduction comes, but usually when it is too late ...after a business has closed down because of high communicationcosts; when a child in an overseas school gets in trouble, haspoor grades or otherwise fails to perform because the parentsliving in the Cayman Islands cannot afford to communicate withthat child on a more frequent basis ... everyday; when a localbusiness is left behind in the global marketplace because thecommunication costs from the Cayman Islands are just too high.
There are Alternatives
People are looking for ways to cut their onerous to long-distancecommunication costs and they have found the solutions on the Internet.In a recent call-in programme on local television, a caller askedabout Net2Phone and was told by a top C&W representative onthe air that C&W have no problem with Net2phone. She alsowent on to explain that while a service such as "Call back"(which many people used) was illegal because it by-passed theC&W network, a service such as Net2phone is not, since ituses the C&W network.
Therefore, C&W derives revenue for the use of Net2Phone andother related legal Internet based systems. When asked about C&Wstopping Net2Phone, the assurance was given that C&W willNOT stop Net2Phone and any problems that the customer experiencesusing Net2Phone is related to Net2Phone and not as a result ofany action by C&W.
In respect ofCable & Wireless' Terms & Conditions
In section 7.2 of the Terms and Condition, it clearly specifyvoice over the public telecommunications systems. However, voiceand data are two very distinct and different things. In addition,on the Cable & Wireless local web site site under ISDN, (http://www.candw.ky/products/business/isdn/ISDNmain.html) it clearlystates that " With an ISDN line from Cable & Wirelessyou can transmit information, including voice, data, images andvideo within your organization and to customers and suppliers."
Cable and Wirelessspeaks with a Forked Tongue
There seem to be some sort of double system here of a "forkedtongue" in operation. This is the Internet. Customers paytheir way, and as such are not restricted as to what sites canbe viewed and used on the Internet. Pornography is illegal inthe Cayman Islands, yet all of these sites are allowed to filterthrough the C&W network, uncontrolled.
Netmeeting,DialPad, Delta three, PhoneFree and many others alluses the computer or other similar computer hardware to placecalls over the Internet quite legally. WHY WERE THEY NOT STOPPED?Is it because Net2Phone has come out with a legal alternativethat people and businesses can use quite easily without the burdenof dragging their large computer system around?
What should havebeen done
Many times C&W makes the statement that it welcomes competition.That competition has come in the form of the Internet ... quitelegally ... no special granting of licenses to any outside company... no restrictions ... just one great tool. If there was anotherInternet Service Provider on the island, C&W would not havebeen able to operate in this manner. Yet, if C&W perceivesa device, service or system as a competition, it goes in and abusethe customers who are using this service.
Instead of saying to the people, "We understand your frustration,we understand that the costs are high, but this is what we willdo. Just come back." Then offer their alternative, and makesure it is as attractive as the other alternative. This approachwould have been more acceptable than the action taken last evening.
Cable & Wireless'target is a wrong choice
The service targeted by C&W to block, may have been more detrimentalto the people that ever imagined. Cable & Wireless must negotiatewith overseas carriers to route outgoing calls from the CaymanIslands into various countries including the United States. Manyof these carriers are also using Net2Phone to route their longdistance calls into various other countries. Two of these carriersare IDT and AT&T. AT&T is also the largest carrier inthe United States and one of the carriers the C&W must negotiatefor rates.
By numbers, the number of calls being routed into the Cayman Islandsare extremely low (hence one of the reasons why call back wasso effective) compared to those going out. In other words, morepeople call out of the Caymans than those calling in. Therefore,this action could have serious implications in the long run toboth the people and the service.
Is Net2Phone aBig Embarrassment to Cable & Wireless?
This action will eventually become a big embarrassment for C&W,since it cannot stop Net2Phone. This is only a temporary situationwhich Net2Phone is currently working on. To be effective, C&Wwould have to stop all related sites. But by stopping one, ithopes this will "send the message", people will getscared of fear and stop using the alternatives.Many people haveput up with the rates because they have been using the alternativesfor a long time. The attitude of many have been, "I havean alternative, I do not care about the rates." The rateshave not affected them because they have found a way around them...nowif they have to go back to those rates or any rate not close tothe alternative in all areas, they will stand up. However, manywill stand. We have used nothing illegal and have paid our waydearly. C&W may try to shut us down because of this, but ifit results in a serious rate reduction for all (residential andbusiness), then we will be satisfied.
Long distancebills
Many people, including ourselves have been hit with high telephonebills because of long distance charges. We have had our servicesdisrupted because I could not pay my high bills on time. Thanksto Net2phone and other similar services, we have been able toreduce my bills and see a way to pay off those back charges thathave held me down for so long. Any alternative that cannot dothat for me will not be accepted. Many people can relate to this,both personal and business.
Additional Revenue
The Internet has become one of the largest revenue sources forC&W... and will continue to do so, only if it stops playingthe "mighty dictator."
Using the Internet for just e-mail is not only a waste of moneyfor people (who have to pay for the use whether they use the timeor not), but also a waste of the technology. It is also a slapin the face of the people by FORCING them to use old traditionalmethod forever. The Internet has gone beyond e-mail. It is thefuture. And this is how Cable & Wireless stops it.
In looking at revenue, the Internet is set to generate the followingkind of revenue for Cable & Wireless Cayman:
Dialup Customers: Revenue in excess of CI$10.8 Million per yearfrom their 4 Internet access plans ... 50-60%. Currently it isapproximately 30%.
ISDN Lines: Revenue in excess of CI$57.6 Million per year fromISDN flat rental charges.
This is just from the Internet base charges, not additional usagecharges. As people and businesses find more use for the Internet,this will be considerably higher. The use of the alternative onthe Internet would have opened the Internet to twice as many peopleas are currently subscribed to the Internet services.
This would expand to expats, people sharing apartments, and visitors.It is not the alternative that benefits the most here, it is ourlocal telephone company. They are the ones that will reap thebenefits. The writing is on the wall that the traditional wayof communicating long distance is coming to a close. The challengehere for C&W is to stretch that time for as long as possibleor until enough people stand against it.
I close by saying that the two points on which Cable and Wirelesshas temporarily blocked the site is completely unfounded, unjustified,and show a complete ignorance or contempt of the technology currentlyavailable.
For those who do not know, global alternatives are coming...somewill be shipped as early as August. Then what? What will happenwhen our TVs, VCRs, cellular phones, Microwave ovens, stoves,radios, cars, and many other devices that we use everyday willaccess global systems that will allow us to communicate withouta local provider.
Will they seize all our household equipment, burn it, take usall to court and throw us in jail?
Yours sincerely,
William Peguero