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Service Evolution from Legacy to all-IP:Market and Economic Benefits for Operators

Charles BradshawLeader - Nortel Wireless Core Product Marketing

3G CDMA Latin America Regional ConferenceMay 15, 2006


Technology and Markets Have Changed

Wireline substitution gaining momentum

Wireless data is a viable option

EV-DO Rev A, HSDPA, WiMAX, Wi-Fi

Enterprise voice networks upgrades: Wireless, IP

More and more enterprise datais going wireless

Wireless coverage and performance has improved substantially

Video content moving to Wireless and high-speed data networks

Discrete networks are inefficient to deliver converged services

3


Packetization of the network…

• Increases Revenue• Enabled by Next Generation Network• Delivers New Services

• Video• Navigation• Transcoder Free Operation delivers high quality, cheap voice

• Decreases Operational Expenses• More voice calls on the network via TrFO• Transport of calls is more efficient• Revenue-generating applications are standardized across

access types

IP Multimedia Subsystem (IMS) –a complete standards based service delivery architecture

4


Application Mix Facilitated by All-IP Networks

Fixed / Wireless Services

• IMS allows for more ownership of the subscriber

Cross-Platform Applications

• TV, PC and phone work together

Content to Wireless Devices• Direct sale to wireless users• Wholesale content to wireless partnerships

Add Mobility Value to Triple Play (Quadruple-Play)

• Allow subscribers to access their subscriptions from any location / device (e.g deliver TV service to the laptop)

Converged Mobility

Video Calling

Mobile TV

Ring Tone Push

Potential Impact:

Potential Impact:

Potential Impact:

30%

15%

27%

Potential Impact: 18%

Source: Market Research conducted by Pollara, Inc. and Harris, Inc.

"Potential Impact“ – % population that would either purchase the service, or switch providers to obtain the service.

Increase revenue while strengthening hold on customer

5


MOBILITYMOBILITY

Forecasted Application Revenues forService Providers2007 – 2010 Global Revenues $B (CAGR)

• Enterprise Mobility• Converged Mobility• Personal Assistant /

Converged Desktop• Location-Based

Services• Push-to-x

$84(9%)

Source: Nortel analysis using data from multiple industry analysts

$115(12%)

$147(15%)

$227(24%)

$384(40%)

SECURITYSECURITY PRODUCTIVITYPRODUCTIVITY RICH COMMSRICH COMMS

• Enterprise Managed Security

• Video Surveillance

• Identity Management

• Video Conferencing

• Real-Time Collaboration

• Hosted Enterprise Multimedia Collaboration

• Online Gaming• IPTV• Mobile TV• Content

Download

• Rich VoIP over Broadband

• Hosted Enterprise VoIP (incl. IP Centrex)

• Video Telephony• Integrated Multimedia

Messaging

ENTERTAINMENTENTERTAINMENT6


Higher Speed Data applications, e.g. e-mail, FTP, web browsing.Not just local hotspot, it is whole city Hotspot!

Anywhere, anytime.

Broadband Data Apps

1xEV-DO Rev A: Versatile Mobile BroadbandDeliver Enriched Real-time Applications

7


Broadband Data Apps VoIP & Video Telephony Push to Talk over Cellular

Real-time applications: Convergence of Voice and Video via packet dataEnabled by low latency, QoS, and high speed of 1xEV-DO Rev A.


7


Broadband Data Apps VoIP & Video Telephony Push to Talk over Cellular Multi-media On Demand

Broadband to deliver multi-media content on demand (VoD)


7


Carrier-Grade Push to TalkPush to X, i.e. video, music, etc.Multi-media content on Demand

VoIP, Video conferencing,Fast FTP, web browsing, and more

using a simple user interface

Enabling providers to cost-effectively evolve their service offerings into high revenue voice and on-demand multi-media video

Broadband Data Apps VoIP & Video Telephony Push to Talk over Cellular Multi-media On Demand


7


Ultimate Service DeliveryConverged Services – Any to Many

Voice TV VoD

GamingVideo Calling

PTT

Presence

SMS

8


IMS Architecture

R4CDMAPSTN

HSS

Peer IPNetworkPacket Core

Access Network Applications

Service Control

P-CSCF I-CSCF S-CSCF

BGCF

MGCFMGW

OSA GW

DNSENUM

OSA ASIMS AS

SGW

PCF

CDF

OSS / BSS

Network andElement Mgmt

9


PSTN

Efficient Service Level Mobility

PresenceXDMS

CSCF

Common SIP based Call Control

Common subscriber database

Common enablers:GLMS and Presence

DSL

Cable

CDMAGSM/UMTS

WiFi, WiMax

HSS

PDSNGGSN

Application Servers

ISC

ISC

Cx

Client rationalization (SIP)Apps IW Simplification

Speed and Flexibility with new Applications•Standard Interface – large pool of Apps available•Simplified integration – improved TTM•Centralized enablers – consistent user interface• Voice and Data Applications bundling

MGCF

One Core across various Access• Optimized Investment• Converged portfolio: Differentiation• Increased traffic: Extend services

reach, W+/W- interactions enabled

Con

sum

erEn

terp

rise

10


The Most Important Criteria When Choosing Suppliers IMS Multi-client study, Heavy Reading

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Has the right partnerships in place

Can supply us with service creation tools

Can provide training and professional services

Is a price leader

Can supply us with key applications as part of IMSproposition

Has credibility as a systems integrator

Is already a major supplier to us

Is able to integrate services across IMS/non-IMSboundary

Fully modular approach to sourcing/specifyingcomponents

Experience in both wireless and wireline

Already performed this function for others

Percentage of respondents

July 27, 2006

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Standard-based Platform for New, Advanced Services With High speed Wireless

Industry Leader in SIP Technology, Rich Telephony VoIP Multimedia Applications

Industry’s Most Advanced IMS Control Architecture, Carrier Grade, Investment Protection

Open Solution Leadership, Standards based solution, 3rd Party Interop, Interoperability

IMS

OPENOPENOPEN

Delivers Universal Service Architecture ForValue-Rich Services Delivery Across Domains

IMS Enhances Real-time Experiences

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Documents

Nortel Confidential Information...Nortel Confidential Information Technology and Markets Have Changed Wireline substitution gaining momentum Wireless data is a viable option EV-DO