opportunity begins with
Delivering Enhanced IP Services to Carriers
Philip Mutooni
Snr.
Snr. Manager BSS/OSS Engineering
pmutooni@ibasis
.net
pmutooni@ibasis.net
www.ibasis.net
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™)
1
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service:
Unified Communications
• Conclusion
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified
Communications
• Conclusion
2
The Internet Economy in Perspective
$400
$350
Billions US $
$350
$301
$300
$270
$250
$200
$150
$100
$50
$0
1998
Telecommunications
Internet
Automobile
Source: “Measuring the Internet Economy.” University of Texas, June 1999
Growth of the Internet Economy
$350
$301.4 BN
$300
$250
$200
$150
$100
$50
$5.3 BN
$0
1995
1998
1995-1998 Internet Economy CAGR: 174%
1995-1998 Global Economy CAGR: 3.8%
Source: “Measuring the Internet Economy.” University of Texas, June 1999
3
Critical Transactions of the Internet
Economy: Business to Business (B2B)
1200
1000
Billions US $
1000
800
600
400
200
108
43
7.8
0
1998
2003
Business to Consumers
Business to Business
Source: B2B boom. Business 2.0 Magazine
Number of years it took to reach
50 million users
Internet
TV
PCs
Radio
Telephones
4
13
16
38
74
4
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified
Communications
• Conclusion
iBasis Milestones
• Customers include 11 out of top 12 US-based carriers of
international traffic
• Providing Global Open Architecture to Support ValueAdded Services
• Deployed world’s largest Cisco Powered Network™ for
Internet telephony
• Successful IPO November 1999 & Secondary Offering
February 2000 (raised over $400M, fully funded)
5
Explosion in Worldwide Internet
Communications
Revenues In Billions
$33
$30
$27
$24
$21
$18
$15
$12
$9
$6
$3
$0
UC
VoIP
1999
2000
2001
2002
2003
2004
Source: IDC, 1999 / Ovum, 2000
A Radical Shift is Redefining
the Communications Industry
OLD WORLD
Voice
Circuit-Switched
Fixed, generic
Closed Network constricts
innovation
NEW WORLD
Data
Packet-Switched
Mobile, personalized
Open Network encourages
new services
6
Large-scale ITSPs Market-Space Defined
PHONE TO
PHONE
PC TO
PHONE
CONSUMER
BUSINESS TO BUSINESS
Critical Success Factors
• Seamless integration with the PSTN
• Internet-based solution
• Toll quality
• Global network
• Superior technology platform
7
Seamless Integration
Alternate Routes
INTERNET
POP
POP
iBasis
Network Operations Center
Assured Quality Routing
Circuit-Switched
Network
Circuit-Switched
Network
Our Customers are Major Carriers
Communications Authority of Thailand
8
Why Major Carriers Choose iBasis
• Superior Quality Internet telephony services at low cost
• Speed to market
• Instant worldwide footprint
• Continuous innovation
• Industry expertise
Internet Central Offices
iBasis ICO, New York City
DS-3
PSTN
OC48
Switch
SS7 / C7
Gateways
Gatekeepers
INTERNET
Multiplexers
Routers
Remote Access
OC48
Backup Power
DS-3
9
Assured Quality Routing™
Assured Quality RoutingTM enables
quality over the Internet
Typical ITSP
SAVINGS
High
Internet Savings with High Quality Requires Proprietary Software
•
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
connection
Low
Circuitswitched
“Not Great”
QUALITY
PSTN
Web-based Customer Care:
Interactive Traffic Analysis Center
Enables
customers
to manage
their
operations
efficiently
Provides
timely
statistics on
traffic
volume and
quality
10
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified
Communications
• Conclusion
The Hosting Model
Regional carrier network without global reach
11
Business Considerations
• Time to market
• Managed growth
• Minimize risk
• Quality of experience
• New applications
The Hosting Model
Regional carrier network gains instant global footprint,
speed to market
12
The Hosting Model
Regional carrier network now a Global Network and expands
with rapidly growing iBasis Network
VoIP Requires Special Resources
Human
Systems
• NOC engineers
• NOC tools
• Storage engineers
• Personalization tools
• Traffic engineers
• Provisioning tools
• IP architects
• High availability &
redundancy
• Development engineers
• IP billing & mediation
13
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
Architecture and Components of Internet
Telephony Hosting
Hosted Applications
OSS
Hosted
Facilities & Mgmt.
7x24 NOC
AQR
iTrac
Billing
Settlements
Equipment
Voice and Fax
IP CallCard
Unified Communications
Access
Hosted
Applications
Gateways
Gatekeepers
Switches
VAS Servers
VoIP-tuned Internet
PSTN connection
SS7, C7
Toll Free Phone number
14
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
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service:
Unified Communications
• Conclusion
15
Hosting Unified Communications
- Carrier-class, IP-based
unified voice, fax, email,
voicemail services
- Integrated with global VoIP
infrastructure
Voice Mail
E-Mail
Fax Mail
- Comprehensive, flexible
operational support services
- Best-of-breed technologies
from Internet industry leaders
- Standards-based for
extensibility
Unifying Internet & Voice Services
End Users
iBasis
Customers
iBasis Network
iBasis
Customers
End Users
New
Device
New
Device
Internet
Wireless
Wireline
ISP/ASP
Web Portal
Directory
Servers
Application
Servers
Wireless
Media
Store
Wireline
ISP/ASP
Web Portal
iBasis is the brand behind the brand
16
OneCore™: iBasis Unified Communications
Infrastructure requirements
Content & Transaction Services
Extensible Application Platform
• Web content
• Personalized,
IP Communications
location-aware
RealReal-time
Transactions
Communications
IP Unified Messaging
•
ISVs
= new apps
• Single number
Asynchronous
reach
Message Exchange
• Notification
• Voicemail
• Paging
• Email
• Outdialing
• Fax
Scope of Solution
Agenda
• Internet Economics Background
• Overview of iBasis Business
• Innovative Business Models
• Example of Value Added Service: Unified
Communications
• Conclusion
17
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
The Advantages of International Internet
Telephony Networks: Costs and Flexibility
˜ 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.
18
iBasis ICOs – Delivering Value Added
Services
˜ 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.
Hosting Solutions for Enhanced Services
• Unified Communications
• Audio Conferencing
• Voice Instant Messaging
• Voice Enabled Internet Content
19
opportunity begins with
Thank You.
pmutooni@ibasis
.net
pmutooni@ibasis.net
www.ibasis.net
20