Vonage Angela Copeland Claire Kao Jolie McCuistion Sarah Todnem Sabrina 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

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

Vonage Features Virtual Phone Number Traditional Phone Uses + New Features!

Vonage Features Computer Interface User friendly traditional look and feel

Convergence Video TextTotal Conversation Voice

- Kevin Werbach - Supernova Group LLC Telephony Broadcast Cable Wireless Data Traditional View

Telephony Broadcast Cable Wireless Data Current View

Data Video Web Voice File Transfer Cable Wireless Satellite 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