Enabling Converged ServicesChanging the Way the World Communicates

Jim DonderoVice-President Global Solutions Marketing

CANTO, June 21st

2

The Consumer’s World is Changing

Convergence of services into a unified user experience

Becomes one service

> Fixed service

> Mobile service

> Internet service

The Network becomes farmore than just voice or data

> Rich entertainment & content> Worldwide gaming> Security, community, information

The Network surrounds our lives and becomes indispensible

Services available from anywhere

Ubiquity

> Messaging> Information> VoIP> On-line Music> On-line Games

3

105M in 2003

768Min 2008

BroadbandSubscribersWorldwide

Wired+

Wireless

How to capitalize on surging demand for broadband …

20%

16%

34%

22%

8%

0%

5%

10%

15%

20%

25%

30%

35% DefinitelyNo

ProbablyNo

Maybe

ProbablyYes

DefinitelyYes

… & consumer demand for simplicity?

Q: Would you switch phone service provider if offered a single phone number for home, office and wireless?

30% would “probably” or “definitely” switch

The Result Is a Market Opportunity for Convergence

“Tomorrow’s Winners: Those Operators Who Master Service Convergence!”

4

Still..There Are Major End User ChallengesIslands of Networks and Applications

5

ServiceProviderNetwork

Desperate

Housewives

The End Game: Converged Services Example #1: Ubiquitous Access to Existing Services

AuthorizedSubscriberCurrently

Using CellularVideoQoSHigh

BandwidthLow

Security

PERSONALIZED content delivered where and when you want it

Stored TelevisionProgramming HostedOn Service ProviderNetwork

6

> One device, directory, voicemail & bill

> Improved wireless coverage, voice quality and data service

> Lower cost

> Improved wireless coverage

> Reuse of existing cellular infrastructure

> New multimedia services, day 1

> Reduced network capex/opex

> Single solution to address both residential and enterprise users

User Values

Carrier Values

WirelessWhen on the move

WLANWhen Available

CMS/MCS 5200

The End Game: Converged Services Example #2: Converged Mobility

7

Fixed-Mobile Push-to-Talk (PTT)

> Takes PTT beyond today’s proprietary deployments which are limited by handsets and no inter-working

> Push to Talk between Wireline Broadband and Wireless Clients

Wireline

Mobile

8

• Incoming call information / control using set-top box

• Caller ID Name and Number• Real-time Call Handling• Call Logging

• Listen to voice mail over TV

• Return calls via click-to-call from remote

• Can use existing house phones for voice

• Leverages set-top box / TV for real-time communication services

• Blends TV-based multimedia with flexible voice options

What is It?What is It? >Features>Features

“I’ll listen to my voice mails during the commercial”

TRIAL STAGE

The End Game: iTV CommunicatorExample #3: Converged Applications/Devices

9

Importance of Fixed/Mobile Convergence

> Technology Significance:• Removes artificial and real

boundaries between service providers, access providers, and content providers

• Will create new business models, new providers, and related business entities

> Regulatory/Governance Issues:• Very early in the technology life

cycle• Issues to be determined but will

be huge

10

Convergence Changes the Services ParadigmNew Opportunities for Innovation

Silo ServicesSilo Services Horizontal Services - IMSHorizontal Services - IMS

Network EvolutionNetwork Evolution

Session Based Access Independent Multi-DeviceMultiple Media

Connection Based Device SpecificSingle Media

11

The Converged Network: Bringing it All Together

12

Summary

> Convergence is the trend that changes everything• Convergence of services/applications, devices,

technologies, and all access types

> Consumer touch points to the IP network will exceed anything we’ve yet seen • Behaviors and expectations will radically change

> Regulatory uncertainty greatly limits investment and deployment of new, advanced communication systems

Opportunity Exists for TechnologicalAdvances to Fully Empower the End User