1. USRobotics Voice over the Internet – USB Telephone Adapter “Make and receive Skype calls using your existing telephone!”
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2. The Skype™ Voice over the Internet Application
Agenda
The Skype™ Voice over the Internet Application
USRobotics Telephone Adapter
Who will use it (buy it)
Industry trends
Other Skype compatible solutions
USRobotics USB Internet Speakerphone
USB Internet Phone

3. What is ?
What is it?
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4. Skype Software/Service - What is it?
A simple Instant Messaging tool
With multi-party messaging & quick file transfer
Without application-sharing like MSN Messenger
A simple, high-quality voice communication tool
IM-like Point-and-click call/answer
Limited but simple call management: Conference call, busy, voic
Convenient – See who’s available
Best-in-Class voice quality
A community & lifestyle
Users do the marketing
NO subscription, NO contract, NO money to Start
And the cheapest rates around for PSTN

5. Skype Software/Service - What is it?
Skype is a form of Voice over Internet Protocol (VoIP):
Has a signaling protocol - call, answer, hold, conference call, etc.
Has a transport protocol - digitize and send voice over the Internet
BUT it is not standards-based – Internet calling is Skype-to-Skype or Skype-Out service to other phone numbers
Skype provides PC application
No provisioning is needed
Versus Conventional VoIP operators, who
Provide Infrastructure
Purchase standards-based equipment (softswitches, VoIP routers)
Standards allow them to mix equipment vendors In theory
Tier1 operators (Telcos/PTTs) can provide phone-like service
No regulatory barriers to providing Internet-to-Internet calling

6. Skype is recognized!
ZDNet Research – January 2006 Google, Apple, Skype, Starbucks, Ikea, Nokia, Yahoo!, Firefox, eBay and Sony were named the top global brands in 2005 annual survey by brandchannel.com.
Wainhouse Research - November 2005 In the latest report from Wainhouse Research's quarterly WebMetrics research program, 70% of panelists who used Skype in the last six months found the VoIP service acceptable for business calls.
Sandvine Inc. – August 2005 With over 1,100 VoIP providers identified, Skype takes the lead and garners an astounding 35.8% of all VoIP calls in the US. Skype takes an even more commanding lead of 46.2% when it comes to share of minutes, suggesting that Skype users are also making longer calls. Other PC-based VoIP services like Microsoft, Yahoo and AOL chat are distant seconds.
CNET Editors’ Choice February 2005.
Skype 1.1 has been named CNET Editors’ Choice by the CNET Product Reviews Team; awarded to products that display excellence in performance, quality, product design, and value.
TIMES ONLINE Doors Award.
SkypeOut is “This year’s notable telephonic improvement” and awarded the ‘Look, No Phone’-Award.
TMC Internet Telephony VoIP Service Provider Award.
Winner of VoIP Service Provider Award by TMC’s INTERNET TELEPHONY Magazine.
In the Top 100 private companies in the IP Communications Industry to watch in 2005.

7. USRobotics USB Telephone Adapter
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8. The USRobotics USB Telephone Adapter is . . .
Skype™ Certified solution that is an easy way to integrate Skype calling with POTS phone calls
A full-featured voice communications option which includes:
Skype Call Forwarding − Reduce missed calls by forwarding Skype calls to your mobile phone
Advanced Call Waiting − Notification of incoming calls, Skype or PSTN, and the ability to switch between them
Toll Bypass − Make Skype calls from your mobile phone, bypassing long-distance or international charges
Conference Calling − Conduct 3-way conferences between Skype calls and regular telephone calls
Caller ID − Displays Skype user name or PSTN Caller ID*
An incredibly flexible solution for FREE Internet calling with high quality audio, providing improved call quality when compared to PC sound-card options
Includes integrated echo cancellation, advanced audio compression and powerful signal processing
*PSTN Caller ID requires service from the PTT/Telco

9. Makes Skype to Skype calls
USR9620 Capabilities
Makes Skype to Skype calls

10. Makes Landline to Landline (POTS to POTS) Calls
USR9620 Capabilities
Makes Landline to Landline (POTS to POTS) Calls

11. Call Waiting - Switches between Landline (POTS) and Skype Calls
USR9620 Capabilities
Call Waiting - Switches between Landline (POTS) and Skype Calls

12. Conference Landline (POTS) and Skype Calls
USR9620 Capabilities
Conference Landline (POTS) and Skype Calls

13. Forward your Skype Calls to a predetermined number
USR9620 Capabilities
Forward your Skype Calls to a predetermined number
Skype calls can always reach you

14. Bypass LD/International LD using local call plus Skype
USR9620 Capabilities
Bypass LD/International LD using local call plus Skype

15. USR9620 Capabilities
Bypass LD/International LD using Skype to dial through your home or office
USB Telephone Adapter acts as you personal “operator” assistant

16. How the USRobotics USB Telephone Adapter Works
The USB Telephone Adapter connects to both your standard telephone line and, via a USB connection, to a computer with a broadband Internet connection
A second telephone port allows connection to a standard (or cordless) telephone
In a cordless environment all phones in this cluster would have access to Skype calling as well as normal telephone calling

17. Who will use it?
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Target Markets

18. USB Telephone Adapter Who is the target?
International families
Living apart
College students
Business travelers
Small businesses

19. USB Telephone Adapter Who is the target? Current Skype Customer
Skype Savvy
Currently uses Skype and:
Wants to improve quality of phone calls (reduce echo, improve sound quality)
Wants a more traditional call feel (i.e. handset rather than PC microphones or headsets)
Wants to expand Skype calling throughout the home (using a cordless phone)
Wants to never miss a Skype call because they aren’t near their computer
International call characteristics
Uses pre-paid calling cards
Calls overseas often
Is driven to reduce calling charges
Business to business users
Needs low cost telephony solution
Holds meeting with vendors over Skype
Skype customers typically use Skype calling as an adjunct or addition to their traditional telephone service, unlike Vonage type customers
Emergency service (eg. 911 in the US) is not an issue

20. Voice over the Internet - Industry Trends
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Skype Market

21. VoIP in general, and Skype specifically, represent “disrupting” technologies for traditional phone companies
“I knew it was over when I downloaded Skype. When the inventors of KaZaA are distributing for free a little program that you can use to talk to anybody else, and the quality is fantastic, and it’s free – it’s over. The world will change now inevitably.”
Michael Powell, Former FCC Chairman
“The idea of charging for calls belongs to the last century. Skype software gives people new power to affordably stay in touch with their friends and family by taking advantage of their technology and connectivity investments.”
Niklas Zennström, CEO & Co-founder of Skype

22. Leading research organizations expect Voice on the Internet to rapidly expand in businesses and homes
Info-Tech Research The rapid adoption of Voice over IP (VoIP) is killing off traditional telephony, with 50 percent of small- to mid-sized enterprises expected to rely on VoIP by study found that 23 percent of small- to mid-sized enterprises are already using VoIP technology.
IDC Fueled in part by consumers looking to add value to their telephony service, IDC expects that the number of U.S. subscribers to residential VoIP services will grow from 3 million in 2005 to 27 million by the end of 2009.
Insight Research the global market for VoIP will reach $82 billion in 2005 and $196.5 billion by Much of this growth is driven by businesses, but Gartner predicts that by 2008, almost 20% of US homes will have VoIP telephones.
Light Reading – Article from June 2005 Calls using Skype Technologies SA account for nearly half of the VoIP minutes used (46.2 percent) and about 40 percent of the VoIP bandwidth used in North America, according to an analysis done by broadband management company Sandvine

23. Skype communications is booming!
Skype Subscriber Growth
Over 1 million new users per week
Over 3.5 million simultaneous users during peak hours
57M registered users as of the end of Q3 05
USR participates in five of Skype’s top nine markets
These five markets alone account for 14.5M out of 26M registered users
Source: MorganStanley

24. Additional USRobotics Skype “Voice over the Internet” Appliances
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USB Internet Speakerphone
USB Internet Phone

25. USRobotics Skype Appliances
Designed to provide users with an interface for Internet calls that compares favorably to using standard telephones
Include integrated audio technology that eliminates echo and voice clipping, providing excellent call quality
Enhance the quality and value of making free calls all over the world
Stimulate new Skype users, while providing enhanced Internet call quality to 75 Million existing Skype users

26. USRobotics USB Internet Speakerphone – USR9610
The USB Speakerphone attaches to a computer’s USB 1.1 or 2.0 port and allows hands-free conversation using the Skype voice communications application
Available volume controls allow users to adjust conversation volume
Integrated head-set plug allows users to attached a head-set for conversation privacy
All you need is a PC, broadband connection and the Skype™ client software

27. The USRobotics USB Internet Speakerphone is . . .
Skype Certified to assure maximum compatibility
A sleek device that delivers high-quality voice reproduction
Very compact and durable to safely and easily carry on business trips and/or vacations
Universal support – “just plug into to a PC with broadband and talk”
USB port powered – No need to carry along an extra power supply
A high quality audio device delivering improved call quality when compared to typical PC sound-card options
Advanced echo cancellation and noise reduction technology provide excellent call quality
High-fidelity speaker

28. USRobotics USB Internet Phone – USR9600
The USB Internet Phone plugs into a computer’s USB 1.1 or 2.0 port and allows people to talk over the Internet for free!
Utilizes Skype API to work with Skype communication software
All you need is a PC, broadband connection and the Skype™ client software
USB Phone can also support additional phone-like services from MSN, AOL, Yahoo etc.

29. The USRobotics USB Internet Phone is . . .
An attractive handset familiar in design to everyone
Designed to be compact for easily packing on business trips
Universal support – “just plug into to a PC with broadband and talk”
A natural, “regular phone”, for use with PC technology
Dial from phone, not PC
By entering a speed dial (i.e. - 08) for a friend or family member, just dial the digits on the phone’s key pad
LCD Display also shows “Skype” caller id, call status, time and phone status
Rings just like a normal phone and supports personalized ring tones
A high quality audio device delivering improved call quality when compared to typical PC sound-card options

30. Skype Internet Voice Communications How does it work?
FREE!

31. Skype Internet Voice Communications How does it work?
Start dialer
Start dialer
Start dialer

32. Skype Internet Voice Communications How does it work?
Select person to call & dial (using phone or application)
Select person to call & dial (using Skype application)
Select person to call & dial (using phone or application)
Also, using Skype or standard phone line

33. Skype Internet Voice Communications How does it work?
Talk for Free!
Talk for Free!
Talk for Free!

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35. Background information – Competitive Glance
Direct competitor DLink’s feature set is identical to ours
USR and DLink are the only full featured Skype Certified solutions found (there could of course be more)
The real opportunity for us is to be first to get mass-market traction There is no leader now
Conversation regarding competition should focus on standalone Skype Cordless solutions versus our TA plus an end-users existing cordless phone
NOTE: The TAs shown in the chart were found doing web searches