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Introduction to telecom scenario Economy, services, industry Telecom industry growth: The government has also legalized Internet telephony (Voice over Internet Protocol or VOIP for short) April 1, 2002 Major players and challenges Opportunities
New world order Emerging areas New services: basic telephony, PC-to-landline/mobile/PC calls, IMs, video calls, video-conferencing, file-transfer Players: Skype, Gtalk, Jajah, Yahoo’s VoIP, Lycos, phone.com, AltiGen, Micrsoft
Gossip is the human equivalent of'social grooming' among primates
Skype Introduction Software that enables the world's conversations. Millions of individuals and businesses use Skype to make free video and voice calls, send instant messages and share files with other Skype users. Everyday, people also use Skype to make low-cost calls to landlines and mobiles
Skype is a communications tool Humans are really, really, interested in things that help us communicate with each other more and better. From cave paintings to mobile phones, it’s always the same. And this is even more true for young people. They are forging their social identity through conversation.
Nature of services voice calls over the Internet Calls to other users of the service and, in some countries, to free-of-charge numbers, are free, while calls to other landlines and mobile phones can be made for a fee. Additional features include instant messaging, file transfer and video conferencing
Free is quite interesting to people. Especially free and good.
And it’s more interesting still to impoverished young people!
If you tell your friends to get Skype too, you can talk for as long as you like without worrying about the cost or the distance.
Skype’s success 0 to customers in 2.5 years. Nearly 200 million customers today. Still growing at 200,000 new users every day.
Right idea, right time There was plenty of internet calling software before Skype. But it didn’t work very well, and lots of people still had slow dial-up internet connections. Plus it was called VoIP, which was a bit off-putting. Skype was called Skype instead, and it just worked. And it arrived just as lots of people were starting to get broadband internet access. It’s a very ‘native’ product for young people.
Simple and easy Skype worked really hard on making Skype as easy to install and use as possible. We knew it was easy enough when Geoffrey’s grandma could use it. (Geoffrey is one of the original Skypers.) Ease of use is important for busy young people too. Hence the iPod, people moving to Facebook…
Giving influencers new stuff Skypecasts are a new way to have conversations with people across the world who share your interests. Pick a subject you’re interested in from the directory, and join a hosted call with up to 100 other people from around the world. Our early-adopter influencers are helping us pioneer and shape this new way of communicating.
Skype feels free Skype is free. More than that though, it feels free. Free helps people realise that Skype is a different kind of company. We took something that big companies charged quite a lot for, and gave it to you for free. Nice, eh?
Skype does a lot It’s a fast world. People get bored quickly. Part of being committed is keeping doing stuff – it’s not good enough to have done it once. The advertising industry’s idea of the reductive ‘big idea’ is no use here. It’s about doing lots of little things, that all add up to a rich, complex and involving brand.
As the VoIP (Voice over Internet Protocol) market continues to grow, computing heavy weight Microsoft have announced plans to enter the market with the release of their Office Communications Server.
AltiGen, a provider of VoIP business phones and Microsoft-based Unified Communications offerings, has signed a deal with Italian distributor and telecom equipment vendor Hypercom. The move will allow Hypercom to sell and distribute AltiGen VoIP products to companies through Telecom Italia.
Subsitutes Mobiles with 3G/2G Landlines Video-conferencing
SWOT Analysis Strengths E-bay Skype’s brand equity User base Conducive environment for growth Users Culture Infrastructure Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009.
Strengths Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
opportunities BPOs and call-centers Collaborations with leading Indian ISP (like Airtel, Satyam etc) or portals (like rediff , indya.com etc) and bundle free downloads (same strategy followed by Skype in China , Japan) Aggressively Advertise Skype out charges in Indian Media Plunging broadband rates , large no of citizens, customer base living/working abroad ,booming economy and sheer numbers makes India and also China very good markets and worth fighting for in future
In February Skype secured a deal with Nokia under which the world's biggest phone maker will preload Skype software into some of its new smartphones.
Threats High growth means highly competition Easily available subsitutes Technology ever changing Intelligence agencies Majority of people extensively portals like Yahoo, MSN or rediff for checking emails/search/IM Skype’s two day outage
Growth and financial impact Skype-to-Skype calls accounted for 54 billion out of a total of 406 billion international call minutes in 2009 Skype is confident of maintaining its growth in customer numbers of about 30-35 million per quarter for some time to come Reported more than $550 million in sales for 2008, with $145 million in the fourth quarter, up 26 percent on a year ago. By the end of 2008, the company had 405 million customers, up 47 percent in a year.
Summary A great Web 2.0 business Significant growth opportunities Leverage on the brand Buzzes quite well with everyone!