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The Business Plan

Market Disruption
Cloud
Data portability/sharing/cloning allowing customizable services on demand with device independence through virtual support structures on the web

Smartphone
iTunes applications hit 1 billion downloads in 9 months. 25% of Americans have accessed the web through their mobile. The smartphone is a major web access device.

Mashups
Method of taking existent technologies/services and combining their data/usage through APIs for new uses/products

Social
Its a people driven economy now. Social reach is more important than Google ranking, now. People care more about how

New Rules
A VOIP service cannot exist without the ability to easily mashup with different services, platforms. This mashup must tightly bind disparate existing technologies, services, networks to produce new functionality or service. A good example of this would be Foursquare:

We already seeing the start of what will be a flood of partnerships between web & VOIP so that reach is extended: They all are however loosely mashed up and not tightly bound services. There is functional cross over but nothing that deeply alters the nature of each service.

Major Players
This space remains small in number of competitors because compared to traditional telephony or even traditional VOIP providers; the technical telecom expertise, web service production expertise, and online usability expertise a company needs to not only go multiplatform (browser, desktop, mobile) but also create an infrastructure to support such a service requires business models, organizational structures, personnel and partnerships that are not easily adopted or acquired. This is why many of the newer companies that do have these qualifications are being acquired rapidly and for ever increasing amounts. The majority of these acquired had a substantial web component to them.

Independent ICT VOIP


P2P based desktop & mobile

Acquired Web ICT VOIP


By Telefonica, $207m

Free VOIP Service Extensions


Mac & iPhone VOIP

Hardware extended PSTN & mobile Hardware extended PSTN & mobile

By BT, $105m Gmail extension By Google, $105m

IM Aggregation, Mobile

IM Aggregation, Mobile

By Google, $30m

Android App

Issues & Limitations


Consumer Issues
The nominal user visits 5 to 6 sites daily, has a minimum of 3 different potential contact lists. VOIP does not factor into this usage - Many VOIP services are not inline with a presence directly in those sites - Multiple contact list aggregation requires a manual process of input The Service may require external devices - Technology, service structure or business model requires additional devices - Additional cost and usage breakage point Voice communication requires other communication to establish - Reduces the utility and ease of the voice communication Numbers or a variation of phone numbers are required in many cases - Numbers are not the most convenient data set to remember - With static phone numbers, privacy and safety become an issues

Content Provider Issues


Content Developers have not had an easy way to mashup voice services with their own content - Would require resources and costs to develop on their own - VOIP does not often have reliably open technology or policies Broad social or community extensibility not baked in - social & viral spread is difficult Marketing Limitations - VOIP often used for retention marketing or CRM only. - No opportunities for outbound External Steps are often required - Registration, usage requirements, and implementation are external to app/site/service - Data migration may be difficult or nonexistent

Incumbent Limitations
The technology that powers the service is not web based and relies on a proprietary, nonstandard P2P network basis which necessitates a downloadable client [Skype].
- Proprietary and non standard network have compatibility issues (technical & operational) with SIP basis - This prevents easy mashups with other web based services/mobile apps - Simplex communication not possible. Users must be registered and must have some prior contact.

The service/business model is built on external device purchase [Vonage, Lingo, enterprise]

- Their entire business model is built on sales, installation, and maintenance of hardware: the phone adapter, specialized phones, routers or PBXs - Web integration would cannibalize their main revenue stream.

The technology is oriented towards local/anonymous number assignment & management (VOIP to PSTN call termination and carrier routing management) [Jajah].
- Does not have a web based calling interface (web is a bridge). External device (PSTN) is needed. - Base services require input of both callee and caller numbers

The service/business model was built with IM communication aggregation as a focus [Nimbuzz, Fring]

- The VOIP functions were mainly handled by third party providers until recently - Consumer IM aggregation focus has not prompted integration with other apps, sites, and services.

Consequences
Skype

Cannot mashup with or integrate their primary consumer product with the web presences of online services/commerce/review sites without substantial technical modification. A concrete example of this is Ebay.

Cloud Platform
Web MashUp 3rd Party Web Interface Web Twitter SNS Interface Facebook LinkedIn Open Social me2DAY Open Social
(IE,Firefox,Chrome,

Touchring URL

Rich Media Widget

Touchring Contacts

Touchring Biz

Expand

MashUp

Telephony Interface

Web Phone FMC

SNS Data

Telephony Network

WiFi / 3G
CTI / Any Gateway

End User Interface


Web
(Windows,MAC, Linux)

PC

Expand

Safari)

(OSX,Android,wP7)

Mobile

Expand

Expand 3rd Party

Mobile MashUp

Mobile Share

Mobile Skin

Touchring Contacts

Touchring Biz Mobile

Expand

Cloud Platform
The nature of Touchring cloud VOIP technology provides an embedded advantage and Touchrings lack of a legacy business model to protect outside of anything related to calling provides opportunity to be on any platform and mashed up with any service or network.

Mobile 3rd Party


TouchRing Plugins TouchRing Skins TouchRingStore TouchRing Mobile (iPhone) TouchRing Mobile (Android) TouchRing Web Touchring Desktop

PC/Mac

Open API Mashup


TouchRing Biz

Enterprise RIA Telephony SDK Open Apps

TRs OAuth authentication SDK for Flash/Flex/AIR OpenAPI for Call Function

Social Web Service

End User

Cloud Platform
Touchring is a cloud platform with social/viral hooks.

The actual calling infrastructure is independent of device, platform or even infrastructure .


We present an enterprise service, Touchring Biz, with our SaaS Cloud approach that sidesteps a lot of issues that any party wanting Voice integration would face.

Traditional ICT VOIP SI


1) Requires cost, and additional development investment - Front-end & backend compatibility fixing - Hosting, maintenance and operations - Content Updates & changes; not easily customizable - Multi-device/platform presence requires further development - Remains a continual cost center throughout 2) Inefficient and Slow - Unnecessary & unused features - Static implementation which can take months to update - Requires inflexible long term planning to accommodate 3) Singular or Limited Purpose - Usually VOIP is deployed by SI as an interal/CRM/retain marketing tool - VOIP remains a cost center in most typical implementations

Touchring ICT VOIP Cloud


1) Costs Minimized and development handled in cloud - Compatibility - Hosting, maintenance & operations for service is handled by vendor - Content Update is done on demand - Service is device independent since all processing is done in cloud 2) On Demand and Iterative - Features can be implemented and removed on demand - Quick iterative processes immediately implemented - User Customizability allows for shorter and flexible planning 3) Direct Revenue Driver - Our rich media interface allows for a dynamic direct marketing/ad space - Because our platform has already had social hooks baked in, viral distribution is possible

Cloud Platform
For our service we have been able to rapidly roll out different iterations on different platforms once we had our Cloud VOIP network developed. The user/client data can run to any of these access points. This will allow mashups to be multi-platform in nature as well.

User Experience
Interaction design, usability is essential to Touchring. We are not an endpoint destination but a vehicle, a bridge between endpoints. The user cannot worry about setting the engine just right, inflating the tires, and adjusting the suspension in order to use our product because they are in a hurry to get to their perceived destination.

To that end, all the data that is required for base function engagement (Calling, Social Contacts) are either automated or require minimal interaction to begin.

Phone Call/Text from this widget

Automatic import & conversion of your social graph into your social phone book.

socialContacts

User Experience
In most cases, due to the nature of their services, VOIP companies as a whole have not opted for visual UX. Our services however have a huge visual component and thus a visually oriented experience is more in line with our usage as well. We also believe that this approach takes advantage of the natural suggestion a visual interface

encourages: that of interaction beyond the core functionality.

In this case, encouraging Style encourages embedding. Once embedded this in turn will encourage social sharing on any social feed.

Personalized Skins User created phone skins.

Uploadable Media (Image/Video/Text)

Phone Call/Text from this widget Portable Functionality All functions work no matter where the widget is embedded

Embed in

User Experience
Like performance tuning on a car, all feature sets that enhance engagement (Webphone customization Style and multiplication), or drive reach (RingMe URL, Social Feeds, Social Share) still have the data automated but the usage

interface can be independently and/or granularly adjusted in terms of control of that reach.

SocialShare

Style

SocialFeed

User Experience
Calling & access options
An unlimited number of phones. A phone for every purpose.

Multiple Phones

Proxy address for your phone number. A user created calling address

RingMe URL

Control when and who can call you

Access Controls

The Monetization
We operate on a hybrid freemium (not subscription)/prepaid payment model. Calls within the Touchring platform are free and calls out to PSTN are deducted from the amount the user has prepaid for. There are four major monetization areas we have focused on:

1) Call termination: We will innovate here by not only offering the traditional payment methods but also

implement offer payments. Offer payments have boosted conversion rates and payment frequency and overall revenue with social games. Would not the effect be even greater with a communication service with real world utility? This would also allow revenue to come from those who do not have access to credit cards.

2) Micropayments: We are entering into licensing talks with media entities for special edition skins, interfaces,

shapes which will be purchased at the Touchring Store. Users will be able to submit custom skins, screen images and videos to the store for sale. Once we release our SDK we will have third party apps available under a revenue sharing model. Additional optional features and functions may be purchased through a consumable basis from the Touchring store as well.

The Monetization
3) Advertising Network: The screens of our webphones can be used to run a short interactive ad which could run
pre- or post-call. Advertisers could bid on number of phones it is deployed on, demographics and targeting based on embedded context (similar to how Adsense operates with keywords).

4)Touchring Biz: This is where we construct special webphones, mobile apps/mashups with existent apps, social
network mashups which would be placed on the web presences of the businesses. Backend analytics would provide information on usage, sharing count, and other relevant metics.

We have already deployed testbeds of this with Coca Cola (webphone) and Korea Telecom(mobile app). We are also presently deeply involved with deals with banks, financial services, real estate, airlines, government agencies, Groupon-type e-commerce sites. We have been revenue positive in 2008, 2009 and will be in 2010 because of Biz. We are deploying this in two ways: A. Solution Integration: a larger license cost with no recurring revenue but no additional service costs B. ASP: smaller licensing cost with recurring revenue sharing. We host and maintain everything.

Customer Traction
Touchring has viral and social hooks which make it easy for users to try the product without registering. With the RingMe URL and our Webphone Embeds. Infection is built into the product as an intrinsic primary feature. But in order to reach the 1,000,000 mark that we believe will turbocharge traction; we will not only utilize traditional PR & marketing strategies but have an aggressive NGO & non-profit initiative to not only amplify PR effects but to also emphasize what the actual usage cases are with a strong and easy to understand story. NGOs and nonprofits are the optimal lead usage cases for Touchring because of their needs and positioning. Its also at the core of why we do this. Enabling anyone anywhere to communicate and change how they relate to each other.

Lock In
Foursquare has been able to lock-in their users with achievement game mechanics (badges) which have direct real world benefits. Retail stores have used legacy points to lock-in their customers for multiple return sales. Touchring will implement experience leveling and reward game mechanics similar to those found in MMOs like WOW to not only provide incentive to continually use Touchring and explore all of its various features but to make it harder to leave Touchring after having accumulated their Touchring Levels with rewards like: 1) extra Rings 2) discounts at our Biz partners, 3) special exclusive features. Compulsion from collecting to earn benefits/rewards is more powerful than convenience of use. Foursquare, Farmville, World of Warcraft, DevHub are examples of this mantra.

This serves not only as a concrete lock-in strategy but will serve

to emphasize and highlight the more abstract reasons to continue to use the service:

a) the accumulation and ease of calling Social Contacts across multiple networks b) the coverage of all major platforms c) the aggregated cross network social feeds d) the personalization and multiplication of Touchrings flash webphone interface e) RingMe URL security and expressivity

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