1. VoIP Hits The Road
Is It a threat or an opportunity ?
Jun 27, 2011
John Naguib

2. Market Outlook : Fact no. 1
• Global Traffic ARPU Is Declining Through Competition & Commoditization
Source: TeleGeography Research

3. Market Outlook : Fact no. 2
• Traditional International Calls Is Declining
Boom Recession +
Traffic
routed via
PC to PC
Notes: Data for 2010 are projections based on half-year results. VoIP traffic reflects international
traffic transported as VoIP by carriers, and excludes PC-to-PC traffic.
Source: TeleGeography Research

4. Market Outlook : Fact no. 3
• Mobile User > Desktop Internet User within 3 years
Source: Morgan Stanley Research

5. Market Outlook : Fact no. 4
• There are new entrants in the international calls market.
• Apple has introduced FaceTime.
• Yahoo and Google have introduced their video calling services.
• Skype has partnered with Facebook.
• ……………………………………………………………. & Others
Source: TeleGeography Research

6. Where Did the Growth Go?
Notes: Data for 2010 are projections based on half-year results. Skype traffic reflects on-net cross-
border traffic only, and excludes calls originated via Skype but terminated to the PSTN.
Source: TeleGeography Research

7. What is the VOIP value proposition ?
VOIP has over the traditional operator voice model by :-
• Cheap international calls .
• Free calls between the VoIP clients.
• VOIP is leading the way for innovation in unmanaged international
mobile voice calls.
Independent Market Review

8. Competition landscape
Apple
Although FaceTime is over WiFi only, It has brought video calling over IP
into the spotlight and more players have started to provide this service.
Google and Facebook
They are pushing the idea of becoming a communication hub, providing
the single platform for activation all types of communication, from
emailing to photo sharing and voice calls.
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9. Paradigm shift of International Voice Traffic
• Operators are still stick to high-margin international traditional voice
calls revenue that are gradually being eroded !
• Operators offer special tariffs, but these are not viable for users, why ?
• There is a new era , SIMless mobile phone “IP based“.
• IP wireless phone = Voice + Data + Video + Mobile Broadband.
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10. The new era features & Issues
Features
VoIP service providers is growing rapidly, VoIP is limited only by the
talents of application developers. Unlike circuit switched voice
telephony, VoIP offers the potential for the full integration of voice,
data, and video and advanced computer applications.
Issues
-Too many suppliers entering the market.
- Mobile VoIP quality of service is questionable.
- Lack of regulatory clarity.
- Lack of standards.
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11. Conclusions & Recommendations
Mobile operators able to offer their own VoIP services at a cost far
below today's circuit-switched networks. However, in the real world,
regulators are dictating the process and the rules.
So
Mobile Operators should work with government to liberalize the
communications markets by directing the regulatory scheme to promote
the competition and supporting the deployment and take-up of VoIP.
Independent Market Review

12. Conclusions & Recommendations
• Blocking mobile VOIP is not a practical long-term strategy.
• VOIP can Attract more new users and encourage data plans uptake.
• Mobile operators may partner with internet call providers.
• Mobile operators could benefit from the potential market and
establish a brand image.
• High Definition (HD) voice quality can increase the length of a voice call
up to 40%.
Independent Market Review

13. comes not only from competing
successfully, but also from shaping the
future by creating opportunities rather
doing things with the way currently are.
John Naguib