Niklas Zennstrom's statements at VON Canada


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Niklas Zennstrom's statements at VON Canada

  1. 2. A Vision For Global Telephony VON Canada Niklas Zennstr öm Skype CEO and co - founder
  2. 3. Vision <ul><li>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. </li></ul><ul><li>That software is Skype. </li></ul>
  3. 4. Viral = Exponential Growth ~155 000 new users per day ~35 M registered users, in all countries in the world ~1.2M SkypeOut accounts ~1.5B minutes per month (22% monthly growth) Months since launch Users
  4. 5. Telecom Transition
  5. 6. 1. Many Networks Become One <ul><li>Previously we had vertical solutions that offered one network per service: </li></ul><ul><ul><li>PSTN, X.25, Frame Relay, IP, Telex... </li></ul></ul><ul><li>The Internet is becoming the common carrier for all services </li></ul><ul><li>Growth comes as various wireless access technologies connect to the Internet </li></ul><ul><li>-Wi-Fi, 3G (data), WiMax, UWB… </li></ul>
  6. 7. 2. Phones are Becoming Computers <ul><li>Powerful CPUs </li></ul><ul><li>Connected to the Internet via various radio networks (multi-band) </li></ul><ul><li>Open OS (Linux, Symbian, Windows Mobile, etc) </li></ul><ul><li>Easy to install applications </li></ul><ul><li>Affordable </li></ul>
  7. 8. 3. Telephony is Becoming an App <ul><li>An application that you run on a computer </li></ul><ul><li>Computers have different form factors </li></ul><ul><ul><li>Desktops, Laptops, PDAs </li></ul></ul><ul><ul><li>Mobile phones </li></ul></ul><ul><ul><li>Embedded </li></ul></ul><ul><ul><li>Increasingly ubiquitous and everywhere </li></ul></ul>
  8. 9. … New Game with an App <ul><li>Economics </li></ul><ul><ul><li>Zero customer acquisition costs </li></ul></ul><ul><ul><li>Zero marginal costs per call minute </li></ul></ul><ul><ul><li> You can’t charge for calls anymore </li></ul></ul><ul><li>Distribution </li></ul><ul><ul><li>Network independent & worldwide market </li></ul></ul><ul><li>Innovation </li></ul><ul><ul><li>Software development product cycles, rather than network infrastructure (10 years+) </li></ul></ul>
  9. 10. Carrier Implications <ul><li>VoIP is driving broadband sales </li></ul><ul><li>Operating one network is more cost efficient than one network per service </li></ul><ul><li>Examples: </li></ul><ul><ul><li>BT 21st Century Network </li></ul></ul><ul><ul><li>TeliaSonera </li></ul></ul><ul><ul><li>HGC </li></ul></ul>Internet access Telephony Telecom Revenue ?
  10. 11. Why Now?
  11. 12. Why Now – User Maturity <ul><li>Who wants to use the Internet and PCs for calling? </li></ul><ul><ul><li>Who could imagine we would use our PCs for: </li></ul></ul><ul><ul><ul><li>Music jukebox and music downloads? </li></ul></ul></ul><ul><ul><ul><li>Photo albums and image sharing </li></ul></ul></ul><ul><li>Sara 8 years old doesn't like to talk on the phone (it’s weird) but talking on Skype is cool </li></ul><ul><li>Mike 17 uses his PC for music, TV, photos, gaming and talking (incl voice) to friends </li></ul>
  12. 13. Why Skype <ul><li>Outside-of-the-box technology - none of our engineers were telecom engineers – they just solved the problem </li></ul><ul><li>Simple-to-use as the benchmark was the traditional phone and the web browser </li></ul><ul><li>Think of your mother as user </li></ul>
  13. 14. Why Now – Infrastructure <ul><li>Over 100 million computers connected to broadband Internet last year </li></ul><ul><li>Massive bandwidth available – QoS is moot </li></ul><ul><li>Powerful computers </li></ul><ul><li>Wi-fi </li></ul>
  14. 15. The Ecosystem <ul><li>Encouraging evangelizers </li></ul><ul><li>Extensive API which is free to use </li></ul><ul><li>Accessories which are Skype Enabled are very attractive to consumers </li></ul><ul><li>Existing users recommend Skype to friends (as long as we are honest and respect our users) </li></ul>
  15. 16. Growth Opportunities Where are Skype, and partners, going…
  16. 17. Growth has been on PCs so far <ul><li>Growth-to-date has been primarily on desktop/laptop Windows </li></ul><ul><li>There are many more mobile phones than PCs </li></ul><ul><li>Although we (early adopters) can’t live without our PCs our mothers don’t want to leave them on </li></ul><ul><li>Skype is breaking out of the PC… </li></ul>
  17. 18. New Platforms <ul><li>Skype on mobile OS: </li></ul><ul><ul><li>Short list: Embedded Linux, Symbian, Windows Mobile,… </li></ul></ul><ul><li>Embedded Platforms: Embedded Linux </li></ul><ul><ul><li>We intend to work with hardware companies to include Skype on their Internet connected devices </li></ul></ul>
  18. 19. API – Developer Opportunity <ul><li>Skype API enables developers and hardware companies to integrate Skype functionality into their products </li></ul><ul><li>Unleashing innovation and enabling developers </li></ul>
  19. 20. New Services <ul><li>SkypeIn – 30 € per year </li></ul><ul><ul><li>US, UK, France, Sweden, Norway, Finland, Denmark, Poland, Hong Kong </li></ul></ul><ul><ul><li>Free global roaming </li></ul></ul><ul><li>VoiceMail </li></ul><ul><ul><li>Early usage shows that people use it differently than PSTN voice mail </li></ul></ul>
  20. 21. Regulation and VoIP
  21. 22. The Need for Regulation <ul><li>Why do we have regulation at all? </li></ul><ul><ul><li>To ensure consumers gets decent services where there is a market with dominant players </li></ul></ul><ul><ul><li>Not to stop innovation and to protect incumbents </li></ul></ul>
  22. 23. Maybe Regulate the Incumbents <ul><li>VoIP is a nascent technology that need to </li></ul><ul><ul><li>Interconnect to the PSTN </li></ul></ul><ul><ul><li>Be delivered over third party Internet access </li></ul></ul><ul><li>Those networks are mainly provided by incumbents or second operator in an oligopoly market. </li></ul><ul><li>They have incentive to stop others VoIP </li></ul><ul><ul><li>Don’t let them (not good to restrict consumer choice) </li></ul></ul>
  23. 24. Nomadic Numbers Benefit <ul><li>Users can connect with their computer/phone anywhere there is an Internet access and be reached via their geographical number </li></ul><ul><ul><li>Customers save money on roaming </li></ul></ul><ul><ul><li>Callers can call cheap local calls rather than expensive calls to mobile </li></ul></ul>
  24. 25. Virtual Numbers Benefit <ul><li>A business in e.g. Luxembourg can have virtual VoIP numbers in France, Germany, Hong Kong, USA, Sweden, etc </li></ul><ul><ul><li>this opens up enormous benefits for end users </li></ul></ul><ul><ul><li>Regulators in many countries are not allowing this, which is a disadvantage for those countries </li></ul></ul>
  25. 26. Emergency Calling <ul><li>“ When there is a burglar in my house I don’t want to call the police, I want to email or IM them” </li></ul><ul><li>Take advantage of the new IP technology to provide richer emergency services </li></ul><ul><li>Don’t force legacy emergency calling to nascent technology </li></ul>
  26. 27. Solution <ul><li>Provide open interface to emergency centrals which can receive text, voice and video over IP </li></ul><ul><li>Build up national IP geo mapping databases managed by national authorities </li></ul>
  27. 28. Summary <ul><li>Voice is becoming a software application </li></ul><ul><li>New rules with software </li></ul><ul><li>No benefits of regulating VoIP </li></ul>
  28. 29. Thank You!