John Naguib

VoIP Hits The Road Is It a threat or an opportunity ?

Jun 27, 2011

International v

oice traffic ≠ in

ternational p

hone calls

Source: TeleGeography Research

Market Outlook : Fact no. 1

• Global Traffic ARPU Is Declining Through Competition & Commoditization

Source: TeleGeography Research

Market Outlook : Fact no. 2

Recession +Traffic

routed via PC to PC

Boom

Notes: Data for 2010 are projections based on half-year results. VoIP traffic reflects international traffic transported as VoIP by carriers, and excludes PC-to-PC traffic.

• Traditional International Calls Is Declining

Source: Morgan Stanley Research

Market Outlook : Fact no. 3

• Mobile User > Desktop Internet User within 3 years

Source: TeleGeography Research

Market Outlook : Fact no. 4

• There are new entrants in the international calls market.• Apple has introduced FaceTime.• Yahoo and Google have introduced their video calling services.• Skype has partnered with Facebook. • ……………………………………………………………. & Others

Source: TeleGeography Research

Where Did the Growth Go?

Notes: Data for 2010 are projections based on half-year results. Skype traffic reflects on-net cross-border traffic only, and excludes calls originated via Skype but terminated to the PSTN.

What is the VOIP value proposition ?

VOIP has over the traditional operator voice model by :- • Cheap international calls .

• Free calls between the VoIP clients.

• VOIP is leading the way for innovation in unmanaged international mobile voice calls.

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Competition landscape

Apple

Although FaceTime is over WiFi only, It has brought video calling over IP into the spotlight and more players have started to provide this service.

Google and Facebook

They are pushing the idea of becoming a communication hub, providing the single platform for activation all types of communication, from emailing to photo sharing and voice calls.

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• Operators are still stick to high-margin international traditional voice calls revenue that are gradually being eroded !

• Operators offer special tariffs, but these are not viable for users, why ?

• There is a new era , SIMless mobile phone “IP based“.

• IP wireless phone = Voice + Data + Video + Mobile Broadband.

Paradigm shift of International Voice Traffic

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Features

VoIP service providers is growing rapidly, VoIP is limited only by the talents of application developers. Unlike circuit switched voice telephony, VoIP offers the potential for the full integration of voice, data, and video and advanced computer applications.

Issues

-Too many suppliers entering the market. - Mobile VoIP quality of service is questionable. - Lack of regulatory clarity.- Lack of standards.

The new era features & Issues

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Mobile operators able to offer their own VoIP services at a cost far below today's circuit-switched networks. However, in the real world, regulators are dictating the process and the rules.

So

Mobile Operators should work with government to liberalize the communications markets by directing the regulatory scheme to promote the competition and supporting the deployment and take-up of VoIP.

Conclusions & Recommendations

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• Blocking mobile VOIP is not a practical long-term strategy.

• VOIP can Attract more new users and encourage data plans uptake.

• Mobile operators may partner with internet call providers.

• Mobile operators could benefit from the potential market and establish a brand image.

• High Definition (HD) voice quality can increase the length of a voice call up to 40%.

Conclusions & Recommendations

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comes not only from competing successfully, but also from shaping the future by creating opportunities rather doing things with the way currently are.

John Naguib