Martin Taylor's Presentation at Emerging Communication Conference & Awards 2009 Europe

Copyright © Metaswitch Networks | Proprietary and Confidential | 1

Ubiquitous Voice over Broadband – Is there a future for the smart pipe?

Martin Taylor

VP Product StrategyMetaswitch Networks

Copyright © Metaswitch Networks | Proprietary and Confidential | 3

MetaWho?

• VoIP systems and applications for telcos, cable operators and over-the-top service providers

• Main focus on North American wireline market

• > 400 customers, > 900 systems deployed

How disruptive will over-the-top VoIP services be to existing voice service providers?

Copyright © Metaswitch Networks | Proprietary and Confidential | 4

Voice-enabling Wave (just an aside)

• Proof of concept

• Voice-enable a Wave by inviting “TalkyTalky” Robot

• Inject speech or text content by phone, microphone or SMS

• Automatic transcription of speech to text

• Instant voice conference among Wave participants

Copyright © Metaswitch Networks | Proprietary and Confidential | 5

Voice telephony landscape in ~ 2015(Developed World)

• Fixed broadband everywhere

• Mobile broadband (almost) everywhere

• Net neutrality a reality for both fixed and mobile

• Most mobiles are smart phones with SIP clients

• “Fixed” SIP phones are plentiful and cheap

Copyright © Metaswitch Networks | Proprietary and Confidential | 6

Fundamental elements of phone service

• The use of a phone number

• Ability to call or SMS to any number in the world

• Network applications, e.g. voicemail, presence

• Voice quality

• Reasonable ease of use• Especially initial setup

• Subscriber relationship with operator

Copyright © Metaswitch Networks | Proprietary and Confidential | 7

Ownership of Phone Numbers

• Phone numbers have value• Rather like domain names

• Users want to retain their numbers

• Issues with porting – who can you port to?

• Geographic significance of numbers

• Mobile numbering space• Non-mobile numbers on mobile SIP clients may

accelerate wireless substitution of wireline in Europe

Right to own numbers could be significant barrier to entry for Over the Top operators

Copyright © Metaswitch Networks | Proprietary and Confidential | 8

Numbers don’t need to be tied to “lines”

HomeNumber

MobileNumber

OfficeNumber

Copyright © Metaswitch Networks | Proprietary and Confidential | 9

Soft number assignments

Bob’sPersonalNumber

Alice’sPersonalNumber

Bob’sPersonalNumber

Bob’sOffice

Number

Bob’sOffice

Number

Copyright © Metaswitch Networks | Proprietary and Confidential | 10

Exploitability of VoIP

• Ability to assign number to any device

• Ability to register same number frommultiple devices (forking)

Not all VoIP services are created equal

Copyright © Metaswitch Networks | Proprietary and Confidential | 11

Call Handling and Routing

• On-net

• Hand off to various intermediaries

• Peering

• Emergency services (more complicated with VoIP!)

This all requires a considerable investment in infrastructure and know-how

Copyright © Metaswitch Networks | Proprietary and Confidential | 12

Network Applications

• Some network intelligence is essential• E.g. for when you’re not reachable

• Some is highly desirable• E.g. presence

• “Just” software in the network

• The only basis for product differentiation other than price

Application innovation can open up under-served markets that are typically ignored by Pipe Owners

Copyright © Metaswitch Networks | Proprietary and Confidential | 13

Voice Quality

• QoS worries largely a thing of the past

• Wideband voice is hugely important• Great potential as VoIP differentiator• But requires new phones

Pipe ownership enables QoS management, but this may not confer significant advantage

Copyright © Metaswitch Networks | Proprietary and Confidential | 14

Ease of Setup

• Configuring VoIP endpoints not trivial

• Mobile VoIP: Over The Air configurationprobably solves the problem

• Fixed VoIP is more complicated• Remote management of phones is possible, but proprietary

Pipe ownership may enable greater transparency of service setup to user

Copyright © Metaswitch Networks | Proprietary and Confidential | 15

Business Relationship

• Simplicity of dealing with one supplier

• Inertia

• Bundled pricing

Pipe ownership has already proved to be a huge business advantage to VoIP operators

Copyright © Metaswitch Networks | Proprietary and Confidential | 16

Pipe Owners Over the Top

Business relationship Network applications

Call handling ability

Number ownership

Ease of setup

VoIP exploitability

Voice quality

Copyright © Metaswitch Networks | Proprietary and Confidential | 17

Conclusion

• Odds stacked in favour of Pipe Owners

• But no room for complacency

• Innovation … innovation … innovation

• Network applications

• Wideband voice, video

• Ease of use and support for wide range of devices

• Exploitability of VoIP service

• Willingness to understand new business model for telephony