Transcript Skyper presentation - DigiWorld by IDATE

Niklas Zennström
CEO and co-founder Skype
IDATE
November, 2004
Internet Act II and the future of
telephony
• Will we see decline in phone lines
– There will be no more phone lines
• Will new players emerge
– Absolutely
• Impact on Access market
– Access becomes access to the broadband
Internet
– Consumers wants applications
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
2
Our Vision
“As broadband becomes ubiquitous, most
voice communications will migrate to the
Internet enabled by software on the edges
of the network, which removes barriers to
natural forms of communication.
That software is Skype”
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
3
Business Model
• It’s not about replacing the fixed line, it’s a
superior product
• Low overhead
• Global market
• Free distribution
• Zero marginal cost
• Upsell Value-added services
• It’s not about ARPU it’s about ARPE
• Benchmarking with Yahoo! and Google
rather than BT and FT
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
4
Global Exponential Growth
16
14
100 k/day
Millions of Users
12
10
50 k/day
8
6
Skype
30 k/day
Kazaa
4
ICQ
15 k/day
Hotmail
2
0
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Month Since Launch
• Users in all countries in the world
• 380,000 paying users (in 4 months)
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
5
What’s Next
Communication modes
?
?
Collaboration
Video
File transfer
Conference calling
IM
Voice
Presence
Desktops
7/20/2015
PDA
Mobiles
Confidential and Proprietary
Skype Technologies S.A.
Platforms
6
Industry Transition
• Charging for calls
belongs to last century
• Lost revenues in voice
due to fixed to mobile
replacement
• Skype creates
opportunities in
broadband sales
• Consumers are making
the decisions, not the
industry
7/20/2015
$10 B
potential?
$300 B
Voice
Broad
band
Other
2003
Confidential and Proprietary
Skype Technologies S.A.
2010
7
Is Skype a Threat to Telcos?
•
•
•
•
The fax did not kill the postal service
The email did not kill the fax
The IM did not kill email
Skype will not kill the phone network
New communication software drives
demand for broadband access, and is
always incremental to legacy services.
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
8
Unleashing Innovation
•
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The Internet is levelling the playing field
Anyone can address the global market
No longer advantageous to be big
What used to be assets may become a liability
for incumbents
• Each player need to focus on their core
advantages
It’s not the big who beats the small,
it’s the fast who beats the slow
7/20/2015
Confidential and Proprietary
Skype Technologies S.A.
9
Thank you