Sprint International:Flexible Global

Internetworking

Yousef B. JavadiPresident

Sprint InternationalJuly 25, 2002

Who is Spending online?

• Households do their chores online– Consumers have spent $51B with fixed-price retailers in

2001– eBay’s 34M users transact $284 goods/second

• Kids– 52% of young consumers state their children were first to

make online purchase– 13 to 15-year olds: 58% game, 52% chat online, 38%

download videos, 22% fantasy sports

• Enterprises put more business online– B2B trade is set to hit $7T in goods/services by 2006, up

$911B– GSK uses Groove Networks collaboration for clinical drug

trials – adds $1M daily to firm’s top line

Investment and Growth

0

200

400

600

$ Billions

1995 2005

N.America

Europe

Asia

Latin America

Rest

(millions of users)

239.6 327.5 427.4 521.2 602.4

0

500

1000

1999 2000 2001 2002 2003

WW Users(CAGR 33%)

Global Telecom Expansion

Global Growth of Web

Traffic Statistics

2001 - 282 Million

30%

25%

40%

1%

1%

1%2%

2006 - 843 Million

32%

26%

47%

1%

0%

2%

2%

Europe

North America

Asia/Pacific

Africa

Middle East

Oceania

CCASA

Comparison of Internet Connections 2001 and 2006

Interregional Bandwidth

Interregional Routing

Traffic Applications

Annual Traffic Contribution by Enterprise Traffic Applications 2002-2007

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006 2007

Audio/VideoStreamingP2P

Above Layer 3 : IPVPN Enterprise Penetration

0

10

20

30

40

Percentage

2000 2002 2004 2006

Penetration of IP-connected Sites

Estimated total revenues at $377M in 2001

2006 – revenues approach $3.5B

IPVPN Architecture

Remote Access Server Remote Access Client on

Dial/DSL/Cable

IP NetworkIP VPN

CPEIP VPN

CPE

Customer Premise

Customer Premise

• IP VPN equipment placed on customer premises• Carrier-managed or customer-managed options• Encryption provided at the customer’s premise

Web Hosting

0

5,000

10,000

15,000

20,000

25,000

Re

ven

ue

($

Ms

)

US WebHostingServicesRevenue

32%

27%7%

3%

31%

Fully managed hosting revenuesCollocation revenuesA la carte services revenuesDedicated hosting revenuesShared hosting revenues

Traditional enterprises and ISPs will continueto migrate business apps to the net

Hosting Market breakdown by segment (based on revenues) –’01

Proposed Alternative: The X Net

Dumb pipes Smart pipes

Wireline Wireline, wireless, peer-to-peer

Best effort QoS guaranteed

Ignore the user Embrace the user

Smart devices Dumb and smart devices and sensors

Text, graphics Voice, video, text, graphics, streaming

media

Network

User/devices

Applications

The Internet The X Net

Design objectives and architecture principles– High capacity: All fiber, multi-route– High speed: 2.5 to 10 Gbps backbone– High performance: 100% node availability– Flat network: Globally uniform, simple– Simple and smart: Ciena core directors– Flexible: Dynamic bandwidth management

Sprint Network Design

Your ResultsReality Check Time Customer ViewLeadership Formula

Brussels

Dublin

Frankfurt

Stockholm

Hamburg

Milan

MunichParis

LondonAmsterdam

TAT-14

TAT-14 Oslo

Copenhagen

Bude

Noerre Nebel

Manasquan, NJ

Tuckerton, NJ

Springfield / Boston

Relay / DCReston

Atlanta

New YorkPennsauken

Global Footprint: Europe

Your ResultsReality Check Time Customer ViewLeadership Formula

•High bandwidth, highly scalable backbone, presently 10 Gbps•Globally uniform network architecture, with a single AS number•Fully redundant network to assure protection with no point of failure

Seoul

Taipei

China-US

Japan - US

Southe

rn Cros

s

Hawaii

FLAG

FLAG

Japan - US

Bandon, OR

Nedonna Beach, OR

Pt.Arena, CA

San Luis ObispoLos Osos

Kite-IbarakiAligura

MaruyamaChikura

PusanChinju

Toucheng

Fangshan

Tseung KwanLanta Island

Penang

Brookvale

Alexandria

Singapore

Tokyo

Hong Kong

Sydney

Stockton

SeattleTacoma

San JoseShima

Auckland

Spencer BeachKahe Point (Oahu)

Suva

Global Footprint: Asia Pacific

• High bandwidth, highly scalable backbone, • Presently 2.5 Gbps• Globally uniform network architecture, with a single AS #•Fully redundant network to assure protection with no point of failure

Business Approach

• Challenge: How does one procure technical solutions globally a consistent, cost-effective product set that will meet customer demand?– Regionalization– Strong data service portfolio– Superior service – Consistent support and implementation

• Flexible Model:– Management changes– Scalability– Remain sensitive to customer demand and

need

Maintaining Core Values

• Selling– Customer– Product– Growth

• Thought leadership– Fact-based decision making– Standing up for one’s own ideas– Simple communications – Motivate/influence– Ability to see peripherally while communicating

strategy/mission with clear focus and direction