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The Future of Telephony: Video Phones

Video Phones are the next big thing in telephony. They offer two-way video communication, practicality, and better performance. With advances in broadband infrastructure, processing power, and video compression technology, video telephony is now a timely opportunity for cable and DSL providers. Consumers want plug-and-play devices that function as telephones and provide high-quality video for their close contacts. Video telephony enhances communication with intimate contacts and leverages broadband for better value. Service providers can differentiate their offerings without infrastructure investment, and it appeals to both consumers and businesses. The Ojo Personal Video Phone offers unusually high quality, advanced compression technology, and robust transmission over the internet. With additional considerations such as enterprise integration, conferencing, and special needs support, video phones have a broad range of applications and interests. They provide product differentiation, viral marketing potential, and a competitive advantage.

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The Future of Telephony: Video Phones

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  1. The Next Best Thing In Telephony Video Phones Are The Way Of The Future

  2. Why Video Telephony? Why Now? • Deliver missing telecommunications component- two way video • Video telephony now practical • broadband infrastructure • processing power/memory • video compression technology • Timely opportunity for cable and DSL • Broadband revenue stream, incremental penetration, reduced churn w/o infrastructure investment • Differentiates telephony from typical voice only service

  3. Why Video Telephony? Why Now? • Ubiquity of consumer broadband products • Advances in compression (H.264) • Allows lower bandwidth requirements • Better performance • Advances in processing and memory technology (cost) • Consumers becoming more device-centric in communications expectations

  4. What Does The Consumer Want? • They expect full motion video • They expect a supplement to their existing phone (Their phone “is not broken”) • They spend 75% of their calling time with 4-6 close contacts • They want video for these close contacts to “enhance the communication with these intimate contacts” • They only care that those they want to use video with have a video phone

  5. What Does The Consumer Want? • They want “plug and play” • They want a telephone that does video • A computer and webcam are hard to use and not the way they like to take phone calls • They want the device and service to function as a telephone • Willing to pay more for better quality • Does not necessarily need to be or work with mobile • Quality, Quality, Quality

  6. Why Do They Want Video? • 80% of what we communicate is non-verbal • Enhanced communications experience with those who are closest to them • Very high appeal to “connectors”, especially women • First significant feature addition in a long time • There is a “wow factor” • Further leverages their broadband product for better value • Can enhance VoIP offerings

  7. Service Providers • No investment in infrastructure • Standards-based for interoperability • Can work well in non-QoS environments • Downloadable software for technology updates and feature enhancements • Additional revenue streams • Leverages existing infrastructure with relatively easy development work • Appeals to consumers as well as businesses • Quick to market

  8. Marketing Opportunity • Product Differentiator • Appeals to broad segments • Challenge to get across quality and benefits • A clear feature in a confusing sell • Friendly to a broad range of tactics • Easily understood on an emotional level • More difficult to believe that good quality is affordable • Allows for broad packaging options

  9. Ojo Personal Video Phone • Unusually high quality • 30 frames per second (fixed) • synchronized voice and video • no jerkiness with nominal 1/6th of a second delay • Advanced video compression technology (H.264) enhanced to operate at extremely low data rates (100kbs) • Unique “error concealment” systems for robust transmission over the internet • Adaptable to any SIP platform

  10. Additional Considerations and Features • Low cost/low featured • Enterprise - PBX integration, conferencing • Travel • Internationalization • PC client (web cam) • Special Needs (hearing impaired, tele-medicine) • Cell phone compatible • Embedded modem

  11. Summary • Product Differentiation • Consumers willing to try • Looking for enhanced phone service • Important for a select small group of related consumers • Very viral marketing • Broad range of applications and interests • Speed to market/Competitive advantage • Wow factor

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