Lucent TechnologiesBell Labs Innovations

Fifth Annual Conference on e-commerceFifth Annual Conference on e-commerce

(R)evolution Goes Mobile(R)evolution Goes Mobile

Sorabh GuptaSorabh GuptaBusiness Development ManagerBusiness Development Manager

Service Provider NetworksService Provider Networks

Lucent TechnologiesLucent Technologies

sorabh@lucent.comsorabh@lucent.com

We make the internet mobile !We make the internet mobile !

Outline

• State of the mobile market in US

• What is 3G?

• How will networks evolve to 3G?

• Lucent’s Game plan to assist the operator in the changing world of voice/data networks

• Our beliefs, our landscape and our product portfolio to make the internet mobile

• Conclusions

Mobile market in the USMobile market in the US

• Wireless coverage not ubiquitous or consistent

• Migration from analog to digital handsets is not complete - approx. 30% analog base

• Differing technology standards (TDMA, CDMA, GSM) have slowed the release of phones and services in the United States

• Infatuation with PC is one of the biggest hurdle to wireless web

• Limited network bandwidth and device memory prohibits large downloads

• Circuit switched data technology does not allow microbilling

Jupiter Communications

What is holding the spread of wireless web? *

Don't need mobile data services

39%

Data Services too expensive

17%

Don't know if data services are

available17%

Handset does not support services

14%

Don't know how to use7%

Data services not available

6%

*

Yankee, Strategis

What is 3G?What is 3G?

cdma2000 & DoCoMo WCDMA

CWTS, TIA, ARIB & TTC

ANSI-41 / WIN &GSM-MAP/CAMEL

Asia/Pacific

UTRA

GSM-MAP / CAMELEuropeETSI

A “Family of Systems” for IMT-2000 services, ensuring network standards interoperability.

cdma2000 & UWC-136

ANSI-41/ WIN/GSM-MAP

T1/TIA TR 45

North America

~2.048 Mbps

~384 kbps

~144 kbps

~9.6 kbps

Global Wireless Standards EvolutionGlobal Wireless Standards Evolution

1995 1999 2000 2001 2002 2003+

PDC

• Voice

cdma20003X MC

• High Capacity Voice• 384+ kbps Packet• Backward Comp.

• 2.4 Mbps Packet• Backward Comp.

1xEV Data Only

GSM

• Voice• 9.6 kbps Ckt Data

• upto ~115 kbps Packet• Backward Comp.

GSM GPRS

• High Capacity Voice• Up to 2Mbps• New Radio Equipment

W-CDMA(Japan)

• 384 kbps Packet

EDGE (US)

EDGE (Europe)

W-CDMA(Europe)

cdmaOne

• Voice• 14.4 kbps • Circuit Data

TDMAIS-136

• Voice• 9.6 kbps Ckt Data

2G 2.5G 3G/ IMT-2000 Capable

• 2 times voice capacity• 153 kbps Packet

cdma20001X RTT

• Higher Cap Voice/ Data• Backward Comp.

1xEV Voice/Data

PDC-P

• 9.6 kbps Packet Data

How will we do this evolution ?How will we do this evolution ?

1995 1999 2000 2001 2002 2003+

• Voice• 9.6 kbps

cdma20003X MC

• High Capacity Voice• 384+ kbps Packet• RF Backward Comp.

• 2.4 Mbps Packet• RF Backward Comp.

1xEV Data Only

GSM

• Voice• 9.6 kbps CSD

• upto ~115 kbps Packet• RF Backward Comp.

GSM GPRS

• High Capacity Voice• Up to 2Mbps• New RF

W-CDMA(Japan)

• 384 kbps Packet

EDGE (US)

EDGE (Europe)

W-CDMA(Europe)

cdmaOne

• Voice• 14.4 kbps • CSD

TDMAIS-136

• Voice• 9.6 kbps CSD

2G 2.5G 3G/ IMT-2000 Capable

• Twice voice capacity• 153 kbps Packet

cdma20001X RTT

Data & Voice solution2G networks UPGRADABLE

OLD mobiles compatibleNEW voice/data devices

• Higher Cap Voice/ Data• RF Backward Comp.

1xEV Voice/Data

SAME spectrumHigh infrastructure reuse

New MobilesBackward Compatible

Data ONLYNEW infrastructureNEW data devices

New SpectrumNew Network

New Air InterfaceNew Mobiles

No Backward Compatibility

Data ONLYNEW infrastructureNEW data devices

PDC

Our GameplanOur Gameplan

• The Operator Win– Maximize value of the network– Grow the size of the mobile internet opportunity

• The Lucent Approach– Delivering today 3G-ready network for mobile internet– Leverage partnerships to stimulate markets and innovation– Identify new opportunities for our customers to capture value

The Changing World of Our CustomerThe Changing World of Our Customer

Operations

Services

Back End Front End

MobileVirtual

Operator

ServiceBureau

MobileOperator

CyberCarrier

ServiceProvider

NetworkOperator

Drivers: Data, Bandwidth,and Scale

Today’s Model:Voice World

Emerging Model: Converged Voice/Data World

Changing drivers are causing specialization leading to segmentation by core competenciesChanging drivers are causing specialization leading to segmentation by core competencies

Our beliefsOur beliefs

• Microbilling is the Killer Application– Billing and transaction settlement are cornerstones of extracting new revenue

• Connectivity and transport services are table stakes– Margins will be captured through higher value services

• Communities are sticky – Services engaging more people will drive usage (e.g., fantasy football, video

gaming) and reduce churn

• The central theme is … Me!– Personalized services will dominate the application landscape.

• Leveraging customer information enables new revenue opportunities – Capturing the knowledge behind customer habits will drive innovation for

boutique services and intelligent agents.

• Devices will grow muscles– Applications will leverage client/server architectures to optimize RAN traffic– Fat clients will drive innovation for “dark spectrum services”

• Speed will change the game– 3G enhanced data performance drives new services, content, partnerships,

and revenue sources

Our Landscape Our Landscape

Terminal

Range of Infrastructure Elements

CyberCenters

CoreNetwork

SwitchingCenters

Radio AccessNetwork

Rea

ch o

f R

even

ue

Op

po

rtu

nit

ies

SeamlessOperations

SensoryNetworks

Market TrustServices

Anyone to AnyoneServices

New MediaServices Services “breaking all the rules,” opening new revenue streamsServices “breaking all the rules,” opening new revenue streams

Interacting with anyone, anywhere, anytime – using any mediaInteracting with anyone, anywhere, anytime – using any media

Mobile commerce foundation unlocking the revenue potentialMobile commerce foundation unlocking the revenue potential

It’s all about Me!It’s all about Me! … leveraging dynamic subscriber information … leveraging dynamic subscriber information

Robust, reliable and high performance for flawless operations Robust, reliable and high performance for flawless operations

Our Landscape is a Total Value Chain Our Landscape is a Total Value Chain

Terminal

Range of Infrastructure Elements

CyberCenters

CoreNetwork

SwitchingCenters

Radio AccessNetwork

Rea

ch o

f R

even

ue

Op

po

rtu

nit

ies

SeamlessOperations Secure the Pipe

Network ManagementAvailability Scalability

Inter-Domain Intelligence

SensoryNetworks Location

Dynamic Customer Information

Presence Time Content Switching Authentication

Market TrustServices

Micro-Billing CRM e-Care Fraud T-settlement P-to-P

Profiling Micro-Transaction SecurityData Mining Yield

Pre-Pay

Anyone to AnyoneServices Speech-Text-Speech Signalling DirectoryLanguage Translation

E-mail SMS IM Unified Mailbox Voice ServicesPIMGroupWare

New MediaServices Gateways

Gaming Portal Telemetry

Streaming

Video on Demand

Alert AdServe

Navigation

Intelligent Agents

Enterprise

Technology Enablers

Applications

Lucent Has A Broad Product PortfolioLucent Has A Broad Product Portfolio

Terminal CyberCenters

CoreNetwork

SwitchingCenters

Radio AccessNetwork

Lucent is prominent with products, services and market insights across the new mobility value proposition

Lucent is prominent with products, services and market insights across the new mobility value proposition

SeamlessOperations

SensoryNetworks

Market TrustServices

Anyone to AnyoneServices

New MediaServices

Range of Infrastructure Elements

Rea

ch o

f R

even

ue

Op

po

rtu

nit

ies

The Breadth of the Lucent Offer The Breadth of the Lucent Offer

Terminal

Range of Infrastructure Elements

CyberCenters

CoreNetwork

SwitchingCenters

Radio AccessNetwork

Rea

ch o

f R

even

ue

Op

po

rtu

nit

ies

SeamlessOperations

SensoryNetworks

Market TrustServices

Anyone to AnyoneServices

New MediaServices

Logica

DataOnAir

Spyglass

Pedagog

Compaq

SignalSoft

Infospace

…

Extended Systems

MapInfo

Oracle

Purple Software

Hotpalm

Phone.com

Brience

BroadVision

Strategy.com

Sun MicrosystemsArgo

……

…

…

Lucent is prominent with products, services and market insights across every facet of the new mobile value proposition

The marketplace requires that we build an ecosystem of partners that we can bring to the table with customers and leverage for innovation

Lucent is prominent with products, services and market insights across every facet of the new mobile value proposition

The marketplace requires that we build an ecosystem of partners that we can bring to the table with customers and leverage for innovation

PacketIN

Arbor

WaveStar

ConnectVU WL

NX64000

IP NavigatoriCARE III

Profilium

RTS Wireless

Wireless Solutions

• A Focused Platform for Enabling Content Services

– Location, Presence and Authentication

– Mobile Internet Development Kit (MIDK) Support

– Access to Third Party Applications

Flexent Mobile Internet GatewayFlexent Mobile Internet Gateway

Benefits:Benefits:• Extending the Network Value

– Easily Build Enhanced Wireless Internet Service utilizing the knowledge of the network • Quick to Market using standard Internet protocols• Built in Security

– Secure architecture model: authenticating applications

Applications

WAPGateway

Inte

rnet

Intrarn

et

ContentPortal

MediaGamingLocationM-CommerceMessaging

SESSION

MGMT

API

MSC IWF

SMSC

I-HLR

OMPBilling

MobileInternetGateway

MobileOperator

MobileOperator

MVNOMVNO

Enabling the Mobile Virtual OperatorEnabling the Mobile Virtual Operator

MobileVirtual

Operator

MobileOperator

MobileInternetGateway

PresenceLocationSubscriber dataService stateSubscriber stateBilling/PrepayBearerPerformance/QoS…

ActivationProvisioningContent ServicesBearerIN ServicesQoS configuration

Lucent’s Flexent Mobile Internet Gateway enables secure information flow between the Virtual Operator and Mobile Operator

Lucent’s Flexent Mobile Internet Gateway enables secure information flow between the Virtual Operator and Mobile Operator

ConclusionsConclusions

• Improvement in data speeds and user applications will enhance customer experience

• Global roaming is possible with:– SIM or UIM card– Multi-mode, and perhaps, a Multi-band

mobile

• Interoperability is very complex– Huge investments have been made to build

today’s networks– Standards bodies can salvage much of this

incompatibility

• Capacity improvement and migration to digital networks

• Evolution and not revolution of existing networks to 2.5G will reduce the risk

• We have a history of wire-based Internet use with PCs and browsers

• Incompatible with Europe and Asia GSM 2G wireless

• Teleoperators– Several, well-financed companies with

competing and incompatible 3G technologies

• Wireless coverage not consistent or ubiquitous

• Huge investments required to build 3G networks

– Long payouts based on new-to-be-developed applications