VOIP Consumer Retail Offers

This report includes:

• Unlimited hotline service
• 2 hours workshop/conference with the analysts

VoIP (Voice over Internet Protocol) experienced a first period of hype during the late 1990s butavailable bandwidth and speech quality were such that faith in VoIP was quickly lost. Then, roug-hly from 2002 onwards, as broadband via DSL or cable became more widely available, VoIP wasthe subject of a second hype wave. Only this time there was more to the hype, and Skype, theepitome of VoIP, was launched in August 2003 and has been downloaded around 196 million times up to this day.

However, there is still an element of hype: despite its reputation VoIP is not often truly free of char-ge or much lower cost than traditional telephony, quality is not always there etc. Indeed, manypeople who downloaded Skype only rarely, or even never, use it. Based on InfoCom' s previousVoIP study for Western Europe in 2006, we indeed recognised very strong growth, but with widecountry differences and a maximum of about 13% of households being VoIP subscribers at end-2006, while in other countries the figure did not even reach 1%.

InfoCom' s 2007 VoIP report will therefore try and understand these country differences, looking atthe various types of providers, understanding their strategy and business model, detailing someoffers and their pricing while highlighting the best practices. Furthermore, we will also develop amarket potential analysis, looking at the market drivers and obstacles, including aspects such asregulation, broadband penetration, substitution services, culture etc., in order to produce fore-casts as meaningful as possible.

All in all, we feel it is no longer a question of if, but only of when and how VoIP will happen. It maystill be a long way till VoIP becomes really a mass market product but expected growth rates areindeed high (see chart showing forecast for Germany).

VoIP is particular important for traditional operators, especially incumbents. They must developVoIP services so as not to lose existing customers to other VoIP providers while not positioning their VoIP services only on price, since offering much lower prices would probably result in keeping customers but also in losing much revenue. Telecom operators consequently need to develop new business models, linking and bund-ling VoIP more closely to the broadbandconnection, e.g. within triple play offers,and emphasise associated services toVoIP, such as instant messaging, videotelephony, comfortable management of address books and services on website etc.

COUNTRY COVERAGE:

PROVIDERS COVERAGE:

QUESTIONS TO BE ANSWERED:

• What is the regulator' s position regarding VoIP and how is regulation impacting VoIP potential andthe shaping of VoIP services?
• What are the main types of VoIP providers and what is their strategy; which business model do theyfollow?
• How are the VoIP services positioned and marketed (bundle, add-on or stand alone)? What arethe sales arguments used?
• Which VoIP end- user equipment (software and hardware) is required? How are the servicesrealised?
• Which technologies and protocols are used?
• Are there still some reliability and quality issues? Is that impacting the usage development andmarket potential?
• What are the pricing strategies (set-up fees, monthly subscriptions, flat rates or just “pay as youuse”)?
• Is VoIP really much lower cost than traditional fixed telephony?
• What is the current level of usage, what is the market potential, what are the forecasts?

WHO SHOULD BUY THIS REPORT?

• VoIP providers (telecom operators, CaTV operators, ISPs, pure VoIP providers etc.):
  • Reference document for strategic planning such as understanding market drivers andobstacles, identifying opportunities and threats etc.
  • Benchmark tool to identify best practices in order to improve and develop VoIP services.
• Regulators:
  • Evaluation of the impact of VoIP on the overall telecom market (new entrants, competi-tion level etc.).
  • Benchmark tool regarding specific VoIP-related regulatory issues: bitstream access andnaked DSL, use of geographic numbers for VoIP, specific VoIP number range etc.
• Manufacturers:
  • Market overview as regards the current demand level and usage development.
  • Benchmark tool regarding most successful technologies in operation, equipment used,features used, technical limitations, etc.
• Investors and analysts:
  • To understand the impact of new mobile broadband technologies within the global mar-ket of ICT.

Regulation impact on VoIP potential and the shaping of VoIP services

• Classification of VoIP as PATS
• Access to emergency services
• ULL, bitstream and naked DSL
• VoIP numbering (geographic numbers, specific VoIP number range etc.)

Overview of the VoIP providers and their business model

• Number of VoIP providers
• Type of VoIP providers
• Main VoIP providers and their strategy/positioning
• Incumbent' s offer and strategy

Analysis of service characteristics:

• Service positioning: bundle, add-on, stand-alone
• End-user equipment
• SIP and other protocols
• Quality of Service
• Access to emergency services
• Available VoIP numbers
• Associated extra services: CLIP, call waiting, call transfer, video telephony, instant messa-ging etc.

Pricing analysis:

• Initial and equipment fees
• Tariff plans: monthly subscriptions, only by usage, packages of minutes and flat rates
• Call pricing structure: call units, set-up charges, peak/off-peak, price levels etc.
• Price comparison between VoIP and PSTN
• Payment method

Assessment of market potential and forecasts:

• Market drivers and obstacles
• Usage development: total number of VoIP customers and as a share of broadband sub-scribers, VoIP traffic, other usage trends (usage frequency, call destinations etc.)
• Forecasts

Our expertise consists of our ability to deliver an integrated solution to telecommunications, IT & multimedia market knowledge.

Operators:

Regulator & Others: