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Telecommunications Industry

Telecommunications Industry. Barbara Yener Janet Jonson. Telecommunications Latest Disruptive Technology. Voice over Internet Protocol (VoIP) How it works:

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Telecommunications Industry

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  1. Telecommunications Industry Barbara Yener Janet Jonson

  2. Telecommunications Latest Disruptive Technology • Voice over Internet Protocol (VoIP) • How it works: • Converts analog voice signals to digital signal packets that are sent over the IP network using a series of software- and hardware- based codecs • Codecs performs the translations from A to D and D to A as well as compresses the digital signal

  3. Advantages of VoIP • Lower wiring and installation costs • Additions, changes and moves of telephones are easier • Less specialized staff • No switches needed • Scalability and flexibility • Click-to-Talk option • Cost savings on long distance and international calls

  4. Traditional Providers Switching plants and line wire Per minute fees VoIP Providers Internet transmissions Bypasses switching plants Cost Structures

  5. Traditional Providers Cost per minute Flat rates Bundle packaged deals VoIP Providers Ad Revenue Model Charge/Fee Model Hybrid Model Business Models

  6. Converging/SupplantedBusiness Models • Large investments in fiber optics, plant and equipment • Emergence of new types of providers • Strategic alliances of companies within the chain • Software application development

  7. Sustainability • Technical problems • Establish consumer base • Define business model

  8. Broader Economy Changes • Deregulation • Faster, cheaper communications • Consolidation of communications

  9. Accounting Implications • Consolidated accounting systems • Cost allocations • Role reversal of costs and revenues

  10. Conclusions • Is VoIP a disruptive technology? • Is VoIP sustainable? • Provider landscape • Jury still out on VoIP

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