No Line On The Horizon

Stutler Technologies User Group MeetingFebruary 25, 2010

Bob AndersonSr. Account Manager

Metaswitch Networks

Wireline Is In Decline

… Across All Demographics

Separation of Services from Pipes

What You Are Facing…“The idea of charging for calls belongs to the last century”

NiklasZennströmCEO and Co-Founder, Skype

“We’re on a steady march… we're not just doing this to reduce prices ”

Brian RobertsCEO, Comcast

August 2009: • 480 Million Subscribers• 23.6 Billion Skype-Skype minutes• 2.9 Billion Skype-Out minutes• $600 Million in FY2008 (estimated)

Goal:10 Million phone subscribers by 2010

What You Are Facing with Business

• Rapid move from traditional to IP Centrex and IP-PBX

• IP Centrex service provider need not be local (e.g. Covad)

• Rapid move from traditional to IP- PBX

• Trunks will follow lines – TDM trunk to converged SIP + data pipe (provider need not be local)

Sources: IDC, InfoTech / TIA

U.S. PBX Revenue ($M)

0

1000

2000

3000

4000

5000

6000

1999 2002 2005 2008

IP/Converged

Traditional

You Don’t Have to Get It, to Get It

“Societies or companies that expect a glorious past to shield them from the forces of change driven by advancing technology will fail and fall.”

– Rupert Murdoch, 75-year-old Founder, Chairman and CEO, News Corporation, March 13, 2006

(News Corp has spent $1 Billion on Internet acquisitions, including $400M for MySpace.com)

Unprecedented competition between telco, cable, wireless and “over-the-top” providers

Continuous evolution to packet-based, software-driven networks

Key Trends

Shifting expectations of always-connected “digital generation”

Implications for Carriers

Service innovation at the speed of Google Labs, not Bell Labs

Multi-screen interface to personalized services

“Horizontal” service delivery architecture for IMS, NGN and legacy networks

… all while meeting customers’ demand for quality and reliability

Recover Minutes Lost to Wireless

Make ExistingFeatures

Usable

Offer Enhanced Services

Best use of switching and applications

• Subscribers manage own phone services

• Easily configurable, brandable, extensible

• Consistent across standard Class 5 and advanced services

The Dashboard provides “at a glance” access to commonly-used features and settings

Customer Self Care: Web GUI“Personalize the subscriber experience”

Internet Access to Service Settings

• Access services settings instead of * codes

• Separate settings for teen-line, etc.

• Subscribe to new services– Creates secure billing

record for automated processing

– Lowers barrier to adoption of value-added features

A subscriber Web portal reduces CSRcosts, increases customer satisfaction,and encourages subscribers to try outnew services!

A subscriber Web portal reduces CSRcosts, increases customer satisfaction,and encourages subscribers to try outnew services!

• Simplify Call Services Using Names/Groups instead of Phone Numbers

• Access contacts anywhere• Assign contacts to groups

(i.e. VIP, Family, Friends)• Synchronize with Outlook

and Corporate Directories via LDAP

Network-based Contacts

Advanced Call Management• Call management

configures all call terminating services

• Makes complicated traditional services useable– Makes clear what

has been configured

– Avoids confusion over rules precedence

Find-me / Follow-me

Weekly Schedule

Unified Messaging• Not your “plain old voicemail”

• Unified Messaging: any message, any device– Voicemail and Fax– Visual Voicemail / Message via

Customer Portal– Forward messages to email– Converged mobile / wireline mailbox

Live Message Screening

VM/UM

“Hi Jane, it’s Mike, please pick up if you’re home”

• Lack of call screening is number one reason for resistance to network voicemail

• Subscribers retain personal answering machines

Live Message Screening addresses this need

• One-way media for screening call

• Local subs get distinctive ring (or auto-answer to SIP phone)

• Universal application for business, residential, wireline, wireless

“Please Leave a Message After the Tone”

Visual Voicemail on TV

Widget Integration

WIRELESS?

How can we tie into

Traditional Fixed / Mobile Dichotomy

Great quality, reliability, features, but…

• Tied to one location

Great mobility, but…• Different number from landline• Two separate voice mailboxes• Bad reception indoors• Two bills to pay every month –

with separate minute buckets• Different services from landline

Users Want the Best of Both Worlds• Ease of use • Straightforward billing• Applies to residential and

business

• Features that merge with digital lifestyle

The Bottom Line on FMC for Wireline carriers

• Basic “one number” / “find-me follow-me” service has significant value for users

• Enhanced “one number” service can provide even more value but require partnerships

• Upgrade network infrastructure to IP to be ready for IMS

Voicemail Apps for Mobiles• AppStore/Widget

Environments– iPhone– BlackBerry– Android

• Provides Feature-Rich VoiceMail Interface

FMC: Voicemail to SMS

• Notification of new voice messages via SMS

• Text includes identity of caller and time of message deposit

• Next: Message Transcription (aka Voice to Text)

FMC: Using a Mobile Phone as a “remote”

• Increasingly, people use their mobile phone as their Address Book

• Syncing across devices and platforms is not perfected

FMC: Using a Mobile Phone as a “remote”

• iPhone app• Use iPhone address

book to launch a click-to-dial call to your landline

PhoneRemot

SMB

How can I better serve the

Market?

Hosted PBX: Key Requirements

Call FeaturesResidential feature set plus:• Shared Line Appearance• Attendant Console• Call Park / Retrieve• Multi-Line Hunt Groups• etc etc

Enhanced Services

SIP Phone Support Self-Service Administration

• Unified Messaging• Auto-Attendant• Media On Hold• Conferencing• Paging• etc etc

The latest SIP phonehardware . . . but user interface must follow established andfamiliar patterns.

The Web portalis a powerful tool for attracting and retaining customers.

Since installing your VoIP system, what new features do you use?

Core Feature Demands

Potential to Upsell Other and Managed Services

vs. 39%

vs. 17%

vs. 13%

What other services would you consider buying from a single VoIP provider? (< 100)

Business Group Administration•The same powerful

interface for administration of Business Group (BG) functions• Lines, intercom codes, short

codes, account codes• MADNs, MLHGs, Call Pickup

groups• Auto-Attendant and Music On

Hold

•Multi-tier BG admin support• Can define multi-tier BG

hierarchy with multiple admins

• Each admin has access to lines at his / her level and below

Provisioning Server Simplifies Management of IP Phones

SIP Business Phones and XML Apps

Soft keys

Programmabledisplay

Conclusion

• Wireless doesn’t mean the death of wireline

• ‘Sticky’ features will keep customers

• SMBs will continue to use wireline

• You CAN retain your customer base with the right features and solutions!

Thank You!

For more informationgo to:www.metaswitch.com