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2 Nortel Confidential Information

BUSINESS MADE SIMPLE

The Future of Telecommunications

John A. PhillipsNortel, ETSI General Assembly Chairman2007 World Electronics Forum, Tel Aviv, 5th November 2007

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Industry Landscape

Future

2000

1990

1995

2007 Expectations/Trends

Connectivity

NetworkBuild-Out

Mobility &Intelligence

Pervasive, Personal Broadband

Everything Connects

Everything Connects

Every Application

Communicates

Every Application

Communicates

Broadband Access is

Everywhere

Broadband Access is

Everywhere

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Pervasive personal broadband

• Hyper-Connectivity – evolution from being fully connected, (meaning everybody is on the network), to being hyper-connected, (meaning the range of devices and entities on the network far outpaces the number of people consuming the services offered by those devices).

• Communications-Enabled Applications – applications to support new levels of network-aware intelligence and an intuitive interaction experience through advanced technology frameworks such as IMS and Services Oriented Architecture (SOA).

• True broadband – the communications experience is so seamless that users no longer have to consider which technology – wire line or wireless – is being used to make a connection. They simply communicate, anywhere, anytime from whichever device is most convenient. Most importantly, the broadband experience becomes so economical that the range of uses exceeds any experience of the past.

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Hyperconnectivity is Realand Happening Now

• By 2010, worldwide:

• 4-fold growth in Internet Commerce to 100B transactions

• 1-2 billion A-GPS-enabled handsets

Person to Machine

• Europe – mobile phones now outnumber people (103% penetration)

• Global mobile IM grew 33% 2H06

Person to Person

• iPhone available in June; hyper-connectivity at applications level

• 98% of all CPUs today are embedded (by 2010 – 14 billion connected, embedded devices)

• 70%+ of all 2007 cars in U.S. have iPOD connectivity

Machine to Machine

• Sensor pocket in Nike shoes

• 100 million iPODs sold (market to double 2005 – 2010)

• One Laptop Per Child

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Anything that can be connected and would benefit from being connected will be connected

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Addressing the Challenge and Opportunity of Hyperconnectivity

Hyperconnectivity

“True” Broadband

Communications-Enabled

Applications

Pillars of Hyperconnectivity

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True Broadband

• Broader wireline bandwidth to the home and office

• Ubiquitous wireless coverage with less expensive infrastructure, more flexibility, wider bandwidth

• Seamless integration so the user doesn’t have to know which

Unwired homes, offices and public environments

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Mobile DataMobile Data

True Broadband – by Wireless Connecting Everything That Should Be Connected

Mobile VOIPMobile VOIPBroadband

HomeBroadband

Home

Metro HotSpotMetro

HotSpot

Multimedia DistributionMultimedia Distribution

Mobile VideoMobile Video

Extended EnterpriseExtended Enterprise

802.16

View

802.16

View

3G

View

3G

View

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Communications-Enabled Applications

Every Application will have Built-In Communications Capabilities

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3GPP’s IP Multimedia Subsystem

• IMS – 3GPP’s IP Multimedia Subsystem – is a multi-vendor SIP connection engine providing access to generic application servers from any connected party

• IMS provides applications-enabling service capabilities to a service-aware applications layer: • SIP connection• Resource access control• Collection and delivery of charging data• Presence, security, …

• With recent updates to support wireline access as well as wireless,

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Service Oriented Architecture

• SOA is the collection of policies, practices, and frameworks by which the implementer ensures that the right services are provided and consumed to create business value

• Key business functions are modularized as re-usable and loosely coupled services, with well-defined interfaces, that can be invoked in a defined sequence to form business processes

From a one-service network to a multi-service network

Interoperable

LooselyCoupled

Re-Usable

Composable

SOA

• Characteristics• Platform independent Services with

describing interfaces using XML• Formally defined Messages • Services can be discovered• Policies to define services SLA

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From Proposition to Implementation

• The proposition• Anything that can be connected and would benefit from being

connected will be connected• Unwired homes, offices and public environments • Every Application will have Built-In Communications

Capabilities• From a one-service network to a multi-service network

• The implementation• There are opportunities and challenges …

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Businesses that embrace innovation and scale will capture the opportunity of Hyperconnectivity

Hyperconnectivity: Opportunity & Challenge

• Opportunity

• Increased productivity

• Better communications experience

• A more connected world (societal good)

• Challenge

• Scale is unprecedented

• Today’s networks not designed for Hyperconnectivity

• New technology required to transform much of IT and Telecom

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From the User Point of View

• Simplicity• New technology has to hide its complexity from the user

• Security• New technology has to provide all of the right security attributes,

including adequate privacy in a hyperconnected world, to inspire confidence in its use

• Dependability• New technology has to be very dependable because people will

increasingly depend on it

Global standards to achieve the vision

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