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A Vision For Global Telephony VON Europe PowerPoint PPT Presentation

A Vision For Global Telephony VON Europe. Niklas Zennstr öm Skype CEO and co - founder. Vision. As broadband becomes ubiquitous, most voice calls will migrate to the Internet using free software, on the edges of the Internet, that remove barriers to more natural forms of communication.

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A vision for global telephony

Confidential and Proprietary Skype Technologies S.A.


A vision for global telephony von europe

A Vision For Global TelephonyVON Europe

Niklas ZennströmSkype CEO and co-founder


Vision

Vision

As broadband becomes ubiquitous, most voice calls will migrate to the Internet using free software, on the edges of the Internet, that remove barriers to more natural forms of communication.

That software is Skype.

Confidential and Proprietary Skype Technologies S.A.


Viral exponential growth

Viral = Exponential Growth

Users

~150 000 new users per day~39 M registered users, in all countries in the world~1.4M SkypeOut accounts~1.5B minutes per month (22% monthly growth)

Months since launch

Confidential and Proprietary Skype Technologies S.A.


Telecom transition

Telecom Transition


1 many networks become one

1. Many Networks Become One

  • Previously we had vertical solutions that offered one network per service:

    • PSTN, X.25, Frame Relay, IP, Telex...

  • The Internet is becoming the common carrier for all services

  • Growth comes as various wireless access technologies connect to the Internet

    -Wi-Fi, 3G (data), WiMax, UWB…

Confidential and Proprietary Skype Technologies S.A.


2 phones are becoming computers

2. Phones are Becoming Computers

  • Powerful CPUs

  • Connected to the Internet via various radio networks (multi-band)

  • Open OS (Linux, Symbian, Windows Mobile, etc)

  • Easy to install applications

  • Affordable

Confidential and Proprietary Skype Technologies S.A.


3 telephony is becoming an app

3. Telephony is Becoming an App

  • An application that you run on a computer

  • Computers have different form factors

    • Desktops, Laptops, PDAs

    • Mobile phones

    • Embedded

    • Increasingly ubiquitous and everywhere

Confidential and Proprietary Skype Technologies S.A.


New game with an app

…New Game with an App

  • Economics

    • Zero customer acquisition costs

    • Zero marginal costs per call minute

       You can’t charge for calls anymore

  • Distribution

    • Network independent & worldwide market

  • Innovation

    • Software development product cycles, rather than network infrastructure (10 years+)

Confidential and Proprietary Skype Technologies S.A.


Carrier implications

VoIP is driving broadband sales

Operating one network is more cost efficient than one network per service

Examples:

BT 21st Century Network

TeliaSonera

HGC

Carrier Implications

TelecomRevenue

?

Telephony

Internet access

Confidential and Proprietary Skype Technologies S.A.


Why now

Why Now?


Why now user maturity

Why Now – User Maturity

  • Who wants to use the Internet and PCs for calling?

    • Who could imagine we would use our PCs for:

      • Music jukebox and music downloads?

      • Photo albums and image sharing

  • Sara 8 years old doesn't like to talk on the phone (it’s weird) but talking on Skype is cool

  • Mike 17 uses his PC for music, TV, photos, gaming and talking (incl voice) to friends

Confidential and Proprietary Skype Technologies S.A.


Why skype

Why Skype

  • Outside-of-the-box technology - none of our engineers were telecom engineers – they just solved the problem

  • Simple-to-use as the benchmark was the traditional phone and the web browser

  • Think of your mother as user

Confidential and Proprietary Skype Technologies S.A.


Why now infrastructure

Why Now – Infrastructure

  • Over 100 million computers connected to broadband Internet last year

  • Massive bandwidth available – QoS is moot

  • Powerful computers

  • Wi-fi

Confidential and Proprietary Skype Technologies S.A.


The ecosystem

The Ecosystem

  • Encouraging evangelizers

  • Extensive API which is free to use

  • Accessories which are Skype Enabled are very attractive to consumers

  • Existing users recommend Skype to friends (as long as we are honest and respect our users)

Confidential and Proprietary Skype Technologies S.A.


Growth opportunities

Growth Opportunities

Where are Skype, and partners, going…


Growth has been on pcs so far

Growth has been on PCs so far

  • Growth-to-date has been primarily on desktop/laptop Windows

  • There are many more mobile phones than PCs

  • Although we (early adopters) can’t live without our PCs our mothers don’t want to leave them on

  • Skype is breaking out of the PC…

Confidential and Proprietary Skype Technologies S.A.


New platforms

New Platforms

  • Skype on mobile OS:

    • Short list: Embedded Linux, Symbian, Windows Mobile,…

  • Embedded Platforms: Embedded Linux

    • We intend to work with hardware companies to include Skype on their Internet connected devices

Confidential and Proprietary Skype Technologies S.A.


Api developer opportunity

API – Developer Opportunity

  • Skype API enables developers and hardware companies to integrate Skype functionality into their products

  • Unleashing innovation and enabling developers

Confidential and Proprietary Skype Technologies S.A.


New services

New Services

  • SkypeIn – 30 € per year

    • US, UK, France, Sweden, Finland, Denmark, Poland, Hong Kong

    • Free global roaming

  • VoiceMail

    • Early usage shows that people use it differently than PSTN voice mail

Confidential and Proprietary Skype Technologies S.A.


New affiliate program

New Affiliate Program

  • Today Skype announced its ‘Affiliate Program’

  • Online communities, Web publishers, bloggers and Skype enthusiasts are rewarded with commissions of up to 10% for promoting Skype on their websites

  • Affiliates participate in Skype’s tremendous growth and receive commissions from Skype Store purchases made by visitor click-throughs

Confidential and Proprietary Skype Technologies S.A.


Affiliate program benefits

Affiliate program benefits

  • Any website or blog seeking stronger communications with its audience and community will benefit

  • Social networking and community websites with user forums will particularly benefit from the open, multi-mode communication Skype enables

  • The affiliate program helps extend the referral power that has made Skype the fastest-growing voice communications offering worldwide with more than 39 million users.

Confidential and Proprietary Skype Technologies S.A.


Regulation and voip

Regulation and VoIP


The need for regulation

The Need for Regulation

  • Why do we have regulation at all?

    • To ensure consumers gets decent services where there is a market with dominant players

    • Not to stop innovation and to protect incumbents

Confidential and Proprietary Skype Technologies S.A.


Maybe regulate the incumbents

Maybe Regulate the Incumbents

  • VoIP is a nascent technology that need to

    • Interconnect to the PSTN

    • Be delivered over third party Internet access

  • Those networks are mainly provided by incumbents or second operator in an oligopoly market.

  • They have incentive to stop others VoIP

    • Don’t let them (not good to restrict consumer choice)

Confidential and Proprietary Skype Technologies S.A.


Nomadic numbers benefit

Nomadic Numbers Benefit

  • Users can connect with their computer/phone anywhere there is an Internet access and be reached via their geographical number

    • Customers save money on roaming

    • Callers can call cheap local calls rather than expensive calls to mobile

Confidential and Proprietary Skype Technologies S.A.


Virtual numbers benefit

Virtual Numbers Benefit

  • A business in e.g. Luxembourg can have virtual VoIP numbers in France, Germany, Hong Kong, USA, Sweden, etc

    • this opens up enormous benefits for end users

    • Regulators in many countries are not allowing this, which is a disadvantage for those countries

Confidential and Proprietary Skype Technologies S.A.


Emergency calling

Emergency Calling

“When there is a burglar in my house I don’t want to call the police, I want to email or IM them”

  • Take advantage of the new IP technology to provide richer emergency services

  • Don’t force legacy emergency calling to nascent technology

Confidential and Proprietary Skype Technologies S.A.


Solution

Solution

  • Provide open interface to emergency centrals which can receive text, voice and video over IP

  • Build up national IP geo mapping databases managed by national authorities

Confidential and Proprietary Skype Technologies S.A.


Summary

Summary

  • Voice is becoming a software application

  • New rules with software

  • No benefits of regulating VoIP

Confidential and Proprietary Skype Technologies S.A.


A vision for global telephony

Thank You!

www.skype.com/company/jobs/

Confidential and Proprietary Skype Technologies S.A.


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