An updated view on WebRTC. Analysis of the underlying business models. Recommentations for carriers and API providers.

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mm1 Consulting & Management
WebRTC: Telecommunication for the 21st century
March 2014

2. mm1: The Consultancy for Connected Business
Executive Summary
A WebRTC:
Overview
 WebRTC provides a high-quality media engine for voice as well as video
 It is built into browsers and can be embedded into apps
 Pure HTML5, e.g. can be coded using simple JavaScript
 High security due to encryption of all media packets
 Signaling and backend are not part of WebRTC
B Business
Models
 Crowded B2C market, due to very low entry barriers
 No convincing B2C business models have emerged yet
 APIs provide the interconnection between B2C and B2B
 Signaling, (SIP) gateways and backend infrastructure are necessary:
„Sell shovels in a gold rush!“
C Mobile
 Mobile WebRTC delivers what joyn/RCS-e promised:
Rich communication without „walled garden“ – from (almost) any device
 Using SDKs and APIs WebRTC can be integrated into Android and iOS apps
 Backend APIs (such as Twilio, Voxeo) facilitate development of end-to-end
mobile services
 Secure and encrypted communication: „NSA-proof“
2

3. mm1: The Consultancy for Connected Business 3
WebRTC:
Overview

4. mm1: The Consultancy for Connected Business
WebRTC: the next (r)evolution in telecommunication!
4
Independence from network
Time
 Circuit-switched
 Electric gear
 Dedicated lines
 SIP, IP-based
 Somewhat interoperable
 IMS core (for carriers)
 Complex systems
 Pure IP
 Peer-to-peer (P2P)
 Need client software
 „Walled garden“
 Pure HTML5
 No plugin needed
 No client software
 Fully interoperable
PSTN
VoIP
WebRTC
P2P VoIP

5. mm1: The Consultancy for Connected Business
WebRTC integrates a high quality and interoperable voice and
media engine directly into the browser
5
WebRTC (integrated into browser)

Powerful
media
engine
No “walled garden”
(interoperability doesn‘t rely on
specific client software)
No client software needed
(just browser with WebRTC engine)
Open ecosystem

6. mm1: The Consultancy for Connected Business
Open source, open standard and simplicity all contribute to
WebRTC’s wide-spread acceptance
Wide-spread acceptance
Simple
code
Open
source
Open
standard
 No telco know-how needed
 Just JavaScript, very easy to
learn and adopt
 Encourages use and lowers
entry barriers
 What‘s better than a free lunch?
 Reliability
 Interoperability
6

7. mm1: The Consultancy for Connected Business
WebRTC integrates telecommunication and web
7
WebRTC: Telephony as a part of HTML5
Voice and video are becoming a part of normal HTML webpages
Strong backing Simple & openPowerful product

8. mm1: The Consultancy for Connected Business
WebRTC neither specifies nor provides backend infrastructure
8
Who are you?
Where are you?
Are you
reachable/online?
If not, what then?
How do we connect?
?
or
Name resolution Presence Switching / signaling
 

9. mm1: The Consultancy for Connected Business
The beef is in the integration of WebRTC B2C frontends with
scalable, stable and secure backend infrastructure
9
B2C B2B
User WebRTC-based B2C service API Gateway Carrier network
 Many new ventures
operating no backend
of their own
 No telco know-how
 Interface between
web developers &
telecommunication
infrastructure
 Telco know-how
 Connects media
streams
 Gateway to the
telco world
 Infrastructure
 Billing
 Capability
 Phone numbers
APIs connect B2C
with B2B

10. mm1: The Consultancy for Connected Business 10
Business
Models

11. mm1: The Consultancy for Connected Business
B2B business models appear more promising than pure B2C
11
Red Ocean: lots of little sharks Blue Ocean: where the Big Boys play
Twilio
frisB
C-Button

12. mm1: The Consultancy for Connected Business
Due to low entry barriers the B2C market is crowding fast
12
P2P VoIP
WebRTC
PSTN
Entry barrier: complexity
Time
VoIP

13. mm1: The Consultancy for Connected Business
Even well-known WebRTC B2C startups have few – if any –
revenue streams and no obvious monetization strategy
13
Real time web meetings with
conferencing
Visual interface for free-of-charge
telephone conferencing
Click-to-dial
Use Twitter for session
establishment (signaling) of
WebRTC calls
Description Business model
?
?
?
?

14. mm1: The Consultancy for Connected Business 14
Mobile

15. mm1: The Consultancy for Connected Business
15
„Enablers“ for mobile
WebRTC:
 APIs
 SDKs
 Backend systems
Status quo
Benefits of
WebRTC @mobile
Requirements
for success
Android: complete
integration with Chrome on
Android
iOS: SDKs allow integration
of WebRTC media engine into
apps
User experience just as good
as Skype, FaceTime, Viber etc.
Low entry barriers of
developers and ventures
Easy integration into apps
and with backend systems
WebRTC on mobile devices will be a quantum leap for customer
reach and market penetration

16. mm1: The Consultancy for Connected Business 16
APIs and SDKs bring WebRTC to the
mobile device
APIs can be used to provide complex
backend functionality for B2C services
„Simplicity is the key to success“ –
APIs and SDKs provide this key for WebRTC
 Especially for iOS, SDKs provide an
important link between app and media
engine
 Using APIs WebRTC can be used in „thin
clients“ (HTML5) as well as „fat clients“
(app)
 Actual transmission of media streams
requires powerful and scalable network
infrastructure
 Signaling, address resolution as well as
billing are complex B2B services, which
B2C providers shouldn‘t have to
implement themselves
APIs/SDKs Backend systems

17. mm1: The Consultancy for Connected Business
Mobile WebRTC can seriously disrupt the world of mobile
communication!
17
mm1 prognoses:
Replace
RCS-e/joyn on
Android smartphones
Break up existing
ecosystems
(Skype, Apple, Microso
ft)
APIs are of
growing importance
to ICT and telco
businesses
Secure mobile
communication:
neither signaling nor
media can be
eavesdropped on!
  

18. mm1: The Consultancy for Connected Business
Contact
Laurenz Kirchner
Partner
+ 49 (151) 27605675
l.kirchner@mm1.de
18
mm1 Consulting & Management
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Local court Stuttgart, PR 720033
Königstr. 10c, 70173 Stuttgart, Germany
Phone: +49 711 363095-0 | Fax: +49 711 363095-9
Dr. Harry Behrens
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+ 49 (171) 2279940
h.behrens@mm1.de