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  • For comparative purposes, this slide will enforce the importance of the IE as compared to other important sectors of the US economy. In little over 3 years the IE is larger than the traditional telecom economy and I suspect now that the IE should exceed the automobile sector which had been the engine of economic growth for a good part of the 20 th century. The IE is likely to be the primary engine for economic growth in the US now, and in other countries (soon? Now?). Speaker notes already existing on this slide from before: -- There are now more workers in the Internet economy than in the automobile sector which was then engine of previous economic boom periods in the US economy. -- The average salary in this sector is significantly higher than other sectors. In 1996 the average salary of workers in the Internet/high-tech jobs was $46,000 a year, more than 50 percent higher than the average wage of $28,000.(USDOC).
  • As the internet is a driving force in the ongoing economic boom, esp. in the USA. One of the best studies addressing the impact on the global economy was carried out by the Univ. of TX that in depth surveyed 3000 global US based companies on usage of the internet and IT. This 1998 study estimated that the internet economy was comprised of 301.4B dollars, which as you can see if substantial growth from 1995 (quote figure). From 95-98 the global economy grew at 3.8%. Compared to the growth of the internet economy of more than 174%. The main purpose of this graph is to indicate that the internet economy has become a driving force in the global economy and very much so in the united states.
  • Segue from slides 6 to 7…Not only is the IE important to boost productivity, it is important (in terms of b to b, b to c) Companies like Yahoo are b to c companies. The b to c part of the IE has grown dramatically (site dates and figures above). This has impacted the investment communities interest and participation. Even more dramatic is the growth of the b to b sector. Companies like iBasis are in the b to b sector. While many are concerned about b to c issues, focusing on and understanding the impact of regulation on b to b transactions is even more important to the growth of the asian economies.
  • The Internet took less than 4 years to reach 50 million users – which stands in sharp contrast to how long it took other telecom technologies to reach 50 million users. Not only will the Internet continue to spread at incredible speed, but it also allows developing countries to leapfrog technologies – specifically the circuit-based network. New low-cost IP and mobile services and equipment will enable millions of users in developing countries to access communications services and the Internet at a fraction of the cost circuit based networks without having to first obtain a telephone line, then buy a computer, a modem, etc. We at iBasis, for example, recently signed agreements to provide unified communications (UC) over our IP network. UC, when combined with inexpensive IP devices similar to Palm Pilots or other such devices, will enable users to communicate in new ways without ever having to touch a traditional telephone.
  • Only 5 … Only 2, ITXC and iBasis, are focused on b2b and p2p. We’re similar in many ways – about the same total traffic, for example, but we have different strategies: ITXC’s network consists of more, but smaller, points of presence, which means they’re getting smaller volumes of traffic on average from each of their partners. We have focused on large carriers from the beginning, and have built fewer, but higher capacity, points of presence in our network. Our ICOs are capable of carrying substantial volumes of traffic, and we’re increasing our ICOs, from 5 to 20 by the end of 2000. ITXC supports gateways from multiple vendors, which, due to the lack of interoperability standards among the vendors’ products, means that practically speaking ITXC’ network is actually a collection of smaller, incompatible networks. At iBasis, we believe interoperability would be great, and Cisco, as the market leader in VoIP will certainly be among the standard-setters. But, when standards don’t exist, operability is more important. So, we chose to build a totally homogeneous CPN. This distinction is even more critical in the deployment of value added services. Of course, it’s a very large market opportunity, and there’s plenty of room for multiple service providers, including ITXC. However, today, only one, iBasis, is delivering toll quality service to Tier one carriers.
  • Services not offered in ITH today: Collocation We do not provide Gateways from vendors other than Cisco We do not provide space and put in customer’s equipment Switch Partitioning We do not partition the switch and allow customers to control it
  • Integrated voice mail, e-mail and fax Access e-mail over the phone Access voice mail from the PC Paging notification Outbound dialing from within voice mail Single number “follow me” Web-based provisioning Full-featured hosted solution Built on Cisco uOne platform Leverages best-of-breed components Industry’s first standards-based, carrier-class unified messaging platform Enables service providers to quickly roll-out higher margin enhanced services
  • This is a simplified diagram of the iBasis Network for voice and fax over IP. Our customers are wireline and wireless carriers We have deployed Points of Presence all over the world to carry traffic over the Internet [CLICK] To support value added services, specifically Unified Communications, we are adding application servers, directory servers and storage devices from industry leaders Cisco, Hewlett Packard, Software.com, and EMC. Unlike earlier attempts at unified messaging, which were PC-based, we’re providing a true carrier-grade solution that is highly reliable & highly scalable. This is the communications services architecture of the future: It is a standards-based platform that allows for new devices and new applications Someday, for example, this architecture will enable you to access web content over basic black phones In this way, the iBasis architecture is unifying Internet and voice services.
  • Read thru this one. Conclusion: the issue and the challenge is not only the net for reg issues, you are talking about broader econ issues. Like President Clinton in the US says, it is the economy stupid, it is not just the internet. the previous sectors I previously discussed are interdependent. Regulating one internet sector, or targeting one specific type of service over others in the IE will adversely affect growth of other sectors. The dynamism of the IE and its growth comes in part from a group of small companies who are competing. The large corporations are not the ones who created the IE, it was and are the startups who are the leading forces and innovators. (point is that in some developing countries the IE will be developed by one or two of their largest companies and buy into what those large companies say. The point here is no!, the growth is driven by the smaller players. Developing an educated workforce is critical. This is important for regulators and gov’t officials to keep in mind.
  • When one compares traditional telephone networks to packet based, there are clear cost and flex benefits. Voip is more cost effective than trad circuit switched network. (JUST FOR BONNIE’S BACKGROUND)  Traditional telephone nw’s established a very cumbersome accounting rate system. Accounting rate systems used to be called an Accounting Rate Agreement. The two parties own half of the circuit under the sea, the other carriers owns the other half. They would compensate each other for traffic. for each minute of traffic that went over the network. Then they would divide by 2. The US carrier would keep 50 cents, the foreign carrrier the rest. The end of the month the network imbalance was paid out from one party to the other. There was also proportionate return that was aimed at protecting US carriers from other monopolies. Accounting rates are the way of the dinosaur. Termination rates or reciprocal compensations are the way to go now. IP networks are more flexible, can offer vas faster, better, cheaper…
  • Read from first bullet. Conclusion: VOIP should not be regulated as a telecom service. They issued a revision in 1999, that voip is not equivalent to telephony, when it is it should be very likely regulated. It is strongly encouraged in the EU and has had a good impact for its VoIP industry/adoption as a result
  • PowerPoint

    1. 1. www.ibasis.net opportunity begins with Delivering Enhanced IP Services to Carriers Philip Mutooni Snr. Manager BSS/OSS Engineering [email_address]                                                                         
    2. 2. iBasis, Inc. <ul><li>Founded in 1996 (Nasdaq: IBAS) </li></ul><ul><li>World’s Leading Wholesale Provider of Internet Telephony </li></ul><ul><li>Services: </li></ul><ul><ul><li>International Voice and Fax over IP </li></ul></ul><ul><ul><li>IP CallCard™ (prepaid, postpaid) </li></ul></ul><ul><ul><li>Internet Telephony Hosting™ </li></ul></ul><ul><ul><li>Unified Communications (OneCore™) </li></ul></ul>
    3. 3. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    4. 4. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    5. 5. The Internet Economy in Perspective Source: “Measuring the Internet Economy.” University of Texas, June 1999
    6. 6. Growth of the Internet Economy Source: “Measuring the Internet Economy.” University of Texas, June 1999 1995-1998 Internet Economy CAGR: 174% 1995-1998 Global Economy CAGR: 3.8% $5.3 BN $301.4 BN
    7. 7. Critical Transactions of the Internet Economy: Business to Business (B2B) Source: B2B boom. Business 2.0 Magazine
    8. 8. Number of years it took to reach 50 million users
    9. 9. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    10. 10. iBasis Milestones <ul><li>Customers include 11 out of top 12 US-based carriers of international traffic </li></ul><ul><li>Providing Global Open Architecture to Support Value-Added Services </li></ul><ul><li>Deployed world’s largest Cisco Powered Network™ for Internet telephony </li></ul><ul><li>Successful IPO November 1999 & Secondary Offering February 2000 (raised over $400M, fully funded) </li></ul>
    11. 11. Explosion in Worldwide Internet Communications Revenues In Billions Source: IDC, 1999 / Ovum, 2000
    12. 12. A Radical Shift is Redefining the Communications Industry NEW WORLD Data Packet-Switched Mobile, personalized Open Network encourages new services OLD WORLD Voice Circuit-Switched Fixed, generic Closed Network constricts innovation
    13. 13. Large-scale ITSPs Market-Space Defined C O N S U M E R P C T O P H O N E P H O N E T O P H O N E B U S I N E S S T O B U S I N E S S
    14. 14. Critical Success Factors <ul><li>Seamless integration with the PSTN </li></ul><ul><li>Internet-based solution </li></ul><ul><li>Toll quality </li></ul><ul><li>Global network </li></ul><ul><li>Superior technology platform </li></ul>
    15. 15. Seamless Integration POP Circuit-Switched Network POP INTERNET Circuit-Switched Network Alternate Routes iBasis Network Operations Center Assured Quality Routing
    16. 16. Our Customers are Major Carriers Communications Authority of Thailand
    17. 17. Why Major Carriers Choose iBasis <ul><li>Superior Quality Internet telephony services at low cost </li></ul><ul><li>Speed to market </li></ul><ul><li>Instant worldwide footprint </li></ul><ul><li>Continuous innovation </li></ul><ul><li>Industry expertise </li></ul>
    18. 18. Internet Central Offices PSTN OC48 Switch SS7 / C7 Gateways Gatekeepers Multiplexers Routers Remote Access Backup Power DS-3 OC48 DS-3 iBasis ICO, New York City INTERNET
    19. 19. Assured Quality Routing™ High Low “ Not Great” PSTN Typical ITSP Circuit- switched <ul><li>Assured Quality Routing TM enables quality over the Internet </li></ul><ul><ul><li>Real time monitoring and alarming </li></ul></ul><ul><ul><li>Traffic re-routing to PSTN before voice quality falls below established thresholds </li></ul></ul><ul><ul><li>Judicious choice of ISPs to provide high speed backbone connection </li></ul></ul>Q U A L I T Y S A V I N G S Internet Savings with High Quality Requires Proprietary Software
    20. 20. Web-based Customer Care: Interactive Traffic Analysis Center Enables customers to manage their operations efficiently Provides timely statistics on traffic volume and quality
    21. 21. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    22. 22. The Hosting Model Regional carrier network without global reach
    23. 23. Business Considerations <ul><li>Time to market </li></ul><ul><li>Managed growth </li></ul><ul><li>Minimize risk </li></ul><ul><li>Quality of experience </li></ul><ul><li>New applications </li></ul>
    24. 24. The Hosting Model Regional carrier network gains instant global footprint, speed to market
    25. 25. The Hosting Model Regional carrier network now a Global Network and expands with rapidly growing iBasis Network
    26. 26. VoIP Requires Special Resources <ul><li>Human </li></ul><ul><li>NOC engineers </li></ul><ul><li>Storage engineers </li></ul><ul><li>Traffic engineers </li></ul><ul><li>IP architects </li></ul><ul><li>Development engineers </li></ul><ul><li>Systems </li></ul><ul><li>NOC tools </li></ul><ul><li>Personalization tools </li></ul><ul><li>Provisioning tools </li></ul><ul><li>High availability & redundancy </li></ul><ul><li>IP billing & mediation </li></ul>
    27. 27. IP Billing & Mediation <ul><li>Combination of Expertise & Sophisticated Tools : </li></ul><ul><li>Different pricing models </li></ul><ul><li>Effective/efficient rate management </li></ul><ul><li>Flexible service model support </li></ul><ul><li>Multiple account hierarchy </li></ul><ul><li>Real time & non real time information </li></ul>
    28. 28. Architecture and Components of Internet Telephony Hosting Hosted Facilities & Mgmt. Hosted Applications 7x24 NOC AQR iTrac Billing Settlements OSS VoIP-tuned Internet PSTN connection SS7, C7 Toll Free Phone number Access Gateways Gatekeepers Switches VAS Servers Equipment Hosted Applications Voice and Fax IP CallCard Unified Communications
    29. 29. Internet Telephony Hosting: Key Benefits <ul><li>Speed to market </li></ul><ul><li>Instant global footprint </li></ul><ul><li>Access to IP messaging expertise </li></ul><ul><li>Leverage economies of scale </li></ul><ul><li>Avoid costly investment and technology obsolescence </li></ul><ul><li>Open competition cost structure </li></ul><ul><li>Access to new applications </li></ul>
    30. 30. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    31. 31. Hosting Unified Communications - Carrier-class, IP-based unified voice, fax, email, voicemail services - Integrated with global VoIP infrastructure - Comprehensive, flexible operational support services - Best-of-breed technologies from Internet industry leaders - Standards-based for extensibility Voice Mail E-Mail Fax Mail
    32. 32. Unifying Internet & Voice Services End Users iBasis Customers iBasis Customers End Users iBasis Network Internet iBasis is the brand behind the brand Wireless Wireless Wireline New Device New Device Directory Servers Application Servers Media Store ISP/ASP Web Portal Web Portal ISP/ASP Wireline
    33. 33. OneCore™: iBasis Unified Communications Infrastructure requirements <ul><li>IP Unified Messaging </li></ul><ul><li>Asynchronous </li></ul><ul><li>Message Exchange </li></ul><ul><ul><li>Voicemail </li></ul></ul><ul><ul><li>Email </li></ul></ul><ul><ul><li>Fax </li></ul></ul><ul><li>Content & Transaction Services </li></ul><ul><li>Extensible Application Platform </li></ul><ul><ul><li>Web content </li></ul></ul><ul><ul><li>Personalized, </li></ul></ul><ul><ul><li>location-aware </li></ul></ul><ul><ul><li>Transactions </li></ul></ul><ul><ul><li>ISVs = new apps </li></ul></ul><ul><li>IP Communications </li></ul><ul><li>Real-time Communications </li></ul><ul><ul><li>Single number reach </li></ul></ul><ul><ul><li>Notification </li></ul></ul><ul><ul><li>Paging </li></ul></ul><ul><ul><li>Outdialing </li></ul></ul>Scope of Solution
    34. 34. Agenda <ul><li>Internet Economics Background </li></ul><ul><li>Overview of iBasis Business </li></ul><ul><li>Innovative Business Models </li></ul><ul><li>Example of Value Added Service: Unified Communications </li></ul><ul><li>Conclusion </li></ul>
    35. 35. Observations on the NEW Internet Economy <ul><li>The issue and the challenge is not simply the Internet. </li></ul><ul><ul><li>As they say in the U.S.: “It’s the economy stupid.” </li></ul></ul><ul><li>The Internet “sectors” are interdependent. </li></ul><ul><ul><li>Regulating one Internet “sector” will adversely affect the growth and development of the other sectors. </li></ul></ul><ul><li>The dynamism of the Internet Economy comes in part from the “anarchy” of a large number of small companies that compete. </li></ul><ul><li>Educated workforce </li></ul><ul><ul><li>Education is critical </li></ul></ul>
    36. 36. <ul><li>VoIP and IP networks and circuits are more cost effective than circuit-switched networks </li></ul><ul><li>Compensation mechanisms used in VoIP agreements tend to be more flexible and simpler than those used by traditional switched networks and operators (i.e. accounting rates) </li></ul><ul><li>VoIP and IP networks and operators seek to provide latest value added services </li></ul>Source: A telecom scorecard 1999-2000: Consumer costs for basic services in the Americas. Alexis de Tocqueville Institution. Feb. 2000. http: www.adti.net . The Advantages of International Internet Telephony Networks: Costs and Flexibility
    37. 37. <ul><li>We convert circuit voice into packetized data. VoIP is platform for value-added services. </li></ul><ul><li>We are a carrier’s carrier. </li></ul><ul><li>Will never provide service to consumers. </li></ul><ul><li>iBasis ICO will be collocated at a carrier’s site. </li></ul><ul><li>iBasis ICO will purchase Internet and PSTN access through an authorized carrier. </li></ul>iBasis ICOs – Delivering Value Added Services
    38. 38. Hosting Solutions for Enhanced Services <ul><li>Unified Communications </li></ul><ul><li>Audio Conferencing </li></ul><ul><li>Voice Instant Messaging </li></ul><ul><li>Voice Enabled Internet Content </li></ul>
    39. 39. www.ibasis.net opportunity begins with Thank You. [email_address]                                                                         
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