Spinning Over The Top (BYOW)

Bob Harvey

VP of Sales Central/ Canada

Spinning Over The Top (BYOW)

Copyright © Metaswitch Networks | Proprietary and Confidential | 2

Wireless Substitution – sounds like bad news

• More than one of every five American homes (22.7%) had only wireless telephones during the first half of 2009: up 2.5% since the second half of 2008. One of every seven American homes (14.7%) had a landline yet received all or almost all calls on wireless telephones.

Blumberg SJ, Luke JV. Wireless substitution: Early release of estimates from the National Health Interview Survey, January-June 2009. National Center for Health Statistics. December 2009.


Substitution continuing at an even pace


Cable growing, but still a move to wireless


Behind the numbers

• Adults living in poverty (33.0%) and adults living near poverty (26.5%) were more likely than higher income adults (18.9%) to be living in households with only wireless telephones.

• The proportion of employed adults among all wireless-only adults has decreased from approximately 78% to 71.1%. Q1FY10 vs Q1FY09

• The prevalence of binge drinking (i.e., having five or more alcoholic drinks in 1 day during the past year) among wireless-only adults (35.3%) was nearly twice as high as the prevalence among adults living in landline households (19.3%).

• Compared with adults living in landline households, wireless-only adults were more likely to report that their health status was excellent or very good, more likely to experience serious psychological distress, and less likely to have ever been diagnosed with diabetes.

• The percentage without health insurance coverage at the time of interview among wireless-only adults under 65 years of age (29.4%) was more than twice as high as the percentage among adults in that age group living in landline households (13.7%).

• Adults living in metropolitan areas (16.9%) were more likely to be living in wireless-mostly households than were adults living in more rural areas (13.5%).


Smartphone revolution

Fueled by

• OS competition: RIM, Apple, Android, Windows 7 mobile

• Wider coverage for high speed wireless• Plus femtocell benefits

• Lower ASP $100 - $250

Resulting in

• Smartphone CAGR = 21% (long term)• Expected 546m units by 2015 (Credit

Suisse)

• 1.2 bn mobile workers worldwide by 2013 (IDC)• 119.7m in the US

• Data consumption through the roof


I’ll have a venti please..


Why keep a fixed line?

• Most reliable 911 service

• Concept of calling a location (person independent)• Office and home

• Quality of service/reliability

• Health concerns

• Fixed line not necessarily threatened by PC voice services

• Enhancement through 3rd party service: Google


The dreaded churn


The real problem

• Choice is overwhelming

• I think I want• Fair costs• Usability• Reliability• Useful features• A relationship• Support• Mobility• A solution prescribed for me

• And I’ll pay you for it!


Helping me, will help you

I’m not a wireless only customer

I have reasons for wanting a fixed line

I want a decent bundle

I can pay for it

I want you to help me simplify this mess


Provide my family a phone line

Simplify my experience

Give me decent rates – to wherever

Give me today’s features

Let me use my smartphone to control it


Service Menu Ingredients

Lousy Confusing Frozen

Love customers Simplify Fresh

Great support Simple Fresh

features


Judo: Using an opponent’s strength against him

Bring

their

own

wireles

s!


Visual voicemail for consolidated mailbox

Provides access to wireless voicemails from wireline mailbox

Branded digital real estate


Forward as email


• There is certainly more!

• Enable users to

• Read faxes

• Translate voicemails to text

• Operate your services from iPhone,

Blackberry, Android, and iPod Touch


Where are my contacts?


Remote phone dialers for landline


Real time retrieval of landline calls


One ring to rule them all


How about?

• Control your Sim Ring/FMFM from a smartphone client

• Make the mobile a remote, 4 digit business extension

• Achieve device independence

• Look like my business line

• Now look like my personal line

• Control your other, premium services


Not all conferences are created equal


Premium wireline services


Conclusions

• Wireless substitution is real

• Not all users willing to give up their landline• Especially more affluent users

• Smartphones are not just phones• Sophisticated mobile control points

• Convergence in the network now needs convergence on the handset

• Prescribe me a branded solution

• Landline wireless play is much more than MVNO• Can relegate mobile operator to the role of dumb pipe provider

• Simple-to-use, branded, mobile apps can revolutionize your wireline offering• “calling all customers: bring your own wireless!”

Thank you

Spinning Over The Top (BYOW)

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