Deutsche Telekom AG Zentralbereich Innovation

1. Language Technology as a Motor for Innovation Language Technology at Deutsche Telekom May 2004 Deutsche Telekom AG Zentralbereich Innovation

2. example Approach towards Innovation The last mile is wherever our customer is - today, many different technologies co-exist… At home... ... travelling... • UMTS • GPRS • GSM • ... ... in the office. • WLAN • WiMax • DVB • ... • Ethernet • DSL • WLAN • WiMax • ... • PSTN • DSL • Ethernet • FTTH • ... • WLAN • WiMax • DVB • ... … thus, integration and creation of seamless customer experience is key.

3. Clear needs structure Seven central needs drive human communication Comfort Belonging Productivity Information Security Individuality Pleasure Source: Zukunftsinstitut, Z_Punkt, various sources at TZD

4. Complex communication patterns People‘s private and working worlds and subsequently communication patterns increasingly complex New life-working hours models Tailback of tasks to be completed At work Coordination with colleagues Social insecurity Out-and-about Knowledge society Increasing mobility Economic crisis Coordination of appointment with workmen Information overload Erosion of family Meetings with friends In free time Reorganization of families At home Less time Coordination with partner Pleasure society Profiling consumption Singularization

5. Applications Situations/ locations Actual state of fulfilment of needs Congruence between demands and framework parameters not optimal at present Customer

6. Customer Applications Intuitiveusability IntegratedCommunication Integratedcommunication More efficient fulfilment of needs More complex lifestyles require more customer-focused and individualized ITC solutions Situations/ locations Infrastructure development

7. Completeness Focus areas cover the entire ITC spectrum and relate directly to the basic communication drivers Communication drivers Focus areas ITC spectrum IntuitiveUsability User Comfort Belonging IntegratedCommunication Application Information Pleasure IntelligentAccess Device Individuality Security InfrastructureDevelopment Productivity Network infrastructure Segment-specific definition „4i“

8. R&D Projects ZB I supports the realization of the focus areas through selected enablers. Enablers Focus Areas Overarching AAA INTUITIVE USABILITY Multi-access service platform INTELLLIGENT ACCESS Selection of Enablers based on required capabilitiesin the FocusAreas Tracking and tracing Voice Relevance Broadband wireless access INTEGRATED COMMUNICATION Enhanced user interfaces Pervasive computing INFRA-STRUCTURE DEVELOPMENT Next-generation-network/GSN

9. Applications & Services Voice technology enables different application scenarios and services. Services / Features Enablers Application Area Telephone Services Voice-activated dialing, Voice commands Automatic Speech Recognition Information Services Voice Portals, Wireless Web, Telematics Text-to-Speech Messaging Voice-activated voice mail, email and unified messaging Operator Services Concierge services, “Intelligentes Freizeichen” Speaker Verification Enterprise Telephony Call centers, CRM Mobile Commerce Voice enabled event notification, Mobile transactions Natural Language Understanding Security Services Speaker verification, Biometrics

10. VoiceIdent: Importance of AAA EXAMPLES AAA is relevant for offering services in the prioritized business fields eHealth Telematics Mobile office Telehome eGovernment Generic consumer Generic business Overarching AAA • Identification of patient with electronical medical report (authenti-cation) with smart card • Authorization of pharmacy to create ePrescription • Authentication via fingerprint for entertain-ment down-loads at destinations • Fingerprint authentication for access to company ERP information • Authentication for each inhabitant for special services (e.g.,, access to video on demand) • Authentication of citizen for administration purposes eVote, eMarriage • Authorization to search in libraries • Replacement of physical ID • Voice recogni-tion for checking voicemail box (authenti-cation) • Voice Trust Center for automation of password reset • Fingerprint authorization for the execution of banking/ payment transactions • Authorization logic for entering high security areas Enhanced user interfaces Multi access service platform Broadband wireless access Enabling market access to ... Tracking and tracing 47,4 37,9 n/a n/a Pervasive computing Seamless backbone Market potential for Eastern and Western Europe of prioritized business fields 2007EUR billions

11. Biometric Trust Center DT Group is natural owner of a Trust Center. Aspiration Current situation • Build upon the current customer base and make the step-up to an overarching Trust Center that enables: • Secure transactions • Easy service access • Standardized payment and billing solutions • DT Group currently authenticates more than 80 million customersvia Pot and SIM Card • DT Group has access to relevant information for authorization about customers, e.g. payment behavior, customer preferences etc. • DT Group sends out more than 80 million bills per month • DT Group has a payment relation to over 40 million households in Germany Authentication Authorization Accounting DT Group is participating (technically) in nearly all electronic transactions in Germany Source: Team

12. Biometrics Various technologies for authentication. Fingerprint Walk Hand geometry Palm print Iris Retina Face recognition Biometric Technologies Signature Shape of ear DNA Thermo-pictures Voice Veins Dynamics of typing

13. VoiceIdent @ CeBIT 2004 Successful Proof of Concept. • CeBIT 2004 demonstrator was nominated as for “Best of CeBIT Award” • Project was successfully based on Telekom patent (for authentication based on voice print and CLI) • 4 new patents have been submitted • Communication on patent handling in MyTeamNet

14. July/2004 January/2005 July/2005 January/2006 July/2006 January/2007 VoiceIdent – Next Steps „Use what you sell“ – VoiceIdent first deployed Telekom-internally, subsequently e.g. for external call center, finally for other types of voice applications. VoiceIdent [VoiceIdent] • Wide range of Deutsche Telekom and 3rd party voice applications enabled by VoiceIdent (payment etc.) [VoiceIdent] complexity • VoiceIdent deployed for automation of external call centers with password reset being the initial application • VoiceIdent used for Deutsche Telekom services (T-Netbox, Rechnung Online, ISDN configuration etc.) VoiceIdent - Phase 2 • “Use what you sell”: VoiceIdent used for password reset within Deutsche Telekom • Subsequently, VoiceIdent is used for other call center automations timeline

15. Beispiel Different Perspective Voice is an important part of communication, but not the only one. „Man kann nicht nicht kommunizieren.“ 3D Displays „Augen-Maus“ Emotions-Erkennung Nano-Schalter Nano-Sensoren 3D Drucker RFID-Tags „Virtual keyboards“

16. Backup

17. Convenience Aging, Health Fitness Technical Ability Singling Mobility Personal Rewarding Time Budget Mediatization Efficiency Support Servicing Belonging / Peer Pressure Specialization Affordability Knowledge Workers Margin / Scale Financial Pressure .. .. Customer Behavior and Needs In-depth understanding of drivers behind trends are used for business case evaluation of enablers and disruptive technologies. Trend Clusters Behaviors & Needs Drivers of Beha-viors & Needs Evaluation for prioritized analysis strong Afforda-bility Belonging Margin / Scale Mobility Efficiency Support Time Budget Impact on DT Conveni-ence .. Technical Ability limited low high Requirement to act

18. Focus area: Intuitive Usability “Simplify your life” Applications must be easy to operate for all users of a target group. Today • Desire for • Comfort • Productivity Tomorrow Hello! Input: *67# <call number> Hello Ms. Müller, how can I help you? • Programming of settings is often cryptic at present • Authentication is usually done with a password or by entering a PIN • Voice authentication instead of password • Service control by way of natural speech • Individualized dialog systems • Intuitive operation of products and services generates greater efficiency and effectiveness. • Acquisition of larger customer groups for more complicated products and services as well (“design for all“).

19. Focus area : Intelligent Access “Always best connected” Technology must ensure the optimal connection in every situation without any help from the user. Today • Desire for • Comfort • Belonging • Productivity • Security Tomorrow DVB-T W-LAN GPRS ISDN ISDN UMTS • User must dial explicitly into a specific network via a device • Often necessary to dial into a new network when location changes • Seamless handover • Best quality available • Provision of necessary bandwidth in each case • There are no limits to accessibility and communication. • Services are available via different devices and networks according to each situation.

20. Focus area: Integrated Communication “Everything talks” Networked applications must satisfy individual needs increasingly independently. Today • Desire for • Information • Comfort • Belonging • Productivity • Security • Pleasure • Individuality Tomorrow • Everday objects will be intelligent • Networking of all objects and devices • New forms of communication and interaction • Intelligent applications by way of spontaneous networking • Stand-alone devices in private sphere • Direct communication from machine to machine relieves the user and makes processes more effective. • Context-sensitive and personalized products and services generate higher added value.

21. Focus area: Infrastructure Development “High quality at reasonable cost” The cost/benefit ratio of production systems must be optimized. Today • Desire for • Productivity Tomorrow IP-Netz PSTN ISDN IP network Corporate network • Simplified and unform core network • Equal treatment of voice and data in core network • Network convergence reduces costs and increases quality, e.g. lower supply times • Parallel networks currently exist (PSTN, IP network, ...) • Service-specific growth • Optimization of the infrastructure has priority for Deutsche Telekom. • More efficient production systems enable higher bandwidths and better quality without increased costs.

22. Demo Project description: • German Version VoiceIdent: 06151-4283-121 • English Version VoiceIdent: 06151-4283-122 • German Version VoiceIdent + Ring tone download: 06151-4283-123