Lucent Technologies – Proprietary Use pursuant to company instruction Lucent’s Convergence Strategy Lucent Technologies – Proprietary - Use pursuant to

Lucent Technologies – ProprietaryUse pursuant to company instruction

Lucent’s Convergence Strategy

Lucent Technologies – Proprietary - Use pursuant to company instruction

VoIP

Lucent Technologies – ProprietaryUse pursuant to company instruction

Lucent’s Convergence Strategy

Lucent Technologies – Proprietary - Use pursuant to company instruction

Value over IP™

Lucent Technologies – Proprietary

Use pursuant to company instruction

Agenda

Market Overview

The Convergence Story

Lucent’s Converged Value Proposition – Value over IP™

Lucent IMS Architecture

Lifestyle Services

Active Phone Book

Conclusions



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”



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 user’s ‘blended lifestyle’ requirements for telecom services

… top-line growth, new services, reduced operating expenses



End User Service Demand

Mobile High Speed Data

VoIP

Next-Gen Optical

Broadband Access

Local Loop Unbundling

VoIP

Local Number Portability

Privatization

New Players

Service Bundling

Consolidation

Market Scenario for Service Providers

Residential/Consumer Enterprise/Professional

CompetitionNew Technology Regulatory Changes

Prosumer

CONVERGENCEAccess both wireline and wireless service bundles with service

transparency, lifestyle voice and data applications



True convergence encompasses all of these themes to deliver blended lifestyle services to the end user

What is Convergence in the market?

Enterprise and Service Provider

Voice over IP

Enterprise and Consumer

Personal and Professional

Circuit and Packet Wireline and Wireless

Voice, Video and DataVoice and DataOptical and Ethernet

Voicemail and email

Collaboration

Multi-function Devices

CUSTOMER

APPS

NETwORK

IMS vs. UMA

Consumer



Market strategies for achieving service convergence

VA

LU

E

Legacy Networks Lucent Next Generation Networks

Convergence of network elements

Cap-ex and op-ex control

MPLS enabled network

Leverage existing networks

Network “IP” Network “IP” Access network agnostic

True services convergence

Blended Lifestyle services

SIP Deployed

New revenue and service stickiness

Value over IP™ Value over IP™

End user demand for one stop shop

Top-line growth via brand extension

B/Office Integration

Dependent on access, network, and device

Virtual BundlingVirtual Bundling

Each provider’s strategy will differ, but their end goal is the same:service convergence for a competitive edge



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



IMS Architecture – Invest in the Application Once

ENDPOINTS

SESSION

APPLICATION

Portals & ContentVoIP

…

Common Back Office Resources

Common Back Office Resources

Common Session Control

• Policy Management• Privacy and personalization• Single sign-on• Sharing of common

data across applications

Common Session Control

• Policy Management• Privacy and personalization• Single sign-on• Sharing of common

data across applications

Access Agnostic• Downloadable SIP client• Seamless mobility• Common user experience

Access Agnostic• Downloadable SIP client• Seamless mobility• Common user experience

Simplified Converged Applications

• Utilize existing and newly developed applications

Simplified Converged Applications

• Utilize existing and newly developed applications

Multi-Media

Converged services providers can build and launchservices faster, efficiently adapting to market changes

…



Next Gen Convergence Model: IMS Access Network & Device-Independence

IMS brings services seamlessly to you across all networks

IP/MPLS Core

IP Network

MediaResource

Server(eMRS)

ApplicationServers

Session Manager

MiLife™ISG

NetworkGateway

Unified Subscriber Data Server

Cable

Internet

2G/3G 802.xxAccess

PacketMobile

Network

CircuitMobile

Network

IP Network



Next Gen Convergence Model: IMS Access Network & Device-Independence


Cable

Internet

2G/3G 802.xxAccess

PacketMobile

Network

CircuitMobile

Network

IP Network

Active Phone Book

Presence and Location

UnifiedMessaging

Video Communications

Mobile / BB Roaming

iLocator

Multicast Service

People simply want services that fit their lifestyle and are available anywhere, anytime.




Cable

Internet

2G/3G 802.xxAccess

PacketMobile

Network

CircuitMobile

Network

IP Network

Active Phone Book

Presence and Location

UnifiedMessaging

Video Communications

Mobile / BB Roaming

iLocator

Multicast Service

People simply want services that fit their lifestyle and are available anywhere, anytime.

Innovations

Complete NGN Eco-System

Demand Generation

Trusted Advisor

Program Management

Knowledge Management

BusinessStrategy

BusinessStrategy

SolutionArchitecture

SolutionArchitecture

SolutionImplementation

SolutionImplementation

Operate & Maintain

Operate & Maintain

Solution Integration is as important as the building blocksSolution Integration is as important as the building blocksSolution Integration is as important as the building blocksSolution Integration is as important as the building blocks

IMS Beyond the TechnologyA Significant Multi Vendor Integration Challenge



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 NetworksPersonal experience of lifestyle services with common look and feel



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/subscriber 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



ARPU Increases With Lifestyle ServicesNew Services = New Revenues For Service Providers

Lifestyle Services• Rich media

entertainment• Interactive • Context sensitive• Highly personalized

Lifestyle services help the operator maintain relationships with subscribers, regardless of how they access services

2004 2007

$1.70$1.70$1.23$1.23 $3.34$3.34

$5.47$5.47INCREMENTAL MONTHLY ARPU

Source: Lucent Primary Market Research and Modeling, 2004

0

$1B

$2B

$3B

$4B

FEATURE DRIVEN

LIFESTYLE DRIVEN

2004 2005 2006 2007

Instant Messaging

Media/ Content

Push-to-Talk

Location-Based Service

Unified Communications

IP TVPortable Travel Agent

Live Wire

40% increase in revenue-per-year

Activity Agent



0

10

20

30

40

50

60

70

80

90

100

FindingPlaces

VoiceControl

PersonalOrganizer

Video ClipMessg.

VideoClips onDemand

Video ClipAlerts

Gaming Gambling

Sign-up Intent for Value Added Services

Tier 1Broad Appeal

Tier 2Moderate Appeal

Tier 3Niche Appeal

US Survey Results, November 2002

End user research indicates sign up intent is highest for services that offer convenience, time efficiency and control

Per

cent



Today’s Communication Paths

Users access multiple devices…

– Fixed Phone, PC, Mobile, PDA

…from multiple locations…

– Home, office, on-the-go

…supported by independent applications

…requiring separate accounts…

– Different sign-on, directories, contact lists, information content delivery

PDA DIRECTORY

EMAILDIRECTORY

INSTANTMESSAGING



Wouldn’t it be nice?

CORPORATE DIRECTORY

INSTANTMESSAGING

PERSONALDIRECTORY

VOICE MAIL

EMAIL

SOFTPHONE

?

??

?

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

Consistent look and feel

across services

Provisioning for any endpoint,

anywhere

Services gracefully transition to

blend communication methods

(IM to Voice to video call)

Correspondences sorted by

contact not method

(email vs call log)



Active PhoneBook

CORPORATE DIRECTORY

INSTANTMESSAGING

PERSONALDIRECTORY

VOICE MAIL

EMAIL

SOFTPHONE

?

??

?

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



One Simple Interface

Tom User 657 555-1234

Search

Mail and Messages Missed Calls

PrefsPABLogsCallsContacts

Buddy

Voice

Video

E-mail

IM

Collaboration

DEMODEMO



Lucent Steps to Customer’s Success

Demand Creation ProgramsIdentify and Drive Traffic to the Customer

Demand Creation ProgramsIdentify and Drive Traffic to the Customer

Bell Labs DNA Unique Innovation Franchise

Bell Labs DNA Unique Innovation Franchise

Complete NGN Eco-SystemAnchored in our World Class Portfolio

Complete NGN Eco-SystemAnchored in our World Class Portfolio

True Strategic Partnership“Trusted Partner”

True Strategic Partnership“Trusted Partner”



THANK YOU!

More Information about Lucent IMS

http://www.lucent.com/solutions/convergence.htmlJavier R. Falcon

+54 11 4340 6311

[email protected]

Documents

Lucent Technologies – Proprietary Use pursuant to company instruction Lucent’s Convergence Strategy Lucent Technologies – Proprietary - Use pursuant to