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Embedded CommunicationsGordon QuinnVP, New Business DevelopmentAugust 12, 2006

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Embedded Communications

DEFINITION: • Communications functions

embedded in broader value propositions• Web-based click-to-call• Triple Play• Example: Skype + eBay

A strategic example of Convergence

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Embedded Communications

> Communications as a stand-alone value proposition will become a thing of the past, or at best a niche application

> The stand alone phone service will eventually go the way of the phone booth.

> Money will flow to the broader value propositions

> New business models will emerge

We’re moving to the ‘Batteries Included’ Model

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Applications

> The evolution to an embedded communications paradigm has significant implications on communications applications

> Communications applications will become part of a greater eco-system

> SOA – and what that becomes – will provide needed structure for applications

> The barriers for application developers will fall and the number of applications will significantly increase

Applications will become ‘Open Source’

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SOA and Web Services

TravelWeb Site

Proprietary

Credit CardService

AirlineBooking

UserBrowser

Travel datesDestination

Find availabilityBook ticket

SOAP

http

SOAPCharge

BankBack Office

Add to monthly statement

Simple, extendable exchange of XML messages between applications

Service Oriented Architecture (SOA)Framework

Click to CallService

TelecomInfrastructure

Travel AgencyCall Center

Call

Confirm

MessagingService

TelecomInfrastructure

SMS- Confirm?

LocationServices

PresenceServices

ConferencingServices

DirectoryServices

IdentityServices

PolicyServices

Web Services enable the embedding of communication functions in countless applications and business processes

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Purchase Models

> Three prevalent business models will emerge:

1. Communication included as a value-add component of a broader purchased bundle

2. Communication paid for as a value added extension of an existing value proposition

3. Communications sponsored by advertising

It’s becoming a buyer’s market

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The Enablers

> Web Services• The Internet applications model

> Service Oriented Architectures• The convergence hub

> IMS network infrastructures• “Communications electricity”

> Broadband access everywhere• Fixed, Nomadic, and Mobile

The Foundation is Under Construction

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Who Benefits?

> Service providers will offer access everywhere to trusted application-enabled networks with policy controlled QoS• “Communications electricity”

> Network solution providers will be able to leverage a much more cost effective infrastructure and development environment

> Application developers will be able to utilize the network ‘like an SDK’

> End users - consumer and enterprise - will enjoy more powerful yet simpler communication options

> Differentiation will come from creating and sustaining end-user appeal - screens and appliances are critical

Everyone!

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A Time for Change

ConvergencePersonalizationCollaboration

Access Anywhere

MajorInflection

Point

Status quo is not an option

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Thank You!