This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Digital Skeptic: World's Web Won't Like Our Detroit Gas-Guzzler Data Use

NEW YORK ( TheStreet) -- Sergio Tagliapietra figured out the dirty little secret of global, Web-based, software-as-a-service companies.

And he did it while shopping for an Italian cellphone for his American wife.

"When we travel together to Italy, I have to get her an in-country SIM so we do not spend a fortune on the cellphone bill," this trim 30ish Italian told me at a damp Venetian bar last month. "This year I am getting amazing prices. But she still can't go nuts on the Internet usage. It still easily runs out."

Investors should trust Tagliapietra's sense of the true cost for people and businesses to communicate all over the digital world. He's the IT and business process manager for Donghia: Donghia, a Milford, Conn., super-lux home furnishings and textile company. He juggles the tech needs of a global staff of about 150 who serve a demanding global clientele in such far-flung markets as Venice, England and China -- not to mention the firm's design studio here in Manhattan.

"There are many parts to this company, and they work in many parts of the world," he joked. "I sometimes don't sleep as I should."

The two of us were comparing notes on a surprising trend in global telephony: dramatically lower costs not only for international voice and messaging, but for access to the Web on cellular network in international markets such as Italy and beyond.

These lower prices were not just from hip, disruptive global access entrants including the U.K.'s Truphone or San Diego's XCom Global. Oh no. This was discounts from the likes of AT&T (T), T-Mobile and Telecom Italia Mobile -- also known as TIM.

Tagliapietra pointed out the simply awesome TIM-advertised Italian domestic phone and data prices -- in Italian, of course: 1,000 minutes of talk, 1,000 text messages and 2GB of Web data access for about $5.50 a bucket depending on the euro/dollar exchange rate. After that, data access stops and plans needs to be re-upped.

That, of course, made it sound like the global Web software-as-a-service market might thrive in a new world of low-cost cellular data plans -- until I actually tried global Web software as services, such as my company's Google (GOOG) Apps for Business account, on TIM. Never mind that 2GB a month in data limit; 40GB a month would probably not be enough for even an average data-hungry cloud-based business services.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.79 -0.12%
FB $78.77 -0.28%
GOOG $540.43 0.47%
TSLA $230.03 1.80%
YHOO $42.09 -0.99%

Markets

DOW 18,070.47 +46.41 0.26%
S&P 500 2,114.39 +6.10 0.29%
NASDAQ 5,017.95 +12.5590 0.25%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs