Lucent Technologies

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Lucents Convergence Strategy
VoIP
Lucent Technologies Proprietary - Use pursuant
to company instruction
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Lucents Convergence Strategy
Value over IP
Lucent Technologies Proprietary - Use pursuant
to company instruction
3
Agenda

• Market Overview
• The Convergence Story
• Lucents Converged Value Proposition Value over
  IP
• Lucent IMS Architecture
• Lifestyle Services
• Active Phone Book
• Conclusions

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Market Trends Seamless Communications!

• Users want access to their communications and
  entertainment services from many places
• Home, office, on-the-go
• using several different devices
• PC, telephone, mobile phone, PDA
• without having separate accounts
• Single sign-on, common contacts,
  information/content delivery
• New family of intelligent, interactive,
  location-based broadband services
• Anytime, anywhere access to messages, contact
  lists, calendars and conferencing
• Live video to handheld devices
• Mobile access to speech-enabled web services

With seamless communications, a service provider
can gain larger share of the telecom wallet
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Service Providers Challenges

• Revenue Replacement offset decline in
  traditional revenue, commoditization of Voice
  over IP services with new service revenues
• Brand Extension address substitution of services
  by end usersto non-traditional competitors
• Operational Efficiency operate networks more
  efficiently and deliver consistent quality
• Speed to Market rapidly introduce profitable
  services and bundled service offers
• Customer Relevance address users blended
  lifestyle requirements for telecom services

top-line growth, new services, reduced
operating expenses
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Market Scenario for Service Providers
Competition
New Technology
Regulatory Changes
Mobile High Speed Data VoIP Next-Gen
Optical Broadband Access
Local Loop Unbundling VoIP Local Number
Portability Privatization
New Players Service Bundling Consolidation
End User Service Demand
Residential/Consumer
Enterprise/Professional
Prosumer
CONVERGENCE Access both wireline and wireless
service bundles with service transparency,
lifestyle voice and data applications
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What is Convergence in the market?
CUSTOMER
Consumer
Personal and Professional
Enterprise and Consumer
Enterprise and Service Provider
Multi-function Devices
Voicemail and email
APPS
Collaboration
Voice over IP
IMS vs. UMA
Voice and Data
Voice, Video and Data
Optical and Ethernet
NETwORK
Circuit and Packet
Wireline and Wireless
True convergence encompasses all of these themes
to deliver blended lifestyle services to the end
user
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Market strategies for achieving service
convergence
VALUE
Legacy Networks
Lucent Next Generation Networks
Each providers strategy will differ, but their
end goal is the same service convergence for a
competitive edge
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New Paradigm IP Multi-Media Subsystem

• What is the IP Multi-media Subsystem (IMS)?
• IP-based multimedia and telephony core network
  that enables two-way voice, data, and video
  across multiple access technologies and devices,
  at the high quality and reliability expected by
  an end-user today
• IMS is defined by industry standards
  organizations
• 3G Partnership Project
• IETF (internet) protocols, e.g. SIP, VoIP
• Standardized interfaces between applications,
  network layers, and back-office systems
• Same framework for any kind of access (wireless
  or wireline) and any kind of traffic VoIP,
  data, multimedia
• Supports IP sessions over Ethernet, cable, DSL,
  802.xx, 3G/2G
• Session Initiation Protocol (SIP) enables
  multimedia session control

IMS cost-effectively enables service providers to
offer lifestyle services, positioning the
operator to own the subscriber regardless of
how they access the network
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IMS Architecture Invest in the Application Once
Portals Content
VoIP
Multi-Media

APPLICATION
SESSION
ENDPOINTS
Converged services providers can build and
launchservices faster, efficiently adapting to
market changes
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Next Gen Convergence Model IMS Access Network
Device-Independence
Cable
Internet
IP Network
IP Network
Application Servers
Unified Subscriber Data Server
IP/MPLS Core
802.xx Access
MiLifeISG
2G/3G
MediaResource Server(eMRS)
Network Gateway
Session Manager
Packet Mobile Network
Circuit Mobile Network
IMS brings services seamlessly to you across all
networks
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Next Gen Convergence Model IMS Access Network
Device-Independence
Cable
Internet
IP Network
802.xx Access
2G/3G
Packet Mobile Network
Circuit Mobile Network
People simply want services that fit their
lifestyle and are available anywhere, anytime.
IMS brings services seamlessly to you across all
networks
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IMS Beyond the TechnologyA Significant Multi
Vendor Integration Challenge
Cable
Internet
IP Network
802.xx Access
2G/3G
Packet Mobile Network
Circuit Mobile Network
People simply want services that fit their
lifestyle and are available anywhere, anytime.
IMS brings services seamlessly to you across all
networks
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IMS Benefits ForService Providers And End Users

• For the service provider Value over IP
• Reduces cost, faster time to market
• Investment Protection Across Access Technologies
• Leverages core across variety of access
  wireline, wireless, or converged
• Protects relationship with subscriber and
  controls services
• Increases revenue new lifestyle services
• For the end user Fast, seamless
  communications
• Maintains common contacts and "buddies" across
  multiple services
• Adds multimedia information to enrich
  communication and collaboration
• Enables data applications to be enriched with
  voice
• Simple and consistent communications across
  applications

IMS Next Generation Networks Personal
experience of lifestyle services with common look
and feel
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Market Trends - Applications Drivers

• Access independent telephony services (includes
  IP-PBX, IP-Centrex, VoIP, VoWLAN, features)
• Blended Services Building Blocks
• Presence and location (including identity/
  security / policy management functionality/subscri
  ber data management)
• Active PhoneBook
• Unified Messaging (IM, VM, PoC, short video
  service, multimedia video services and
  SIP-enabled messaging services)
• Video communications (includes instant video
  messaging, video telephony, video conferencing

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ARPU Increases With Lifestyle ServicesNew
Services New Revenues For Service Providers
4B

• Lifestyle Services
• Rich media entertainment
• Interactive
• Context sensitive
• Highly personalized

40 increase in revenue-per-year
Activity Agent
LIFESTYLE DRIVEN
3B
Portable Travel Agent
IP TV
Live Wire
Unified Communications
2B
Location-Based Service
FEATURE DRIVEN
5.47
INCREMENTAL MONTHLY ARPU
1B
Push-to-Talk
Media/ Content
Instant Messaging
1.23
3.34
1.70
0
2004
2005
2006
2007
Source Lucent Primary Market Research and
Modeling, 2004
Lifestyle services help the operator maintain
relationships with subscribers, regardless of
how they access services
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Sign-up Intent for Value Added Services
Tier 1Broad Appeal
Tier 2Moderate Appeal
Tier 3Niche Appeal
Percent
US Survey Results, November 2002
End user research indicates sign up intent is
highest for services that offer convenience,
time efficiency and control
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Todays Communication Paths

• from multiple locations
• Home, office, on-the-go

supported by independent applications
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Wouldnt it be nice?

• Each service has a different interface look
  feel
• No integration across services
• Information can not be shared across services

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Active PhoneBook

• Each service has a different interface look
  feel
• No integration across services
• Information can not be shared across services

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One Simple Interface
DEMO
Voice
Video
Buddy
E-mail
IM
Collaboration
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Lucent Steps to Customers Success
Bell Labs DNA Unique Innovation Franchise
Complete NGN Eco-System Anchored in our World
Class Portfolio
Demand Creation Programs Identify and Drive
Traffic to the Customer
True Strategic Partnership Trusted Partner
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• THANK YOU!
• More Information about Lucent IMS
• http//www.lucent.com/solutions/convergence.html
• Javier R. Falcon
• 54 11 4340 6311
• jfalcon_at_lucent.com