The Wonder of Technology

In the 11th grade history class, we are starting our final unit on "current history", or history of the last 20 years. Actually, its more of a unit about theories of how the world and international politics work. (Is it about the clash of civilizations? Or is the world flat? Or are ideologies the greatest catalyst?)

We were talking about technology the other day in class, and the following dawned on me. Below are the following prices for calls:

Call my family FROM Bahrain (using skype): 3 cents/min
Call friends IN Bahrain from my cell in Bahrain: 9 cents/min

Its actually more expensive to call my friends here in Bahrain with my cell phone here in Bahrain than it is to call my family (or friends) in the United States via Skype. Amazing.

In fact, I found out the other day that I can text anywhere in the world for the same price as texting someone in Bahrain. So I've started texting friends and family around the world with Easter greetings.

Why is it so cheap to call the US? Basically it has to do with the technology bubble of the 90's. There was massive investment in internet infrastructure, and profits were rising, spurring more investment. Well, nothing good lasts, and the bubble burst, leaving gigantic amounts of fiber-optic cables with few buyers. Prices fell, and wallah - cheap internet rates today.

And now I can call the US and China for 3 cents a minute.