WHY VOIP WHY IPVDX WITH IPT.CC A GUIDE TO IPVDX SERVICES ipvdx VoIP IN partnership WITH IPT.CC - the no.1 trading platform www.ipvdx.com
THE FUTURE OF TELECOMS IS VOIP THE FUTURE OF VOIP TRADING IS IPVDX
Contents Executive Summary 4 Global VoIP Services Market 2011 & 2020 6 Revenue Growth Forecast 8 Consumer Electronics & VoIP Statistics 9 The First Plug & Trade Solution 11 How Does IPVDX Do It 12 IPVDX PAY 15 Who is IPT.CC 17 3
EXECUTIVE SUMMARY IPVDX VoIP specializes in VoIP wholesale call termination. We offer high quality Cli and Non Cli routes with some of the top telecommunication companies in the world. We have interconnects with the worlds biggest Tier 1 global carriers. This enables us to successfully operate as a prominent UK and international call carrier that is globally competitive in terms of cost and availability through a well devised A-Z call termination and LCR. The World is seeing a rapid technology migration to both higher speed mobile broadband networks and the increased adoption of smartphones and other connected devices. This is driven by the increased affordability of devices, that will produce most of the future growth, adding a further 2 billion smartphone connections by 2020. Fuelled by the growing range of new services and applications, data traffic is expected to see an almost ten-fold increase by 2020. Consumer Electronics Revenue Growth is forecast to slow further over the coming years, with a Compound Annual Growth Rate (CAGR) of 3.1% per annum through to 2020, down from 4% in the period 2008-2014. More encouragingly, operators are showing an increasing ability to monetize the explosive growth in data traffic. Operators have invested heavily in their infrastructure over the past three years, with capital expenditure (capex) set to increase further to support mobile broadband network developments. Capex is forecast to total US$1.4 trillion for the period out to 2020, with 3G coverage to reach 86% of the population by 2020. In 2014, the mobile industry generates 3.8% of the global gross domestic product (GDP), a contribution that amounts to over US$3 trillion of economic value across 236 countries. In the period to 2020, Mobile s contribution will grow at a faster rate than the rest of the global economy, contributing 4.2% to the world s GDP by the end of the period. The mobile ecosystem directly employed nearly 13 million people in 2014, rising to over 15 million by 2020. The industry also makes a very large contribution to public funding in the form of general taxation. In 2014, approximately US$410 billion was contributed globally.
There are more mobile subscriptions than people living on this planet. 5
GLOBAL VOIP SERVICES MARKET 2011 & 2020 PARTICULARS 2011 2020 GROWTH Total Subscribers 169.6 Million 348.5 Million +178.9 million Subscriber Growth (CAGR) 10.7% (2011-2020) Total Revenue US$61.1 Bn US$136.76Bn + US$75.66 Bn Revenue Growth (CARG) 9.7% (2011 2020) Major Players in the Market (2013) Vonage Holdings Corp., RingCentral, Inc., 8 8, Inc., Nextiva, Inc. and InPhonex LLC among others Computer-to-Computer VoIP services US$21.94 billion and 62.2 million subscribers Computer-to-Computer VoIP Services US$26.43 billion and 80.0 + US$4.49 billion + 17.8M Subscribers Configuration Computer-to-Phone VoIP Services US$30.52 billion and 64.3 million subscribers Computer-to-Phone VoIP Services US$61.68 billion and 140.3 + US$31.16 billion + 76M Subscribers Phone-to-Phone VoIP Services US$8.44 billion and 43.1 million subscribers Phone-to-Phone VoIP Services US$48.65 billion and 128.2 + US$40.21 billion + 85.1M Subscribers International long distance VoIP Calls US$41.21Bn and 91.3 International long distance VoIP Calls US$85.20Bn and 206.9 + US$43.99 billion + 115.6M Subscribers Call Type Domestic VoIP Calls US$29.68Bn and 76.5 Domestic VoIP Calls US$51.56Bn and 141.6 + US$21.88 billion + 65.1M Subscribers 6
PARTICULARS 2011 2020 GROWTH Individual Consumers US$22.92Bn and 59.2 Corporate Consumers US$47.97Bn and 110.4 End-Use 169.6 Million 348.5 Million IP connectivity IP connectivity US$15.09Bn and 36.7 US$23.84Bn and 56.7 Managed IP PBX US$15.68Bn and 37.5 Hosted business US$17.21Bn and 36.2 Individual Consumers US$42.23Bn and 123.1 Corporate Consumers US$94.53Bn and 225.4 Managed IP PBX US$22.41Bn and 58.0 Hosted business US$48.28Bn and 110.7 + US$19.31 billion + 63.9M Subscribers + US$46.56 billion + 115M Subscribers + US$8.75 billion + 20M Subscribers + US$6.73 billion + 20.5M Subscribers + US$31.07 billion + 74.5M Subscribers Geography North America US$19.68Bn and 43.9 Europe US$25.42Bn and 59.0 Asia Pacific US$22.69Bn and 55.58 RoW US$3.11 Bn and 11.2 North America US$35.36Bn and 83.9 Europe US$41.31Bn and 101.8 Asia Pacific US$54.96Bn and 143.3 RoW US$5.13 Bn and 19.7 + US$15.68 billion + 40M Subscribers + US$15.89 billion + 42.8M Subscribers + US$32.27 billion + 887.52M Subscribers + US$2.02 billion + 8.5M Subscribers Key Growth Factors Bring Your Own Device (BYOD) trend in workplaces and demand for mobility leading to growth of smart devices penetration and increase in use of VoIP services Technological advancements leading to roll-out of advanced networks and increase in use of VoIP service over these networks Business customers adopting cloud-based VoIP services due to its cost efficiency and packaged service offerings Diversification by telecommunication players to VoIP services 7
REVENUE GROWTH FORECAST 420 WorldWide Consumer Electronics Revenue Forecast (US$ Bn) 400 380 390bn 397bn 398bn 400bn 405bn 407bn 410bn 412bn REVENUE 360 358bn 372bn 340 320 300 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global VoIP Call Revenue Forecast (US$ Bn) 140 8REVENUE 125 110 95 80 65 50 136.76bn 124.97bn 114.18bn 104.16bn 94.87bn 86.27bn 78.28bn 61.1bn 65bn 70.9bn 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
CONSUMER ELECTRONICS & VoIP STATISTICS
At IPVDX we offer a unique plug and trade solution to both existing and new telecoms traders to take advantage of new revenue streams securely and anonymously.
THE FIRST PLUG & TRADE SOLUTION IPVDX VoIP offers a unique plug and trade solution to both existing and new telecoms traders to take advantage of new revenue streams securely and anonymously. Having established relationships with the Worlds Biggest Telecom Providers, we can now give our clients full access to these companies through our plug and trade solutions. It s that simple! IPVDX VoIP is also the first company to offer immediate payment on invoice, giving you revenue to continue trading 24/7. PREMIUM SERVICES IPVDX with it s bespoke products and services offers wholesale VoIP trading and access to many trusted Payment Gateways, as a unique approach to your needs. As a client you can work directly with IPVDX anonymously and securely giving you uninterrupted business 24hrs a day. All our registered members can now connect via one interconnect and with our master switch into the largest network of telecoms providers via IPVDX s established accounts. As a seller you don t have to worry about not getting paid. At IPVDX we guarantee immediate payment on invoice, giving you revenue to continue trading 24/7. WHO ARE WE - OUR TEAM WITH BIG IDEAS With a complete sales and support team available to help 7 days a week, IPVDX delivers you a total solution from VoIP trading to complete NOC & Switch services. With our professional sales team and IT experts, you can trust IPVDX to get your company moving in the right direction. Trade with piece of mind that you are working with one of the biggest brands in Europe. BENEFITS OF JOINING IPVDX VoIP New client VoIP training with our team of experts Anonymous and secure encrypted VoIP trading Developed for small, large, new and existing VoIP companies IPVDX is everything you need to take your business to the next level! You just Simply Plug & Trade!
HOW DOES IPVDX DO IT IPVDX understands the growing a scalable company is hard, and that is why has based its business model around three key phases of operating a business. The Growth, the Delivery and the Support. At any given time IPVDX is in one of those three phases, which also identify the business choke points. Identifying those choke points helps us move through the phases; from Growth to Delivery, from Delivery to Support and from Support back to Growth. Think of a triangle, with each point representing one of the phases. The quicker a full revolution around the triangle the faster the company grows and that is IPVDXs goal. GROWTH ipvdx VoIP DELIVERY SUPPORT Growth Phase Is made up of any department or employee that deals with the growth of the organization, traditionally being the strategies, marketing and sales departments or staff. Delivery Phase is any department or employee that deals with the delivery of the service, those being engineers, developers or vendor-relations people. Support Phase or Operations Phase are the departments or employees that support the product delivery like a call/support center, billing, HR, legal and number porting employees. HOW DOES IPVDX MOVE FROM ONE PHASE TO THE NEXT? By spinning each phase, faster, and by keeping people accountable for each phase. For example, if we are in the Growth Phase, we look at the overall marketing strategy and we identify if its providing enough qualified leads to the sales department. Also the sales department may want to find ways to drive out waste therefore shortening the sales cycle. With that the choke point moves to the delivery team. As we will be filling our network and operations with customers the delivery team will need to augment the systems in order to handle the additional sales. As the delivery team delivers what was promised by sales, the choke point moves to the support team, which will come in the form of more billing questions and disputes, more call volume to the support center and an influx of submitted number ports to the porting department. As the support department will eventually scale up, then we move back to the Growth Team, completing one full cycle. 12
HOW WE CAN BEAT THE COMPETITION WITH THIS MODEL Lets see each phase separately to understand how it relates to the VoIP business and how can it be applied GROWTH PHASE As we have seen the Growth Phase is at the top of the triangle and without it nothing is delivered or supported. The phase starts with IPVDXs C.O.R.E. values and belief systems. What is C.O.R.E.? C stands for Cultivate, meaning to encourage and support a healthy life-balance O stands for Overcome, meaning to combine passion and perseverance to achieve success R stands for Respect, meaning to earn mutual trust and reliability E stands for Evolve, meaning to embrace the ability to adapt and innovate It is our belief that IPVDX is built and structured on these values with the end goal to help others take on the opportunity of VoIP trading. We base our decisions around those core values and beliefs, which include who we hire, what services we provide and how we treat each other, our stakeholders, customers and vendors. Foundation The foundation of any business is strategy. We identify a particular pain point in the market and find ways to solve that pain point. However have in mind that doing so is only part of the equation; most important is having a differentiation, meaning something that our competitors will have trouble replicating, much like the model we have built. Having all that the next step is to build marketing material that clearly state who we are, what we do and what makes us different. That to be effective has to be short, concise and to the point. Once those materials are ready we create the content we need in our industry, in order to promote our company and become an industry-trusted expert. Lastly in the Growth Phase is that the sales team understands the strategy, the target market of the service (VoIP). They need to be able to identify who to target, and that reduces the sales cycle significantly. 13
DELIVERY PHASE Now that we know what we are selling and who we are selling it to, the delivery team has to deliver what the marketing and the sales team have promised the customer. We don t want any unhappy customers. The delivery team must build and maintain a system that delivers the promised services. In the VoIP World those systems would include things like a data center, switch, underlying carriers, a billing system, and a customer Portal/Back Office. Companies fail at this point, not because the delivery team could not deliver, they fail because of poor strategy. Companies with poor or no strategies often target everyone in a particular market; they offer everything to everyone. This is called a commodity business and the only way to compete is on the price, not on the system or differentiator we have built that actually solves a real pain. An important fact is that 80% of a products value comes from 20% of the products features. This means that the delivery team should hyper-focus on delivering the 20% that gives the 80% of the products value. By allowing our teams to focus on the unimportant 80% and not the important 20%, we are allowing the team to built a mediocre service and a mediocre service are built by mediocre companies. SUPPORT PHASE The pressure now shifts to the support team, also called the operations team. These teams are the front-line troops, them being the closest people to our customer, which are made up of provisioning, number porting, technical support and billing. These departments touch the customer from sign-ups to invoicing and cash collection. Every step in between is an opportunity for us to look great or to look bad and it is just as easy to do either one. As we continue to scale, we will be tempted to throw people at the problems instead of building systems and processes to deal with the added support strain. We don t do that in IPVDX. We have an in-house development team to take on any issue and any innovation in software development so we are always going to be ahead in the game. We are all about Scaling Up. This methodology has given us more time to focus on growing the company while the support and delivery teams focus on their own pieces of the puzzle. As the VoIP industry changes rapidly we keep focus on those three phases, that help us meet these challenges head on and allow the company to grow and thrive. 14
IPVDX PAY IPVDX works with a number of payment gateways, providing our clients with security on all of their business transactions. When trading in VoIP it is very important payments don t get delayed and all credit or invoices are paid on time. Many banking platforms are used around the world to facilitate transactions when trading in VoIP, such companies like Akirix, Vertecto. These platforms are there to allow payments to suppliers and customers very quickly to keep the flow of calls to clients routes and to keep our clients in routing. At IPVDX, we ensure that VoIP traders will be provided with uninterrupted flow of calls, subject to their account being in credit with sufficient funds and their invoices being settled as per agreed terms. We work with a number of payment gateways to get you the best prices on the market We only work with companies with licensed services We pass your details to many providers Our affiliates work with a number of high street banks Keep your traffic flowing Protect your revenue to continue trading 24/7 Trade with piece of mind that you are working with one of the biggest brands in Europe
WHO IS IPT.CC IPT (International Phone Traders) is owned by Third Dimension Limited. IPT.cc is an online Mobile Phone handset and accessories B2B marketplace. This community is provided for valued members only, who would typically be Mobile Phone brokers, traders, resellers, distributors, wholesalers, service centers, and system integrators. Whether you are a large distributor or a trading company, or dealing in used handsets, IPT.cc can increase your client base, improve your profitability, and enhance your efficiency and effectiveness. It helps you trade smarter, not harder! IPT is owned by Third Dimension Limited, a company registered in the United Kingdom. Third Dimension Limited owns three websites dedicated to supporting brokers, traders, resellers and distributors of a wide range of used and new products. These websites are www.icb.cc, www.ipt.cc and www.igt.cc. Their aim is to provide a facility to help trade to be conducted more effectively by putting them in contact with each other and providing added value. Third Dimension Limited, founded in May 1997, is a media development business which develops web sites and provides other IT related services. In October 2001, they identified an opportunity to use their web site development skills to establish a web based marketing portal for the traders and brokers of new and used computer components and mobile phones. They recognized that CPU traders and HDD traders needed up-to-date information to facilitate their trades because, in such a dynamic market where profit levels were small, even the shortest delay between agreeing a purchase price and agreeing a selling price with a buyer could cause a change from profit to loss on the deal. The initial web site was www.internationalcomputerbrokers.com and this became very successful. The idea was to provide a one-stop shop for large volume traders, so they could advertise their services and post either their stock availability or stock requirements on the trading board. The web site included an area for news and related services such as inspection, freight forwarders, banks, solicitors, phone services, insurance, corporate entertainment, credit checking, federations, security, due diligence experts, retail, trade fairs and links to important web sites such as HMRC and Immobilize. Advertisers pay a subscription fee to be featured on the web site. Once the web site had become established, and as a result of the growth in the mobile phone trading market, they launched an additional web site specifically for mobile phones www.internationalphonetraders.com in August 2002. Additional domain names were purchased to establish a more memorable brand. These were www.ipt.cc and www.icb.cc. In 2005, they launched an additional web site www.igt.cc to cater for traders of Consumer Electronics like LCD TV, LED TV, Games Consoles, IPods, Cameras, Printers and more - IGT. 17
ipvdx VoIP IN partnership WITH IPT.CC - the no.1 trading platform www.ipvdx.com MAIN OFFICE 7 Nikou Kranidioti, Tower 5, Floor 4, Office 401 Engomi, Nicosia, Cyprus 2411 Office Tel: + 357 22 270 948 Email: info@ipvdx.com