[comp.dcom.telecom] Rate Comparison to Hong Kong

covert@covert.enet.dec.com (John R. Covert 27-Oct-1989 0929) (10/27/89)

>The connection will be from Toronto Canada to Hong Kong in order to
>take advantage of discounted Canadian toll charges.  (Hong Kong to
>North America and U.S. to Hong Kong seems to be more expensive).  From
>Toronto the information will pass into the continental U.S.

Although I expected calls from Hong Kong to either the U.S. or Canada
to be more expensive than the reverse direction, the assertion that
calls from Canada to Hong Kong were less expensive than from the U.S.
surprised me, since I knew that Canadian rates to Europe were
drastically higher than U.S. rates to Europe.

Canada has recently lowered overseas rates.  Rates to, for example,
West Germany are still quite a bit higher from Canada than from the
U.S.  Canadian rates to Hong Kong are only lower for the first minute;
additional minute charges from the U.S. are lower.  You will save
money originating the calls from Canada only if they are fairly short
calls.  And unless you also need the data to be in Canada, too,
anyway, or have private circuits, you'll lose that savings on the
additional call transmitting it across the border.

Here is the comparison:

Canada:

4p-12a	8a-4p	12a-8a		Don't forget tax.  Canadian tax
				is significant:  19% (11 Fed, 8 Prov).
2.19	1.76	1.53
1.46	1.17	1.02		U.S. tax is only 3% Federal, and most
				states do not tax out-of-state calls.
AT&T

5p-11p	10a-5p	11p-10a		Notice the time differences.  Canada
3.62	2.72	2.17		and AT&T are similar, but Sprint has
1.35	1.03	 .81		reversed the peak and medium periods.

Sprint				And finally -- there are new digital
				circuits to Hong Kong.  I've gotten
8a-6p	6p-12a	12a-8a		some _wonderful_ connections on AT&T.
3.3666	2.5840	1.8445		Other carriers may have them as well.
1.2825	 .9888	 .7938

/john