Carriers World Asia 2006

1
Computer-Telephony Convergence Will the
Computer Eventually Replace the Telephone? It
already has!

• Carriers World Asia 2006

Global Crossing Confidential Material
2
Global Crossing at a Glance
A global network with local relationships
First to deliver a converged IP solution
The Carriers Carrier
26 billion VoIP minutes
Services in nearly 600 cities in over 50 countries
First to market Carrier VoIP Services Outbound,
Toll Free, Local Services
Connects over 300 cities in over 30 countries
First global MPLS based IP VPN
3
Today Carriers World Asia 2006

• What are the business opportunities and new
  sources of revenue?
• What are the opportunities and risks of deploying
  next-generation networks?
• Is the network the core competence of a telco
  operator if not what is?
• How can a carrier protect its home market while
  expanding?
• Are telecom services a margin or volume game?

The world is flattening
New Revenues
Core Competencies
Value-add Differentiation
4
Today Computer-Telephony Convergence

• Communications Standards
• Network IP, LANs, WANs
• Web HTML, browsers

• Computing Device
• General purpose
• Giga bits of processing power
• Giga bytes of memory
• Portable
• Low cost

• Operating Systems
• Windows at the desktop
• Palm and WindowsCE in your handheld
• Java, BREW and Symbian in your cell phone

5
Technology.You Can Bet on Change

• Change is persistent pervasive powerful
• Recognize it
• Embrace it
• Get ahead of it.

If the computer has already replaced the
telephone What is the question?
6
Staying ahead to lead the others.
Will IP convergence broaden the scope of
capabilities and reach for global telecom
carriers?
and
Will IP convergence enable increased revenue and
margin-rich applications for global telecom
carriers?
7
Convergence Vision
Convergence is among the latest, and most widely
used buzzwords in global telecom markets. When
implemented holistically in a truly converged
environment, we see it as ... An end-to-end
service environment where enterprise and
personal solutions voice, video, data and rich
media can seamlessly transition between fixed
and mobile accessfacilities enabled by a common
IP framework.
8
Why Convergence Is Important to the Service
Provider

• Trend Economics and Value of Voice Fundamentally
  Shift.
• By 2009
• 99 of new voice connections will be wireless
• 70 of total voice connections will be wireless
• One-third of consumers will disconnect their PSTN
  lines in favor of VoIP and wireless
• Vonage, Ebay/Skype, Google, Yahoo, Microsoft and
  others win share via
• Integration with IM, SMS
• Persistent directory
• Presence integration
• Unified communications with P2P architecture

Gartner Communications Group Research Oct. 2005
9
Why Convergence Is Important to the Service
Provider (continued)
New Features / Productivity Enhancements / Cost
Savings Network Optimization / Simplified
Communications

• Sources of revenue
• Wireline carrier opportunity to win back revenue
  associated with mobile originations
• Wireless carrier opportunity to increase
  subscribers in enterprise segment
• Innovative services that increase user
  productivity (one contact list, one voice mail),
  or incorporate real-time presence data (including
  device, identity, application and network
  information)
• Reinvent existing applications to or enhance
  entertainment (interactive gaming)

10
Why Convergence Is Important to the Service
Provider (continued)
Cost Savings Utilizing the most cost-effective
access method based upon real-time information
regarding end-user location Frees scarce
wireless spectrum to support access for an
increased number of subscribers Network and
device simplification fewer devices, more
holistic offers from service providers
Contributing sources USTelecom IMS-FMC Webinar
November 17, 2005 and Telephony Webcast
Converged Services and the Road to IMS
11
Elements of Convergence
Some materials from Gartner Group
12
The Evolution of IMS
According to In-Stat (August 2005) - IMS is
central to the long-term future of
telecommunications IMS will evolve in phases
Phase 1 Bundling of wireline and wireless
services a marketing solution. VoIP delivery via
softswitch implementation. Today.
Phase 2 Convergence of traffic (voice, video,
data) from separate wireline/wireless networks to
a common IP MPLS core. Reduces provider capital
and operational costs. Delivers integrated
broadband services.
Phase 3 Broadband access and converged IP
networks evolve to a fully integrated/converged
IMS architecture. Delivers multimedia services
to any device, anywhere, any time.
New, optimized, and unified architectural model
13
Market Drivers

• Already offering triple play service over their
  broadband cable networks.
• A wireless element could increase share of
  consumers telecoms spend through
• Partnership with a mobile operator (Sprint Nextel
  Cable and Wireless Joint Venture),
• An MVNO agreement
• Deployment of their own broadband wireless access
  technology, such as WiFi

• Traditionally push new services and capabilities
  to the consumer
• Need to retain market share and reduce customer
  churn
• Retain enterprise mobile phone access revenue at
  off-net rates
• WiFi threatens service revenue to carriers that
  operate over unlicensed bandwidth

Mobile Operators
Cable Operators
IP Convergence
Yahoo, eBay
Google, Microsoft
New Entrants
Wireline Broadband Carriers
New Entrants

• Win back fixed minutes lost to mobile operators
• Deployment of centralized presence capabilities
  for multiple applications

• Integration of innovative, revenue-generating
  IP-based service bundles
• Already own the enterprise relationship

14
Taking the Right Steps Right Now
IP Convergence
Innovation is born from the interaction between
constraint and vision.
Marissa Ann Mayer, VP Search Products and User
Experience at Google (BusinessWeek, February 13,
2006)
15
Tomorrow Carriers World Asia Beyond 2006

• What are the business opportunities and new
  sources of revenue?
• What are the opportunities and risks of deploying
  next-generation networks?
• Is the network the core competence of a telco
  operator if not what is?
• How can a carrier protect its home market while
  expanding?
• Are telecom services a margin or volume game?

The world is flattening
16
Thank You