WBAI, New York. This song by Jamaican dub poet Muta Baruca is unofficially banned from the airwaves in Jamaica. It condemns both of the island's leading politicians to 1,000-year jail sentences for crimes against the people. On Thursday, July 11th at 10 o'clock p.m., Jamaica's political impasse and its stagnating economic situation will be analyzed by Dr. Basil Wilson of John Jay College. And Muta Baruca will talk about Jamaican politics and society, the legacy of Bob Marley, the state of reggae music, his new black bookstore, and he'll recite some of his poetry. That's Thursday, July 11th, 10 o'clock p.m. on the Caribbean and Latin America Report. But I think we shall deal with the centerpost in the air. After a little hit, we will deal with religious belief. All right? Time for Off the Hook. Off the Hook. THE END the display, I would see commands actually being typed by the line noise. And the computer would be trying to respond to these commands. But it would barely have time to respond to the command before the line noise made another pseudo-command be issued. And there was nothing I could do. I watched while files were actually deleted. And a 300k core file, which if you don't know what it means, just think that it's something terrible. Or at least something that's a real pain. I watched as that was created. I watched as all kinds of error messages went by that I never saw before. And all because of line noise. And I got so frustrated, I banged my fist on my keyboard. My keyboard! Now, my computer, my telephone, my steering wheel, and my head all had nothing to do with the nasty events that I was reacting to. Yet, I felt compelled to take it out on the things that were nearest to me. And I just want to say that having realized what a horrible thing that was, I feel much better having admitted it. Always direct your anger at that which is the cause of your anger. I don't quite know how I'm going to do that with the Unix system, but something will come to mind, no doubt. But speaking of computer foul-ups, it's been a busy week for phone company people and for the media trying to get some rumors started that computer hackers were behind all the phone company problems. Well, as I said to all the people that were calling throughout the week, hackers didn't do this. No, this was computer programming, or the lack thereof. As I like to say, incompetence is always one step ahead of ingenuity. And in this particular case, incompetence won the race hands down. Phone outages didn't affect New York. And the reason for that is that, uh, allegedly New York is not yet on the, um, switching system seven that, uh, supposed to be the next best thing to the second coming, but it's actually, uh, proving to be, uh, a real big pain for a lot of people. You know, system seven also was, uh, behind the AT&T crash spring of 1990. And well, despite, uh, this is from the UPI today, despite recent massive phone outages, a federal communications official said today there is no evidence the nation's telecommunications networks are deteriorating. But other experts predicted more breakdowns are inevitable. Kind of like what we've been saying here all along. Richard Firestone, chief of the Federal Communication Commission's Common Carrier Bureau, told a house panel that several cities, oh, I got lost here. Sorry about that. Told a house panel that the recent disruptions in service to millions of phone companies in several cities were a byproduct of technological progress in sophisticated telecommunications systems. If you didn't understand that, basically he's saying that, uh, it's a screw-up and there's nothing that could have happened. There is no evidence that the nation's telecommunications networks are degrading. No evidence whatsoever. In fact, he says, the recent major network service outages have involved the inadvertent side effects of efforts by the companies to upgrade their long distance and local networks. Can you believe what this man is saying here? He's saying that, well, because it was part of an upgrade and because the whole system failed, it's not a problem with the system. The word doublespeak comes to mind here. Anyway, Firestone said the major outages which disrupted service for as long as eight hours in the Washington region, San Francisco, Los Angeles, and Pittsburgh could largely be prevented through greater communication, which is kind of hard to do when your phones are out, but never mind that, greater communication among different levels of the telecommunications industry about potential problems with various technologies. Again, naive city here. How do you know what the problems are until they happen? You know, you can say, well, this could happen, but then again, you don't know what will happen until it does happen. So just planning for potential problems is really not good enough. There has to be something more. One of the contributors of a two-year-old report that predicted massive crashes in phone service said more frequent and serious outages are inevitable. Without independent technologies to back up the highly sophisticated software systems blame for the recent breakdowns. Amen to that. John McDonald, president of MBX Incorporated, communications research firm, said there is a growing vulnerability in phone systems and this is going to be the cause of greater economic destruction. He said the vulnerability stems from both greater centralization of phone traffic and the extreme sophistication of the software. There is no one who can guarantee that this system will not fail, McDonald told the subcommittee. It will fail. What is important is that we develop a backup system. But our friend Mr. Firestone says that's an impossible solution because of the high cost of an independent backup system. That's right. It costs too much, so we're not going to back up the phone system. This is the mentality that goes into designing things without thinking of humans. We're not talking about a computer system. We're not talking about IBM being offline for six hours. We're talking about human beings just like you and me. And yes, our system will go down for six hours, but our system is our telephone. Our system is our dial tone. Our system is everybody we know. It's emergency calls, incoming calls. Apparently what they're saying here is that it's an acceptable risk rather than spend a little money and have an adequate system. Telephones have to be up 24 hours a day. They can't go down for maintenance. They can't go down as a result of problems like we've been seeing. Firestone continues, the question is how much cost will be imposed on every consumer of telephone service for what level of reliability. Representative Robert Weiss of West Virginia says it's going to be hard to get people to accept the fact that there are going to be more and more outages and that we have to accept this as progress. Weiss also criticized Firestone for suggesting that businesses and institutions needing absolute telephone reliability would purchase expensive backup systems on their own. The position you are taking, Weiss told Firestone, is if you want protection, go buy it. And he also added that failed to address private citizens dialing 911 or small businesses that need phones. It's incredible what can happen if there isn't a bit of sanity injected into the proceedings. We certainly have a lack of sanity recently. That's for darn sure here. From the Los Angeles Times, this was before certain facts were known. The massive telephone failures in the Los Angeles and Washington areas earlier, two weeks ago actually, stem from glitches in a specialized computer network that shuttles information about calls between telephone companies switching offices. The inherent complexity of an increasingly software-based phone system raises the prospect that the public telephone service may be inherently less reliable in the future than it has been in the past. Pacific Bells said that it had suspended further deployment of signaling System 7 until the exact cause of the problem could be identified. It appeared that the L.A. and Washington problems were not identical, but both were attributed to breakdowns in the SS-7 equipment supplied by DSC Communications of Dallas. Now, when the System 7, switching System 7, malfunctions, it begins sending incorrect information all over the network. Ross Ireland, general manager for network services at Pacific Bell, said one of the more recent incidents was caused by a signaling system unit in downtown Los Angeles that inexplicably began sending out a flurry of wrong information about problems in the network and ultimately shut itself down. Then, there was a cascade effect in which the other signaling system units began acting on the incorrect information. Finally, when people tried to make calls and couldn't, they kept trying, which created an abnormally high level of calling traffic and thus further exacerbated the problem. Sounds kind of like, uh... You've seen Terminator 2? Skynet? You know, uh... Intelligent computers gaining sort of a consciousness of their own, linking together. Well, here we have linking together and, uh... Sort of a... A mass brain death, I guess. Works both ways. At the time, Terry Adams, uh... This is from the New York Times, June 28th. Terry Adams, a spokesman at the DSC Communications Corporation, which made both systems, said company officials also discounted any connection between the failures. Well, guess what? That's completely changed. Today's New York Times. A manufacturer of telephone call routing computers said today, actually yesterday, that a defect in three or four lines of computer code, rather than a hacker or a computer virus, appeared to be the culprit behind a mysterious spate of breakdowns that disrupted local telephone service for 10 million customers around the country in late June and early July. An official of the manufacturer DSC Communications of Plano, Texas, said all the problems had been traced to recent upgrades in its software. And that, uh... Recent upgrade had not been thoroughly tested for hidden bugs. Now, it's incredible how everybody sort of joins hands on this and says, let's all be, uh, incompetent together. Not testing software that's going to be responsible for billions of, uh, telephone calls? Well, I guess these things happen, huh? Although the telephone companies had experienced failures were using slightly different versions of the software, each version was infected with the flaw, the company said. Our equipment was without question a major contributor to the disruptions, said, uh, Frank Perpigliglia, or something like that, DSC's Vice President for Technology and Product Development. We must be forthright in accepting responsibility for failure. He said the glitch was introduced when his company made a minor modification in the program that runs its sophisticated car-routing computers, which are used by five of the seven regional Bell companies. In making what seemed to be an innocuous change, he said, DSC dropped several algorithms or processing instructions that apparently caused the computers to go berserk when they experienced routine malfunctions. And, of course, troubling questions remain. It's still unclear whether the highly complex computer systems that run today's telephone networks have been tested rigorously enough. Officials at DSC admitted that they had not put the software upgrade through a customary, uh, 13-week test because the change entailed only a few lines of new code. In hindsight, Mr. Perpiglia said, that was a huge mistake. Well, uh, it's a mistake millions of people had to live with, and mistakes are being made even as we speak. What is the solution? Well, the solution, obviously, is not to, uh, be so blind to the potential problems and to realize that if something can go wrong, it will go wrong. And that's why backups are such a good idea. Not just backups of data, but backup systems in case there's something inherently wrong with the system you are using. Now, as I mentioned earlier, uh, locally, we're not affected by this yet. New York City is not, uh, on Switching System 7, but it will be. It's only a matter of time. Switching System 7 is, uh, supposedly going to, uh, bring all kinds of miraculous things to us, such as caller ID and, uh, Annie and all that kind of neat stuff. So, our phones will be more intelligent. We just won't be able to use them as much. Now, according to the Associated Press, this is a different story, Mitsubishi is suing AT&T. Why? Well, they're suing them over a, uh, PBX system that was broken into by hackers who made thousands of illegal calls worldwide. That's something we actually talked about earlier. Uh, Mitsubishi contends that AT&T's System 85 private branch exchange is not secure and that AT&T failed to warn Mitsubishi of the potential for unauthorized use. And Mitsubishi is seeking $10 million in punitive damages and a dismissal of $430,000 billed for 30,000 phone calls, which Mitsubishi attributes to unauthorized users. You know, this is one of these rare occasions where I have to take AT&T's side. I mean, Mitsubishi is, uh, a fairly big company. They're supposed to be intelligent. And if they don't know how to secure their own phone system, I don't think, uh, blaming the manufacturer for not telling you is, uh, the answer in this case. Yes, I can see that for an individual. For somebody that buys an answering machine and finds out that there's, uh, a one-digit code security feature on it and that anybody can break in and listen to your messages and change your outgoing messages. Yeah, that's something that I think, uh, the company should be held accountable for. But Mitsubishi, for God's sake, they should know how to secure a phone system. And just blaming AT&T, that's, uh, that just sounds like, uh, they're trying to pass the buck. Now, quite the different case in London. A director of video films is embroiled in a dispute with British Telecom over an 8,000-pound bill. And if I'm not mistaken, that's about $12,000. 8,000-pound bill after becoming a victim of hackers. And, uh, according to the London Times, hackers are people who steal computer passwords to break into international databases and use services illegally. Well, that's not my definition of hackers, and I don't think that's very many, uh, people's definition of what a hacker is. George Snow says the bill will ruin him. Experts say the case highlights increasing concern over one of Britain's most under-reported crimes. For several years, Mr. Snow has kept abreast of developments in 3D computer graphics by using access to an American information service called CompuServe. To cut costs, he became a customer of BT's, British Telecom's, Dial Plus service, which allows customers to connect their office or home computers to international databases for the price of a local rather than an international call. Mr. Snow, who has directed programs for England's Channel 4 and the Arts Council, and his pop video credits include Howard Jones, had found the service useful and inexpensive until recently. My quarterly bill would be around 30 pounds, said the director, whose company, WKBC-TV, is based in West London. Mr. Snow, aged 42, now faces a big unscheduled bill for calls he never made. It appears that hackers illegally obtained Mr. Snow's password and British Telecom agrees. But the dispute is about who pays the 5,500 pounds and 2,500 pounds which have been run up in recent months. British Telecom says Mr. Snow chose a password that hackers could easily borrow. He says that the company has a responsibility to ensure its networks are secure. To clock up 8,000 pounds worth of bills, you have to be talking about someone using the service 24 hours a day, day in and day out, he said. Mr. Snow says that British Telecom approved his password which was Superman. The company says Mr. Snow was warned that his account was running up huge bills in early February but that it was sometime later that the password was changed. David Frost, a computer security expert with accountants Price Waterhouse, said, the amount of hacking taking place in Britain was being seriously underplayed by companies. British Telecom rejects suggestions that it is cavalier with security. A spokesman said the company would write to Mr. Snow this week. He says he will fight British Telecom in court if it prosecutes him. 8,000 pounds is about 10% of my turnover. Now that's a case where it's justified to blame the bigger entity here because obviously they could have done something to help this person. This is a person, this is not a huge company that should have the expertise to know how to secure their systems. To hold somebody that responsible for 8,000 pounds worth of usage is unconscionable in my view. And a couple of final stories. In the July 2nd Washington Post there is a note that the government's war on drugs is being seriously impeded by having to rely on more than 100 different computer systems. That's according to a report of the General Accounting Office. Many of the computers cannot communicate. Also, the government has no measures for ensuring that its information is correct and that its systems are protected from outsiders. In other words, they don't know what they're doing. But one thing they know they want is an integrated system that has all the information tied up into one nice, neat file. Well, we won't have to hold our breath for too long. Finally, from the Washington Post, a rather interesting story from Bogota, Colombia. Did you hear about this one? The approval of Colombia's new constitution, which modernizes the nation's judicial, political, and economic structures, is in jeopardy because a computer apparently ate the text. So much for modernization. The committee writing the final version was to turn over the text for final voting on Wednesday. However, a technician storing the material in a computer borrowed from the office of the presidency erased or lost the final document after many of the papers with the drafts of the articles had been thrown away. We literally have people going through trash cans looking for scraps of paper, said one source close to the process. We do not know how this was allowed to happen and we have lost an almost vital three days. We cannot debate or vote on a text we do not have in front of us. While there are different versions of how the computer foul-up occurred, sources said a member of the codification committee refused to allow technicians from the office of the president to have access to the computer, fearing that some of the material could be pirated or changed. Instead, he had a nephew hired to do the computer work. It turned out that the nephew had only taken a one-year correspondence course in computer programming. And so it goes. You're listening to Off the Hook. This is Emmanuel Goldstein. And we're talking about high-tech. It's fun and it's abuses. Of which there are many. And coming up next, we'll be speaking to a man upstate in New York who's causing quite a bit of consternation with the phone company, but also providing what could be a very valuable service to people. His name is Joel Shapiro. He's the developer of the Gabriel Voice Mailbox Messaging Forwarding I'm sorry, Gabriel Voice Mailbox Message Forwarding System. Real mouthful there. He's a certified reseller. And what that means is that he subscribes to a telephone company's services at a bulk rate price and then he resells it to customers at a profit. There's a tariff on what Gabriel Systems is doing and those prices are regulated by the Public Service Commission and nothing about the practice is illegal. Rochester Telephone, which is the local company up there, has an agreement to sell services to the Gabriel System. And according to them, we lease him certain kinds of facilities and that's about as far as I can go, said a spokeswoman for Rochester Tele. What Shapiro does is he buys local phone lines from Rochester Tele and through the use of a computer makes the toll call from one part of the state to another part of the state a series of local ones. Therefore, a person making a phone call that ordinarily would cost him a certain amount of money actually winds up paying much less because they're not making the phone call in the traditional way. Well, we have Joel Shapiro hopefully still on the phone line with us. Are you there, Joel? Yes, I am. Would you care to explain what is it exactly that your system does? Okay, when you're talking about the telephone system, since 1984, a lot of things have been happening and it's much more than from the long distance aspect of you have a lot of different phone companies. When phone companies were broken up according to the deregulation procedures or deregulation mandates, you can put different kinds of equipment on them. Of course, we all know that we have voice mailbox systems and computers we can put on the telephone lines. Now, what happens is that this computer system that I've programmed uses a voice synthesizer board with telephone functions like a Watson board or a dialogic board and it controls either a three-way calling or a Centrex phone line. So what happens is that the computer is performing operator functions. So when you have different local calling areas that are next to each other that can locally call each other, let's call three different local calling areas in a row, A, B, and C. A can call B locally and B can call C locally, but A and C are long distance to each other. What my system does, located in B, makes a local call connection between A and C. So A and C are talking to each other over two local linkages. And you've checked into this and this is completely legal, it's not violating any kind of... Legal. Where you cross a boundary of illegality is if you say, okay, I'm going to have a computer system and then I'm going to get subscribers on the computer system and then you start charging money for more than the cost of the call. And even if you're not charging money, there's still usage considerations that you have to look into. Now, in the state of New York, you have to be tariffed and certified by the commission as a reseller, which is not a very big ordeal. It sounds worse than it is. If you go to Pennsylvania or New Jersey, you can put out your shingle, set up a computer system, and you don't have to report to any commission. However, if you go to California and you want to offer to the public at large, no can do because there they have different considerations on why local exchange carrier or regular phone service can be resold in the same manner that I'm doing. So in the northeastern part of the United States, even Massachusetts, I believe, you can do the same thing as I'm doing here in New York. You can really really bypass tolls. Now, what happens is that the local line's cost, like a business call across the street, a cost of those calls is nowhere near the regional or intralata long distance costs. Now, if you have a business and you set a computer system like mine up, if you're an insurance company over a wide area of, let's say, all of New York City and Long Island, then you are not dealing with a U.S. Sprint or an MCI or an AT&T for those intralata calls. You're dealing with New York telephone. And there is nothing in the books or anything that's perfectly legal for you to set up your own toll bypass network using a system like I've developed. That's very important because up until now there has been no alternative to speak of to a local phone company. That is correct. Everybody says, oh boy, the phone company is going to get after you and they're going to be mad at you. Well, this does all have to do with the freedoms that was given under deregulation in 1984. Now, you're under Rochester Tel, which is not part of 9X or New York Telephone. That's correct. Now, has anybody tried this in New York Telephone Turf? Not to my knowledge. They're, okay, I know of another company that has a similar kind of device in the state of Washington where they perform similar kind of Centrex bypass functions. But in the state of Washington, with their EAS configuration, extended area service configuration, the public service commission there said, if you're going to resell this to the public at large, you're going to have to pay access charges. And that kind of put a damper on, you know, the attractiveness of the money they were going to save. Give us an example of what kind of money we're talking about here. Okay. Let's see. If you, you know, I don't really know New York City geography, but in Rochester, the Rochester City is one big local calling area. It's kind of like you think of New York City as one local calling area. It's probably divided up. Right next to Rochester is a local calling area called Farmington. And then right next to Farmington, one step over, is Canandaigua. It's one of the Finger Lakes. Okay. Now what happens is that Farmington is local to both Rochester and Canandaigua. However, between Rochester and Canandaigua, it's regional long distance. On the day rate between Rochester and Canandaigua is 55 cents for three minutes. It's about 20, you know, I don't know, you figure it out how many, how many cents it is per minute. Using my system, it will cost you nine cents. For the same time period, three minutes. Nine cents for three minutes as opposed to 55. So that's an example of pretty incredible savings, I guess. Oh, yes. Now, what happens is that when you take my system to Pennsylvania, the results are even more dramatic. I'll give you an example. When you make a call there versus Rochester, there are no subsequent minute costs. For instance, the local charges in Rochester is 7.5 cents for the first three minutes and 2.2 cents every minute after that. Now, I said 9 cents because I have to recover the cost of billing, but that's another story. The main thing is that there are subsequent minute costs here in Rochester. So if I talk for an hour, it's going to cost me a buck or two, a buck 20 or something like that. But in Philadelphia, if I place a 7-cent call, there's no subsequent minute cost. I can keep that line open indefinitely if we're 7 cents. So what happens is that if I make this toll bypass linkage in Pennsylvania, you can theoretically keep that on for 7 cents forever. And this is, would this only be from Philadelphia or would this be from Rochester to Philadelphia? Oh, no. This would be if a system was located in the metro Philadelphia area or within the suburban area. Well, now, how far do you think it can go towards linking of different systems around the country so that what you're trying to do can be spread around? what happens is that this takes advantage of a crease in the regional calling area. When you're talking about long distance, then you'd have to talk about establishing links across the country, and then the whole system really breaks down because all the local links concatenated together would break down, and it would be too much of a mess to take care of the system and make it feasible. Plus, it would probably take a long time to connect. So this is kind of addressing. And that the long distance companies do not touch, they don't compete on an intra-lotter basis with the New York telephones or Bell PAs. And it's interesting, too, because I've noticed that in many cases, local calls, calls within a state or within a region, cost more than calls from coast to coast. Right. And I wondered why that is. Why is that? Because you're talking about intra-state. And what happens is that there's certain, I guess, public service commissions, every state has different mandates and rulings, you know, on how telecommunications will be conducted, and they have certain, I guess, taxes or something they want to recover for intra-state calls because they regulate those calls. Right. Now, my system, again, is on an intra-latta basis. So you can think of my system being used in a New York metropolitan area in Long Island versus New York to Philadelphia. However, if you have enough people calling into the Gabriel system on a long-distance basis, then the volume goes up because of all the people contributing their volumes or their calling traffic, and then you get lower rates. I see. So when you're talking about long-distance, the, I guess, the magnitude of the savings is not as great, but they're still great if you consider the volume discount. Well, I think starting out locally is a good idea, though. Right. There's less risk because if you set up in Philadelphia at seven cents and you make those linkages, then what happens is that if you get a hacker in there, the worst he's going to do to you is seven cents worth of damage versus perhaps hundreds of thousands of dollars. Now, do you have any idea what they would charge for a regular phone call in Philadelphia as opposed to seven cents? In Philadelphia, it's different than the, how can I say, every LADA and every local exchange carrier sets their rates and their calling patterns up differently. Now, what they have in there in Philadelphia is what you call an EAS area so that your seven-digit number that you dial can either be a local call, like across the street, a kind of a mini toll call, or an actual toll call. So, when you get your Bella Pennsylvania bill, you'll have local charges, suburban long-distance charges, and actual toll charges all from seven-digit numbers. If you, by chance, make a mistake dialing with, you know, maybe one of your exchanges, you might well make up, you might well get a toll bill from Bella Pennsylvania. And it's quite different if you try to recover a wrong number from Bella Pennsylvania and say, I'm sorry, you just got to dial better. Whereas with a long-distance company, because you have other options of going to another carrier, they're going to say, oh, yeah, we'll give you the credit because we'd rather have you with half your business versus you going to another Sprint or an MCI. The spirit of competition. Right. With Bella Pennsylvania, there's no competition so they can go play hard body on it. You know what I mean? Right. So what kind of savings are we talking about in the Philadelphia area? That's what I'm thinking. Okay, now, it depends on how long you want to make your call, but it's going to be much more than 80% that I talked about with Rochester Telephone because some of the toll calls, they are like 15 cents for the first minute and six cents subsequent minutes. So if you had a linkage established, you know, the savings can be in the hundreds and thousands of dollars depending on how long you want to keep your call going. I see. It's something that has never, as to my knowledge, has never been addressed or has never been implemented by anyone really but myself. And all, you know, like I wrote to all the public service commissions across the country. Why do you suppose it is that nobody else has done this yet? Well, there's a little, okay, first you have the technology is that relatively speaking, the voice boards and the computers, you know, were expensive only until maybe recently, like within the last few years. Another thing is there's a certain amount of risk that you have with hackers that can get in and perhaps, you know, what I have here is an enhanced diesel system. So I had to program in a lot of features that would, you know, put a damper on, you know, hackers trying to get in and breaking into people's codes because... How long are the codes? Okay, right now I program them for six digits but with more subscribers and, you know, I'm planning to go up to at least seven or eight and also I answer with silence which would give, you know, a hacker not much to go on. Well, you see, once the number is known, I mean, they'll know that that number is, you know, a particular kind of system. Yeah. So the silence won't really help as far as that goes but six digits should be enough initially. Right. What you don't want is the kind of system that allows you to just keep trying over and over again. Well, another thing to do is that I can program in, you know, I'm programming in different levels of security depending on how the subscriber wants his service. For instance, you might want to know how many attempts have been made on your voicemail box. Right. Or not on your voicemail box but on your subdirectory. Okay. So what happens is that if you had three or four attempts per hour, that's too many and it'll shut your system down. So you would be the one controlling, you know, how many calls would be able to go through. I see. Now you're going to show us how the system works, actually, on the telephone. Can you explain what you're going to do? The first is that I will be putting you on a hold. You'll be hearing silence. And I'm going to be dialing up my system. And when I flash hook back, provided I don't hang you up, this is something I wanted to get across first, then you'll hear beeps. And I'm going to be putting in my passcode and dialing my voicemail box. So you can think of me being in local area A, and I'm calling my computer, which is in local area B that I gave an example of before, and my voicemail box would be in local area C. So when everything is all through, I'm going to be talking to my voicemail box over local charges rather than long-distance charges. And can you tell us exactly what that call is going to cost you and what it would cost you if you had dialed that number direct? Okay. If I dialed that number direct, then that cost, you know, at the night rate, I don't really know what the night rates are, but I know for the day rate, that call would have cost me 55 cents for three minutes, where it would be costing me nine cents for three minutes. Okay. Why don't you go ahead with that demonstration? Let me give you out the phone number. If I get disconnected, you call me back, and we'll try again. Okay. I'll be putting on the phone now, and I'll give right back to you. Okay. We're speaking with Joel Shapiro, who is using his imagination to bypass the local phone company. We'll be taking calls at 212-279-3400, just a matter of a moment, so please give a call if you have some questions. Are you with me? Yes, I am. Okay. And I hear the beeps. I put in my passcode, and I put in the number I was dialing. Okay. Five seconds or so for your call to be transferred. That's your computer talking. That's correct. All right. It is now performing a Centrex transfer. About how long does that take? Oh, hello. My name is Joel Shapiro, and I'm the developer of the Gabriel System. Okay. That was a perfect demonstration. Toll bypass services. Okay. Now, I can talk over this. I am talking to my voicemail box now. I'll be able to charge it for the first three minutes for a call from Rod And the computer is not a part of this conversation. The computer is now waiting for another call. Let me disconnect this, and I'll get right back to you. Okay. For more. Hello. Yes. Okay. That was quite impressive. It sounded like a good connection. A little piece of connection right there seemed perhaps a little bit inconvenient, but the money you're saving is substantial, very, very substantial. So, if I had this particular service, I would call a pre-designated number. That's correct. I would hear those little beeps, and I would enter my code, followed by the number that I wanted to call, the seven-digit number I wanted to call, and then it would connect me to that, and I would be connected as if it were a local call, even though it would actually cost significantly more with the local phone company if I dialed it direct. Now, the wondrous thing about this whole operation is that it's perfectly legal to establish it for your own purposes, and in the state of New York, if you want to take this system and resell it to the public at large, all you have to do is get a certificate and make a tariff. This all sounds complicated, but it's really not. And what I wanted, my basic motivation in talking is to say, look, here's an opportunity to really not take advantage of the phone company to hurt them, but I'm saying is that you're buying service from them, and they are making money from your local calls. Let's say you had a phone, you know, a telephone number from a business phone from a New York telephone. You never made a long-distance call on it. That phone line should still be profitable to New York telephone. Now, they're making their money with you both ways, but they're just getting it from you with my service at a slower rate. That's all. But they're still making money with it. You're using some imagination to pass some savings along to people, and I think that's commendable. Hopefully, this will become a bit more streamlined and easy to use for people that don't, you know, usually use these kind of things. But I think we're seeing the infancy of this. What you can do is if you had a telephone with, like, an automatic dialer, what you do is you put the Gabriel system or your system's number in it, put some pauses in, your passcode, and then, you know, it dials it automatically, and all you have to do is put your number in, you're on. So a lot of the subscribers in my system here in Rochester use that technique, and it works for them. Okay, I'm going to start taking some phone calls now, 212-279-3400. Let me warn everybody, though, that our phone system here isn't all that sophisticated, so you might have some trouble hearing each other. Okay. But please be patient, and we'll take some questions here for Joel Shapiro. 212-279-3400 is the phone number. Good evening. You're on. Yes, I'm a recent listener to your program, and I'm calling to ask about a problem I've been having with my telephone answering machine. Well, is this related to the questions we're taking right now? It's a general question. Okay, can I ask you to save it for a future show, then, only because we only have a certain amount of time, and we do want to talk about this particular topic. Okay. All right? Okay, bye-bye. Okay. Good evening. Hello, are you there? Hi, yeah, I'm right here. Great program. First question, what size computer is he using? Second question, would he be willing to train or facilitate the training for other people out of his area? And third question, what language programming, what program language did he use? And I'll hang up and listen. Okay. The computer that I use is just a regular off-the-shelf IBM AT-class computer. I use a C programming language, you know, for the board. I use the minimal amount of equipment to perform these kind of functions, because you really don't want to have a multi-line board, because if a 386 or 486 machine goes down, just like your fancy-dancy ISDN, you know, telephone system, the whole thing shuts down. Whereas if you have a lot of XTs or ATs in a row with these little one-line Watson boards, then you have a system that, you know, the other computers can take over the slack if one breaks down. And I'd be more than, I'd be most willing to, you know, establish systems on a private basis in other cities and, you know, on private arrangements. And I can remotely program the computer, you know, with updates via modem. And it's very easy to do, and so it takes all the worry about, you know, establishing it and taking care of it and maintaining it on your own. Okay. We'll be giving out a phone number and address at the end of the program. 212-279-3400. Good evening. Is this BAI? Yes, it is. You're on. Hi, I have a question on how is the service marketed and how does he bill for the calls themselves? I'll hang up and listen. Okay. Okay. How I bill is I don't have the resources right now for magnetic tape. There are certain phone companies that give you floppy disk call detail. When I perform these Centrex transfers, it's kind of like a surprise at the end of the month, you know, your usage. So you kind of have to rely on the computer to give you a track of who's calling and how many attempts, what have you. So I really had to make a lot in the way of security, you know, to the best of my abilities to make it as secure a system as possible. Now, what happens is that when I get the detail at the end of the month from the phone company, I take a scanner, you know, which is pretty accurate, and I scan the phone bill and that does an optical character realization or, you know, and then I get a text file and hello, and then I match that up with the call records from the computer and then sort the bills out. And it works very, very well. It works very good. And I wrote the software for the comparison. I see. Now about the marketing. Okay. Now the marketing, I don't really have the resources to advertise. I had to buy the, you know, I kind of like started from scratch in this whole thing, and I put the whole farm in this project. And I really don't have a marketing arm yet. Mostly it's just from word of mouth, and I believe with the right coordination, this kind of a concept should really take off because the phone toll bypass aspect of my system only scratches the surface of what this whole thing is about. We're talking about enhanced services, gateway to 900 numbers, and I can go on and on, but this toll bypass concept is the easiest to understand. And if I start talking about enhanced information services, it kind of gets off into tangents that it's interesting, but it's not as identifiable or you can't really identify with them, you know, on a simple basis as this toll bypass. Let's take another call. Okay. Good evening. Hi. Oh, I just love this show. Mr. Shapiro, can you tell us, coming to New Jersey soon with this whole thing? Because this is like a dream come true to me. Well, I've been trying to make contacts in New Jersey, you know, for people that, you know, would be interested in my system and to establish it there. I am really interested in establishing this in all these states like New Jersey, New York, Pennsylvania, Massachusetts, Pennsylvania, Massachusetts, Maryland, because these states, the regulatory freedoms that I have is so great. Now, this system is very easy to implement and, you know, it's not going to be a whole big red tape issue. It's not going to be a very complicated thing. You know, you just kind of like order it, set it up, use it. And, you know, what happens is I haven't really gotten the pricing on the whole system on a private basis because I've been actually using this on a service. So, like, I would, what I'm looking for is I would establish it for people and then I can maintain it remotely here from Rochester so you won't have to worry about the software maintaining it yourself because, you know, if I'm going to sell you something, I want it to work for you. Yeah, well, you've got your first subscriber here. Wow. Well, it sounds just wonderful because most of my calling, I do have a very small business. Yes. Most of it is done intrastate. Now, you have to realize that this system that I'm talking about has, it's kind of like two aspects. One is a long-distance aspect where the savings are good but they're not great as an area. Like, for instance, if you're in the Newark area and then you're going to the outskirt regions. What this does is give you, like, one step forward of the calling power that you had from before. And there's a lot of other features with my system but when I talk about long distance, people often confuse that with statewide calling or, you know, you know, and I have to always tell you, you know, like, there's limits. Like, I'm working within a crease and when you're talking about too far out, the crease goes away. So, I have things that will help you but it's kind of like if you're calling all around the state, I won't, you won't get the dramatic savings I was talking about except on a metropolitan area. Let me just ask one more question then we're going to have to call it a night. Okay. Now, we're talking about linking from A to B to C. Right. Do you envision a day when we can link A to B to C to D? Yes. Now, what that does is, okay, there's a gray area on telephone service where... You'll have to say this in about 20 seconds, actually. All right. The thing is you have to use residential home service and that can be, you know, then the phone company may put the foot down if you abuse that where if you go and link so far out on one residential line to another residential line to another residential line, you know, you might be in a problem with the phone company although they never really addressed it. I see. Well, something we'll certainly be addressing in the future. Do you want to give us a phone number if people are interested in getting more information? My voicemail box in Rochester is 716-987-7498. Okay. And an address that people can write to? Post office box 14178, Rochester, New York, 14614-0178. Okay. And that should be addressed to Gabriel Systems? Yes. Joel Shapiro. Okay. Joel, I want to thank you very much for taking the time. And I wish you luck on this. Please keep us updated as to how it progresses. And I'm sure we'll be reading more about it in the newspapers. Yes. So I will be an intervener in the New York State caller ID proceedings, and my system does have to do with caller identification. So down there in New Jersey, where you do have caller identification, my system has things to do with that. Well, that's a whole other kettle of fish. But thanks very much for being a part of the program tonight. And that is off the hook for this week. We'll be back again next Wednesday night at 9 o'clock. Stay tuned for the Personal Computer Show. Emmanuel Goldstein, good night. We'll be back again next week. And next up, it's the Personal Computer Show. First, a message. First, a message. First, a message.