Residential video telephony may be next big thing!

[BaalChatzaf]

The price of the phone itself is coming down. Was $799 and now just over $300 for the original which has a detachable cordless and a phone jack for audio calls. The Shadow Ojo is dedicated to video and the quality of the picture and sound is superb with cost of just over $200. Even Walmart online store has the Ojo with free delivery to your local Walmart.

I will keep all of you who might be following this informed of news.

galt

]

What is the bandwidth of this device?

Ba'al Chatzaf

[galtgulch]

Here is the link to WorldGate's press release about the private placement from one of its board members who was also named to be Vice President for Latin America and who promises to promote distribution and sales of the Ojo:

http://tinyurl.com/2la74l

galt

[Aggrad02]

Are they only sold online or do they have retail locations? Can I become an Ojo dealer like I can become a T-Moblie Dealer?

[galtgulch]

What is the bandwidth of this device?

Ba'al Chatzaf

Ba'al,

I am not a techie. I understand that the Ojo requires only 100 to 150 kbps

in order to generate the picture and sound at 30 frames per second with audio synchrony. The 7 inch (measured on diagonal) LCD screen is tiltable and held up at eye level. It includes a "self view feature" so you can see how you appear and enable you to center yourself on the screen.

The company has downloaded enhancements over the internet including up to twenty minutes of video messaging. If someone calls and you are not able to answer they will be invited to leave a video message.

The Ojo does not require a computer. It does require attachment to a high speed internet via cable or DSL. Just plug into your router with an ethernet cable which is included with purchase, plug into a power source and then register your phone number with www.ojoservices.com.

One of the beauties of the Ojo is that it is always on just like your home phone and does not tie up your computer.

You can also use your Ojo by attaching it to any wall outlet using ethernet extender cables, one to connect your modem to a wall outlet and another to connect your Ojo using any other wall outlet on your electrical system.

What follows is a list of features as seen on various internet sites:

Ojo delivers a broadband video phone that provides a true-to-life video/audio experience. The 30-frames-per-second (fps) quality ensures smooth, realistic motion and expressions, and the audio is top-notch, too; no more straining to hear what's being said. Ideal for the growing business.

Designed for broadband, this system leverages the existing cable and DSL infrastructure

Requires no additional head-end equipment for DOCSIS cable modems

Users can make IP video calls and PSTN or VoIP voice-only calls over a current telephone number

Superior image and bandwidth efficiency

High-resolution 16:9 LCD display

State-of-the-art miniature camera

True-to-life video and audio quality

Video and voice-only messaging

Picture-based caller ID and phonebook

Use existing telephone number

Advanced speakerphone with AGC and echo cancellation

Full-featured cordless phone handset

An easy-to-use graphical interface

Easily accessible video/audio privacy controls

Latest video and audio codecs

On-screen residential and business directories

Thanks Ba'al for your question.

galt

[galtgulch]

Here is a copy of a post put up on the Yahoo WGAT message board today:

<<<" 26-Sep-07 08:47 am

The word continues to spread among the Deaf Community about SNAP and the Ojo. In addition to the tremendous response that Ojo has generated, nearly 20,000 applications and growing everyday, the family and friends buying the Ojo's will generate an additional 1-2 units for every SNAP unit deployed. We are looking at 40 to 60,000 units in the first year, plus the revenue share for every minute used.

Add in the additional $10 per month recurring revenue stream for the family and friends Ojo's and WOW, WorldGate clearly has found it's path to profitability.

VRS is the platform that will provide the spark to launch video telephony in the government and general business sectors, under the disabilities act, as well as the broader general public communications sector dominated by the cable MSO's and Telco's.

xxxxxxx

Registered User

Join Date: Nov 2004

Posts: 65

For what it's worth: The Small screen is a GOOD THING in my opinion. I can't tell you how many times on other videophones where people set up the screen/camera so far away that it's impossible to see them. With the Ojo, they're forced to sign clearly and to sit close to the Ojo.

Personally, I love it. The phone uses very little bandwidth compared to its main competitor and in my house, we have two ojo's set up behind one firewall. ">>>

Let me clarify for those who are not aware.

VRS means video relay service. Deaf and hearing impaired persons who each have an Ojo can use ASL american sign language to talk to each other. When such an individual wants to talk to someone who doesn't know ASL he or she can use the Ojo to call SNAP's VRS and commuinicate with an interpreter who will then make the call for them and continue translation.

SNAP will be reimbursed for the VRS service and WGAT will get a share of the reimbursement. Funds have been set aside under the Americans with Disabilities Act for this purpose.

There is no cost to the deaf or hearing impaired person who, if qualified and eligible, may apply to receive a free Ojo from SNAP.

If you know of a deaf or hearing impaired person by all means let them know about this offer from SNAP and make them aware that they could apply at www.snapvrs.com

galt

Edited September 27, 2007 by galtgulch

[galtgulch]

Are they only sold online or do they have retail locations? Can I become an Ojo dealer like I can become a T-Moblie Dealer?

Hi, In addition to a number of online stores including www.walmart.com, www.thenerds.net, 101phones.com, www.amazon.com, www.tigerdirect.com, and others there are retail stores as well.

I encourage you to go to the Worldgate website, www.ojophone.com, and you will find "retail" on the menu bar.

The Ojo and the Shadow Ojo are for sale at that site but are probably less expensive at one of the online retailers.

Deaf or hearing impaired folks can apply for a free Ojo at www.snapvrs.com but there might be a long wait as it is first come and as I understand it there are thousands or tens of thousands ahead right now. I have no hard data on just how many are being shipped each week but there is a rumor it is on the order of 800 or so.

Are you seriously interested in reselling Ojos? I suggest you buy one for yourself and one for your loved one, relative or close friend and try it out. It is superb and it really works. Only ten bucks a month for unlimited video calls anywhere broadband is available worldwide. I have one and it is incredible.

It may take who knows how long before it becomes ubiquitous but those who have it now love it. It doesn't matter that few have an Ojo as long as the people you would want to see and visit with have one.

galt

[Aggrad02]

If I have a wireless card and am getting my service from say a hotel on the road, Can I hook up my Ojo to my laptop?

--Dustan

[galtgulch]

If I have a wireless card and am getting my service from say a hotel on the road, Can I hook up my Ojo to my laptop?

--Dustan

Hi Dustan, Once you register your Ojo using your choice of phone numbers you can take the phone anywhere in the world and connect it to the internet and it will work fine.

I know owners of the Ojo who live in the states and have registered Ojos for overseas relatives and then sent the Ojos to Turkey and Chile. Their relatives connected the Ojos to their broadband cable modem or router and they worked fine. One even kept the line open around the clock with no problem.

i know that WorldGate did send a call from Virginia Beach up to a satellite and down to headquarters north of Philadelphia and the picture was perfect with the usual audio synchrony.

No computer need be involved. Just a broadband connection. If you go to www.ojophone.com and under the menu heading COMMUNITY you will find OJOSODES and I believe the second one demonstrates the Ojo working using a satellite.

I am still not satisfied that I am answering your specific question. I suggest that you call the company or better still ojoservices at 1 877 367 6965 and I am sure they have the knowledge you seek.

They have facilitated Ojos in over 56 countries.

galt

Edited September 28, 2007 by galtgulch

[Aggrad02]

If I have a wireless card and am getting my service from say a hotel on the road, Can I hook up my Ojo to my laptop?

--Dustan

Hi Dustan, Once you register your Ojo using your choice of phone numbers you can take the phone anywhere in the world and connect it to the internet and it will work fine.

I know owners of the Ojo who live in the states and have registered Ojos for overseas relatives and then sent the Ojos to Turkey and Chile. Their relatives connected the Ojos to their broadband cable modem or router and they worked fine. One even kept the line open around the clock with no problem.

i know that WorldGate did send a call from Virginia Beach up to a satellite and down to headquarters north of Philadelphia and the picture was perfect with the usual audio synchrony.

No computer need be involved. Just a broadband connection. If you go to www.ojophone.com and under the menu heading COMMUNITY you will find OJOSODES and I believe the second one demonstrates the Ojo working using a satellite.

I am still not satisfied that I am answering your specific question. I suggest that you call the company or better still ojoservices at 1 877 367 6965 and I am sure they have the knowledge you seek.

They have facilitated Ojos in over 56 countries.

galt

What I mean is that on the road the internet that I use is mostly wireless. How would the Ojo work with wireless internet that my comp is connected to? Can the Ojo connect to wireless internet on its own, or must it use a USB.

Thanks,

Dustan

[galtgulch]

Despite the undervalued stock price many investors in this company are looking forward to the third quarter revenue release. The quarter ends today. Our expectation is that numbers will be up in particular because of the so called SNAP deal. SNAP is a subsidiary of Aequus Technologies and SNAP tested the Ojo using deaf consumers who were invariably quite satisfied, impressed and enthusiastic about the Ojo and its performance.

SNAP offers a VRS service, video relay service, to people who are either deaf or hearing impaired and who use American Sign Language, ASL. The service is paid for under the Americans with Disabilities Act and there are a number of competing VRS providers across the country.

The link here is to an article which appeared in a magazine for the hearing impaired and deaf community shortly before SNAP began to actually start to ship the Ojo to those who had applied for one. Shipping began in early July 2007 and actual numbers have not been released to the public. The process is evidently exceeding expectations and milestones have already been reached which were not expected until later in the year. The response from the deaf community is also quite positive.

There is an expectation that ASL users will be able to use the Ojo to communicate free of charge with each other. However when they need to call those who do not use ASL they will be able to use the SNAP VRS interpreters. It is also supposed that hearing relatives or friends of the recipients of the free Ojo from SNAP will be buying an Ojo on their own since they will not qualify for a free one. This should double or triple the number of Ojos sold generated by the SNAP contract.

To read the article which is enlightening about the features of the Ojo you will need to click on the obvious link to the full article on the SNAP site which the provided link below takes you:

http://www.snapvrs.com/about_us/press/article/?id=8

Many of us believe that shipments to SNAP applicants will continue well into the next year because there is an enormous backlog which is actually expected to grow as word spreads throughout the deaf community.

Needless to say if you know anyone or encounter anyone who uses ASL you might want to make them aware of the SNAP deal. Just slip them the www.snapvrs.com link and they can find out for themselves.

Incidentally, J&R in lower Manhattan has a sale on and you can save ten bucks on the cost of a Shadow Ojo $239.99. Here is the link. Scroll down to the very bottom.

http://coupons.shoppingnexus.com/stores/jrcom-coupon.htm

galt

Edited September 30, 2007 by galtgulch

[galtgulch]

Despite the undervalued stock price many investors in this company are looking forward to the third quarter revenue release. The quarter ends today. Our expectation is that numbers will be up in particular because of the so called SNAP deal.

SNAP offers a VRS service, video relay service, to people who are either deaf or hearing impaired and who use American Sign Language, ASL. The service is paid for under the Americans with Disabilities Act and there are a number of competing VRS providers across the country.

Many of us believe that shipments to SNAP applicants will continue well into the next year because there is an enormous backlog which is actually expected to grow as word spreads throughout the deaf community.

What I didn't mention in the above post but might have touched on in an earlier post is that SNAP will receive more than $6 for each minute that a recipient of the Ojo from SNAP uses the SNAP VRS service. WorldGate will receive a smaller amount. SNAP has costs associated with the service including salary for the interpreters.

WE do not know just how much WGAT will get, something on the order of fifty cents per minute. Now there are estimates of the average number of minutes per day that VRS services are utilized, perhaps 3 minutes.

So it is possible to estimate revenue. If we assume those numbers and calculate revenue for roughly one year of 365 days times 3 minutes per day times fifty cents per minute times say 10,000 users that would be roughly 5 million dollars per year. There is an expectation that as many as 30 to 50 thousand SNAP customers might have an Ojo before the end of 2008. If so revenue might amount to 15 to 25 million dollars per year, recurring. That would not include revenue from sale of the phones to SNAP, revenue from retail sales or other orders perhaps from so called MSOs (multiple service operator e.g.a cable or telco). Then one applies a price earnings ratio, keeping in mind that revenue does not equal earnings as there are costs involved in manufacturing and shipping the Ojo. We also do not know how many shares there will be in the float by then but now it is roughly 42M.

Assuming 30K customers, 3 minutes per day of VRS service, 50 cents per minute to WGAT, that would be about 30 cents of revenue per share and with a P/E ratio of say 25 or so yields a pps of about $7.50. That would be almost twenty times the current per share price (pps). Twenty times current price makes today's price a bargain. The many "ifs" involved in this scenario are worth looking at more closely. For example one would be, "if" there are 365 days per year, which there are, except for a leap year.

As I understand it demand for the Ojo is exceeding expectations according to SNAP and VRS usage is also growing substantially. SNAP does buy the Ojos from WGAT which covers cost of production plus a small profit margin as well.

I have spoken with the investor relations person at WGAT who told me that WGAT is focusing on the SNAP deal because it promises the greatest return. It is true that a retail sale of an Ojo which is then registered will generate about $9.95 per month regardless of how much the Ojo is used. That covers UNLIMITED video calls with the Ojo over broadband cable, DSL or FiOS.

But the fifty cents per minute for VRS use of a SNAP customer yields $1.50 per day for the average 3 minute per day use. That is $45 per month or 4.5 times the return from WGAT's monthly service fee.

Multiply that by 10, 20 30, 40, or 50,000 SNAP customers and yearly revenue will be in the millions and the pps will be in double digits.

There are thought to be about 600,000 people in the USA who use ASL. Actual number of deaf people in USA exceeds eight million. There are a growing number of VRS providers because there are profits to be made here. Given that the payments are made by the Americans with Disabilities Act this will be independent of general economic conditions for the marketplace. The question is just what chunk of that market will SNAP be able to attain and keep? Judging be satisfaction to date it might be substantial. So far SNAP is third over all in satisfaction by actual users of VRS service (n of 1 for SNAP) Worldwide their might be untold millions deaf people but no one knows how many use ASL which is a necessary ingredient.

Rand did write an article about the ethical considerations of accepting government grants or subsidies in The Objectivist Newsletter. God knows the IRS has taken more money that I have earned over the years than I hope to get back from this investment. Somehow I will find a way to live with myself.

I have painted a seemingly sure thing scenario here. Actually the pps of a mere 37.98 cents per share reflects the uncertainty involved. Take care.

galt

Edited October 1, 2007 by galtgulch

[galtgulch]

SNAP!VRS issued a press release yesterday about a demonstration of the interoperability of the Ojo.

Here is the link to the PR:

http://www.snapvrs.com/about_us/press/article/?id=11

ALthough it is not possible predict the future with certainty it is evident that the Ojo is being distributed in an ongoing way to the many subscribers to the SNAP video relay service. It is being done in a way so that the quality of the service is maintained at a high level.

The implications for the success of the creator of the Ojo is evident as well. The current price of shares in WorldGate, NASDAQ WGAT do not yet reflect the future revenue which will first begin to manifest itself in the third quarter revenue report before the middle of November.

www.snapvrs.com

www.ojophone.com

www.ojoworld.com

Due diligence recommended

galt

[darylcrouse]

In an interesting e-mail that was sent out today by Snap!VRS Mr. Schatzberg claims that the Ojo is interoperable and that consumers should simply take that as reality. However, the reality is much different from what that claim.

Let me begin by expressing my appreciation and gratitude to the employees of Snap, Worldgate and CAN who have worked long and hard on the interoperability project. I have seen and used an interoperable Ojo. The interoperability solution as I've seen it works well and seems to be well thought out. I applaude those who've worked diligently to make that a reality.

The issue here is that interoperability is being given out in a selective, subjective manner. That means, if you already have an Ojo and want the interoperability download you have to be approved by someone at Snap to receive it. There doesn't appear to be any objective criteria for how that decision is made. For example, a number of Ojo's located in New Mexico that were purchased through retail channels ("non-Snap" Ojo's) were recently approved by Snap to receive the interoperability download. In contrast, when I asked to receive the interoperability download for my non-Snap Ojo I was told that I could not receive the update.

How was that determination made? Who made that determination in each situation? What were the objective criteria?

Some people have asked, "but you're hearing Daryl, why do you need it?" I don't need it specifically, but Deaf friends and colleagues who have and will visit my home have needed it. It would be overburdensome to ask my friend to bring his own Ojo to my house just so he could make a telephone call. I can stand in the place of my house guests in my request because it is personal to me and affects my guests visiting my house.

The great thing about technology and the blogosphere is corporations and the people who run them can be placed under an unforgiving microscope of transparency. Either the reality that is hyped is true or it's not. Below I provide pictures and video that show my Ojo attempting to dial an IP address/domain name then failing to do so. The reason is that my request to receive the interoperability download was denied and still to this day is being denied.

For all the pictures and video to go with this.

http://www.darylcrouse.com/index.php?optio...26&Itemid=1

[galtgulch]

Well in accordance with my promise to keep this board aware of the goings on with WorldGate here is a what happened this week. The stock of WGAT has been delisted from Nasdaq Capital market because of failure to comply with Nasdaq rules. This entailed maintaining a stock price above one dollar a share, the market capitalization of the company fell below a certain level and the like.

WGAT is now WGAT.PK traded on the so called pink sheets for the last few days and expects to be on Nasdaq OTC board next week.

The stock price dropped on this news into the low twenties meaning twenty three cents per share.

To those of us holding this stock for many years this has presented a unique buying opportunity. Many of us believe this company will shortly demonstrate a rise in revenue because of the current deal with SNAP. SNAP has been distributing Ojos ordered from WGAT since the beginning of the third quarter. Although numbers were not announced we suspect that as many as 8 hundred Ojos have been shipped each week in an ongoing endeavor to fulfill the applications of tens of thousands of hearing impaired and deaf people who eagerly await arrival of their free Ojo.

Of course SNAP pays WGAT for the Shadow Ojos and then when the recipient of the Ojo uses SNAP's VRS WGAT receives fifty cents or so for each minute a VRS interpreter is used. The general assumption is that each customer will use the VRS three minutes on average per day. SNAP has an enormous backlog of applicants which should assure orders throughout the next year. Friends and family of SNAP customers who do not qualify for the free Ojo will no doubt be motivated to obtain an Ojo themselves as well which should enhance sales and revenue for WGAT.

Here is a copy from the SEC filing:

>>>"4-Oct-2007

Notice of Delisting or Failure to Satisfy a Continued Listing Rule o

Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

WorldGate Communications Inc. was notified by The Nasdaq Stock Market on October 2, 2007 that, effective October 4, 2007, due to its failure to comply with Marketplace Rules 4310©(3) and 4310©(4), it would be delisted from the NASDAQ Capital Market. An application was made on October 3, 2007 to commence trading on the NASDAQ OTC Bulletin Board.

The Company believes that it meets all requirements for trading on the OTC Bulletin Board and anticipates that such application to commence trading on the OTC Bulletin Board will be processed over the next few trading days. During this period the Company's common stock will be traded on the Pink Sheets under the current trading symbol, WGAT, and upon approval of the application, trading of its common stock on the OTC Bulletin Board is expected to commence by early next week. The Company intends to maintain compliance with all the requisite rules and regulations for continued trading on the OTC."<<<

The third quarter revenue release is expected by middle of November at the latest.

galt

[Brant Gaede]

The price of this stock is now 21 cents. It is questionable if this company even has a business. It has something of an asset, I suppose. I mean I assume the asset doesn't have any liens.

It is not that the stock is cheap, but whether an investor thinks his money is cheap or dear. You can always make a fire fueled by hundred dollar bills and at least roast a marshmallow.

I'll repeat my advice on how to invest in this company: Go to a casino with the funds you intend to use for the investment and play one of the games where you have almost a 50-50 chance of winning and make one bet. Then leave, either with no money or almost twice your money. Use your winnings, not the principal to buy the stock and then essentially forget about it. If you had done this when the stock was at 50 cents you'd still have your principal and about 40% of what you won in Vegas. Generally speaking this is a horrible way to invest, but the trip to the casino is to drive into the investor's mind that he's really gambling and that the casino is giving much better for risk than this "investment." It turns an almost sure loser into a nearly 50-50 proposition: the casino's odds.

--Brant

Edited October 6, 2007 by Brant Gaede

[galtgulch]

The price of this stock is now 21 cents. It is questionable if this company even has a business. It has something of an asset, I suppose. I mean I assume the asset doesn't have any liens.

It is not that the stock is cheap, but whether an investor thinks his money is cheap or dear. You can always make a fire fueled by hundred dollar bills and at least roast a marshmallow.

I'll repeat my advice on how to invest in this company: Go to a casino with the funds you intend to use for the investment and play one of the games where you have almost a 50-50 chance of winning and make one bet. Then leave, either with no money or almost twice your money. Use your winnings, not the principal to buy the stock and then essentially forget about it. If you had done this when the stock was at 50 cents you'd still have your principal and about 40% of what you won in Vegas. Generally speaking this is a horrible way to invest, but the trip to the casino is to drive into the investor's mind that he's really gambling and that the casino is giving much better for risk than this "investment." It turns an almost sure loser into a nearly 50-50 proposition: the casino's odds.

--Brant

I have never encouraged anyone here to invest in this company. I have made it clear that my only intention in posting about this is the product which is an impressive video telephone which works and is a marvelous technical achievement. The Ojo enables you to see as well as hear your friends and loved ones when you are separated. It is a boon to those who may not be able to travel to see their children or grandchildren. The uses of it are numerous, kids away at college or in the military, to check on relatives in nursing homes in another state, to keep in touch with relatives in another country.

As we speak the Ojo is being purchased by a company which is giving them free of charge to hearing impaired and deaf people who can use American Sign Language. A video relay service is available to them as well.

Of course one can use the various computer video options such as the iSight on Apple computers or Skype which are free unless you consider that the computer iteself is certainly a necessary and perhaps prohibitive cost. The Ojo only requires an existing high speed internet connection but no computer is involved. The Ojo operates over broadband cable or DSL but no computer need be involved and you can arrange to use the Ojo in any room of your house by using ethernet extender cables and attaching your modem to a wall outlet. Using the Ojo does not tie up your computer nor your television.

I am unaware that anyone else here has invested in this company which is fine. I am not aware that anyone checked out the Ojo either. I do encounter people who find the Ojo to be appealing to use to see their loved ones. I assumed that Objectivists are in some ways like other people and might have found the Ojo to be of value to them, the product not the stock. C'est la vie!

I do own the Ojo and keep in touch with friends with it. Fantastic and only ten bucks a month for unlimited video phone calls anywhere in the world. You do need one at each end so you do need either a friend or a relative or a loved one who is willing to pay the cost of the Ojo and the monthly service, unless you are willing to pay it all for perhaps a beloved parent or child.

galt

Edited October 7, 2007 by galtgulch

[galtgulch]

Here is an article regarding the inevitability of video telephony which appeared in 2005. Link below it.

>>>"View from the Top: Video telephony

Most people living today do not remember a time before radio, television, and telephones. High school students cannot recall a time before personal computers, and kids entering first grade this September will not remember a time before mobile phones.

In a few years, people will be hard-pressed to remember the era before "video telephony" -- industry jargon for what most people refer to as video phone calls.

Indeed, we are on the cusp of a radical transformation in how people communicate; a revolution decades in the making, yet poised to sweep the world in the very near future.

Video telephony is the ultimate friends-and-family plan. It connects people face to face, over any distance, to share milestones and precious moments. Imagine grandparents in Florida seeing and talking to their newborn grandchild in California -- in real time, at eye level and with lifelike clarity -- all without leaving their living room.

In this age of e-mail, instant and text messaging, video telephony shares the personal nuances that only come from experiencing face-to-face communications. Inflections, expressions, and other non-verbal cues that are lost in cyberspace are preserved with video telephony, helping reconnect people during life's important moments.

The concept of video telephony has been around for more than 50 years, but only recently has it come to fruition. The basic technology required to transmit images and sound over the global communications network was feasible, but the infrastructure required to support practical video telephony was inadequate.

Now, a technology trifecta has made video telephony not only possible, but affordable and practical. First, the sweeping availability of broadband digital networks allows people to send massive amounts of information in real time.

Second, computer processing power has doubled every 18 months for the past 40 years, while processing costs fell to near commodity prices, and component size shrunk. Computers that once filled rooms can now fit inside a mobile phone.

A $400 handheld computer sold in 2005 is roughly 1,000 times more powerful than a $5,000 desktop PC sold in 1981. If automobile technology had advanced at the same rate, a new car would cost $10 and deliver 1,000 miles to the gallon.

Last, the ability to compress (make smaller) and decompress (return to original size) video and audio data -- in real time, with perfect synchronization, over present-day broadband networks using low-cost computer chips -- only recently became a reality.

The technology that does the compression and decompression of data is called a "codec," for COmpressor/DECompressor. Highly efficient codecs are a crucial link in the video telephony chain. Without them, real-time video telephony would simply not be feasible.

Yet, with all these technologies in place, video telephony is not without challenges. One of the biggest is the need for greater broadband network bandwidth (that is, speed plus capacity), as people around the globe flock to adopt video phones as their main communications tool.

As more and more people depend on the Internet for sharing documents, photos, videos, software, and multimedia content, the Internet will naturally slow to a crawl unless bandwidth continues to expand.

That is precisely why the major telephone and cable companies are now deploying faster, higher capacity broadband networks. It will be an ongoing, symbiotic process: the need for bandwidth will drive deployment of higher capacity networks, which will enable even more bandwidth-demanding applications, which will catalyze further bandwidth upgrades, and so on.

The move to video phones is inevitable, but it could take a few years for the technology to reach critical mass. The initial adoption hurdle -- a classic chicken-or-egg problem -- must be overcome. Owning a video phone is pointless if nobody else has one.

Early adopters will jump in first, and purchase video phones for a small group of friends, family, or business associates. They will be the Johnny Appleseeds of the video phone era, seeding the market, and pushing it towards the tipping point of mass adoption.

It is a process that occurred with the original telephone in the early part of the 20th century, with the personal computer in the 1980s, and again with the Internet in the 1990s. Next up: video phones.

As dozens, then hundreds, then thousands of people experience the low-cost, high impact pleasure of face-to-face video communications, adoption momentum will expand exponentially. It will be a slow process at first, but incredibly rapid once underway. Communications again will be revolutionized.

I will see you soon -- literally -- on the other end of the line.

Copyright 2005 by United Press International

This news is brought to you by PhysOrg.com"<<<

[galtgulch]

What follows is a post on WGAT Yahoo message board by a "long" supporter of the company. It remains to be seen just what fraction of the payments to providers such as SNAP will accrue to SNAP and WGAT.

>>>" August TRS Fund Reimbursement:

August VRS Numbers just came in and they are a MONSTER.

1. VRS minutes were 6.1 MILLION, that is the first 6 million month ever, and was over the FCC projected number by 22%.

2. VRS providers were paid a whopping $40.6 MILLION for the month, again first time over $40 million ever.

In case you missed the July VRS Numbers they were also impressive.

1. VRS minutes were 5.6 MILLION in July, which was over the FCC projected number by 14%.

2. VRS providers were paid $37.1 MILLION in July.

Since SNAP officially began distributing Ojo’s in July, the VRS minutes have exceeded the FCC monthly projections by 14% in July and 22% in August.

Can’t wait to see what September looks like, it is going to be BIG"<<<

http://www.neca.org/media/0907AUGUSTdata...

[galtgulch]

The 3rd Quarter revenue numbers will be released by the middle of November for WGAT. The expectation is that, because of the fact that SNAP ordered 10,000 Shadow Ojos from WGAT and began to ship them to their subscribers at the very beginning of the quarter, revenue should certainly be an improvement over the 2nd quarter revenue.

As you may know WGAT will receive payment for the product from SNAP. In addition, whenever a SNAP Ojo user utilizes SNAP's video relay service by calling a SNAP interpreter to make a call to a hearing person, SNAP will receive $6.64 per minute of that VRS call. WGAT will receive about $0.50 per minute.

It is estimated that the average VRS usage by the deaf community is between 3 or 4 minutes per day. That translates to between $45 and $60 per month for WGAT per user. Expectations are running high that usage by new owners of the Ojo may be even higher. But reality will show. In general VRS usage is growing.

SNAP is excited by the response to their offer of a free Ojo from the deaf and hearing impaired community and their CEO has stated that they have reached certain milestones ahead of schedule. The distribution of the Ojo is being done judiciously to assure that the interpreter service provided will remain at the highest quality. Subsequent orders of additional Ojos are anticipated with targets of 30,000 or more during the next year.

Objectivists may be distressed by the fact that the payment for this service is subsidized by the Federal government under the Americans with Disabilities Act of 1990 signed by George Bush senior. The subsidy for this year alone exceeds $450M. and is expected to be higher as time goes on.

Just what this means for the success of WGAT remains to be seen but a higher price per share is likely.

Here is a link to the SNAP website announcing the beginning of distribution of the Shadow Ojo. I own one and it is impressive. I talk with and visit a friend who lives in upstate New York often. For those of us who are fortunate enough to be able to hear, the audio is synchronous, and there is a monthly charge of $9.95 for unlimited video calls worldwide over high speed broadband internet.

http://tinyurl.com/2lzqx6

galt

Edited October 28, 2007 by galtgulch

[galtgulch]

Here are a couple of links to a service which evidently gives a graphic representation of sales rank for products such as the Ojo PVP 1000 which has the detachable cordless phone on it as well as a phone jack for regular audio calls; or the Shadow Ojo PVP 900 which is dedicated to video. It is a copy from a posting on Yahoo's WGAT message board:

<<<" The PVP1000 and the Shadow are having their best sales ever. The SNAP friends and family are generating demand. Lower number is better.

The PVP1000 is ranked 5360 out of 80,000 plus items, and is improving by 509 positions each day. Purple Line,

http://www.tictap.com/salesrank/B0009817...

The Shadow is improving by 210 positions each day.

http://www.tictap.com/salesrank/B000JHFP...

">>>

The anticipated third quarter release of revenue for WorldGate is expected either next week of the following Monday or Tuesday. Also the annual meeting of shareholders will be in mid December in the company's headquarters in Trevose PA outside of Philadelphia. Last year shareholders who attended received a free Ojo at the meeting.

WGAT closed today at 20 cents a share! Might just be undervalued! As many folks say to me when I show them the company's full color brochure of the Ojos, "In a couple of years everyone will have one!" Imagine the stock price if that turns out to be prophetic!

The company wants shareholders to vote on a proposal to approve a reverse stock split of one new share for ten current shares. Even if approved the company might not act on it unless it deems it reasonable. If revenue is good this might not be necessary.

galt

Edited November 3, 2007 by galtgulch

[Brant Gaede]

Can I be blunt? The technology may out, but the company is toast. If the technology is so great someone will duplicate it or buy it from WGAT or buy WGAT. The last is one's only hope as an investor. you might get 30 cents a share. Most likely you'll get zip. I haven't read all your posts but I don't think WGAT has some kind of valuable patent. What it has is an ugly, non-portable thing. Well, does it even have the capacity to make a portable, attractive thing?

--Brant

Edited November 3, 2007 by Brant Gaede

[Brant Gaede]

Somebody might take over this company and run up the stock in a pump and dump. When that happens, don't think the three dollar stock is going to a hundred, dump i!

--Brant

[galtgulch]

I haven't read all your posts but I don't think WGAT has some kind of valuable patent. What it has is an ugly, non-portable thing. Well, does it even have the capacity to make a portable, attractive thing?

--Brant

Actually WorldGate does have patents for the Ojo. One patent is for the design. Those of us who own the Ojo find it to be attractive and quite functional. I think the term is ergonometric. You have to use it to see preferably a long lost loved one to appreciate it.

WGAT also has patents which I do not fully understand. There is a Texas Instruments digital processing unit within it which is involved with the compression and decompression aspect of the signal.

I appreciate your bluntness. But although it is a gamble there is good reason to still believe that video telephony has arrived and that the Ojo will play a role in this new industry. The current SNAP deal could be quite lucrative and enable the company to become profitable.

As Objectivists are fond of saying, "Reality will show!"

Incidentally, there is a portable version of the Ojo affectionately known as the brick by those of us who find the Ojo design to be attractive. The portable version has the same technology with smooth motion picture and audio synchrony.

galt

[galtgulch]

Once upon a time Motorola entered into an exclusive marketing and distribution agreement with WorldGate. It was a six year deal and did open some doors and there was a modicum of exposure. I recall that Ed Zander, the CEO of Motorola did highlight the Ojo along with his other cellphones such as the RAZR and the Pebble etc, at an analyst meeting.

In those days the stock price reached $6.87 on Jan 3, 2005 just before the CES at which the Ojo won the Best of Innovations in Design and Engineering Award which did lead to worldwide publicity. That was long before the Ojo was available on the market. The Ojo was first on the market in May of 2005.

At a subsequent meeting Ed Zander expressed some dismay because although his son had no problem setting up the Ojo in his home, Zander has a problem setting up the Ojo in his business office because of firewalls. Zander feared that any profit would be eaten up because he imagined that technicians would have to make house calls to set up Ojos in businesses. I think that led to the breakup of the deal between WorldGate and Motorola. In reality WorldGate's Ojoservices division has mastered the art of setting up Ojos everywhere and Zander's fears were never realized.

Motorola has not done so well and is looking for a hot new item so some investors are hoping that Motorola will get involved again. Here is the original article which appeared in 2004 when Motorola signed the deal in the Philadelphia Business Journal:

http://tinyurl.com/2vefbx

The third quarter revenue release should happen before the middle of next week and might occur as soon as this Thursday at the earliest. Expectations are high because of the SNAP deal which has resulted in several hundred Shadow Ojos shipped each week since the beginning of the quarter.

www.ojophone.com

There should be a Conference Call the next morning which should be available at the company website thereafter. A shareholder meeting is due on December 13 at the company headquarters outside Philadelphia. Attendees last year received a couple of Ojos.

I show a full color brochure to virtually everyone I encounter. I certainly meet folks who say they have absolutely no use for such a thing. They have no children or grandchildren nor siblings nor living parents nor friends at a distance. On the other hand I also meet those who get excited about the prospect of being able to see their loved ones who live at a distance. The potential market is enormous worldwide. Just takes time. The SNAP deal will keep the company alive while the world takes its time discovering the Ojo.

galt

[galtgulch]

Here is a link to a site which shows the Ojo with a pretty young lady full screen and several stores where the Ojo may be purchased below the WGAT site's MSRP of $399. Actually the original Ojo's MSRP was $799 and some sites are operating on that old MSRP. So be careful.

The reviews are mixed. Most rave and one suggests the Apple G5 which includes iSight, which I happen to own but rarely use. I do use my Ojo Shadow version which is less expensive but lacks the detachable cordless phone and lacks a phone jack for regular audio calls.

I love my Ojo and still have high hopes that it will become ubiquitous but that will take time.

http://tinyurl.com/2988vf

I am planning to go to the shareholders meeting outside Philadelphia on December 13th. By then we will certainly know how well the company is doing with the third quarter results reported within a few days now. The outlook will be much more positive as orders for the Shadow Ojo keep pouring in from SNAP for distribution to the deaf community which favors this product over existing competitors phones.

I already have enough shares of stock here so I am not planning on buying anymore. If this takes off over the next couple of months and years I will be content. As I have stated many times here my main reason for this thread is my eagerness to share awareness of the product with fellow Objectivists not to hype the stock.

galt