1. C Leading edge applications John Bosnell Point Topic 31 January 2005

2. 2 www.point-topic.com Barriers to Broadband. C Leading edge applications Voice over IP Video on Demand Virtual Private Networks Security Bandwidth boosters Teleworking Drivers and barriers for...

3. 3 www.point-topic.com Barriers to Broadband. C Leading edge applications Voice over IP (VoIP) Drivers Lower prices: intra-operator (often free), national and international. Virtual phone numbers cut the cost of long distance calls to friends or family Triple-play package with TV and broadband –makes it easy to sign up for VoIP –increases “stickiness”, reduces churn

4. 4 www.point-topic.com Barriers to Broadband. C Leading edge applications Concerns over reliability if modem or broadband connection fails Lifeline services (999, 911) may not work in a power cut Could undermine universal service funding Subscribers may not be able to move their existing number to an IP service Have security and spam issues been addressed? VoIP Barriers

5. 5 www.point-topic.com Barriers to Broadband. C Leading edge applications Some major VoIP players were well established by mid-2004 Source: Point Topic; figures mid-2004

6. 6 www.point-topic.com Barriers to Broadband. C Leading edge applications Watch whatever you want, now Access to a library of free and pay content including ‘catch-up’ TV and movies Can include features like pausing and rewinding the program, not available on traditional pay-per-view Video on Demand (VOD) Drivers

7. 7 www.point-topic.com Barriers to Broadband. C Leading edge applications Business case is hard to make and prove Movie release windows mean VOD comes 3 months after DVD VOD over DSL needs good network performance –if quality is poor, subscribers will stay away VOD Barriers

8. 8 www.point-topic.com Barriers to Broadband. C Leading edge applications Cost savings from combining voice and data services onto one IP network Increased flexibility –to deploy new services –to serve new locations –to move people around the organisation Support for home working with reasonable security levels Virtual Private Networks (VPN) Drivers

9. 9 www.point-topic.com Barriers to Broadband. C Leading edge applications Security. Providers need to show that IP VPNs are as secure as frame relay or leased line networks Reliability. Different networks for voice and data means there is a backup. Users can call the help desk if the data network fails. VPN Barriers

10. 10 www.point-topic.com Barriers to Broadband. C Leading edge applications Operationally essential –online computers would soon be brought down without protection –home users rely increasingly on their PCs - for example for remote working Privacy and peace of mind –controlling the flood of spam –blocking intrusive malware –‘safe surfing’ for children Security Drivers

11. 11 www.point-topic.com Barriers to Broadband. C Leading edge applications Confusion. Many computer users do not realise that anti-virus and other security software needs constant updating. Belief that ISPs should include security features and spam filtering as standard Security Barriers

12. 12 www.point-topic.com Barriers to Broadband. C Leading edge applications Pay-as-you-go broadband top-up –for users who occasionally need faster connection speeds (eg for gaming or downloading large files) Potentially useful for streaming video that requires more bandwidth Bandwidth boosters Drivers

13. 13 www.point-topic.com Barriers to Broadband. C Leading edge applications Increasingly, other faster services are not much more expensive –the booster could end up costing more Complicated model worries subscribers –their bill might bring a nasty surprise; suppose they forgot to switch off the booster service? –suspicious of marketing devices designed to increase revenue Bandwidth boosters barriers

14. 14 www.point-topic.com Barriers to Broadband. C Leading edge applications Employee sees cost saving and time saving benefits from not commuting Employer benefits from reduced office overheads Broadband, VPNs make it easier to implement a good teleworking set-up Teleworking drivers

15. 15 www.point-topic.com Barriers to Broadband. C Leading edge applications Not all jobs suitable for teleworking Employers may perceive a lack of control over staff they can’t see Employers may worry about the impact on team morale –charges of favouritism if some staff can telework, and others not Some security concerns –for example, in the legal profession Teleworking barriers

16. 16 www.point-topic.com Barriers to Broadband. C Leading edge applications John Bosnell 020 7551 9260 john.bosnell@point-topic.com Point Topic Ltd Cardinal Tower 12 Farringdon Road London EC1M 3HS, UK