the device that used to be your phone

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the device that used to be your phonevinod khosla, [email protected]

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Page 1: The Device That Used To Be Your Phone

the device that used to be your phone…

vinod khosla, [email protected]

Page 2: The Device That Used To Be Your Phone

what you know…

what you don’t know…

where are we going?

what should we be asking?

Page 3: The Device That Used To Be Your Phone

transportdead or alive?

Page 4: The Device That Used To Be Your Phone

transport is dead, right?

what you know…

Page 5: The Device That Used To Be Your Phone

$1 trillion spent on telecom transport last year

…so it’s not quite dead, yet

• mobile transport growing 15% in 2007 to $650B

• wireline transport flat in 2007 at $550B

Page 6: The Device That Used To Be Your Phone

working with incumbent carriers:• do you have a choice? • if so, when do you want to be carrier friendly?

how do new carriers change the rules?

what’s nextwhat’s next in transport: in transport:

Page 7: The Device That Used To Be Your Phone

MoIP: Mobile over IP

different approaches: existing voice networks or all IP?

Page 8: The Device That Used To Be Your Phone

• do you want a desk phone and a cell phone?(many younger people have already made the choice)

what’s nextwhat’s next in transport: in transport:

Page 9: The Device That Used To Be Your Phone

a sample service for small businesses:

•professional image + more productivity = revenue•one simpler, cheaper landline + mobile phone

• a proven model: tens of thousands of paid business customers … but not paying for transport

SoIP: Services over IP

Page 10: The Device That Used To Be Your Phone

• what if transport revenue didn’t “die” but GREW?

• …and was paid for by businesses instead of consumers?

what’s nextwhat’s next in transport: in transport:

Page 11: The Device That Used To Be Your Phone

• Has this happened before? • Toll Free / 800 business• Oh, and Google

business-sponsored calling

$2+ / lead

Sure.

Page 12: The Device That Used To Be Your Phone

speaking of advertising

Page 13: The Device That Used To Be Your Phone

ads over ip are big business

Page 14: The Device That Used To Be Your Phone

• broadcast TV is free• tv over IP is expensive (iTunes) or illegal (BitTorrent)• sounds like we’re missing an ad model…

what can IP video advertising learn from the web?

where else are we missing an ad model?

what’s nextwhat’s next in advertising: in advertising:

Page 15: The Device That Used To Be Your Phone

• right ad, right place, right time > free (legal) video

ad-supported tv – with ip

Page 16: The Device That Used To Be Your Phone

• anyone can produce and post ads, best ads rise to the top • anyone can then customize those ads

user generated advertising?

Page 17: The Device That Used To Be Your Phone

US Media Usage to Ad Spending Ratios

untapped ad potential on mobile?untapped ad potential on mobile?

1000x+

4.7x

0.0

2.0

4.0

6.0

8.0

10.0

12.0x

Newsp

aper

s +

Mag

azin

es

Tota

l TV

Radio

Inte

rnet

Mob

ile

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0

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SMS Messages SMS Revenue

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Web Queries Online Ad Revenue

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Web Queries Online Ad Revenue

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SMS Messages SMS Revenue

beyond ads: $50b on SMS

Online Search / Advertising

(monthly - in billions)

(‘06 - billions of $)

(monthly - in billions)

(‘06 - billions of $)

Mobile SMS

Page 19: The Device That Used To Be Your Phone

viral mobile apps + mobile monetization = $100b opportunity

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1,000 micro-content channels + mobile monetization = opportunity

Page 21: The Device That Used To Be Your Phone

hardware & software: inflection points

Page 22: The Device That Used To Be Your Phone

• where does hardware hold back what is possible?

• what kind of new businesses can be enabled?

inflection points:inflection points:

Page 23: The Device That Used To Be Your Phone

youtube was a warm up act 500+ million camera phones

Then Now

Page 24: The Device That Used To Be Your Phone

a problem…

• An average SMS is 140 bytes and costs 10 cents, or $750/MB

• Video recording of a rock concert is 5 gigabytes and would cost $3.85M to upload at the same price

…an opportunity

Page 25: The Device That Used To Be Your Phone

• yes, but maybe not the wireless you think

is wireless the answer?

Page 26: The Device That Used To Be Your Phone

one step further

100 GB on your cell phone?

Page 27: The Device That Used To Be Your Phone

100 GB = power drain!

• battery life is the biggest obstacle to these technologies• batteries coming soon that recharge 80%+ in one minute! • expect more innovation here…

Page 28: The Device That Used To Be Your Phone

you think you knowmobile tv

Page 29: The Device That Used To Be Your Phone

you think you know the big screen

Page 30: The Device That Used To Be Your Phone

• your mobile device as a full-fledged TV!• spatial photonics, texas instruments, microvision…

the new screen

Page 31: The Device That Used To Be Your Phone

software freed from hardwaresoftware freed from hardware

Moka5 allows your entire PC to be carried on your phone…or your “phone on your phone” (entire address book…)

Page 32: The Device That Used To Be Your Phone

are weaccelerating or decelerating?

Page 33: The Device That Used To Be Your Phone

can you understand me now?

real-time translation of speech is being developed

Page 34: The Device That Used To Be Your Phone

telemedicine

• your cell phone could be as a diagnostic tool• care providers in rural areas could use a “Doc In a Phone”

Page 35: The Device That Used To Be Your Phone

a different kind of a different kind of cockroachcockroach

• 1999: UUnet founder predicts silicon cockroaches will swamp internet traffic

Page 36: The Device That Used To Be Your Phone

a different kind of a different kind of cockroachcockroach

Page 37: The Device That Used To Be Your Phone

a a cleanclean example example

• students know machine availability via cell phones, updates on laundry status via SMS

• if this is coming to washing machines, much broader use of m2m applications not far behind

Page 38: The Device That Used To Be Your Phone

baby steps toward bankingbaby steps toward banking

Page 39: The Device That Used To Be Your Phone

your phone as your wallet

- “your cell phone as your wallet: still waiting” (cnn)

Page 40: The Device That Used To Be Your Phone

taking baby steps to banking

• In the Philippines, SMART Padala offers a way to transmit money from users via text messages – without bank accounts

• ARYTY allows family/friends in the US to send prepaid minutes back to the Philippines

Page 41: The Device That Used To Be Your Phone

a new banking market• In Kenya, Safaricon allows the transfer of surplus phone minutes as payments – in effect, a new currency

• 60% of mobile users worldwide are prepaid -60% of $667b ≈ $420b in minutes as a potential currency

…why give carriers all the interest?

Page 42: The Device That Used To Be Your Phone

mobile sales that work

• 2D Barcodes allow quicker sales without standing in line (just point your phone at an item and go!)• In Japan, the Felica system allows you to pay for tickets and buy food at stores• More than 20 million Japanese consumers have phones with embedded circuitry that can function as credit cards

Page 43: The Device That Used To Be Your Phone

Japanese phones are already there

• 80%+ cell phones sold in Japan have 2D barcode readers• 27% of consumers use their phones as barcode readers, and 26% use them as GPS systems• Moreover, a significant minority (more than 10%) use their phones as FM radios, Voice Records, and TV Tuners

Page 44: The Device That Used To Be Your Phone

parting thoughtnet growth has never stopped

1

10

100

1,000

10,000

100,000

1,000,000

10,000,000

100,000,000

1,000,000,000

10,000,000,000

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

Traffic MBper MonthM

egab

ytes

Page 45: The Device That Used To Be Your Phone

• even in the depths of the bust, bets on IP proving out

parting thoughtdon’t bet against the net