Telecommunications Research Today

Niel RansomChief Technology Officer

Telecom Research — 2 All rights reserved © 2004, Alcatel

Focus of Alcatel Research & Innovation

> Define new product concepts for delivery in 2 to 4 years• Not only technology driven

Focus on application of the technology, customer benefits

• Feasibility studies to de-risk BD future products development Lower development cost, faster time to market

• Analyze disruptive new concepts Enable Alcatel to address new areas outside BD’ structural

organizationNow 1 year 2 years 3 years 4 years 5 years

Focus ofBusinessDivisions R&I Main Focus

R&I Collaboration with

Academic Research

Telecom Research — 3 All rights reserved © 2004, Alcatel

Alcatel Research & Innovation

Stuttgart

Marcoussis

AntwerpOttawa

> 6 Research locations

> 600 research scientists in R&I • 5% of Alcatel R&D• 290 patents in 2003 (>1/3 of Alcatel)• 400 technical publications / year

PlanoShanghai

Telecom Research — 4 All rights reserved © 2004, Alcatel

Alcatel Research Partner Program

Stuttgart

Shanghai

Ottawa

Marcoussis

Anvers

University of Stuttgart

Heinrich-Hertz-Institut

SarnoffCorporation

CNRS

INRIA

GET

University of Texas at Dallas

Plano

Partner investigation 2003

Telecom Research — 5 All rights reserved © 2004, Alcatel

R&I Research Life Cycle

GR1PC Study Launch

GR2PC Transfer Launch

Gate Reviews (GRs)

GR0PC Initiation

GR3PC Closure

Conceive a Product Concept/Module Idea•Market & Technology trends•NSG, ALTA, R&I, STD, BDs,…

Reach a Product Concept/Module Definition•Participants / Key values•Budget /Deliveries / Milestones

Confirm the Product Concept/Module•Market Target Definition•Technology Requirements Analysis•Feasibility Study, Architecture/System Documents•Proof of Concept / Lab demonstrator

Transfer to Product development•Specifications / Documents•Prototype

• Confirm Product Concept

•Nominate Owner

•Assign Project Lead •Allocate budget

• Approve Transfer Plan

• Lesson Learned Summary

Scouting Phase

Planning Phase

Study Phase

Transfer Phase

Telecom Research — 6 All rights reserved © 2004, Alcatel

Comparitive Research Intensity (2001)

0,16

0,16

0,18

0,19

0,19

0,2

0,22

0,25

0,37

0,43

0,47

0,53

0,52

0,59

0,74

Spain

Slovakia

Portugal

Hungary

Netherlands

Poland

Italy

Norway

Japan

Denmark

Iceland

Czech Republic

France

U.S.

Switzerland

Research as fractionof total GNP

Telecom Research — 7 All rights reserved © 2004, Alcatel

Researchers per 1000 Labor Force (2001)

2,82

3,26

5,49

5,68

6,55

6,55

6,95

8,08

8,34

9,14

10,1

11,14

13,77

0 2 4 6 8 10 12 14 16

Italy

Poland

UK

EU-15

Germany

France

Belgium

US

Norway

Japan

Sweden

Iceland

Finland

Telecom Research — 8 All rights reserved © 2004, Alcatel

R&D Investment by Top 300 International Firms (2002)

24590

17984

12887

11381

6477

6468

1853

1828

17744

27184

39334

2920

3805

6016

18323

2131

0 10000 20000 30000 40000 50000

Automobiles & Parts

Pharma & Biotech

IT Hardware

Electronic & Electrical

Chemicals

Aerospace & Defense

Software & computer serv.

Oil & Gas

US

EU-15

Telecom Research — 9 All rights reserved © 2004, Alcatel

Government Funding of R&D (2003)

0,61

0,68

0,69

0,71

0,76

0,77

0,77

0,81

1,03

1,05

1,05

0 0,2 0,4 0,6 0,8 1 1,2

Belgium

UK

Italy

Japan

EU-25

EU-15

Netherlands

Germany

France

US

Israel

Percent of GNP

Telecom Research — 10 All rights reserved © 2004, Alcatel

The CELTIC Initiative(Cooperation for a European sustained Leadership in

Telecommunications)

A EUREKA Cluster Dedicated to Communication Techniques, Systems and Services

Telecom Research — 11 All rights reserved © 2004, Alcatel

CELTIC Project Statistics

Call 1 Call 2

Number of projects (labelled or submitted) 26 20

Currently running projects 19 -

Total budget of projects 124 MEuro 110.8 MEuro

Total effort of projects (in person years) 1, 300 PY 1,002 PY

Number of participating countries 18 19

Average number of participants/ project 8 10.3

Average duration of project 26.3 months 25.2 months

Average budget per project 6.5 MEuro 5.5 MEuro

Average effort per project 62.2 PY 52.9 PY

Telecom Research — 12 All rights reserved © 2004, Alcatel

A few observations …

> The appropriate level of research is a function of both the size of an industry and the growth rate of that industry• Telecom is currently scoring badly on both metrics

> Acquisitions drive companies away from investing in research• Why invent new technologies if your products are coming

from other companies?

> With value shifting away from bandwidth towards uses of bandwidth, there is a shift of research away from components and towards applications and systems.

> IPR policies of US universities is not competitive with those of European and Asian universities

Telecom Research — 13 All rights reserved © 2004, Alcatel

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