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www.ibasis.net
opportunity begins with
Delivering Enhanced IP Services to CarriersDelivering Enhanced IP Services to Carriers
Philip MutooniPhilip MutooniSnr. Manager BSS/OSS EngineeringSnr. Manager BSS/OSS [email protected]@ibasis.net
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iBasis, Inc.
• Founded in 1996 (Nasdaq: IBAS)
• World’s Leading Wholesale Provider of Internet Telephony
• Services:
- International Voice and Fax over IP
- IP CallCard™ (prepaid, postpaid)
- Internet Telephony Hosting™
- Unified Communications (OneCore™)
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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The Internet Economy in Perspective
$270$301
$350
$0
$50
$100
$150
$200
$250
$300
$350
$400
1998
Bil
lio
ns
US
$
Telecommunications Internet Automobile
Source: “Measuring the Internet Economy.” University of Texas, June 1999
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Growth of the Internet Economy
Source: “Measuring the Internet Economy.” University of Texas, June 1999
1995-1998 Internet Economy CAGR: 174% 1995-1998 Global Economy CAGR: 3.8%
$0
$50
$100
$150
$200
$250
$300
$350
1995 1998
$5.3 BN
$301.4 BN
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Critical Transactions of the Internet Economy: Business to Business (B2B)
43
1000
1087.8
0
200
400
600
800
1000
1200
1998 2003
Bil
lio
ns U
S $
Business to Consumers Business to Business
Source: B2B boom. Business 2.0 Magazine
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Number of years it took to reach 50 million users
74
38
16
13
4
Telephones
Radio
PCs
TV
Internet
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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iBasis Milestones
• Customers include 11 out of top 12 US-based carriers of international traffic
• Providing Global Open Architecture to Support Value-Added Services
• Deployed world’s largest Cisco Powered Network™ for Internet telephony
• Successful IPO November 1999 & Secondary Offering February 2000 (raised over $400M, fully funded)
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$0$3$6$9
$12$15$18$21$24$27$30$33
1999 2000 2001 2002 2003 2004
UC
VoIP
Explosion in Worldwide Internet Communications
Revenues In Billions
Source: IDC, 1999 / Ovum, 2000
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A Radical Shift is Redefining the Communications Industry
NEW WORLD
Data
Packet-Switched
Mobile, personalized
Open Network encouragesnew services
OLD WORLD
Voice
Circuit-Switched
Fixed, generic
Closed Network constrictsinnovation
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Large-scale ITSPs Market-Space Defined
C O N S U M E R
P C T O P H O N
E
P H O N E T O
P H O N E
B U S I N E S S T O B U S I N E S S
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Critical Success Factors
• Seamless integration with the PSTN
• Internet-based solution
• Toll quality
• Global network
• Superior technology platform
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Seamless Integration
POP
Circuit-SwitchedNetwork
POPINTERNET
Circuit-SwitchedNetwork
Alternate Routes
iBasisNetwork Operations Center
Assured Quality Routing
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Our Customers are Major Carriers
Communications Authority of Thailand
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Why Major Carriers Choose iBasis
• Superior Quality Internet telephony services at low cost
• Speed to market
• Instant worldwide footprint
• Continuous innovation
• Industry expertise
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Internet Central Offices
INTERNET
PSTNOC48 Switch
SS7 / C7
Gateways
Gatekeepers
Multiplexers
Routers
Remote Access
Backup PowerDS-3
OC48
DS-3
iBasis ICO, New York City
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Assured Quality Routing™
Hig
hL
ow
“Not Great” PSTN
Typical ITSP
Circuit-switched
Assured Quality RoutingTM enables quality over the Internet
• Real time monitoring and alarming
• Traffic re-routing to PSTN before voice quality falls below established thresholds
• Judicious choice of ISPs to provide high speed backbone connectionQ U A L I T Y
S A
V I
N G
S
Internet Savings with High Quality Requires Proprietary Software
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Web-based Customer Care:Interactive Traffic Analysis Center
Enables customers to manage their operations efficiently
Provides timely statistics on traffic volume and quality
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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The Hosting Model
Regional carrier network without global reach
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Business Considerations
• Time to market
• Managed growth
• Minimize risk
• Quality of experience
• New applications
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The Hosting Model
Regional carrier network gains instant global footprint, speed to market
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The Hosting Model
Regional carrier network now a Global Network and expands with rapidly growing iBasis Network
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VoIP Requires Special Resources
Human
• NOC engineers
• Storage engineers
• Traffic engineers
• IP architects
• Development engineers
Systems
• NOC tools
• Personalization tools
• Provisioning tools
• High availability & redundancy
• IP billing & mediation
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IP Billing & Mediation
Combination of Expertise & Sophisticated Tools:
• Different pricing models
• Effective/efficient rate management
• Flexible service model support
• Multiple account hierarchy
• Real time & non real time information
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Architecture and Components of Internet Telephony Hosting
HostedFacilities & Mgmt.
HostedApplications
7x24 NOCAQRiTrac
BillingSettlements
OSS
VoIP-tuned InternetPSTN connection
SS7, C7 Toll Free Phone numberA
cces
s
GatewaysGatekeepers
SwitchesVAS ServersE
qu
ipm
ent
Hosted ApplicationsVoice and Fax
IP CallCardUnified Communications
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Internet Telephony Hosting: Key Benefits
• Speed to market
• Instant global footprint
• Access to IP messaging expertise
• Leverage economies of scale
• Avoid costly investment and technology obsolescence
• Open competition cost structure
• Access to new applications
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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Hosting Unified Communications
Voice MailE-Mail
Fax Mail
- Carrier-class, IP-based unified voice, fax, email, voicemail services
- Integrated with global VoIP infrastructure
- Comprehensive, flexible operational support services
- Best-of-breed technologies from Internet industry leaders
- Standards-based for extensibility
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Unifying Internet & Voice Services
Wireless Wireless
End Users iBasis Customers
iBasis Customers
End UsersiBasis Network
Internet
Wireline
New Device
New Device
Directory Servers
Application Servers
Media Store
ISP/ASP
Web PortalWeb Portal
ISP/ASP
Wireline
iBasis is the brand behind the brand
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OneCore™: iBasis Unified CommunicationsIn
fras
tru
ctu
re r
equ
irem
en
tsIn
fras
tru
ctu
re r
equ
irem
en
ts
IP Unified MessagingAsynchronous Asynchronous
Message ExchangeMessage Exchange• Voicemail
• Email• Fax
Content & Transaction ServicesExtensible Application PlatformExtensible Application Platform
• Web content• Personalized,location-aware
Transactions• ISVs = new apps
IP Communications
Real-time Real-time CommunicationsCommunications
• Single number reach
• Notification• Paging
• Outdialing
Scope of SolutionScope of Solution
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Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified Communications
• Conclusion
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Observations on the NEW Internet Economy
The issue and the challenge is not simply the Internet.
- As they say in the U.S.: “It’s the economy stupid.”
The Internet “sectors” are interdependent.
- Regulating one Internet “sector” will adversely affect the growth and development of the other sectors.
The dynamism of the Internet Economy comes in part from the “anarchy” of a large number of small companies that compete.
Educated workforce
- Education is critical
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VoIP and IP networks and circuits are more cost effective than circuit-switched networks
Compensation mechanisms used in VoIP agreements tend to be more flexible and simpler than those used by traditional switched networks and operators (i.e. accounting rates)
VoIP and IP networks and operators seek to provide latest value added services
Source: A telecom scorecard 1999-2000: Consumer costs for basic services in the Americas. Alexis de Tocqueville Institution. Feb. 2000. http: www.adti.net.
The Advantages of International Internet Telephony Networks: Costs and Flexibility
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We convert circuit voice into packetized data. VoIP is platform for value-added services.
We are a carrier’s carrier.
Will never provide service to consumers.
iBasis ICO will be collocated at a carrier’s site.
iBasis ICO will purchase Internet and PSTN access through an authorized carrier.
iBasis ICOs – Delivering Value Added Services
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Hosting Solutions for Enhanced Services
• Unified Communications
• Audio Conferencing
• Voice Instant Messaging
• Voice Enabled Internet Content