Instant Voice Services: An Overview of Commercial Networks and Operators. CDG Tech Forum PTT San Diego, CA
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1 Instant Voice Services: An Overview of Commercial Networks and Operators CDG Tech Forum PTT San Diego, CA June 30, 2004
2 Kodiak Overview Instant Voice Services Commercial Experience Critical Implementation Aspects Summary Agenda 2
3 Kodiak at a Glance Company Background: Founded in 2001 CEO is former CTO of Vodafone / AirTouch / PacTel Experienced Management Team Funded by Kleiner Perkins Caufield & Byers and Redpoint Ventures 140+ Employees Worldwide 4 Locations: San Ramon, CA USA (Headquarters) Plano, Texas USA (Research) Bangalore, India (Development) Swindon, UK (EMEA Support) 3
4 Our Business Advanced Wireless Systems Handset Software Products Instant Voice Services Single-site, Multi-site and Multi-national Configurations Integrated 2G, 2.5G and 3G All Digital Networks (GSM, CDMA, IMT-2000) Multiple Operating Systems Open Handset Policy Professional Services Engineering Installation Training Technical Support 4
5 11 Commercial Networks over Cellular Country Carrier Launch System United States 1/04 CDMA United Kingdom 1/04 GSM France 1/04 GSM Dominican Republic 3/04 GSM Guadeloupe 3/04 GSM The Netherlands 4/04 GSM Belgium 5/04 GSM Switzerland 5/04 GSM Egypt 6/04 GSM Jordan 6/04 GSM United States Cellcom 6/04 CDMA 5
6 Kodiak Overview Instant Voice Services Commercial Experience Critical Implementation Aspects Summary Agenda 6
7 A New Category of Voice Services Cellular / PCS Cellular Messaging Packet Data NEXTEL, Verizon, Sprint Push to Talk Cellular Messaging Packet Data Instant Voice Services Cellular Messaging Packet Data Kodiak s Instant Voice Services improves the end user experience while adding new sources of incremental revenue and profit for carriers worldwide 7
8 Kodiak Instant Voice Services The Kodiak System Adds Revenue-Producing Voice Services on Top of Existing GSM and CDMA Services: Instant Voice Messaging Fast 1:1 and 1: Many Voice Messages ASAP or Scheduled Delivery Interoperates with , Vmail, MMS, IMS Instant Conferencing Instant Calling (Press-to-Talk) Instant Availability Fast 1: Many Two-Way Conference Call Call Waiting Global Roaming International & Inter-Carrier Groups Fast 1:1 and 1: Many Calling Call Waiting Global Roaming Instant Upgrade to Cellular Call See Who is Available on Your Phone Groups & Individuals Instantly Updated P R E M I U M V A L U E End User Experience GSM / CDMA Services Foundation Baseline 8
9 Kodiak Overview Instant Voice Services Commercial Experience Critical Implementation Aspects Summary Agenda 9
10 Commercial Networks over Cellular Country Carrier Launch Supplier United States Verizon Wireless 8/03 United States Sprint PCS 11/03 United States 1/04 United Kingdom 1/04 France 1/04 Dominican Republic 3/04 Guadeloupe 3/04 The Netherlands 4/04 Belgium 5/04 Switzerland 5/04 Egypt 6/04 Jordan 6/04 10
11 Commercial IVS Experiences ALLTEL Touch2Talk Instant Calling (Push-to-Talk) Instant Availability TalkNow Instant Calling (Push-to-Talk) Instant Availability Instant Conferencing Definition of Implementation Terms: PoC-D = Push-to-Talk over Cellular Data PoC-V = Push-to-Talk over Cellular Voice 11
12 ALLTEL T2T a fantastic success: >50,000 Handsets Sold in 2 Months: triple ALLTEL expectations Average Sale: 4 $250 with 2 year contract or renewal $20 add-on package preferred by 95% of customers 30% increase in usage/t2t phone ALLTEL Touch2Talk Service Touch2Talk US Coverage ALLTEL s Touch2Talk: Fast, Usable and Clear Push-to-Connect Addition With the speed, clarity and usability of Touch2Talk, ALLTEL poses a potential threat to Nextel s Direct Connect users, particularly small and medium regional business Adam Guy, March 2, 2004 The Yankee Group ALLTEL Statistics: 8M 8M wireless subscribers #7 #7 operator operator in in US US Total Total Revenue Revenue $8B $8B Wireless Wireless Revenue Revenue $5B $5B Operates Operates in in of of States States Nationwide Nationwide Roaming Roaming Coverage Coverage 12
13 Corporate White collar workgroups Customer sales/support teams Product development teams Blue collar workgroups Field service Maintenance Dispatch Medical Government Public service agencies Emergency services Consumer Families Friends Sports/Clubs IVS Spans All User Segments 13
14 Agenda Kodiak Overview Instant Voice Services Commercial Networks Critical Implementation Aspects Summary 14
15 Implementation Experience Highlights 7 Critical Aspects to Wireless Customers: Handsets Billing Consistent Performance (QoS) Delay Law Enforcement Assistance (CALEA, Priority Calling) Voice Quality Coverage 7 Critical Implementation Aspects 15
16 7 Critical Implementation Aspects #1 Handsets Key Learnings: Customers require familiar handset brands and multiple models Handset software can be embedded in purposebuilt handsets or as an application on Operating Systems, i.e. Palm OS and Microsoft OS. Some PTT suppliers limit handset brands; others are open to all handset brands. Customers expect integrated Contacts and prefer instant availability Integrated Contacts promotes ease-of-use. Some PTT suppliers offer presence; some do not. Instant availability sets industry benchmark. 16
17 7 Critical Implementation Aspects #2 Billing Key Learning(s): Prepaid and Postpaid Billing is mandatory for commercial launch a showstopper Per Call / Per Leg Billing is strongly preferred by Carriers PoC-D systems require purchase of new real-time packet billing systems or funding IT software projects; PoC-V systems use existing MSC billing systems. 17
18 7 Critical Implementation Aspects #3 Consistent Performance Key Learning(s): Customers expect PoC to work the same way every time they push the Talk button PoC-D system performance varies widely depending upon a number of factors customers lack confidence in the system. PoC-V systems have QoS, work the same way every time, building customer confidence. 18
19 7 Critical Implementation Aspects #3 Consistent Performance Key Learning(s): Customers expect PoC to have the same coverage, voice quality and call success rates (blocked & dropped) as their cellular phone, plus faster call set-up. PoC-D systems generally have less coverage than cellular, lower voice quality and lower call success rates. PoC-V delivers the coverage, voice quality, and call success rates customers experience with cellular voice. 19
20 7 Critical Implementation Aspects #4 Delay Key Learning(s): Delay interferes with the human conversation process and can frustrate and dissatisfy. Intra-call latency impacts the customer far more than call set-up delay. (8 Times More) Customers will pay a premium for faster service (less delay) and expect a discount for slower service (more delay). PoC-D systems generally have multi-second call set-up delay and multi-second intra-call latency due to variable QoS. PoC-V delivers consistent call set-up and tenth of a second intra-call latency with QoS. 20
21 7 Critical Implementation Aspects #5 Law Enforcement Key Learning(s): CALEA compliance is required by the US Government to support law enforcement. PoC-D systems appear to require systemwide mods and upgrades; PoC-V systems leverage existing MSC CALEA capabilities. Priority Calling enables priority access for law enforcement and public safety. PoC-D systems will require system-wide mods and upgrades to enable Priority Calling; PoC-V systems work with existing MSC Priority Call capability. 21
22 7 Critical Implementation Aspects #6 Voice Quality Key Learning(s): Customers expect voice quality as good or better than their cellular PoC-D voice quality is noticeably less than cellular voice; many customers feel cellular voice quality is not good enough. PoC-V voice has the same voice quality as customers experience on cellular. With Tandem Free Operation (TFO), PoC-V voice quality is higher than cellular voice. 22
23 7 Critical Implementation Aspects #7 Coverage Key Learning(s): Customers expect coverage as good or better than their cellular coverage today In most current carrier implementations, 1X Data coverage is less than 1X voice coverage, resulting in smaller PoC-D coverage area. AMPS cell sites also exist in many parts of the world which cannot support PoC-D. PoC-V systems deliver the same coverage is the CDMA Voice network and continue to work on related AMPS networks. 23
24 Instant Voice Services introduce the next generation in voice services, beyond PTT: Instant Availability Instant Calling Instant Conferencing Instant Voice Messaging Summary Commercial experience in 11 countries shows increased Usage, Voice Revenue & Margin. Learnings from Implementation: Focus on the Fundamentals Consistency, Reliability, Coverage, Voice Quality, Handsets, Billing and Global Roaming. 24
25 Thank You!
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