Evolution of NGN infrastructure for Multi-media applications & FMC

1. FORUM ON NEXT GENERATION STANDARDIZATION (Colombo, Sri Lanka, 7-10 April 2009) Evolution of NGN infrastructure for Multi-media applications & FMC Ashwani Kumar Director, Sales Engg UTStarcom, India

2. Agenda • Global Trends • NGN & Convergence • Converged Network Architecture • NGN Advanced Services Architecture • SIP Based Multimedia SoftPhone • Unified Centrex • Continuity FMC Solution • Video Conferencing • Case Study- PSTN to NGN Migration

3. Global Trends Technology Trends Networks are moving towards end-to-end IP to support faster and higher BW services Converged Transport to provide robust high BW link between application and user New Wireless technologies are delivering service to remote regions Broadband is replacing dial-up to provide high speed access NGN Core being deployed to support multimedia services Fixed Mobile Convergence promises seamless connectivity regardless of location IPTV is enabling new multimedia applications over Broadband now Market/Industry Trends Convergence of communications & entertainment - Voice, Data, & Video Aggressive growth of broadband subscribers globally Increasing need for higher end-user bandwidth-for Multimedia Services Transition from network-centric single services to subscriber-centric offering Services Value chain Service Bundling - Basic Voice-driven to multimedia service-driven business model Basic services- Voice, Internet access Value Added services- VMS, SMS, UMS, CRBT, IM, Presence, LBS Multimedia Services – IPTV, IP Surveillance, Video Conferencing

4. Convergencehappening everywhere & traditionally isolated markets are overlapping Information Voice Broadcast Entertainment Data Telecom Communication Multi-Media Internet Computer Electronic Home App. Terminal Media Convergence Industry/Service Network Terminal • IP based • Heterogeneous environment • Ubiquitous Network Convergence in Telecommunications • Continuity of services & content • Broadband based • Supporting mobility Service Terminal • Convergence faculty • Smart facility • User friendly interface

5. NGN Concept • NGN is a concept for defining & deploying networks, which due to their formal separation into different layers & planes and use of open interfaces, offers service providers a platform which can evolve in a step-by-step manner to create, deploy & manage innovative services. • NG Architecture : Service oriented, layered (transport, control, application) • NG Services : Converged (quad play- voice, data, video & mobility) • NG Access : High speed (Broadband) IP based connectivity (ADSL,VDSL, WiMax, Cable TV, FTTH) • NG Transport : Ethernet, IP-MPLS, RPR, T-MPLS • NG Mobile : 3G+, 4G • NG Internet : IPv6 • NG Interconnect : Capacity and Quality based • NG Licensing : Unified, Converged

6. NGN Converged System Architecture NMS OSS OSA Parlay Gateway Parlay API based AS SCP (IN&CAMEL) VAS Servers 3rd party AS Service Layer SLR (VLR/HLR) Pre-paid Server SoftSwitch Call Servers Control Layer Core Switch Managed IP Network iMS iUMG SGW TMG AMG CDMA2000 IP Access GW WiMAX Gateway Layer PHS IP phone/IAD/IP TV Console PBX BSC ASN BS CPE BTS PSTN/PLMN &IN(CAMEL) V5 AN POTS/DSL Unified Core Network Solution for all Voice Applications

7. NGN Advanced Service Architecture SIP AS PSTN/PLMN mSwitch Network IN/CAMEL • Short Message • MCN • Location Service • Mail Service • C-Mode • …… • Pre-paid • Calling Card • Toll Free • FMC • Calling Card • Video Call • Voice Mail • Instant Message • …... • iNumber • iSecretary • VPN • Video Conference • …… • Standard IN/CAMEL Services mService Parlay Gateway External SCP UT iSCP VAS Server CAP/INAP SIP/SIP-T SIP/SIP-T HTTP/SNSP CAP/INAP NMS SLR CS-P Core Switch Network M3UA M2UA IUA H.248 iUMG OSS SG ISUP/PRI ISUP/PRI IP-TK H.323 SIP/SIP-T 2G/3G Network H.323 Network SIP Network

8. Advanced Multimedia Services • SmartPhone (UTSmart) SIP Based Multimedia SoftPhone • Unified Centrex • Continuity FMC (Fixed/Mobile Convergence) Solution • Conferencing- Voice, message, multimedia • Video Calling & Video Conferencing • iNumber- Find me Follow me • CRBT • Unified Messaging- Voice, Email, Fax, Video • Quadruple Play- Voice, Data, Video & Mobility • Voice over Broadband • Presence & IM • PSTN Emulation Services

9. Smart Soft Phone • Support on Microsoft Windows 98/2000/XP • Embedded SIP soft phone for voice and video calls • Voice codec – G.711a, G.711u, G.729 • Video codec – MPEG4, H.263 • Phone address book • Friendly GUI for serviceactivation and deactivation • Automatic update of call records for call history • Auto answer and voice message recording/replay • SMS support from/to NGN/PLMN/PSTN subscribers • Security with password protection (MD5) • Multiple call server configuration • Support of automatic upgrade from HTTP server

10. Enterprise Access SolutionUnified Centrex Centralized mService Center • Enterprise Access solution: • Multi-Access based solution for Enterprise customers • One System Virtually support multi Enterprise Users. • Wide Area Centrex supports multi-site offices of one Enterprise Customer. • Mixed Centrex Group (NGN user, PBX and mobile Centrex) [In Roadmap] • IP Phone/PHS Phone (as well future’s other Wireless Access Terminals) Roaming among different office iWAC AS Parlay API Parlay Gateway Provisoning Center PSTN IP Core ISUP SoftSwitch1 SoftSwitch2 SoftSwitch3 PRI PBX SH Centrex BJ Centrex SZ Centrex HZ 03xxxx 04xxxx 05xxxx 06xxxx

11. FMC-Business Drivers CALL FAILED PLEASE TRY AGAIN! • Many households today have at least one cell phone. • In these households estimated 60% of long distance calls and 36% of local calls take place on mobile phone at home (Yankee Group) • 14% of users use cell phones as their primary line (Yankee Group) • Additional 26% of users are ready to switch as in-building coverage improves • Over 50% of users place mobile calls when they are at home or office (Wireless Review) • WiFi exists or can be supported in both places • Traffic on mobile network has been increasing causing QoS problem and hence subscribers’ churn • Pressure to reduce tariff for voice services • “Fixed” broadband availability is growing at a rapid pace - double digits in most cases • VoBB provides new revenue stream for Service Provider, and also give a low cost alternative to carry mobile voice traffic • Leverage low fixed line asset cost to support the mobile voice application • Users need to access services seamlessly regardless of their location, active device or the network access method • Lower CAPEX, Lower OPEX, Higher coverage and quality

12. Driving Forces • Consumers like mobile phones • And all of them are not using just for mobility • In >50% cases used for portability, not mobility. • Consumes demands low cost for voice • Broadband is getting widely deployed • Voice over broadband is not only new revenue stream for SP, but also the low cost alternative to carry mobile voice traffic • Leverage low fixed line asset cost to provide the mobile voice application • Lower CAPEX, Lower OPEX, Higher coverage and quality => Fix Mobility Convergence

13. Office Hot Spot IP CORE 802.11/WiFi PSTN/SS7 NETWORK Mobile IP CORE Home MOBILE NETWORK WiFi/GSM Dual Mode PHONES Hot Spot Public 802.11/WiFi With FMC, users can access the best available service whether they have mobile coverage (e.g. GSM, CDMA), Wi-Fi/fixed-line coverage (e.g. Wi-Fi SIP over broadband) or a combination of both.

14. Continuity - Fixed Mobile Convergence • CS (Call Server) • SG (Signaling Gateway) • SLR (Subs Location Regiser) • PSC (Processing Server for CDR) MAP over SS7 FIXED / WIRELINE NETWORK MOBILE NETWORK HLR /VLR EXISTING SOFTSWITCH SS7 NETWORK MSC EXISTING MEDIA GATEWAY PSTN/PLMN NETWORK Hot Spot Wireless WiFi/GSM Dual Mode Handset WiFi/GSM Dual Mode Handset Inter-Roaming betweenWiFi domain and mobile network

15. Solution fit for different Operators • MNO (e.g. Cingular, Sprint) • Improve the mobile coverage with low cost WiFi- Residential / Enterprise / Public hotspot • Partner with Cable/Fixed Op to offer total package- Triple or Quadra-play • NGN Operator (e.g. Vonage) • Enhance their current offerings with mobile capability • Partner with MNO as whole sell (MVNO) or roaming • Integrated Service Provider (e.g. Brazil Telecom) • In-house Mobile and Fixed line operation • FMC allows them to use fixed line infrastructure to offer mobile service • The combined infrastructure provides lower OPEX ratio comparing with pure MNO • Cable Operators (e.g. GCI, Comcast) • Partner with MNO to offer FMC • Natural extension from Triple-play to Quadra-play – Voice, Data, TV/Video, Mobile • FMC-Enabler (e.g. VeriSign) • Host equipment and provide FMC backend capability to other NGN, MNO operators • Work with multiple small/tier 2/3 operators – Don’t acquire FMC subs directly

16. FMC Solution Advantage – Service Provider Perspective • Converged service infrastructure by consolidating the voice services between the fixed and mobile networks • Mobile coverage (GSM, CDMA) – Offering mobility, convenience and ubiquity • Wi-Fi SIP over broadband – Offer better quality, lower cost and feature rich capabilities • Enhancement of Service Quality • Stimulates the new service opportunities to increase ARPU • Capability to quickly include value added services - VMS, SMS, CRBT, FMFM, Centrex.. • Provides the service differentiators and creates the service stickiness to lower the churn rate • Reduction in CAPEX/OPEX • by offloading the traffic from cellular to WLAN and spending less on infrastructure buildout • Single set of user credentials • Using GSM IMSI method authentication for both networks simplifying the user management • System Reliability and Scalability backed by Real Deployment • Based on the proven NGN (mSwitch) platform (and its IP core) • The single mSwitch solution implementation serves over 2.1 m subscribers • Architecture compliant with 3G/IMS • Future-proof via open standards

17. FMC Solution Advantage-User Perspective • FMC enable users to access their voice and data services transparently, regardless of their location, device, or network-access method • ‘One Number’ and ‘One Phone’ service • WiFi SIP or GSM/CDMA coverage • The user will be able to initiate and terminate calls at any place • Seamless Roaming • The user will have non-interrupted call sessions when moving from one network to another • Uniform and consistent service accessibility & behavior independent of access • especially attractive for enterprise users to extend corporate VPN to cellular networks. • Reduced monthly charges & convenience of a single bill • Simplified and Unified service plans and payment schemes. • A single always reachable phone number (Option for dual number) • Availability of new services • e.g. IM, Unified VM, SMS, Unified phone book, CRBT….

18. FMC Value Proposition • Service providers can now: • Reduce churn by providing single number NGN & wireless service to customers • Increase stickiness through advanced services • Generate new revenue through supporting roaming agreements • Future-proof via open standards • Maintain a single cost-optimized network infrastructure

19. No Impact to Existing Networks • To Existing NGN Networks: • A functional module addition to the existing SoftSwitch and backend application • Able to use the existing NGN for call processing and routing • Normal NGN users are still served by existing infrastructure • Zero impact of the FS addition • All (home/visiting) FMC users will be served by the FMC-FS • Registration, authentication, roaming, call processing, handover • FMC-FS requires access to FMC user profile data • HSS (Home Subscriber Server) model of IMS • To Existing GSM Networks: • GSM Homed FMC users appear to be regular GSM users • NGN Homed FMC users appear to be visiting GSM users • FMC-FS uses standard roaming Interface to the GSM Network

20. Video Conference Service Video Conference Service: • Multiple types of conference • Multiple conference reservation methods • Automatic notification to conference participants • Rich set of conference management and control functions Centralized mService Center Conference AS Parlay API Parlay Gateway mSwitch Domain 2 mSwitch Domain 1 SIP SIP SLR SLR CS-P CS-P ISUP ISUP iAN8000 iAN8000 PSTN/PLMN

21. PSTN to NGN Migration Case Study Background • A leading tier 1 carrier in Philippine • Owning 2m fixed & 22m GSM mobile customers as of Q2 2006 • A public company listed in NYSE • Total market cap of US$7.8B as of Sept 2006 • Total revenue US$2.5B in last 4 quarters • EBITDA US$1.6B in last 4 quarters • Operating margin 37% • A fast growing service provider in Asia • Provides fixed line, GSM mobile and broadband data service to both residential and enterprise customers Problem Statement • How to sustain and grow the fixed line service? • Lots of population without telephone service • Lots of business users demand more service • How to increase the ARPU leveraging NGN/IMS? • IPTV? FMC? Triple-play? Quadrupled-Play? • How to lower the OPEX? • Real estate expense in the big metropolitan area? • Power consumption? • Human resource required for operation? • How to manage EOL/EOS of the aged TDM switches? • The cost of maintaining is unbalance with the cost of buying new

22. UTStarcom Solution • PSTN Emulation Subsystem – PES • Provide services to green-field customers • Replace the existing TDM switch – total 7 models in place • mSwitch as the core • SoftSwitch + Gateways + Backend office applications • iAN8000 as the access • Combination of DSL, DLC and VoIP AG • Foundation for FMC and IPTV in the future • Phase 1: Started with 150K NGN lines capacity • Network installation and migration planning for 3 months • First TDM switch replacement/migration in March 2006 • Adding customer via both old switch migration and green field expansion • Service extension to Centrex • Targeting under served enterprise customers • Phase 2: Network expansion to total of 500K NGN lines • Contract signed in later 2006 • Network fully deployed • Phase 3: Planning for total of 1.5M NGN lines in 2008 • Total 5m NGN lines planned in next 3 – 5 years • 150+ CO sites replaced by 3 NGN SS sites

23. Migration Benefits • CAPEX Savings • Central Office (CO) consolidation • Simpler network with fewer types and pieces of equipment • OPEX Cost Savings- 80% • Operation and Maintenance cost reduction • Reduced power consumption- 94% (Reduced air-conditioning requirements) • Faster provisioning of services • Floor Space Savings- 92% • Reduced space requirements • Consolidation of cabinet areas • Improvement in “time-to-market” for new services- 90% • Faster introduction of new services • Increase in Revenues • EOL management • End of support to critical TDM components- High cost of vendor support • Stop manufacturing of components • Salvage components to support in-house repair of modules when they run out of spares.

24. Blueprint of One Real CO Space Reduction 6 x 34 =204 ft2 48 x 29 =1392 ft2 Total Space= 1392+209+24= 1625 ft2 Total Saving in One CO =1421 ft2 19 x 11 =209ft2 6 x 4 =24 ft2

25. Greatest Experience: Cut-Over Procedure • IP, NGN, and PSTN inter-connect infrastructure configured and tested • AGs installed, wired on MDF, configured, and qualified  • Migration of Digital Loop Carriers • Retrofitting the access gateways in existing DLC cabinet • Consolidation of cabinet areas • Sample subscriber data populated, provision ADSL Sub • Number migration set up and tested for lines and trunks • Bulk sub data migrated and tested again for all features and billing • MDF- isolation pin switched so that sub lines are switched from legacy switch to AGs (a couple of minutes) • PSTN tandem switches re-route traffic from legacy switch to NGN C4 (1 minute)

26. Thank You This presentation is provided by UTStarcom for planning purposes only. Changes in market conditions and/or other changes in circumstances, can affect the assumptions upon which this presentation was based or otherwise impact the contents of this presentation and therefore such contents cannot be guaranteed and are subject to change at any time without notice. Nothing contained in this presentation shall be deemed to create, modify or supplement any commitments or warranty made by the company, whether expressed, implied or statutory, in connection with the products, technology and/or services referenced herein. *Some features may require addition development and may not be ready for immediate implementation.

27. iNumber – Find Me Follow Me Centralized mService Center • iNumber is UTStarcom solution name for Find-Me-Follow-Me service • Subscriber registers one number as a master number • Then associates other numbers to the master number- home, office ... • Whenever the master number is called, the system will ring sequentially all the numbers • Flexible number bundling among SIP user, PSTN POTS, PLMN MSISDN etc. • Dial one number to reach all the bundled number • Support sequential and simultaneous ringing options • Activated/deactivated through web/IVR iNumber App. Parlay API Parlay Gateway Provisoning Center mSwitch Domain 2 mSwitch Domain 1 SIP SIP SLR SLR CS-P CS-P ISUP iAN8000 iAN8000 PSTN/PLMN

28. CRBT UT CRBT Suite User web portal/OSS NMS OSS PSTN CRBT media library TS (SLR, PSC) CRBT media/signaling server 2 NFS 1 5 CS-P/iUMG #1 4 3 NGN Access

29. Sri Lanka Scenario • Population– 20 million • Tele density ~ 50%. Competition remains intense but rational. Strict profitability focus in Operators. All Operators considering NGN deployment and have issued RFP/Tenders NGN market in Asia provides a potential for a cumulative operator capex opportunity of approx. $3.9B* over 2007-2010 and $0.9B* in 2008 * Based on forecast provided by Infonetics Research in Nov 2007

30. NGN Market Drivers • TDM switches facing EOL or reaching capacity saturation • Explosive growth in Internet traffic • Intense competition • Telco vs. Cable vs. Satellite vs. Wireless vs. NGN • Need for Improved Business Model • OPEX savings and top-line revenue growth • Need for Service Differentiation • Ease in offering new services (VoIP, IPTV, FMC) • Time-to-market and ability to provision services quicker • Integration of network resulting in huge network cost savings