ITEXPO East 2010 Alon Cohen EVP/CTO Phone.com Can you please spell that phonetically?

HD Voice Service Background Phone.com launched HD Voice service on October 27, 2009 HD minutes - 100% growth month by month Major growth expected during 2010 Selling Polycom HD phones to our business accounts Adding more Polycom HD phone models as we go Just added HD Conferencing

HD VS. SD Can you spell that phonetically? Audio Sample SD = Standard Definition Or Toll Quality (AM radio quality) Audio Sample HD = High Definition (FM radio quality) No need to spell any word or name phonetically

CPU & BW “Constant” High Sampling Rate Higher Compression Higher available CPU Power Low Sampling Rate Low Compression Lower available CPU Power G.711 – 64Kbps – SDG.722 – 64-48Kbps – HD About the same data rate & cost

Protocols How do protocols affect HD proliferation

The VoIP foreplay PSTN Protocol Ring, I can do HD, SD, and how are you today? Fine thank you. HD it is. Or, I can do HD but my network is congested. Or, I am running out of battery lets use SD. Ok, let me know when you have the BW and we can switch to HD SIP Protocol Ring Talk

With negotiation enabled the sky is the limit. New technology can be deployed unilaterally As more devices get it, utilization grows Consumer quality-perception rise Perceived value increases People now have FEW compelling reasons to switch The network effect The more people own an HD phone, the more valuable the HD phone is to each owner.

Almost there… We have the voice technology We have sufficient Bandwidth We have sufficient CPU power We have free HD Codecs But, friction still exists

The PSTN friction Calls To, From and Via PSTN, reduce the quality VoIP

The Tipping Point As Cellular devices support native HD VOIP and VOIP Addressability Billions of devices will suddenly become HD capable Networks will adopt, or diminish Not to have an HD phone will be impolite HD will become a reality

How Can We Accelerate Phone.com is HD connected to Voxbone G.722 Voxbobe is HD connected to Skype SILK France Telecom is experimenting HD cellular WMR-WB HD Peering is inevitable – But who will do the transcoding?

Expected Transcoding Cost

My Suggestion G.711, G.722, SILK, are all free Persuade patent holders to license AMR-WB for FREE! to peering fabric providers. Eliminate extra cost associated with Codecs Accelerate the network effect Sell more licenses to end points

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