Skype and Public Policy

1
Skype and Public Policy
Reviewing the Telecommunications Policy Framework
Christopher Libertelli Director, Government and
Regulatory Affairs Skype
Telecommunications Policy Review Panel Monday,
October 24th
2
The Vision

• As broadband becomes ubiquitous, most voice calls
  will migrate to the Internet using free software.
  Edge devices will proliferate to remove barriers
  to more natural forms of communication.
• When edge devices are broadband-enabled and the
  broadband market is competitive, consumers drive
  change.

3
The Industry Structure

• Network providers and applications providers will
  drive the industry structure.
• Previously we had vertical solutions that offered
  one network per service
• PSTN, X.25, Frame Relay, IP, Telex...
• The Internet is becoming the common carrier for
  all services
• Growth comes as various wireless access
  technologies connect to the Internet
• Wi-Fi, 3G (data), WiMax, UWB

4
The Industry Structure The New Game

• Economics
• Zero customer acquisition costs
• Zero marginal costs per call minute
• ? You cant charge for calls anymore
• Distribution
• Network independent worldwide market
• Innovation
• Software development product cycles, rather than
  network infrastructure (10 years)

5
The New Game - Carrier Implications

• VoIP is driving broadband sales
• Operating one network is more cost efficient than
  one network per service
• VoIP as 3G Wireless Demand Driver?

Telecom Revenue
?
Telephony
Internet access
6
Viral Exponential Growth
Users
Months since launch
160 000 new users per day55 M registered
users, in all countries in the world
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Skype and the Future

• Outside-of-the-box technology - none of our
  engineers were telecom engineers they just
  solved the problem
• Rich communications experience as compared to
  our applications-layer peers, Skype is the only
  company focused on a complete communications
  solution

8
Skype and the Future The Ecosystem

• Encourage evangelizers
• Extensive API, under continual improvement which
  is free to use
• Existing users recommend Skype to friends
• Skype API enables developers and hardware
  companies to integrate Skype functionality into
  their products

9
Skype The Ecosystem, New Platforms

• Skype on mobile OS
• Short list Embedded Linux, Symbian, Windows
  Mobile,
• Embedded Platforms Embedded Linux
• We intend to work with hardware companies to
  include Skype on their Internet connected devices
• Affiliate programs, cross-IM presence

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Skype and Public Policy

• Why do we have regulation at all?
• To ensure consumers gets decent services where
  there is a market with dominant players
• Not to stop innovation and to protect incumbents
• Policy Environment not Regulatory Environment
• Agreement on core social goals, less consensus
  that regulation can deliver on social goals.

11
Skype and Public Policy

• In the emergency services area, policy should
  provide open interface to answering points which
  can receive text, voice and video over IP
• Build up national IP geo mapping databases
  managed by national authorities
• Nomadic numbering policies can generate large
  consumer benefits
• Users can connect with their computer/phone
  anywhere there is an Internet access and be
  reached via their geographical number
• Customers save money on roaming and calls to
  mobiles

12
Skype and Public Policy

• Not producer-subsidy, oligopoly driven model of
  public policy
• Carriers endorse transitional protections to
  application-centric world
• Consumer demand driven model of public policy
• Consumers decide which Internet applications and
  destinations to use