Andreas Bernstroms' presentation from Total Telecom, Nov 2012

3. Who We Are
Second Largest mobile VoIP company
20 million Rebtel users
2 billion Paid Minutes
96.8% Approval Rate
$90 million Rev.Run Rate end-2012
60% of new users through viral

4. What We Do
Apps for smartphones, PC and tablets
98% savings on international calls
Seamless call interception
Wi-Fi/3G to PSTN step-up
Free Rebtel-to-Rebtel calls over data
API’s for IOS, Android developers

5. The past, current
and future of voice,
OTTs and operators

6. The fastest-growing mega industry
Mobile $1 trillion 2012
6 billion accounts
A few dominant players

7. Telenor
VimpelCom China Unicom
Incumbents 150 209 222
Vodafone
Verizon 439 TeliaSonera
$11bn profits
108 170
Bharti Airtel
Orange
175 Telefonica 261
China Mobile
232
$14bn profits MTN
667
$10bn profits
America Movil
139
246 Reliance
183
* Subscribers (millions)

8. Cost to call from to
SEK 10 !"!
%"!& %"!&
#"$#%

9. Why So Pricey?
Investment in network
Because they can - Oligopoly
Huge amounts of staff
Subsidized handsets & physical stores
Post-pay business model
Haven’t embraced opportunity of digital

10. Then

11. Now
Easier
User friendly
Cheaper (and mobile)
Convenient

12. Tencent
Disruptors Tango Kakao Talk 50
45 50
Kik
19 Nimbuzz
Voxer
100 Rebtel
50
$0m rev. 20
$85m rev. Skype
Viber 668
$860m rev.
textPlus 100 WhatsApp
17 $0m rev.
100
* Users (millions)

13. Why So Cheap?
Cloud/Open Source Technology
Digital Distribution
No Physical Presence
Low Margins
Organic Growth
Strong UI/UX Focus

14. Mobile VoIP
$36 billion
500 million users by 2016
Frost & Sullivan 2011

15. Voice and Text have remained the
same for decades
The latest operator-driven innovation?
Interoperability
Chetan Sharma

16. Both in UK and US...
...50% of all mobile users have a smartphone and
70% of all phones sold are smartphones
12% 4% 11% 4%
24%
32%
52%
61%
US UK

17. US Mobile Data Growth Curve
2,000
petabytes per year
0
2006 2007 2008 2009 2010 2011 2012
*Chetan Sharma Consulting

18. iTunes Top Social Networking Free Apps
O M
TT or
Vo e th
i ce a n
- T ha
ex lf a
t - re
Vi
de
o

19. In three years time, in your geography, how much will
total mobile carrier messaging revenues have
declined from today?
25%
According to senior
operators execs, telco
SMS revenue will
decline on average by
40% in four years time
0-9% 20-29% 40-49% 60-69% over 80%
10-19% 30-39% 50-59% 70-79%
*Delegate Vote, New Digital Economics Executive Brainstorm, November 2011

20. In three years time, in your geography, how much will
total mobile carrier voice revenues have
declined from today?
25%
According to senior
operators execs, telco
voice revenue will
decline on average by
20% in four years time
0-4% 10-14% 20-24% 30-34% 40-44% over 50%
5-9% 15-19% 25-29% 35-39% 45-49%
*Delegate Vote, New Digital Economics Executive Brainstorm, November 2011

21. “The magnitude of upcoming change will be stunning.
We are still in spring training” - Mary Meeker

22. “The Times They Are A-Changin’”
- Bob Dylan
Then
Now
Provide access Control device
Control service
Own address book Own billing relationship

23. So, what’s the game plan?

24. Bullying?
Blocking VoIP-based OTT services
Applying Traffic Shaping
Lobbying against net-neutrality

26. DIY - Do It Yourself

27. Digital Innovation Hubs

28. Partnerships
&
&
&
&

29. Acquisitions
&
&
&
&

30. RSC - Joyn
File sharing
Video Personalised
enrichments advertising
Speed to market?
Chat
Presence
Single purpose?
= New and innovative?
Linked in Free?
Man to machine
Fast iteration?
Enhanced communication
phonebook
Network address
None of the above
Social
communities books and groups

31. Diversify
Access
Net Revenue
Voice VAS / OTT
Messaging Advertising
VoIP IP Messaging
Cloud
Subscriber Penetration
*Chetan Sharma Consulting

32. Embrace data based revenue model
Understand customer needs
Learn from, embrace and work with OTT
Transfer to digital model
Be simple, honest and open

33. Run! These guys
are crazy...

34. Andreas Bernstrom, CEO, Rebtel
@AndreasCB