the voice of next generation networks tm international ip telephony opportunities ingrid simunic,...
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The Voice of Next Generation NetworksTM
International IP Telephony Opportunities
Ingrid Simunic, PhD.Marketing DirectorFebruary 6, 2003
VocalTec Communications - Confidential & Proprietary
VoIP Market Momentum
5%
8%
13%
18%
26%
1%2%
5%
35%
14%
2%5%
8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
2000 2001 2002 2003 2004 2005
International Long Distance
Domestic Long Distance
Local
VoP Penetration in Long Distance Networks
0
10
20
30
40
50
60
70
80
2001 2002 2003 2004 2005
Milli
on
s o
f M
inu
tes
International
World Wide VoIP Minutes
Source: Probe Research
VoIP Driving the Future of ILD
VocalTec Communications - Confidential & Proprietary
TDM vs VoP Growth
0
50000
100000
150000
200000
250000
2001 2002 2003 2004 2005 2006
TDM VoP
Growth Traffic for VoP in international networks
Growth in VoP traffic far surpasses growth in TDM traffic
VoP replace the TDM international network
TDM traffic to see negative growth starting 2004
Source: Probe Research
VocalTec Communications - Confidential & Proprietary
The Momentum continues…and is driving Innovation
Market Driving Forces
Deregulation
IncreasedCompetition
New RevenuesLower
Ownership Cost
Faster Time to Market
Low margins &customer churn
NextGen Softswitch Based “Core” Tandem Networks
Value-Added Services Calling Cards, IP Conferencing, VoIP VPN, Unified Messaging
VocalTec Communications - Confidential & Proprietary
Conflicting Drivers of Today’s Competitive Environment
versus
Demand for New Revenue Generating Services
Lower OPEX and CAPEX
VocalTec Communications - Confidential & Proprietary
Conflicting Drivers of Today’s Competitive Environment
EXISTING / INCUMBENT CARRIERS
New Revenues
Reduce Customer Churn
Increase ARPU
Lower OPEX
Increase Margins
Increase Efficiency
versusversus
GREENFIELD DEPLOYMENTS
Quick Time to Market
New Revenues
Higher Margins
High Efficiency
Low OPEX
versus
VocalTec Communications - Confidential & Proprietary
Full range of value-added Service offerings on a Single Platform
(Voice VPN, Conferencing, Global Call Center, Calling Card, etc)
Quick time to deployment and service operation
Fast Return on Investment (ROI)
Significantly increase profitability
Advanced Softswitch - based Technology Platform
Superior Routing Capabilities
Packet Tandem Switch Architecture
(e.g. NLD & ILD Service, Trunk Replacement)
Proven Interoperability and Standards SupportH.323, SIP, MGCP, SS7, etc
Scalable turnkey and easy Customizable System
Addressing Service Providers’ Needs
VocalTec Communications - Confidential & Proprietary
Single Platform for Innovative Enhanced Services
Deploy our int’l/ LD solution today and expand seamlessly on the same open services platform
Basic Carrier ServicesLD and Intl’ VOIP NetTrunk Replacement
Enhanced Carrier Services Exchange Carrier (+IDM)
Consumer ServicesCalling CardPrefix Number (to Service Provider) Association
Enterprise ServicesVoice VPNCentrex (future)One Number (future) Next-Gen/Multimedia
ServicesPC/Web CommunicationsVideo-telephonyPersonal Unified Comm.Presence
Web Enabled Contact CentersWeb Enabled Call Centers for E-Commerce
VocalTec Communications - Confidential & Proprietary
International / LD Calling
Packet Tandem SwitchingClass 4 functionality with reduced capex and opex
Flexible routing, not limited like PSTN to point to point
Centralized and easier management leading to reduced operational costs and faster response to market changes
Moving network infrastructure to IP
Unmatched InteroperabilityVT interoperates with 60% of all VoIP ports deployed in virtually every country
Wide origination / termination / routes choices
SS7 connectivityHomologated SS7 support for international protocols
SS7 certification by telcos worldwide (e.g. DT, FT, Global One, Telecom Italia)
SS7 tunneling (ensures call continuity)
ScalabilityFast ROI
VocalTec Communications - Confidential & Proprietary
Calling Card Solution
International LD arbitrage
Ethnic minorities will continue to fuel the growth of the industry
Low rates to specific destination w/budget control
Customized language IVRs
The mobile (wireless) marketYouth & business – budget control (not postpaid)
Cost effective for international calls due to high roaming pricing
The InternetEase of purchase: virtual pp cc + recharge over the Internet
pp cc for pc2ph
QoS
VocalTec Communications - Confidential & Proprietary
Origination TerminationInternational
VoIP VPNService Provider Value Proposition
VoIP-VPN As The Complete Toll Bypass – Improve Margins
Local PSTN charges are significant!
VoIP-VPN is an ‘end to end’ VoIP solution
VoIP-VPN improves Service Provider’s margins by by-passing the origination and termination PSTN networks
PSTN PSTNPSTN / VoIP
V-VPN
VocalTec Communications - Confidential & Proprietary
VoIP VPNBasic Solution Architecture
IP Network
ACME Israel ACME Berlin
VocalTec NY VocalTec, Israel
Service Provider
CPE = Customer Premises EquipmentVGW = VocalTec GateWayVGK = VocalTec GateKeeperVNM = VocalTec Network Manager
Off-net Off-net
On-net On-net
VocalTec Communications - Confidential & Proprietary
Founded in 1989, the Internet Telephony pioneer
World leader in providing software-driven VOIP solutions
Ongoing technical innovations and leadership in the industry standards
VocalTec Proven Experience
1995 1996 1997 1998 1999 2000 2001
February 1995: Internet Phone
February 1995: Internet Phone March 1997: Invented and
developed first gatekeeper
March 1997: Invented and developed first gatekeeper July 1999: First deployment
of gateway 2000
July 1999: First deployment of gateway 2000
February 1996: First industry IPO (NASDAQ: VOCL)
February 1996: First industry IPO (NASDAQ: VOCL) August 1997: World leading
carrier invests in VocalTec
August 1997: World leading carrier invests in VocalTec April 2001: VocalTec SIP server
addresses new markets
April 2001: VocalTec SIP server addresses new markets
February 1998: First complete IP Telephony solution (VEA)
February 1998: First complete IP Telephony solution (VEA) Deutsche Telekom selects VT
as exclusive NGN partner for carrier services
Deutsche Telekom selects VT as exclusive NGN partner for carrier services
VocalTec Communications - Confidential & Proprietary
VocalTec Powers the World`s Leading Carriers
VocalTec Communications - Confidential & Proprietary
www.vocaltec.comwww.vocaltec.comOne Executive DriveSuite 320Fort Lee, New JerseyUSA
THANK YOU !THANK YOU !