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- Ignorance, There's No Excuse.
-
- Buncha News
- by Judge Dredd
-
-
- TELEPHONE SERVICES: A GROWING FORM OF FOREIGN AID'
-
- Keith Bradsher, $The New York Times, Sunday, October 21, 1990
- (Business section, page 5)
-
- Americans who make international telephone calls are paying extra to
- subsidize foreign countries' postal rates, local phone service, even
- schools and armies.
-
- These subsidies are included in quarterly payments that American
- telephone companies must make to their counterparts overseas, most of
- these are state-owned monopolies. The net payments, totaling $2.4
- billion last year, form one of the fastest-growing pieces of the
- American trade deficit, and prompted the Federal communications
- Commission this summer to begin an effort that could push down the
- price that consumers pay for an international phone call by up to 50
- percent within three years.
-
- The imbalance is a largely unforeseen side effect of the growth of
- competition in the American long-distance industry during the 1980's.
- The competition drove down outbound rates from the United States,
- while overseas monopolies kept their rates high.
-
- The result is that business and families spread among countries try
- to make sure that calls originate in the United States. Outbound
- calls from the United States now outnumber inbound calls by 1.7-to-1,
- in minutes -- meaning American phone companies have to pay fees for
- the surplus calls. The F.C.C. is concerned that foreign companies are
- demanding much more money than is justified, given the steeply falling
- costs of providing service, and proposes to limit unilaterally the
- payments American carriers make.
-
- Central and South American countries filed formal protests against
- the F.C.C.'s plan on Oct. 12. Although developed countries like
- Britain and Japan account for more than half of United States
- international telephone traffic, some of the largest imbalances in
- traffic are with developing countries, which spend the foreign
- exchange on everything from school sys ms to weapons. The deficit
- with Columbia, for example, soared to $71 million last year.
-
- International charges are based on formulas assigning per-minute
- costs of receiving and overseas call and routing it within the home
- country. But while actual costs have dropped in recent years, the
- formulas have been very slow to adjust, if they are adjusted at all.
- For example, while few international calls require operators, the
- formulas are still based on such expenses.
-
- Furthermore, the investment required for each telephone line in an
- undersea cable or aboard a satellite has plummeted with technological
- advances. A trans-Pacific cable with 600,000 lines, announced la
- Wednesday and scheduled to go into service in 1996, could cost less
- than $1,000 per line.
-
- Yet the phone company formulas keep charges high. Germany's Deutsche
- Bundespost, for example, currently collects 87 cents a minute from
- American carriers, which actually lose money on some of the off-peak
- rates they offer American consumers.
-
- MORE CALLS FROM THE U.S. ARE GENERATING A GROWING TRADE DEFICIT
-
- U.S. telephone companies charge less for 1980 0.3 (billions of
- overseas calls than foreign companies 1981 0.5 U.S. dollars)
- charge for calls the United States. So 1982 0.7
- more international calls originate in the 1983 1.0
- United States. But the U.S. companies pay 1984 1.2
- high fees to their foreign counterparts for 1985 1.1
- handling those extra calls, and the deficit 1986 1.4
- has ballooned in the last decade. 1987 1.7
- 1988 2.0
- 1989 2.4 (estimate)
- (Source: F.C.C.)
-
- THE LONG DISTANCE USAGE IMBALANCE
-
- Outgoing and incoming U.S. telephone traffic, in 1988, the latest year
- for which figures are available, in percent.
-
- Whom are we calling? Who's calling us?
- Total outgoing raffic: Total incoming traffic:
- 5,325 million minutes 3,155 million minutes
-
- Other: 47.9% Other: 32.9%
- Canada: 20.2% Canada: 35.2%
- Britain: 9.1% Britain: 12.6%
- Mexico: 8.8% Mexico: 6.2%
- W. Germany: 6.9% W. Germany: 5.4%
- Japan: 4.4% Japan: 4.3%
- France: 2.7% France: 3.4%
-
- (Source: International Institute of Communications)
-
- COMPARING COSTS: Price range of five-minute international calls between
- the U.S. and other nations. Figures do not include volume discounts.
-
- Country From U.S.* To U.S.
-
- Britain $2.95 to $5.20 $4.63 to $6.58
- Canada (NYC to $0.90 to $2.25 $1.35 to $2.26
- Montreal)
- France $3.10 to $5.95 $4.72 to $7.73
- Japan $4.00 to $8.01 $4.67 to $8.34
- Mexico (NYC to $4.50 to $7.41 $4.24 to $6.36
- Mexico City)
- West Germany $3.10 to $6.13 $10.22
-
- * For lowest rates, callers pay a monthly $3 fee.
- A.T.&T.)
-
- WHERE THE DEFICIT FALLS: Leading nations with which the United States
- has a trade deficit in telephone services, in 1989, in millions of
- dollars.
-
- Mexico: $534
- W. Germany: 167
- Philippines: 115
- South Korea: 112
- Japan: 79
- Dominican Republic: 75
- Columbia: 71
- Italy: 70 (Source: F.C.C.)
- Israel: 57
- Britain: 46
-
- THE RUSH TOWARD LOWER COSTS: The cost per telephone line for laying
- each of the eight telephone cables that now span the Atlantic Ocean,
- from the one in 1956, which held 48 lines, to the planned 1992 cable
- which is expected to carry 80,000 lines. In current dollars.
-
- 1956 $557,000
- 1959 436,000
- 1963 289,000
- 1965 365,000
- 1970 49,000
- 1976 25,000
- 1983 23,000 (Source, F.C.C.)
- 1988 9,000
- 1992 5,400 (estimate)
-
- CRY AGAINST THE TYRANNY OF VOICE MAIL
-
- Michael Schrage, Los Angeles Times Syndicate; Published in $The Boston
- Sunday Globe, October 21, 1990, page A2.
-
- Watson! Come quickly! I need you!
-
- "The party you are trying to reach -- Thomas Watson -- is unavailable
- at this time. To leave a message, please wait for the beep. When you
- are finished with the message, press the pound sign. To review your
- message, press 7. To change your message after reviewing it, press 4.
- To add to your message, press 5. To reach another party, press the
- star sign and enter the four digit extension. To listen to Muzak,
- press 23. To transfer out of phone mail in what I promise you will be
- a futile effort to reach a human, press 0 -- because we treat you like
- one."
-
- Who hasn't made a perfectly innocent phone call to an organization
- only to be ensnared in a hideous Roach Motel of a voice mail system?
- No matter if you call a Fortune 500 behemoth or the local mall, the
- odds are increasing that you will listen to a machine before you talk
- with a human.
-
- In 1985, barely a thousand corporate voice mail systems were sold in
- the United States. By the end of this year, the industry expects to
- sell more than 30,000 systems. Depending upon their designs, you
- might never talk with a human -- no matter how desperately you'd like
- to. So ask not for whom the voice mail networks, it networks for
- thee.
-
- "Based on my personal experience, five percent of these systems are
- superbly designed, 20 percent are poorly to abysmally designed, and
- the rest fall in between," says sociologist James E. Katz, who studies
- the human impact of telecommunications systems for Bellcore, the
- research arm of the regional Bell operating companies.
-
- What superb voice mail design means, of course, is in the ear of the
- holder. Some people would rather chat withthat won't
- interrupt than with the human that almost certainly will. Some people
- would rather dictate their thoughts; others want the comfort and
- courtesy of a voice that's not prerecorded.
-
- But that's not the real question. Far more interesting is what these
- systems say about the organizations that use them.
-
- Just as the design of the office or a tacit employee dress code speaks
- volumes about an organization's culture, so do the telecommunications
- networks it offers to the outside world. The well-designed system
- conveys a pleasant blend of efficiency and warmth. The
- "technobnoxiousnetwork" reveal the mix of self-importance and
- incompetence that permeates too many companies.
-
- The new technology rewrites telephone etiquette even as is it
- generates new frontiers of rudeness. You might believe that the
- secretary lost the message; you're skeptical if they say the voice
- mail system crashed. The network becomes as much a crutch as a
- communications tool. Come on! Are you really always in meetings or
- are you using ice mail as a shield to deflect the unexpected call?
-
- Voice mail creates new classes of interaction in the professional
- world. (It also creates the ominous specter of voice mail hackers --
- telephone intruders who break into systems to eavesdrop on messages or
- surreptitiously plant em.) While many of these new classes are a
- boon to organization effectiveness, they can also signal a subtle but
- insulting contempt of outsiders.
-
- The irony here is that voice mail is one of those rare technologies
- that made the reverse migration from the home to the office. For all
- their initial awkwardness, answering machines were designed to make
- life easier for all parties concerned.
-
- The overwhelming reason why most companies buy voice mail systems
- isn't to make life better for people calling in, but rather to make
- intra-company communications more efficient at lower cost.
-
- "What we're seeing is the hollowing of the organization social
- system," says Rensselaer Polytechnic's Langdon Winner, author of
- "Autonomous Technology," an influential critique of technological
- innovation. "Instead of complementing the way people communicate in
- organizations, the technology is designed to replace it."
-
- That, says Winner, creates a very different kind of social system --
- one where people would rather transfer you to the technology than deal
- with you themselves. Why? Because that is the value that the
- organization is trying to reinforce.
-
- "I think it's regrettable that so many organizations fail to
- adequately consider the needs of the customers when they install these
- systems," says Bellcore's Katz. "They mainly consider the internal
- needs of the company so outsiders get turned off to the whole
- experience when the call in and try to talk to someone."
-
- While becoming "lean and mean" is a touchstone of American management
- these days, I'm not certain that all this leanness and meanness was
- supposed to be inflicted on the organization's customers. Indeed,
- voice mail illustrates one of the seeming paradoxes of business
- practice: How do you become more cost-effective while, at the same
- time, offering customers greater value and better service?
-
- Sure, technology is supposed to give you both -- but only if it is
- designed and implemented with re and thought. The nasty implicit
- message embedded in most voice mail systems is: "We're too busy to
- have anyone talk with you. Let us treat you like a data entry device
- and don't forget to press the pound key after you shut up. If we have
- the time, we may even get back to you."
-
- I don't think there's much question that most voice mail systems do an
- excell t job of coordinating internal communications and boosting
- group productivity. But does it come at the price of alienating
- potential customers?
-
- Professionally, I like the eas and versatility that voice mail offers
- -- when I'm using it. Personally, I'm sick and tired of playing
- telephone tag with machines instead of people.
-
- The poor quality of so many voice mail systems underscores one of the
- most painful truths of technology: We would rather use these new media
- to make life easier for ourselves than o make it easier for others.
- In the short run, that may make us more "productive." In the longer
- run, what we'll discover is that people would rather not call us any
- more.
-
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