The Future of Voice TOTAL TELECOM Breakfast Briefing June 2013 - - PowerPoint PPT Presentation

The Future of Voice

TOTAL TELECOM Breakfast Briefing June 2013

HOT TELECOM

‘Rumours of my death have been greatly exaggerated’

• Mr. Voice

Traffic growth

16% 1996

Net traffic add (billion minutes)

12% 2001 5% 2012 5% 10 17 24 33 2018F

Traffic: IDD + VoIP off-net

0% 5% 10% 15% 20% 25% 10 20 30 40 50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Net add Growth rates

• Poly. (Net add)
• Poly. (Growth rates)

Traffic growth

Voice traffic growth (%) vs net add (billion minutes)

Traffic net add

THE GREAT MIGRATIONS

DEVICE MIGRATION Fixed to mobile

 In 2006, 32% of the world’s telecom subscribers were subscribed to fixed services.  In 2013 this ratio is expected to have decreased to 14%.  In 2006, 60% of the world’s IDD traffic was generated by fixed subscribers.  In 2013 this ratio is expected to have decreased to 38%.

World fixed vs mobile IDD traffic ratio

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

IDD - Fixed IDD - Mobile

TECHNOLOGY MIGRATION TDM to IP

 In 2006, 20% of the world’s International traffic was VoIP traffic.  In 2013, this ratio is expected to have reached 32%.  In 2018, we are forecasting that 53% of the world’s International traffic will be VoIP traffic.

World IDD vs VoIP International traffic

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

IDD VoIP off-net

SOCIAL MIGRATION Calling yesterday Texting today Using apps tomorrow

SOCIAL MIGRATION Voice to Data

The UK example

 People in the UK are now more likely to text than to make a phone call  While 58% of people communicated via texts on a daily basis in 2011, only 47% made a daily mobile call.  For the first time, there was a fall in the volume of mobile calls - by just over 1% - in 2011, while landline calls were down by 10%.  Overall time spent on the phone fell by 5% in 2011.

* Data taken from Ofcom report

SOCIAL MIGRATION Data to OTT

World sms vs OTT messages (billion)

5,000 10,000 15,000 20,000 25,000 30,000 2011 2012 2013 2014 2015 2016 2017 2018 SMS messages OTT messages * Source: MobiThinking, Portio Research, World Bank

WHAT IS FORCING THE EVOLUTION?

IP

THE GREAT DENIAL

Is that a telecom operator I see with its head in the sand?

 Denial  Anger  Depression  Bargaining  Acceptance “ When a person is faced with the reality of impending death or

• ther extreme,

awful fate, he or she will experience a series of emotional stages”

THE 5 STAGES OF TELECOM OPERATORS’ GRIEF

READY FOR THE FIGHT

• 200

400 600 800 1,000 1,200 1,400 1,600

TOTAL IDD TOTAL VoIP off-net TOTAL VoIP on-net TOTAL IDD if VoIP did not exist

A great opportunity

WHAT IS THE OPPORTUNITY?

HOW ARE OPERATORS REACTING The OTT Challenge

 Do nothing (wait and see)  Block OTTs  Partner with or buying OTTs  Compete with OTTs

• Create an app
• RCS-e / Joyn

 Grow other market segments

HOW ARE OPERATORS REACTING The IP Challenge

 Ride the TDM wave until the end and focus on data  Get ready for the IP convergence (adopt IPX)  Grow into other segments (data, content, media)

SERVICE EVOLUTION

We're in the midst of an evolution, not a revolution

THE NEW VOICE

Voice will not die but it will look different

BUSINESS MODELS What’s The Future

 Convergence of voice and data into a single pipe, offering, bundle.  Voice becomes one of a series of IP services.  Consolidation of the International wholesale market could be triggered by IPX and migration to IP.  Per minute billing for voice could evolve to a capacity based billing down the line.

‘The best way to predict the future is to create it.’

Peter Drucker



+1 514 270 1636 sales@hottelecoms.com

CONTACT INFORMATION



www.hottelecom.com



Isabelle Paradis, President

HOT TELECOM