Introduction to Wi-Fi Telephony

Karen HongDirector, Product Marketing

8x8 Inc.

Agenda

What is Wi-Fi VoIP Market Drivers Opportunities & Challenges Future for Wi-Fi VoIP

What is Wi-Fi VoIP

Packetized voice communication over wireless data networks

IP - Transport independent, network agnostic Unlicensed wireless networks (802.11) as well

as licensed networks (3G and 4G cellular)

Wi-Fi VoIP Opportunities Worldwide, consumer VoIP subscribers using wireless IP Phones will grow

from 2% currently to 73% in 2009. By 2009, over 66 million cellular/Wi-Fi handset will be in operation. By 2009, WLANs will be deployed in 57% of small businesses, 62% of

medium sized businesses, and 72% of large enterprises In 2004, worldwide revenue from dual-mode handsets hit $6.7m and

from all Wi-Fi VoIP handsets totalled $54.7m The number of enterprises that deploy VoIP over WLAN will triple during

the next two years. Today, 10 percent of North American enterprises utilize VoIP over WLANs. Analysts expects that percentage to increase to 31 percent by 2007.

The WiFi market in the Asia-Pacific region will grow to $1.29 billion in 2010, up from $213.2 million in 2004, says a recent analysts study. Wireless service providers in South Korea, Taiwan, Japan and China expanded their hotspot coverage, and they are planning to expand it even more

Source: In-Stat & Infonetics Research

Wi-Fi VoIP Market Drivers

Growth of Wireless LAN and VoIP Buzz around dual-mode solutions among

enterprises on synergy between IP PBXs and Wi-Fi LANs equipments.

The leading WLAN apps will include wired LAN backup and asset and RF ID tracking

Half of mobile subscribers would use their mobile as the main phone if service cost and quality were comparable to landline

Wi-Fi VoIP Benefits End User

Convenience – single device (convergence), single number, existing devices, easy add of new features, voice to data applications integration

Services – presence, VXML, sound quality Cost savings – one device, single network charge, toll bypass

Enterprise Single network, leverage existing network Cost control Productivity – reachability, toll bypass, maintenance Scaleable – (IP networks perception) Unified management Local network control (users, coverage, access)

Mobile Carrier Increase Revenue

• Capture landline minutes Improve Coverage

• Leverage WLANs Lower Expenses

• WLANs much less expensive than new cell phones Lower Churn

• Offer differentiated service• Innovative price plans

Wi-Fi VoIP Applications

Market Segment: Enterprise and vertical markets implementation

Target Users: Nurses, Teachers, Store clerks, Warehouse managers, IT managers, Construction workers Decision makers who need to always be

available for quick responses Implementers who need to carry out

tasks that requires mobility

Wi-Fi VoIP Challenges WLAN Network Issues

QoS Security

Seamless Mobility Mobile Device

Battery life must be maximized Price level Bandwidth management is required Call capacity should be maximized

Standards compliance UMA – 14 major phone vendors and telecom

operators push unlicensed mobile access (UMA) 802.11i, 802.11e, 802.11r, and 802.11s working

groups actively working on technology to enhance Wi-Fi experience

What’s Happening Today NTT DoCoMo in Japan already offering dual-mode phones from

NEC KT Telecom in Korea offering service with hand-off between

cellular and hotspots BT has trialed a Motorola dual-mode phone that uses Bluetooth to

connect to an enterprise WLAN AVAYA, Motorola, and Proxim announced prototypes of its dual-

mode Wi-Fi/GSM GPRS Samsung introduced what it calls the world's first mobile WiMax

handset. The Korean vendor is demonstrating WiBro, a Korean technology that is derived from the 802.16e spec that will form the basis of mobile WiMax, via the Samsung M800 handset model.

Calypso Wireless, Florida based wireless equipment manufacturer announce availability of its dual mode Wi-Fi/GSM-GPRS handset and the technology for seamlessly handing off between Wi-Fi and Cellular networks

China Unicom, the Chinese second-largest mobile operator, has begun testing a service that combines cell phone service with VoIP. The trial offering is in China's southern Guangdong provinces using BridgePort Networks equipment

Thank You