Graphic/image limits Graphic/image limits. Logo’s should be justified bottom left © The Copyright in this document belongs to Marconi Corporation plc and no part of this document should be used or copied without their prior written permission. December 2004 Marconi NGN Network Evolution Frédéric Auger Business Development

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 2 Why transform? Service revenue trends Global telecom services revenues $bn per annum Other Mobile Fixed telephony Continued top line growth despite industry boom/bust “Other” = ATM, Leased Line, VPNs… “Mobile = Fixed in 2003 by customers Migration to mobile Dial IP to broadband Regulatory moves  Participate  Manage costs  Innovate

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 3 Why transform? To improve the operators’ business case Increase Sales through New Services Networks must enable new services Coming up with ideas like text messaging, the Internet or iTunes is hard Difficult to justify the business case Optimise CAPEX Deploy modular, multi-functional, scaleable & flexible platforms True multiservice equipment supports longer write down periods Save OPEX Consolidate multiple network stovepipes Cut per-stovepipe Opex Build a simplified multiservice network savings can be calculated

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 4 Why transform? Network traffic is changing 100% Connection- Oriented Circuit Services e.g. PSTN & SDH Connection-Less Packet Services e.g. SMDS, IP, IP-VPNs 100% ?% 0% FuturePast Connection-Oriented Packet Services e,.g. X.25, Frame Relay, ATM & MPLS

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 5 Stovepipes - Today Core Access Frame Relay PSTNIPX.25RANLL??? Management Regional Routing Each Stovepipe has different Staff Service processes Network management Network equipment Spares Training Purchasing processes Write down periods

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 6 The Dream - Converged Network Frame Relay IPX.25LL??? Core Access Management Regional Routing PSTNRAN But we think operators need to take action the status quo is not an option fixed network revenues under pressure technology now has the scale required consider rationalising legacy services To be realistic there are some issues: Needs organisational change Need to “spend to save” Some say, “the old networks served us well” they help manage complexity

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 7 Properties of a Transformed Network Services Rapid service deployment Support for fast feature churn Customer self provisioning Support for user mobility Greater security Managed support for legacy services Costs Lower opex Fewer sites Fewer equipment types Common spares Fewer processes Technology Convergence on IP High availability Stability Scalability

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 8 When to Transform? New operators are doing it now No legacies to accommodate Fixed line operator revenues are under pressure Need to start convergence whilst there are sales to support transformation i.e. before obsolescence starts to hurt Mobile operators need to respond to converged operators with fixed/mobile services and new types of mobile services over new access types e.g. WiFi and WiMAX Network age Position on the investment cycle But still need to plan

Graphic/image limits Graphic/image limits. Logo’s should be justified bottom left © The Copyright in this document belongs to Marconi Corporation plc and no part of this document should be used or copied without their prior written permission. December 2004 NGN Architecture Frédéric Auger Business Development

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 10 Edge Multi-Service Access Regional / Metro Gateway POPs Meshed MPLS Core Network The Very High Level View Single Access Platform type for Fibre, Radio, xDSL PSTN & Private Circuits SDH Access Hub Access Radio NB PSTN fixed & mobile TDM Gateways VoIP / TDM gateways with local aggregation Media Gateways Signalling Gateways Primary rate access VoIP/Data Networks Session Border Controller Fire-walling, Policing & Address Translation Session Border Controller Meshed, Multi-service MPLS devices connected by core transport (physical or logical, sized appropriately) BXR Service Platforms Server Platforms e.g. IP Services Router, Bandwidth Manager, SoftSwitch Call Agent, Provisioning Agents, Intelligence

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 11 Control Services Network Management SoftSwitch Marconi NGN Products Metro Ethernet AccessMetroCore MSE Routing Core Optical Multiservice Edge Optical Multiservice Metro, Radio Optical Multiservice Core, Radio MSAN, Access Radio, CLE SDH

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 12 Some more points Network evolution is a challenge for operators Each operator will start evolution for different reasons Each evolution decision should be towards a vision of a low opex, multi-service network The industry has long talked about convergence on multi-service platforms The conditions are now right for this to happen Marconi understands networks and has the ‘transformation products’ Access Hub SoftSwitch IN BXR-5000, BXR SDH, WDM and radio transport products

Graphic/image limits Graphic/image limits. Logo’s should be justified bottom left © The Copyright in this document belongs to Marconi Corporation plc and no part of this document should be used or copied without their prior written permission. December 2004 Next Generation Network Examples Frédéric Auger Business Development

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 14 Example of NGN Structure Vision Data Centre International networks 170 Core Switches 10 Core routers 1,000+ Voice Switches & Data Cross connects 100 Metro routers 100,000 DSLAM, Concs & Data multiplexers 30,000 MSAN 80,000 PCP in the access network Begin fibre roll-out to the PCP Multiple Aggregation Devices Multiple Service Management Organisations & Systems Fewer Devices - increases network reliability Simpler Service Management Today The Future Source : BT, Marconi

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 15 PSTN Migration Marconi ideally placed to develop the interworking with SIP for carrier networks from: track record in delivering PSTN features, expertise in building large and resilient networks, focussed on organic migration, making the best of existing assets Marconi shape and adhere to industry standards, in order to create an open infrastructure

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 16 Metro Node MULTIMEDIAMULTIMEDIA Future Voice Will Be Supported on MSANs & Switched by SoftSwitches Multi Service Access Node (30,000) DSL Metro Node ( ) TDM to OLOs TDM to NGS IP to OLOs Service Execution Function Call Servers Intelligence Core (10) Broadband Business Data PSTN Combo Gateway Media server Router MPLS CORE TA Modem NTE

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 17 Marconi MultiService Access Node Modular Architecture V5.1/V5.2 Uplink options 2 x STM-48 x STM-1 2 x STM-1 Ch. 8 x E3 E1 16 x E1 IMA 2 x GE n x FE 60 x POTS 30 x ISDN 24 x ADSL/POTS 24 x VDSL/POTS 48 x FE Access options Combo DSL/POTS xDSL FTTN CES E1 POTS/ISDN ETH SDH/PDH TDM Voice Gateway Agnostic Fabric SDH/PDH ETH E-PON 32 x ADSL 32 x SHDSL 48 x ADSL 60 x ADSL2/2+ 2 Gbps

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 18 Multi-Service Edge Routing (MSE) The BXR Reality Aggregation + Service Delivery BXR5000 ADM SONET / SDH Ethernet ATM & xDSL ADM ADSL HDSL SDSL 10/100 GigE T1,E1,J1 DS-3,E3 STS-1,STM-0 OC-3c,STM-1 OC-12c,STM-4 OC-48c,STM-16 ADM

Limit for content Do not exceed Limit for contentGraphic/image limits Limit for content Do not exceed Limit for content Do not exceed Limit for content Do not exceed 19 Marconi SoftSwitch (XCD-5000) Supports Class 4 & 5 Voice and Multimedia signalling Distributed processor platform Call control derived from System X Supports IN with CS.1 interface Full C7 support Provides VoIP Centrex Trialled with several operators In service

Graphic/image limits Graphic/image limits. Logo’s should be justified bottom left © The Copyright in this document belongs to Marconi Corporation plc and no part of this document should be used or copied without their prior written permission. December 2004 Thank you Frédéric Auger Business Development