Skyper presentation

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A Vision For Global TelephonyVON Europe

• Niklas ZennströmSkype CEO and co-founder

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Vision

• As broadband becomes ubiquitous, most voice
  calls will migrate to the Internet using free
  software, on the edges of the Internet, that
  remove barriers to more natural forms of
  communication.
• That software is Skype.

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Viral Exponential Growth
Users
150 000 new users per day39 M registered
users, in all countries in the world1.4M
SkypeOut accounts1.5B minutes per month (22
monthly growth)
Months since launch
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Telecom Transition
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1. Many Networks Become One

• Previously we had vertical solutions that offered
  one network per service
• PSTN, X.25, Frame Relay, IP, Telex...
• The Internet is becoming the common carrier for
  all services
• Growth comes as various wireless access
  technologies connect to the Internet
• -Wi-Fi, 3G (data), WiMax, UWB

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2. Phones are Becoming Computers

• Powerful CPUs
• Connected to the Internet via various radio
  networks (multi-band)
• Open OS (Linux, Symbian, Windows Mobile, etc)
• Easy to install applications
• Affordable

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3. Telephony is Becoming an App

• An application that you run on a computer
• Computers have different form factors
• Desktops, Laptops, PDAs
• Mobile phones
• Embedded
• Increasingly ubiquitous and everywhere

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New Game with an App

• Economics
• Zero customer acquisition costs
• Zero marginal costs per call minute
• ? You cant charge for calls anymore
• Distribution
• Network independent worldwide market
• Innovation
• Software development product cycles, rather than
  network infrastructure (10 years)

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Carrier Implications

• VoIP is driving broadband sales
• Operating one network is more cost efficient than
  one network per service
• Examples
• BT 21st Century Network
• TeliaSonera
• HGC

Telecom Revenue
?
Telephony
Internet access
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Why Now?
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Why Now User Maturity

• Who wants to use the Internet and PCs for
  calling?
• Who could imagine we would use our PCs for
• Music jukebox and music downloads?
• Photo albums and image sharing
• Sara 8 years old doesn't like to talk on the
  phone (its weird) but talking on Skype is cool
• Mike 17 uses his PC for music, TV, photos, gaming
  and talking (incl voice) to friends

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Why Skype

• Outside-of-the-box technology - none of our
  engineers were telecom engineers they just
  solved the problem
• Simple-to-use as the benchmark was the
  traditional phone and the web browser
• Think of your mother as user

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Why Now Infrastructure

• Over 100 million computers connected to broadband
  Internet last year
• Massive bandwidth available QoS is moot
• Powerful computers
• Wi-fi

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The Ecosystem

• Encouraging evangelizers
• Extensive API which is free to use
• Accessories which are Skype Enabled are very
  attractive to consumers
• Existing users recommend Skype to friends (as
  long as we are honest and respect our users)

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Growth Opportunities

• Where are Skype, and partners, going

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Growth has been on PCs so far

• Growth-to-date has been primarily on
  desktop/laptop Windows
• There are many more mobile phones than PCs
• Although we (early adopters) cant live without
  our PCs our mothers dont want to leave them on
• Skype is breaking out of the PC

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New Platforms

• Skype on mobile OS
• Short list Embedded Linux, Symbian, Windows
  Mobile,
• Embedded Platforms Embedded Linux
• We intend to work with hardware companies to
  include Skype on their Internet connected devices

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API Developer Opportunity

• Skype API enables developers and hardware
  companies to integrate Skype functionality into
  their products
• Unleashing innovation and enabling developers

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New Services

• SkypeIn 30 per year
• US, UK, France, Sweden, Finland, Denmark, Poland,
  Hong Kong
• Free global roaming
• VoiceMail
• Early usage shows that people use it differently
  than PSTN voice mail

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New Affiliate Program

• Today Skype announced its Affiliate Program
• Online communities, Web publishers, bloggers and
  Skype enthusiasts are rewarded with commissions
  of up to 10 for promoting Skype on their
  websites
• Affiliates participate in Skypes tremendous
  growth and receive commissions from Skype Store
  purchases made by visitor click-throughs

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Affiliate program benefits

• Any website or blog seeking stronger
  communications with its audience and community
  will benefit
• Social networking and community websites with
  user forums will particularly benefit from the
  open, multi-mode communication Skype enables
• The affiliate program helps extend the referral
  power that has made Skype the fastest-growing
  voice communications offering worldwide with more
  than 39 million users.

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Regulation and VoIP
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The Need for Regulation

• Why do we have regulation at all?
• To ensure consumers gets decent services where
  there is a market with dominant players
• Not to stop innovation and to protect incumbents

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Maybe Regulate the Incumbents

• VoIP is a nascent technology that need to
• Interconnect to the PSTN
• Be delivered over third party Internet access
• Those networks are mainly provided by incumbents
  or second operator in an oligopoly market.
• They have incentive to stop others VoIP
• Dont let them (not good to restrict consumer
  choice)

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Nomadic Numbers Benefit

• Users can connect with their computer/phone
  anywhere there is an Internet access and be
  reached via their geographical number
• Customers save money on roaming
• Callers can call cheap local calls rather than
  expensive calls to mobile

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Virtual Numbers Benefit

• A business in e.g. Luxembourg can have virtual
  VoIP numbers in France, Germany, Hong Kong, USA,
  Sweden, etc
• this opens up enormous benefits for end users
• Regulators in many countries are not allowing
  this, which is a disadvantage for those countries

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Emergency Calling

• When there is a burglar in my house I dont
  want to call the police, I want to email or IM
  them
• Take advantage of the new IP technology to
  provide richer emergency services
• Dont force legacy emergency calling to nascent
  technology

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Solution

• Provide open interface to emergency centrals
  which can receive text, voice and video over IP
• Build up national IP geo mapping databases
  managed by national authorities

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Summary

• Voice is becoming a software application
• New rules with software
• No benefits of regulating VoIP

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Thank You! www.skype.com/company/jobs/