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Network hardware industry

Sprint and mPhase Promise Revolutionary Telecommunications System

Strategic Insights

— 2 min read

Madison area consumers may soon enjoy a plethora of cutting-edge services, including two-way interactive video, ultra-fast Internet access, and phone service, all available simultaneously and potentially at a lower cost than current phone service. This innovative system, pitched by Sprint Corp. and Chorus Communications Group Ltd. in partnership with mPhase Technologies Inc., aims to revolutionize telecommunications. The Madison area is being considered as a potential test site for the revolutionary Integrated On-Demand Network, which would include all Sprint's offerings, plus hundreds of channels of digital cable TV.

Key Takeaways:

  • Sprint's announcement promises two-way interactive video, ultra-fast Internet access, and phone service available across current phone lines at a similar cost to current phone service.
  • mPhase Technologies Inc. is working with Chorus Communications Group Ltd. to potentially bring this system to the Madison area by the end of 1999.
  • The Integrated On-Demand Network would require a special decoder, estimated to cost around $200, to function.
  • Chorus president and CEO Dean Voeks believes the Madison area is an ideal test site due to its highly intelligent and affluent community, making it a desirable location for mPhase's Beta site.
  • The system would allow people to browse the Internet, watch digital cable TV, and make phone calls simultaneously, all for an estimated $15.95 per month or $29.95 for a package with additional phone lines.
  • The cost savings for the new technology are significant, with Sprint predicting a 70% reduction in costs for delivering a typical phone call and reduced costs for video calls.

Statistics:

  • The cost of the special decoder required for the Integrated On-Demand Network is estimated to be around $200.
  • Sprint predicts a 70% reduction in costs for delivering a typical phone call using the new technology.
  • The company estimates costs for video calls would be lowered to less than a typical long-distance call.
  • The proposed pricing package includes $15.95 per month for basic services and $29.95 per month for a package with additional phone lines.
  • The Madisons area is being considered as a potential test site for the Integrated On-Demand Network.

Sources:

  • "Sprint Corp. promises interactive video, ultra-fast Internet access and phone service"
  • Chorus Communications Group Ltd. news release
  • "mPhase Technologies Inc. Web site - [www.mphasetech.com](http://www.mphasetech.com)" (cited on June 2, 1999)
  • David L. Klimek, director of engineering for mPhase
  • "Cold fusion" - phrase used by Dean Voeks to describe the compression technology
  • Mike Varda, a telecommunications division attorney with the state Public Service Commission

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