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Creating a Global Presence with Ease

Creating a Global Presence with Ease. Teddy Chu Director, Business Development. Agenda. VoIP Market Trend VoIP Service Provider’s challenges Role of Clearinghouse Clearinghouse Business Model and Service Benefits of Clearinghouse Key considering factors when choosing a clearinghouse.

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Creating a Global Presence with Ease

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  1. Creating a Global Presence with Ease Teddy Chu Director, Business Development

  2. Agenda • VoIP Market Trend • VoIP Service Provider’s challenges • Role of Clearinghouse • Clearinghouse Business Model and Service • Benefits of Clearinghouse • Key considering factors when choosing a clearinghouse AT&T Proprietary Use pursuant to Company instructions

  3. Voice over IP Market Trend • VoIP accounted for 5.6 billions MOUs in 2001, about 4.8% of the total traffic. • VoIP will account for approximately 75% of world voice services by 2007. (Frost & Sullivan, 3/2002) • Established PSTN carriers are increasingly using VoIP technology and adding VoIP products to their list of offerings. AT&T Proprietary Use pursuant to Company instructions

  4. Challenges faced by a VoIP service provider • Limited termination points • Multiple bilateral interconnection agreements • Incorporates expenses such as negotiation, legal, billing, credit risk fee, auditing, maintenance. • Financial risks • Origination – may require to submit multiple bank guarantee • Termination – collection problems • Limited choice of routes • Liaison with multiple engineering supports in case of service problem • Interoperability with other service providers AT&T Proprietary Use pursuant to Company instructions

  5. Role of a Clearinghouse • Single financial relationship Clearinghouse • Access to new applications • Reduced administrative cost • Global footprint AT&T Proprietary Use pursuant to Company instructions

  6. VoIP Minutes VoIPMinutes VoIPMinutes $ $ $ $ VoIP Minutes Clearinghouse acts as Broker Member A Member B ISP Carrier Global Clearinghouse Broker ITSP ITSP Member C Member D AT&T Proprietary Use pursuant to Company instructions

  7. Clearing Fee Customer Margin Termination Cost Termination Cost Clearinghouse Financial Model Termination Rate Wholesale Rate Retail Rate Customer Margin Clearing Fee* Termination Cost Customer Margin Termination Cost Termination Cost Terminating Side Clearinghouse Originating Side * Percentage based AT&T Proprietary Use pursuant to Company instructions

  8. Standard Clearinghouse Services • Facilitate exchange of VoIP traffic • Perform financial settlement between its customers • Guarantee payment to all members • Support multiple platforms • Route management: • All the voice traffic will be routed by the clearinghouse • Choose your desired route based on the QoS/ rate information provided AT&T Proprietary Use pursuant to Company instructions

  9. Benefits of Joining a Clearinghouse • Immediate access to a global termination network • Single financial relationship • Guarantee payment • Low administration costs • Wide selection of routes • Swiftly deploy IP communications services • Access to new IP-based applications • Single point of contact to report problems and dispute AT&T Proprietary Use pursuant to Company instructions

  10. Key Considering Factors when choosing a clearinghouse • Quality • Reporting • Reliability • Interoperability AT&T Proprietary Use pursuant to Company instructions

  11. Key considering factors when choosing a Clearinghouse? • High voice quality • Provide prompt payment and accurate invoice • Financial stable and trustworthy AT&T Proprietary Use pursuant to Company instructions

  12. Key considering factors when choosing a Clearinghouse? • Provide QoS information of the routes which terminates your traffic, for example, ASR reporting AT&T Proprietary Use pursuant to Company instructions

  13. Key considering factors when choosing a Clearinghouse? • Provide comprehensive traffic report to enable you to understand your traffic pattern and better manage your business. AT&T Proprietary Use pursuant to Company instructions

  14. Key considering factors when choosing a Clearinghouse? • Support multiple platforms • Support traffic exchange and call settlement between different VoIP platforms and protocols. • More choices on rate selection • Spur traffic growth AT&T Proprietary Use pursuant to Company instructions

  15. Thank you!Please visit our website: www.att.com/globalclearinghouse

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