Re: Internet Service Providers in Laos

On Mar 8, 8:09 pm, "Phi Dung Mo" <phidun...@xxxxxxxxxxxxxx> wrote:
Well you are welcome to search out the bulk rates paid by telecoms for
long distance. Good luck, you likely won't find anything, as I mentioned it
is proprietary information and they don't publish it. If you don't
understand that the basic concept of call volume dictates cost, then you are
missing the most basic premise of all business. And on the grand scale of
things, lao long distance calls just don't measure up with grand totals of
7+ million Lao around the world.

My previous comments about tariffs or taxes was legitimately asking
whether you knew the details of a tariff or were you just making baseless
assumptions and politically desparaging inuendoes? I see from your report
that there is no mention in it of a LPDR tariff or tax and particularly not
in reference to making either long distance or internet expensive.

So with your fancy report, where does it mention any LPDR tariff or tax?
I might point out that within the telecom industry tariff is simply another
word for billing rate. That is how the few instances of tariff or tariffs
are used in your report, simply the per minute rates charged. It is not an
additional government tariff or tax, like you seem to be thinking. So it
seems you are taking statements about high long distance rates and
pretending it is a LPDR tariff or tax. Seems to me it is exactly as the
article explains, the telephone company is using very high long distance
rates to subsidize very low local telephone rates. Your report does not
support your premise, so what good is your reliance on research when you
either dismiss it or make up your own unfounded conclusions regardless of
the reports of experts?

Likewise in my comments I said that the high long distance rate (your
supposed tariff) was not a factor to you or I calling to Laos long distance.
I stand by that statement because I can call Laos for approx. $0.15 USD per
minute. So where is this tariff? At 0.15USD per minute it is about $0.04USD
per minute more than calling Thailand or Vietnam which would field at least
10 times the call volumes.

I see that the first paragraph of section 3 says basically exactly the
same thing(s) that I said about internet costs in Laos. So your own research
supports my point and yet you suggest I am remiss for not supplying
references for what is common sense and common knowledge?

So could you please explain with your research where you have derived
this whole premise of either a LPDR tariff or tax on telecom and it's
resposibility for high internet costs?

If you are going to supply research materials, then I suggest that you
read them thoroughly and undersatand what they are saying before you hold
them up as something they are not. I had not had time to read your supplied
link until tonight.

Phi Dung Mo

<omph...@xxxxxxxxx> wrote in message

news:1173335858.642637.11730@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

On Mar 7, 9:37 pm, "Phi Dung Mo" <phidun...@xxxxxxxxxxxxxx> wrote:
Omphien,

Well I can't supply reference for volume and long distance call
rates,
it is common sense and common business knowledge. Such information is
typically proprietary and confidential to the telecom companies and they
don't publish those details for public consumption. How do you think that
these discount phone cards operate? They buy large blocks of telecom
network
time and resell them at discounted prices. It is a long standing simple
business model.

Is there a special LPDR tarriff or tax on internet? Is it a
significant
factor in the overall cost? Or are you just trying to make up some excuse
to
match your premise?

The rates charged by the LPDR for long distance is irrelevant. It
doesn't effect the previously mention cost of you calling Laos long
distance, that is set by your telecom carrier not the LPDR or LaoTel.

Phi Dung Mo

<omph...@xxxxxxxxx> wrote in message

news:1173121237.418814.201570@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Hi PDM,

If you can provide any link to support your claim that the volume of
international calls is related to international rate pricing, that
would be appreciative.

However, I want to add another element or complexity contributing to
the high cost of international call and internet access in Laos:
Tariff or government taxes. This element cannot be overlooked because
it is within the control of the government if the later truly intents
to reform existing telecom policies to expand internet and telephone
accessibility to the lao population at large.

According to the study done by ITU on Laos, Laos is among one of the
countries that charged the highest international phone rates in the
world. And 50% of the Lao telecom revenue are from international
rates.

See p.7 of the report or p.11 of the pdf file on item 2.5
(International Makes Money)in the link below for more details if you
haven't seen the report already.

http://www.itu.int/asean2001/reports/material/LAO%20CS.pdf

OP

On Mar 4, 8:44 pm, "Phi Dung Mo" <phidun...@xxxxxxxxxxxxxx> wrote:
Omphien,
The answer is simple although two fold.

Lack of infrastructure, every house in Laos is not tied to
telephone
and
cable like those of North America or other locations. Then even if
they
are
tied to telephone already, are the lines adequate for high speed
internet
or
simply modems? Remember also that ADSL or cable modems have limited
distance
back to a main network hub.

Secondly, volume, volume, volume. Everything gets cheaper with
volume.
those that can afford the telephone and electricity, then must buy a
computer and learn to use it. Then they can finally think about
internet.
Home computers started in North America in 1982, internet then only
started
in earnst during mid 1990s for most. Laos will not move as quickly
because
Lao nai don't see the practical use and they do not have the
expendable
income for such luxurious electronic purchases.

Same volume issue with the telephone rates, the volume of calls to
Laos
are significantly lower than to other countries, therefore telecom
companies
don't buy large blocks of communication network time to Laos and
realize
cheaper rates.

Phi Dung Mo

<omph...@xxxxxxxxx> wrote in message

news:1173038319.968129.254380@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Hi Anousak,

Why in your opinion the price if Internet subscription in Laos will
take sometime to come down? Is it due to lack of demand or rather a
price control issue by the government?

If I can draw similar analogy on the oversea telephone rates, calling
Laos from the US seems to be more expensive than calling Thailand for
instance. This is due to Lao government charging more taxes on the
phone rates?

It is interesting that you mention that Internet use and accessibility
in Thailand is now ubiquitous, What factors contribute to it?

Thanks,

OP- Hide quoted text -

- Show quoted text -

PDM,

When doing research, I rather stay with supporting and verifiable
facts rather than assumption however plausible may the later be.

If you are convinced that tariff is irrelevant to LPDR international
phone rate, contrary to what was stated in the ITU study report, it is
entirely up to you.

Thanks for trying anyway.

OP

PDM,

Thanks for clarifying the facts that incoming international phone rate
from foreign countries to Laos appear not being subjected to tax or
tariffs in Laos.

Whether that depends on volume or not, I am still not convinced
because volume alone does not necessary lead to lower cost to
consumers IMHO.

Competition and the time when people makes the call seem to dictate
the rate if the consumer is using the regular carrier instead of phone
cards.

i.e. If you call at the peak hours, the rate is higher than the non-
peak hours regardless of the volume and lenght of the call.

However, the outgoing international phone rate from Laos is clearly
set by a company with full monopoly of the Lao telcom market and
controlled by the Lao government.

The ITU report clearly indicated that the outgoing international phone
rate is one of the highest in in the world at LPDR. And part of the
telecom's revenue goes directly to the LPDR's coffer in either form of
taxation or fee or tariff whatever they call it. We can dance around
calling this revenue tax, tariff, fee, services or commission however
we want it, but the bottom line is, it is a direct revenue to the
government.

And it is my assertion that, it is within the government's capabilites
to lower the outgoing call rate or at least designing the policy to
inflence it in order to lower barrier (cost) for busines and consumers
to make outgoing overseas calls if the government wants to. It is
commonly agreed at all levels that this digital barrier has negative
impacts on the economic development of the country.

Now on the Internet access issue, I asked Anousak the question whether
the barriers of expansion internet utilization could parallel the
international phone rate situation where the government is setting
artificially high price for ISP to access the backbone or it is set by
the commercial carriers. If that is the case, then the cost to access
internet in Laos will remain high and out of reach of the majority of
the population at large.

Of course cost of subscription is only one the factor but it is the
one that I am focused on.

I don't claim myself to be an expert because I am not. Actually, I am
quite a novice in this fielf. That is why I am here asking questions
and sharing what I found with others in order to expand our knowledge
with anyone who is interested in the subject, free of ego or arrogance
or insult.

If anyone who wants contribute in the constructive manner in this
discussion, I would like to read from you.

Thanks,

OP

.

Relevant Pages

  • Re: Internet Service Providers in Laos
    ... understand that the basic concept of call volume dictates cost, ... that there is no mention in it of a LPDR tariff or tax and particularly not ... in reference to making either long distance or internet expensive. ... I stand by that statement because I can call Laos for approx. ...
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  • Re: Internet Service Providers in Laos
    ... lao long distance calls just don't measure up with grand totals of ... that there is no mention in it of a LPDR tariff or tax and particularly not ... in reference to making either long distance or internet expensive. ... I might point out that within the telecom industry tariff is simply another ...
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  • Re: Internet Service Providers in Laos
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  • Re: Internet Service Providers in Laos
    ... They buy large blocks of telecom network ... Is there a special LPDR tarriff or tax on internet? ... The rates charged by the LPDR for long distance is irrelevant. ... doesn't effect the previously mention cost of you calling Laos long ...
    (soc.culture.laos)