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Fifth Annual Conference on e-commerce (R)evolution Goes Mobile

Lucent Technologies Bell Labs Innovations. Fifth Annual Conference on e-commerce (R)evolution Goes Mobile. We make the internet mobile !. Sorabh Gupta Business Development Manager Service Provider Networks Lucent Technologies sorabh@lucent.com. Outline. State of the mobile market in US

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Fifth Annual Conference on e-commerce (R)evolution Goes Mobile

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  1. Lucent Technologies Bell Labs Innovations Fifth Annual Conference on e-commerce(R)evolution Goes Mobile We make the internet mobile ! Sorabh Gupta Business Development Manager Service Provider Networks Lucent Technologies sorabh@lucent.com

  2. 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

  3. Mobile market in the US * Jupiter Communications • 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 Yankee, Strategis

  4. What is 3G? ~2.048 Mbps ~384 kbps ~144 kbps ~9.6 kbps North America cdma2000 & UWC-136 ANSI-41/ WIN/GSM-MAP T1/TIA TR 45 Asia/ Pacific cdma2000 & DoCoMo WCDMA Europe UTRA GSM-MAP / CAMEL ANSI-41 / WIN & GSM-MAP/CAMEL ETSI CWTS, TIA, ARIB & TTC A “Family of Systems” for IMT-2000 services, ensuring network standards interoperability.

  5. Global Wireless Standards Evolution cdma2000 3X MC cdmaOne cdma2000 1X RTT • High Capacity Voice • 384+ kbps Packet • Backward Comp. • Voice • 14.4 kbps • Circuit Data 1xEV Voice/Data 1xEV Data Only • 2.4 Mbps Packet • Backward Comp. • Higher Cap Voice/ Data • Backward Comp. TDMA IS-136 EDGE (US) EDGE (Europe) • Voice • 9.6 kbps Ckt Data • 384 kbps Packet GSM GPRS W-CDMA (Europe) GSM • Voice • 9.6 kbps Ckt Data • upto ~115 kbps Packet • Backward Comp. 3G/ IMT-2000 Capable 2G 2.5G • 2 times voice capacity • 153 kbps Packet W-CDMA (Japan) • High Capacity Voice • Up to 2Mbps • New Radio Equipment PDC-P PDC • 9.6 kbps Packet Data • Voice 1995 1999 2000 2001 2002 2003+

  6. How will we do this evolution ? cdma2000 3X MC cdmaOne cdma2000 1X RTT • High Capacity Voice • 384+ kbps Packet • RF Backward Comp. • Voice • 14.4 kbps • CSD 1xEV Voice/Data 1xEV Data Only • 2.4 Mbps Packet • RF Backward Comp. • Higher Cap Voice/ Data • RF Backward Comp. TDMA IS-136 EDGE (US) EDGE (Europe) • Voice • 9.6 kbps CSD • 384 kbps Packet GSM GPRS W-CDMA (Europe) GSM • Voice • 9.6 kbps CSD • upto ~115 kbps Packet • RF Backward Comp. 3G/ IMT-2000 Capable 2G 2.5G Data & Voice solution 2G networks UPGRADABLE OLD mobiles compatible NEW voice/data devices SAME spectrum High infrastructure reuse New Mobiles Backward Compatible • Twice voice capacity • 153 kbps Packet Data ONLY NEW infrastructure NEW data devices Data ONLY NEW infrastructure NEW data devices New Spectrum New Network New Air Interface New Mobiles No Backward Compatibility W-CDMA (Japan) • High Capacity Voice • Up to 2Mbps • New RF PDC • Voice • 9.6 kbps 1995 1999 2000 2001 2002 2003+

  7. Our 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

  8. The Changing World of Our Customer Drivers: Data, Bandwidth, and Scale Today’s Model: Voice World Emerging Model: Converged Voice/Data World Services Mobile Virtual Operator Service Bureau Service Provider Cyber Carrier Mobile Operator Network Operator Operations Back End Front End Changing drivers are causing specialization leading to segmentation by core competencies

  9. Our 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

  10. Our Landscape New Media Services Services “breaking all the rules,” opening new revenue streams Anyone to Anyone Services Interacting with anyone, anywhere, anytime – using any media Market Trust Services Reach of Revenue Opportunities Mobile commerce foundation unlocking the revenue potential Sensory Networks It’s all about Me! … leveraging dynamic subscriber information Seamless Operations Robust, reliable and high performance for flawless operations Radio Access Network Switching Centers Cyber Centers Core Network Terminal Range of Infrastructure Elements

  11. Our Landscape is a Total Value Chain Applications Technology Enablers New Media Services Gaming Portal Navigation Telemetry Video on Demand Enterprise Streaming Gateways Intelligent Agents Alert AdServe E-mail SMS IM GroupWare PIM Unified Mailbox Voice Services Anyone to Anyone Services Speech-Text-Speech Language Translation Signalling Directory Market Trust Services Pre-Pay Micro-Billing CRM e-Care Fraud T-settlement P-to-P Reach of Revenue Opportunities Profiling Micro-Transaction Data Mining Security Yield Sensory Networks Dynamic Customer Information Location Presence Time Content Switching Authentication Seamless Operations Availability Network Management Scalability Secure the Pipe Inter-Domain Intelligence Radio Access Network Switching Centers Cyber Centers Core Network Terminal Range of Infrastructure Elements

  12. Lucent Has A Broad Product Portfolio New Media Services Anyone to Anyone Services Market Trust Services Reach of Revenue Opportunities Sensory Networks Seamless Operations Radio Access Network Switching Centers Cyber Centers Core Network Terminal Range of Infrastructure Elements Lucent is prominent with products, services and market insights across the new mobility value proposition

  13. The Breadth of the Lucent Offer Profilium Purple Software New Media Services … IP Navigator iCARE III Strategy.com Infospace Brience Anyone to Anyone Services Oracle Logica Arbor … DataOnAir BroadVision PacketIN Market Trust Services WaveStar NX64000 … Reach of Revenue Opportunities … Wireless Solutions Phone.com MapInfo RTSWireless ConnectVU WL Extended Systems Sensory Networks … SignalSoft Compaq Spyglass Argo Sun Microsystems Hotpalm Seamless Operations Pedagog Radio Access Network Switching Centers Cyber Centers Core Network Terminal Range of Infrastructure Elements • 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

  14. Flexent Mobile Internet Gateway Media Gaming Location M-Commerce Messaging MobileInternet Gateway • A Focused Platform for Enabling Content Services • Location, Presence and Authentication • Mobile Internet Development Kit (MIDK) Support • Access to Third Party Applications S E S S I O N M G M T A P I Applications Billing OMP I-HLR SMSC Internet Intrarnet IWF MSC Portal Content WAP Gateway • 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

  15. Enabling the Mobile Virtual Operator MVNO MVNO Mobile Virtual Operator Mobile Operator Mobile Operator Mobile Operator Presence Location Subscriber data Service state Subscriber state Billing/Prepay Bearer Performance/QoS … Activation Provisioning Content Services Bearer IN Services QoS configuration MobileInternet Gateway • Lucent’s Flexent Mobile Internet Gateway enables secure information flow between the Virtual Operator and Mobile Operator

  16. Conclusions • 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 • 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

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