VOIP CONSUMER RETAIL OFFERS

VOIP CONSUMER RETAIL OFFERS

VoIP (Voice over Internet Protocol) experienced a first period of hype during the late 1990s but available bandwidth and speech quality were such that faith in VoIP was quickly lost. Then, roughly from 2002 onwards, as broadband via DSL or cable became more widely available, VoIP was the subject of a second hype wave. Only this time there was more to the hype, and Skype, the epitome of VoIP, was launched in August 2003 and has been downloaded around 196 million times up to this day. However, there is still an element of hype: despite its reputation VoIP is not often truly free of charge or much lower cost than traditional telephony, quality is not always there etc. Indeed, many people who downloaded Skype only rarely, or even never, use it. Based on InfoCom s previous VoIP study for Western Europe in 2006, we indeed recognised very strong growth, but with wide country differences and a maximum of about 13% of households being VoIP subscribers at end- 2006, while in other countries the figure did not even reach 1%. InfoCom s 2007 VoIP report will therefore try and understand these country differences, looking at the various types of providers, understanding their strategy and business model, detailing some offers and their pricing while highlighting the best practices. Furthermore, we will also develop a market potential analysis, looking at the market drivers and obstacles, including aspects such as regulation, broadband penetration, substitution services, culture etc., in order to produce forecasts as meaningful as possible. All in all, we feel it is no longer a question of if, but only of when and how VoIP will happen. It may still be a long way till VoIP becomes really a mass market product but expected growth rates are indeed high (see chart showing forecast for Germany). 35 000 30 000 25 000 20 000 Broadband subscriptions without VoIP Broadband and VoIP subscriptions VoIP is particular important for traditional operators, especially incumbents. They must develop VoIP services so as not to lose existing customers to other VoIP providers while not positioning their VoIP services only on price, since offering much lower prices would probably result in keeping customers but also in losing much revenue. Telecom operators consequently need to develop new business models, linking and bundling VoIP more closely to the broadband connection, e.g. within triple play offers, and emphasise associated services to VoIP, such as instant messaging, video telephony, comfortable management of address books and services on website etc. 15 000 10 000 5 000 0 2005 2006 2007 2008 2009 2010 2011 InfoCom 2007 Page 1

COUNTRY COVERAGE Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the UK. PROVIDERS COVERAGE Alice (Telecom Italia), AOL, Belgacom, Bluewin (Swisscom), Bredbandsbolaget, BT, Cablecom, ComHem, Eircom, Elisa, Fastweb, Free (Iliad), Freenet, Indigo Networks (sipgate), Inode, Ipon, Jajah, KPN, Neuf Cegetel, Orange (France Telecom), Peoplecall, Portugal Telecom, Skype, TDC, Tele2, Telefónica, Telekom Austria, Telenor, Telia Sonera, Telio, T-Home/T-Online (Deutsche Telekom), Tiscali, United Internet (1&1, GMX, Web.de), UPC, Vonage and others. QUESTIONS TO BE ANSWERED - What is the regulator s position regarding VoIP and how is regulation impacting VoIP potential and the shaping of VoIP services? - What are the main types of VoIP providers and what is their strategy; which business model do they follow? - How are the VoIP services positioned and marketed (bundle, add-on or stand alone)? What are the sales arguments used? - Which VoIP end user equipment (software and hardware) is required? How are the services realised? - Which technologies and protocols are used? - Are there still some reliability and quality issues? Is that impacting the usage development and market potential? - What are the pricing strategies (set-up fees, monthly subscriptions, flat rates or just pay as you use )? - Is VoIP really much lower cost than traditional fixed telephony? - What is the current level of usage, what is the market potential, what are the forecasts? InfoCom 2007 Page 2

WHO SHOULD BUY THIS REPORT? VoIP providers (telecom operators, CaTV operators, ISPs, pure VoIP providers etc.): Reference document for strategic planning such as understanding market drivers and obstacles, identifying opportunities and threats etc. Benchmark tool to identify best practices in order to improve and develop VoIP services. Regulators: Evaluation of the impact of VoIP on the overall telecom market (new entrants, competition level etc.). Benchmark tool regarding specific VoIP-related regulatory issues: bitstream access and naked DSL, use of geographic numbers for VoIP, specific VoIP number range etc. Manufacturers: Market overview as regards the current demand level and usage development. Benchmark tool regarding most successful technologies in operation, equipment used, features used, technical limitations, etc. Investors and analysts: To understand the impact of new mobile broadband technologies within the global market of ICT. InfoCom 2007 Page 3

PLANNED REPORT OUTLINE Regulation impact on VoIP potential and the shaping of VoIP services - Classification of VoIP as PATS - Access to emergency services - ULL, bitstream and naked DSL - VoIP numbering (geographic numbers, specific VoIP number range etc.) Overview of the VoIP providers and their business model - Number of VoIP providers - Type of VoIP providers - Main VoIP providers and their strategy/positioning - Incumbent s offer and strategy Analysis of service characteristics - Service positioning: bundle, add-on, stand-alone - End-user equipment - SIP and other protocols - Quality of Service - Access to emergency services - Available VoIP numbers - Associated extra services: CLIP, call waiting, call transfer, video telephony, instant messaging etc. Pricing analysis - Initial and equipment fees - Tariff plans: monthly subscriptions, only by usage, packages of minutes and flat rates - Call pricing structure: call units, set-up charges, peak/off-peak, price levels etc. - Price comparison between VoIP and PSTN - Payment method Assessment of market potential and forecasts - Market drivers and obstacles - Usage development: total number of VoIP customers and as a share of broadband subscribers, VoIP traffic, other usage trends (usage frequency, call destinations etc.) - Forecasts InfoCom 2007 Page 4

METHODOLOGY Our expertise consists of our ability to deliver an integrated solution to telecommunications, IT & multimedia market knowledge. INFOCOM S KNOWLEDGE FLOW Strategy activities are supported by our permanent in-house information system known as Teleseeq. This information system provides our strategy analysts with valuable historic data and up-to-date information that they use to develop custom studies. Teleseeq is a closed, coherent and consistent system, which enables us to provide a realistic overview of the market and to support our indepth analyses. The output of the custom projects feeds then in turn into Teleseeq by enriching it and fine-tuning the data. At the same time our strategy activities are further enriched by our engineering expertise for business users such as technology audits and consultancy for the implementation of ICT systems such as IP-PBX, messaging, call centres, LAN, etc. including support for installation and maintenance, while providing in return new know-how to the group. This process creates InfoCom's knowledge flow represented in the above chart. SELECTED REFERENCES Operators: Belgacom, Botswana Telecom, Deutsche Telekom, France Telecom, KPN, Mobilkom Austria, Polkomtel, Swisscom, TDC, Tele2UTA, Telefónica, Ukranian Telecom, etc. Regulator & Others: Anacom, Citigroup Global Markets Inc., Communications Authority of Thailand, Enterprise Ireland, ETRI, European Commission, National Communications Authority of Hungary, The Boston Consulting Group, etc. ABOUT INFOCOM InfoCom is a market research and consultancy company with almost 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage. InfoCom 2007 Page 5

ORDER FORM To place an order, please FAX back to + 49 711 87 05 10 10 [ ] Yes, I would like to order the InfoCom report VoIP consumer retail offers at a price of 2 950,00 (pdf version). YOUR DETAILS Company: Name: Job Title: Department: Address: Country: E-mail: Telephone: Fax: VAT: PAYMENT OPTIONS A) Direct transfer by express payment to: InfoCom S.W.I.F.T.: SOLA DE ST Bank: Landesbank Baden Württemberg IBAN: DE19 6005 0101 0002 1013 16 BLZ/Local bank code: 600 501 01 Account: 210 13 16 B) Invoice your company Purchase order #: Procurement contact: Tel: E-mail: Date: OTHER RECENT REPORTS BY INFOCOM IPTV landscape in Asia The objective of the study is to give an overview on the different solutions & business models of the major programmes currently available for the deployment of IPTV in Asia. Mobile Broadband The study analyses the potential of various radio broadband technologies, firstly as compared to fixed broadband technologies (in particular DSL) and secondly between themselves. FOR FURTHER INFORMATION The Report Mobile Data Services is soon to be published. We will be happy to let you know more about the details of this report or advise you on related reports and services. InfoCom offers a comprehensive range of reports and information suite subscriptions that enhance your decisionmaking activities. For further information on this report and other services we provide, please contact us today: - Rosa Eslava, +49 711 87 05 10 38, eslava@infocom-de.com - Eduardo Räuchle, +49 711 87 05 10 36, raeuchle@infocom-de.com You can also fax us on +49 711 87 05 10 10. InfoCom GmbH Rotebühlplatz 21 70178 Stuttgart - Germany InfoCom 2007 Page 6