Niklas Zennstrom's statements at VON Canada
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Niklas Zennstrom's statements at VON Canada

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  • 1.  
  • 2. A Vision For Global Telephony VON Canada Niklas Zennstr öm Skype CEO and co - founder
  • 3. 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.
  • 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
  • 5. Telecom Transition
  • 6. 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…
  • 7. 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
  • 8. 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
  • 9. … 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+)
  • 10. 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
    Internet access Telephony Telecom Revenue ?
  • 11. Why Now?
  • 12. 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
  • 13. 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
  • 14. Why Now – Infrastructure
    • Over 100 million computers connected to broadband Internet last year
    • Massive bandwidth available – QoS is moot
    • Powerful computers
    • Wi-fi
  • 15. 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)
  • 16. Growth Opportunities Where are Skype, and partners, going…
  • 17. 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…
  • 18. 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
  • 19. API – Developer Opportunity
    • Skype API enables developers and hardware companies to integrate Skype functionality into their products
    • Unleashing innovation and enabling developers
  • 20. New Services
    • SkypeIn – 30 € per year
      • US, UK, France, Sweden, Norway, Finland, Denmark, Poland, Hong Kong
      • Free global roaming
    • VoiceMail
      • Early usage shows that people use it differently than PSTN voice mail
  • 21. Regulation and VoIP
  • 22. 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
  • 23. 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)
  • 24. 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
  • 25. 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
  • 26. 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
  • 27. 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
  • 28. Summary
    • Voice is becoming a software application
    • New rules with software
    • No benefits of regulating VoIP
  • 29. Thank You!