1. Vonage Angela Copeland Claire Kao Jolie McCuistion Sarah Todnem Sabrina Yuan

2. 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

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

4. Vonage / VoIP Today Users: Technology Savvy Individuals and Small Businesses Price Focus

5. 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

6. http://www.vonage.com/features.php Vonage Features Virtual Phone Number Traditional Phone Uses + New Features!

7. Vonage Features Computer Interface User friendly traditional look and feel

8. Convergence Video TextTotal Conversation Voice

9. www.fcc.gov - Kevin Werbach - Supernova Group LLC Telephony Broadcast Cable Wireless Data Traditional View

10. Telephony Broadcast Cable Wireless Data Current View

11. Data Video Web Voice E-mail File Transfer Cable Wireless Satellite Fiber Content Devices Apps Users Future View

12. 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

13. 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

14. Pace of Business Winners Win Bigger, Losers Lose More! Level Playing Field –Image (personal/company) Manipulation Many companies can join, but few will succeed

15. Peer to Peer Virtual Meetings Total Integration of business – People, Technology, Business Easier to make partnerships with others As networks grow, location loses importance

16. Assumptions Business Assumptions about the future –Cities will be networked wirelessly –Virtual offices will grow in importance Vonage phone plays into these trends perfectly

17. WOW!!!

18. Wow!!! Industry Transformation –Virtual Management –US  Producer of Thought and Innovation –Production of goods moves to less developed countries

19. 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

20. 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