The Voice of Next Generation Networks TM International IP Telephony Opportunities Ingrid Simunic,...

The Voice of Next Generation NetworksTM

International IP Telephony Opportunities

Ingrid Simunic, PhD.Marketing DirectorFebruary 6, 2003

VocalTec Communications - Confidential & Proprietary

VoIP Market Momentum

5%

8%

13%

18%

26%

1%2%

5%

35%

14%

2%5%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2000 2001 2002 2003 2004 2005

International Long Distance

Domestic Long Distance

Local

VoP Penetration in Long Distance Networks

0

10

20

30

40

50

60

70

80

2001 2002 2003 2004 2005

Milli

on

s o

f M

inu

tes

International

World Wide VoIP Minutes

Source: Probe Research

VoIP Driving the Future of ILD


TDM vs VoP Growth

0

50000

100000

150000

200000

250000

2001 2002 2003 2004 2005 2006

TDM VoP

Growth Traffic for VoP in international networks

Growth in VoP traffic far surpasses growth in TDM traffic

VoP replace the TDM international network

TDM traffic to see negative growth starting 2004

Source: Probe Research


The Momentum continues…and is driving Innovation

Market Driving Forces

Deregulation

IncreasedCompetition

New RevenuesLower

Ownership Cost

Faster Time to Market

Low margins &customer churn

NextGen Softswitch Based “Core” Tandem Networks

Value-Added Services Calling Cards, IP Conferencing, VoIP VPN, Unified Messaging


Conflicting Drivers of Today’s Competitive Environment

versus

Demand for New Revenue Generating Services

Lower OPEX and CAPEX


Conflicting Drivers of Today’s Competitive Environment

EXISTING / INCUMBENT CARRIERS

New Revenues

Reduce Customer Churn

Increase ARPU

Lower OPEX

Increase Margins

Increase Efficiency

versusversus

GREENFIELD DEPLOYMENTS

Quick Time to Market

New Revenues

Higher Margins

High Efficiency

Low OPEX

versus


Full range of value-added Service offerings on a Single Platform

(Voice VPN, Conferencing, Global Call Center, Calling Card, etc)

Quick time to deployment and service operation

Fast Return on Investment (ROI)

Significantly increase profitability

Advanced Softswitch - based Technology Platform

Superior Routing Capabilities

Packet Tandem Switch Architecture

(e.g. NLD & ILD Service, Trunk Replacement)

Proven Interoperability and Standards SupportH.323, SIP, MGCP, SS7, etc

Scalable turnkey and easy Customizable System

Addressing Service Providers’ Needs


Single Platform for Innovative Enhanced Services

Deploy our int’l/ LD solution today and expand seamlessly on the same open services platform

Basic Carrier ServicesLD and Intl’ VOIP NetTrunk Replacement

Enhanced Carrier Services Exchange Carrier (+IDM)

Consumer ServicesCalling CardPrefix Number (to Service Provider) Association

Enterprise ServicesVoice VPNCentrex (future)One Number (future) Next-Gen/Multimedia

ServicesPC/Web CommunicationsVideo-telephonyPersonal Unified Comm.Presence

Web Enabled Contact CentersWeb Enabled Call Centers for E-Commerce


International / LD Calling

Packet Tandem SwitchingClass 4 functionality with reduced capex and opex

Flexible routing, not limited like PSTN to point to point

Centralized and easier management leading to reduced operational costs and faster response to market changes

Moving network infrastructure to IP

Unmatched InteroperabilityVT interoperates with 60% of all VoIP ports deployed in virtually every country

Wide origination / termination / routes choices

SS7 connectivityHomologated SS7 support for international protocols

SS7 certification by telcos worldwide (e.g. DT, FT, Global One, Telecom Italia)

SS7 tunneling (ensures call continuity)

ScalabilityFast ROI


Calling Card Solution

International LD arbitrage

Ethnic minorities will continue to fuel the growth of the industry

Low rates to specific destination w/budget control

Customized language IVRs

The mobile (wireless) marketYouth & business – budget control (not postpaid)

Cost effective for international calls due to high roaming pricing

The InternetEase of purchase: virtual pp cc + recharge over the Internet

pp cc for pc2ph

QoS


Origination TerminationInternational

VoIP VPNService Provider Value Proposition

VoIP-VPN As The Complete Toll Bypass – Improve Margins

Local PSTN charges are significant!

VoIP-VPN is an ‘end to end’ VoIP solution

VoIP-VPN improves Service Provider’s margins by by-passing the origination and termination PSTN networks

PSTN PSTNPSTN / VoIP

V-VPN


VoIP VPNBasic Solution Architecture

IP Network

ACME Israel ACME Berlin

VocalTec NY VocalTec, Israel

Service Provider

CPE = Customer Premises EquipmentVGW = VocalTec GateWayVGK = VocalTec GateKeeperVNM = VocalTec Network Manager

Off-net Off-net

On-net On-net


Founded in 1989, the Internet Telephony pioneer

World leader in providing software-driven VOIP solutions

Ongoing technical innovations and leadership in the industry standards

VocalTec Proven Experience

1995 1996 1997 1998 1999 2000 2001

February 1995: Internet Phone

February 1995: Internet Phone March 1997: Invented and

developed first gatekeeper

March 1997: Invented and developed first gatekeeper July 1999: First deployment

of gateway 2000

July 1999: First deployment of gateway 2000

February 1996: First industry IPO (NASDAQ: VOCL)

February 1996: First industry IPO (NASDAQ: VOCL) August 1997: World leading

carrier invests in VocalTec

August 1997: World leading carrier invests in VocalTec April 2001: VocalTec SIP server

addresses new markets

April 2001: VocalTec SIP server addresses new markets

February 1998: First complete IP Telephony solution (VEA)

February 1998: First complete IP Telephony solution (VEA) Deutsche Telekom selects VT

as exclusive NGN partner for carrier services

Deutsche Telekom selects VT as exclusive NGN partner for carrier services


VocalTec Powers the World`s Leading Carriers


www.vocaltec.comwww.vocaltec.comOne Executive DriveSuite 320Fort Lee, New JerseyUSA

THANK YOU !THANK YOU !

The Voice of Next Generation Networks TM International IP Telephony Opportunities Ingrid Simunic,...

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