SKYPE MIS PRESENTATION

09BM8078
INTRODUCTION TO TELECOM
SCENARIO
 Economy, services, industry

 Telecom industry growth: The government has also

legalized Internet telephony (Voice over Internet
Protocol or VOIP for short) April 1, 2002

 Major players and challenges

 Opportunities
NEW WORLD ORDER
 Emerging areas

 New services: basic telephony, PC-to-

landline/mobile/PC calls, IMs, video calls, video-
conferencing, file-transfer

 Players: Skype, Gtalk, Jajah, Yahoo’s VoIP, Lycos,

phone.com, AltiGen, Micrsoft
GOSSIP IS THE HUMAN EQUIVALENT OF
'SOCIAL GROOMING' AMONG PRIMATES
SKYPE INTRODUCTION

 Software that enables the world's conversations.

 Millions of individuals and businesses use Skype to

make free video and voice calls, send instant messages
and share files with other Skype users.

 Everyday, people also use Skype to make low-cost calls

to landlines and mobiles
SKYPE IS A COMMUNICATIONS TOOL

 Humans are really, really, interested in things that help us

communicate with each other more and better.
 From cave paintings to mobile phones, it’s always the
same.
 And this is even more true for young people. They are
forging their social identity through conversation.
NATURE OF SERVICES
 voice calls over the Internet Calls to other users of the
service and, in some countries, to free-of-charge
numbers, are free, while calls to other landlines and
mobile phones can be made for a fee. Additional features
include
 instant messaging,

 file transfer and

 video conferencing
Skype is free

 Free is quite interesting to people. Especially free and

good.
 And it’s more interesting still to impoverished young
people!
 If you tell your friends to get Skype too, you can talk for
as long as you like without worrying about the cost or
the distance.
SKYPE’S SUCCESS
 0 to customers in 2.5 years.

 Nearly 200 million customers today.

 Still growing at 200,000 new users every day.

RIGHT IDEA, RIGHT TIME

 There was plenty of internet calling software before

Skype. But it didn’t work very well, and lots of people
still had slow dial-up internet connections. Plus it was
called VoIP, which was a bit off-putting.
 Skype was called Skype instead, and it just worked. And
it arrived just as lots of people were starting to get
broadband internet access.
 It’s a very ‘native’ product for young people.
SIMPLE AND EASY

 Skype worked really hard on making Skype as easy to

install and use as possible.
 We knew it was easy enough when Geoffrey’s grandma
could use it. (Geoffrey is one of the original Skypers.)
 Ease of use is important for busy young people too.
Hence the iPod, people moving to Facebook…
 Facebook group
 Giving influencers new stuff
 Skypecasts are a new way to have conversations with
people across the world who share your interests.
 Pick a subject you’re interested in from the directory,
and join a hosted call with up to 100 other people from
around the world.
 Our early-adopter influencers are helping us pioneer and
shape this new way of communicating.
 Skype feels free
 Skype is free. More than that though, it feels free.

 Free helps people realise that Skype is a different kind of

company.
 We took something that big companies charged quite a
lot for, and gave it to you for free. Nice, eh?
 Skype does a lot
 It’s a fast world. People get bored quickly.

 Part of being committed is keeping doing stuff – it’s not

good enough to have done it once.
 The advertising industry’s idea of the reductive ‘big idea’
is no use here.
 It’s about doing lots of little things, that all add up to a
rich, complex and involving brand.
WHAT DIDN’T WORK?
WHAT IS VIDEO CONFERENCING?
 Interactive telecommunication
technology
 Conference between two or more
participants at different sites by
transmitting audio and video data
 Tools: Video camera, microphone,
speakers on device
 VIDEO CONFERENCING CELL PHONES:
A BUST!

• Buy a specific phone

• Cost of the cell phone is
expensive
• Poor image and sound quality
• Position of the camera is in the
back of the phone
– Awkward
– Pointless
VIDEO CHAT SOFTWARE
SKYPE
 Software application that allows users to make voice and video calls over
the Internet
 Initial names: “Sky peer-to-peer” and was abbreviated to “Skyper”
 Since the domain name was taken, the creators dropped the “r” and left the
current title “Skype”
 Special features:
 Conference Calls with multiple people
 Send Files instantly
 Connect to your land line
 Get your calls forwarded when you’re offline
 Send Text from skype
 Incoming calls from anyone
 Great for individuals and businesses
 Affordable
 Free: Both users having Skype accounts
 Pay as you go or Monthly payment
 Calls to landlines and call phones
TOP 3 VIDEO CONFERENCING SITES
 iChat
 Must have Mac computer
 expensive
 2009: est. 12%
 Most businesses use PC

 Google Talk
 Both parties have to have
gmail account

 Skype
SKYPE IN A BUSINESS ASPECT
 Great way to communicate in real time
 A way to communicate without physically being there
 Can work anywhere at anytime
 Better communication
 Less errors: everyone can look at the document at the same time and
communicate
 Changes are visible
 Deal with off shore clients
 Establish and maintain business relationships
 Improves Customer service
SKYPE AND EDUCATION
 Video conferencing with authors
 Tutor session
 Language tutor around the world
 Study sessions
 Great way to Q & A with teachers and
T.As
PORTER’S MODEL ANALYSIS

 New Market Entrants

 Buyer Power

 Supplier Power

 Competitive Rivalry

 Product and Technology Development / Substitutes

COMPETITIVE RIVALRY

• Jajah: . The service requires no client to download, and doesn't

actually use a user's PC to make the call.

• Yahoo's VoIP Yahoo Messenger

• Lycos : A bundle of freebies

• PHONE.COM : With no hardware to purchase, no switching of

business phone systems provider
• VIA TALK : A bouquet of services

• 8X8 INC. :
BUYER POWER

 Cost

 Access

 Features

 Quality - video, voice

SUPPLIER POWER

 IT-Infrasturcture companies e.g. Cisco

 Voice/Video Carrier
NEW MARKET ENTRANTS

• MICROSOFT :

 As the VoIP (Voice over Internet Protocol) market continues to grow,

 computing heavy weight Microsoft have announced plans to enter the market
with
 the release of their Office Communications Server.

• AltiGen :

 AltiGen, a provider of VoIP business phones and Microsoft-based Unified

 Communications offerings, has signed a deal with Italian distributor and telecom

 equipment vendor Hypercom.

 The move will allow Hypercom to sell and distribute

 AltiGen VoIP products to companies through Telecom Italia.
SUBSITUTES
 Mobiles with 3G/2G
 Landlines

 Video-conferencing
SWOT ANALYSIS
 Strengths
 E-bay

 Skype’s brand equity

 User base

 Conducive environment for growth

 Users
 Culture
 Infrastructure

 Skype-to-Skype calls accounted for 54 billion out of a

total of 406 billion international call minutes in 2009.
STRENGTHS
 Skype is confident of maintaining its growth in customer
numbers of about 30-35 million per quarter for some
time to come
 reported more than $550 million in sales for 2008, with
$145 million in the fourth quarter, up 26 percent on a
year ago.
 By the end of 2008, the company had 405 million
customers, up 47 percent in a year.
WEAKNESSES

 Low penetration of broadband

 relatively low visibility
OPPORTUNITIES
 BPOs and call-centers
 Collaborations with leading Indian ISP (like Airtel,
Satyam etc) or portals (like rediff , indya.com etc) and
bundle free downloads (same strategy followed by Skype
in China , Japan)
 Aggressively Advertise Skype out charges in Indian
Media
 Plunging broadband rates , large no of citizens, customer
base living/working abroad ,booming economy and sheer
numbers makes India and also China very good markets
and worth fighting for in future
 In February Skype secured a deal with Nokia under
which the world's biggest phone maker will preload
Skype software into some of its new smartphones.
THREATS
 High growth means highly competition
 Easily available subsitutes

 Technology ever changing

 Intelligence agencies

 Majority of people extensively portals like Yahoo, MSN

or rediff for checking emails/search/IM
 Skype’s two day outage
GROWTH AND FINANCIAL IMPACT
 Skype-to-Skype calls accounted for 54 billion out of a total
of 406 billion international call minutes in 2009

 Skype is confident of maintaining its growth in customer

numbers of about 30-35 million per quarter for some time to
come

 Reported more than $550 million in sales for 2008, with $145
million in the fourth quarter, up 26 percent on a year ago.

 By the end of 2008, the company had 405 million customers,

up 47 percent in a year.
SUMMARY
 A great Web 2.0 business
 Significant growth opportunities

 Leverage on the brand

 Buzzes quite well with everyone!

Thank you