Vonage

Angela CopelandClaire Kao

Jolie McCuistionSarah TodnemSabrina Yuan

Background

• What is an Internet Phone / VoIP?– Voice over Internet Protocol

• What is Vonage?– $30 / month– 270,000 customers– 25% of VoIP Market– $30 M in sales for 2003

http://www.fcc.gov/voip/

VoIP

Vonage / VoIP Today

• Users: Technology Savvy Individuals and Small Businesses

• Price Focus

Vonage / VoIP Limitations

• Some Connectivity Instability (Related to ISP)

• Lack of faith by users

• Not accessible in all cities– Currently 200 US cities

• Potential security risks– Confidential Information

http://www.vonage.com/features.php

Vonage Features

Virtual Phone Number

Traditional Phone Uses + New

Features!

Vonage Features

Computer Interface

User friendly

traditional look and

feel

Convergence

• Video

• Text Total Conversation

• Voice

www.fcc.gov - Kevin Werbach - Supernova Group LLC

Telephony

Broadcast

Cable

Wireless

Data

Traditional View

Telephony

Broadcast

Cable

Wireless

Data

Current View

DataVideo

Web

Voice

E-mailFile

TransferCab

le

Wire

less

Satell

ite

Fiber

Content

Devices

Apps

Users

Future View

Porter 5 Forces Model - Background

1. Bargaining Power of Consumer

2. Bargaining Power of Supplier

3. Threat of New Entrants

4. Threat of Substitute Products

5. Intensity of Competitive Rivalry

Porter 5 Forces Model – Application

• Information accessibility & ease of use Increase in customer bargaining power

• More competition among suppliers Less supplier bargaining power

• Use of existing networks lowers barriers to entry High threat of new entrants

• People currently have many substitute products, but convergence obviates them

• LOTS (small and big companies) Increased competition

Pace of Business

• Winners Win Bigger, Losers Lose More!

• Level Playing Field– Image (personal/company) Manipulation

• Many companies can join, but few will succeed

Peer to Peer

• Virtual Meetings

• Total Integration of business – People, Technology, Business

• Easier to make partnerships with others

• As networks grow, location loses importance

Assumptions

• Business Assumptions about the future– Cities will be networked wirelessly– Virtual offices will grow in importance

• Vonage phone plays into these trends perfectly

WOW!!!

Wow!!!

• Industry Transformation– Virtual Management– US Producer of Thought and Innovation– Production of goods moves to less developed

countries

Industry Example

• Development of new Internet System• Challenge:

– Budget Constraints– Time Constraints– Management Challenges

• Opportunity– 3 for 1 temporary software developers outside US– Allows higher paid workers in US to be designers– Increased hours per day (24 x 7)– Ease of communication facilitation of management

Take Away

• The convergence of Voice over IP and existing technology has the potential to break down national barriers in business creating an increasingly global marketplace, where advanced countries can focus on the creation of ideas, while utilizing production facilities in developing nations – maximizing overall productivity