[10802] in Commercialization & Privatization of the Internet

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Re: Does Internet e-mail save telephone costs?

daemon@ATHENA.MIT.EDU (Tom Fitzgerald)
Thu Mar 10 03:32:55 1994

From: Tom Fitzgerald <fitz@wang.com>
To: bstarn@ccs.carleton.ca (Bill St. Arnaud)
Date: Wed, 9 Mar 94 20:05:39 EST
Cc: com-priv@psi.com
In-Reply-To: <9403091753.AA26251@superior.YP.nobel>; from "Bill St. Arnaud" at Mar 9, 94 12:53 pm

> I was wondering if anybody did a business study on how e-mail and
> Internet in particular can save on long distance telephone and FAX
> costs?
> It would be intersting to see if there is actual bottom line savings
> on telephone tag, etc.

A group here did a study of this about 2 years ago....  Assuming that 1/4
of the company was netted (2000 of 8000) and assuming a very conservative
number of phone calls that could be replaced by e-mail, they still came up
with a potential savings of well over $100K/year.  This was just in
replacing voice-calls, to outsiders who were known to be or likely to be
net-connected (computer companies and vendors, the military and known
chunks of the government).  They didn't address fax at all.

My reaction on reading the study was that we could probably save even more
money by *buying* net connections for some outside organizations; the
savings in our phone costs were larger than the cost of the net connection.
We never did anything about this, though.

The study is probably long lost, and probably proprietary anyway, so I
can't come up with a copy of it.

-- 
Tom Fitzgerald   Wang Labs   Lowell MA, USA   1-508-967-5278   fitz@wang.com
Pardon me, I'm lost, can you direct me to the information superhighway?

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