Options for Skype

3 Skypephone

You can use a 3 Skypephone so you don't have to be at home to make a free call using Skype. The only cost is the purchase of the 3 Skypephone and leaving a small credit balance (which may never be used). The 3 Skypephone allows you to make free Skype calls to anyone on Skype including other people using a 3 Skypephone. The 3 Skypephone will use the Three (3) network and therefore it basically functions as a mobile phone so you don't need to be near an Internet connection with a traditional Skype phone.

HK$1,216 - 3 Skypephone

HK$30 - monthly fee every 30 days

Local voice call (non-Skype) HK$0.30 per minute (usually HK$0.70 per minute for normal phone plans)

Pamela for Skype

This is great software for a small business if you are already have your own Skype number. Pamela provides the following important telephone functions for a small business:

• answering machine
• call recording
• contact personalisation
• e-mail forwarding
• video recording
• chat recording

The Business Edition has all the features and costs US$40.81 to purchase.

Other answering machine software for Skype include:

• Skype Answering Machine (SAM) by KishKish Products
• CallButler
• PrettyMay Call Recorder

Skype phone (no PC required)

RTX Dualphone 3088 is HK$1,055 (I bought it for HK$930 in April 2008 and AU$283.15 in July 2007)

RTX Dualphone 3088 additional handset HK$655

Saving telecommunications cost

The main reason I have a fixed line telephone at home is 'cos sometimes I need to send faxes. PCCW charges me HK$88/month for the fixed line telephone.

PamFax

But now you can use PamFax (free to download) and pay only when you use it. The cost is HK$0.983 per page to send in Hong Kong, Australia, Singapore, etc which are the main places I ever would send a fax to. You simply scan in the document you want to fax first, and then use PamFax to actually have it faxed to a fax number.

Voice Calls

I use Skype for long distance calls with relatives in Australia which is free for Skype to Skype. However, if the Internet were to go down, I would still be contactable via mobile phone. Its free to receive calls on the mobile phone. But to call internationally using a mobile phone would be:

• HK$5.12/minute on Three (3).
• HK$7.15/minute on PCCW IDD 001
• HK$1.99/minute on PCCW 0060
• HK$4.98/minute to an Australian mobile phone on PCCW 0060

Skype

To save money on voice calls, you can use SkypeOut instead which is charged at:

• HK$0.166/minute to an Australian fixed telephone.
• HK$1.609/minute to an Australian mobile phone.
• HK$0.166/minute to a Hong Kong fixed telephone or mobile phone.

The connection fee (flagfall) for each call is: HK$0.39 (to Australia, Hong Kong, Singapore).

You purchase Skype Credit. Minimum purchase amount is HK$100.

which is active for 180 days after the last use. Therefore you need to make a SkypeOut call at least once every 6 months (which isn't very hard to do).

Assuming you make 5 minute telephone calls:

HK$100 credit equates to $100 / ($0.39 + (5 X $0.166)) = 81 telephone calls.

"Unlimited World" plan with Skype

If you make alot of voice telephone calls, then you can use the "Unlimited World" plan offered by Skype which is HK$99.95 per month (landline & mobiles in Hong Kong, landline in Australia and many other countries).

HK$1,019.45 - Unlimited World (with 15% discount for annual plan)

You need to talk more than 4,045 minutes per month to an Australian fixed telephone to make this worthwhile.

"Unlimited Country" plan with Skype

If you don't call many countries and only specific countries, then you can use the "Unlimited Country" plan.

HK$468.65 - Unlimited Country (choose Hong Kong with 15% discount for annual plan)

You need to talk more than 2,823 minutes per month to an Hong Kong telephones to make this worthwhile.

Skype Online Number

For people to call your Skype phone who don't use Skype themselves, you can get a Skype Online Number for HK$150 per 3 months (usual price) or HK$450 per year ($37.50 per month). If you get an "Unlimited Country" or "Unlimited World" subscription plan, then the price for the Skype Online Number is HK$225 per year.

HK$225 - Skype Online Number (so other non-Skype people can call you). This is a 50% discount off the regular price because you bundle it with "Unlimited Country" or "Unlimited World" subscription plan.

The Skype Online Number can be an Australian telephone number and not necessarily a Hong Kong telephone number.

Cost for complete replacement of services from PCCW fixed telephone

For a complete replacement of services from PCCW fixed telephone to Skype you would need:

HK$468.65 - Unlimited Country (choose Hong Kong)

HK$225 - Skype Online Number

HK$693.65 - TOTAL per year ($57.81 per month)

My strategy

Pay for use only. I only pay when I need to send a fax, and only pay when I need to make a voice call since it is highly unlikely I will use more than 2,823 voice minutes per month especially when there are free minutes offered under a mobile phone subscription plan.

Pay per use:

HK$0.983 - per page to send a fax anywhere

HK$0.021 - per minute to Sydney fixed telephone
HK$0.203 - per minute to an Australian mobile phone.
HK$0.166 - per minute to Hong Kong fixed telephone or mobile phone

The only inconvenience would be non-Skype people trying to call you. However, our relatives in Australia all use Skype and have our mobile phone numbers (in case of emergency). Our friends in Hong Kong generally call our mobile phone numbers. Therefore, there seems no need to get a Skype Online Number.

Conclusion

Therefore there is no need to pay the fixed amount of HK$88/month for a fixed line telephone (free local calls only) when you can use a pay per use service for sending faxes anywhere in the world, and you can use Skype and your existing mobile phone plan to make/receive voice telephone calls.

For people who call you often (especially from overseas), its better that you simply buy them a Skype phone assuming they already have broadband Internet.

Best home loan in Hong Kong

Just found out today Bank of China is offering 2.05% for a deposit-linked home loan with 0.7% cash rebate.

Long term investment theme on technology

There is currently a shift from desktop computing to mobile computing. Whereas the 1990s to date have been about providing a computer in every home with an Internet connection, the next decade is going to be about providing computing power in the pockets of everybody.

Leading the charge is Google which attempts to do the heavy computation in the "cloud". Basically turning the mobile phone into a thin-client display device and input device. NASDAQ:GOOG is currently $539.01 a share (all time high was in 7 December 2007 at $714.87). They provide an open mobile platform (Android operating system) and many useful basic applications such as Gmail, Google Maps Navigation, Google Goggles, Google Voice, Google Translate, Google Latitude, YouTube and of course, their search engine.

I'd pin my hopes on Google with their many mobile applications rather than a one trick pony like Facebook which could be made extinct at any moment by a better social networking application (cf: the quick death of MySpace) and the new kid on the block from Google called Google Buzz.

Eric Schmidt said "Now our programmers are doing work on mobile first, and that is in fact a change ... [our] top programmers want to work on those [mobile] apps," he said.

Schmidt predicted that in three years, if not sooner, smartphones would pass global PC sales - "a remarkable achievement".

http://www.smh.com.au/digital-life/mobiles/google-ceo-unveils-magic-apps-to-hostile-crowd-20100217-oc7n.html?autostart=1

However, another investment theme could focus on the hardware side. Qualcomm make the Snapdragon ARM processor which seems to be used by many handset manufacturers using the Android platform. Unlike Apple's closed system which uses the Apple A4 chip, I believe because of the openness of Android and with the support of Google, that Android based mobile phones will become dominant in the market eventually when it becomes more idiot friendly and Apple iPhone users start to churn over. NASDAQ:QCOM is currently $39.43 a share (all time high was in 31 December 1999 at $88.06).

Also, the touchscreens are an important component in these mobile phones. Projective Capacitive Touch (PCT) technology is the hot stuff right now.

Where to live for various phases of your life

School Age until University

Australia. Education is free (except for private schools). Public healthcare is free (or inexpensive for private health insurance). Large amounts of land/space at relatively low cost.

Working Age

Asia. Tax rate is low. Salary is higher for the same job compared to Australia. Vibrant nightlife and shopping until late. Cheap travel to other countries.

Roughly speaking:

Australia -> 4 - 21 years old

Asia -> 22 - 35 years old

Australia (when your children are primary school age) -> 36 - 52 years old

While working in Asia, remember to buy investment property in Australia to accrue negative gearing tax credits.

Before returning to Australia, sell your investment properties to reduce the amount of tax payable under capital gains tax. i.e. sell 1 property each financial year. Sell enough such that there would be no loan balance outstanding on your primary residence. Only 50% of the capital gain is taxable if the asset has been owned over 1 year, and there would be no other Australian income to push you into the higher Australian tax brackets while you are currently working in Asia. Keep the cash in AUD$ if you are worried about currency fluctuation and reduce the loan principal (or put into an offset account) of your primary residence.

Upon return to Australia, use the accrued tax credits to offset Australian salary income. Use the capital gains from the sale of your investment properties to eliminate any loan on your primary residence (because interest on a home loan for your primary residence is not tax deductible). Any surplus cash can be used to purchase a new investment property (for more negative gearing), or shares using a margin loan (for negative gearing). Only borrow money if the interest is tax deductible. Alternatively, any surplus cash can be left overseas for foreign investments that are unknown/untraceable by the Australian Tax Office.

Salary sacrifice into superannuation after all the accrued tax credits have been depleted to reduce your taxable income. Use a self-managed superannuation fund to purchase investment property or shares for your retirement. Do not pay fees/commissions to a fund manager.

Differences in schooling between Australia and Asia

University

Assuming the goal is to have your children study at a University, then the FEE-HELP system offered in Australia is the most cost-effective. FEE-HELP defers the upfront costs of attending university and is paid back later by the child when they start to earn income and is not means-tested to be eligible. If their salary is > $43,151 they starting paying back their FEE-HELP loan to the government at 4% per year. The maximum repayment is 8% when they start earning > $80,137.

The lifetime loan limit for FEE-HELP is $85,062 for 2010 (higher limit for medicine, dentistry). For example, a 4 year Bachelor of Laws undergraduate degree at the University of Technology Sydney will roughly cost $35,424 in university fees. (192 credit points X $184.50) You must be an Australian citizen or permanent resident of Australia AND be a New Zealand citizen to be eligible.

Such a scheme is not offered in Asia. Attendance at a university in Asia requires upfront payment of fees. For example, at the University of Hong Kong, a 4 year Bachelor of Laws undergraduate degree incurs tuition fees for HK$42,100 X 4 = HK$168,400 = AU$24,680

Therefore attending an Australian university if you are an Australian citizen is not a difficult choice to make. Even though it may cost less to obtain a similar university degree in Asia, you must determine whether it is of the same quality and whether there are enough places to gain a place or if the entry mark is too high.

High School

Countries have both public high schools and private high schools. Public high schools are generally free while private high schools are not.

Private High School in Hong Kong versus Private High School in Australia

Australian International School in Hong Kong

Year 7 - HK$106,600 + HK$12,000 (capital levy) = HK$118,600

Year 8 - HK$118,600

Year 9 - HK$118,600

Year 10 - HK$118,600

Year 11 - HK$112,000 + HK$12,000 (capital levy) = HK$124,000

Year 12 - HK$124,000

Total: HK$722,400

English Schools Foundation (ESF) - Shatin College, New Territories

Year 7 - HK$89,250

Year 8 - HK$89,250

Year 9 - HK$89,250

Year 10 - HK$89,250

Year 11 - HK$89,250

Year 12- HK$89,250

Total: HK$535,500 (25.8% cheaper than the Australian International School)

Many schools in Hong Kong are Direct Subsidy Scheme (DSS) schools. They can set their own schools fees (usually HK$3,000 - $110,000 per year) and receive some government funding. A list of DSS schools in Hong Kong is found here:

http://www.edb.gov.hk/FileManager/EN/Content_175/schlist(fees)_e_c.pdf

Sydney Grammar in Australia

Year 7 - AU$24,318

Year 8 - AU$24,318

Year 9 - AU$24,318

Year 10 - AU$24,318

Year 11 - AU$24,318

Year 12 - AU$24,318

Total: AU$145,908 = HK$996,665

Public High Schools - Hong Kong

In Hong Kong, there are comprehensive public schools. Only 112 of 400 government-funded high schools are allowed to conduct classes in English. These are referred to as English Medium Secondary Schools. Funnily enough these English Medium Secondary Schools are also the best performing government-funded high schools. However, even in English Medium Secondary Schools, many instructions to students are given in Cantonese.

Therefore comprehensive public schools are not an option for someone seeking future study in an Australian university (which is taught in English).

Public High Schools - Australia

In NSW, there are public high schools which are Selective High Schools. The students who attend these type of public high schools must pass a Selective High School Placement Test when they are in Year 6 and therefore must be of high academic ability if they are offered a place. There are 3,533 vacancies for Year 7 in Selective High Schools and each year there are approximately 13,336 applicants. This represents a 26.4% chance.

In 2009, the top 5 Selective High Schools that accept boys based on their minimum entry score were:

1) James Ruse Agricultural High School (241/300 - 80.3%)

2) North Sydney Boys High School (223/300 - 74.3%)

3) Sydney Boys High School (219/300 - 73%)

4) Baulkham Hills High School (216/300 - 72%)

5) Fort Street High School or Normanhurst Boys High School (213/300 - 71%)

Why choose a Selective High School? For example, 50% of Year 12 students at James Ruse Agricultural High School accept university places for studying medicine and law.

Therefore attending a Selective High School is not a difficult choice to make. It is far cheaper than attending a private high school and your child has a far higher chance of being admitted to an Australian university course with a high cut-off entry mark than if they attended a comprehensive public school.