Open Systems and Network Equipment Design SP10 Rich Birckbichler VP Sales Versatel Networks

Open Systems Interoperability?-VoIM “I’ll predict that before the IP telephone revolution is over, more then 50% of phone calls will be dialled to IM (Instant Messaging) screen names. IM itself will be a kind of interactive caller ID” Scott Petrack, eDial Founder, Alcatel PIC – IM only 37.3M USA Households AOL- 50.7% Yahoo’s- 24.3% MSN – 20.8 Alternative 4.20% New players have same objective to add revenue producing services to IM/VoIM Connectivity of VoIM islands an issue to be resolved through OPEN Systems 184M downloads Average 4.2M User Online Launched Aug. ’05, no numbers yet

Benefits of Open Systems and Network Equipment Open system standards allow developers and service providers to focus on providing useful services instead of developing technology, (e.g Asterisk) As more network elements and application components become open, service providers will become developers as well as solutions providers A level playing technology playing field will allow small and agile players to emerge quickly and provide compelling integrated services.

Open Systems Customers want homogenized service offering with a common look and feel SIP standards open IP market to 3rd party Applications Applications need to expose a non-proprietary API for service creation and/or customization IP Softswitch becomes media mixing, applications enabling engine for 3rd party niche service deployments – prepaid, ring back tones, single number, Leap, find me, customer specific IVR, etc…

Open Network

Impact of Open Standard Services Major incumbent equipment suppliers, application and service providers will publish their “defacto standard” as “open” to ITU-T Open “standards” proponents now taking positions on “whose standard is best” What is happening with Megaco? The applications development community have published open source lower cost development environments rapid development of innovative services access to a large group of collaborative developers undermines proprietary applications (e.g Microsoft -IM) Commoditization of Basic Services Commercialization of media services, Voice services

Conclusions – Open Systems & Network Equipment Design The Industry is moving to a consumer driven market rather than technology – Supply and Demand - The network is FREE Open systems will enable rapid development of new and useful services that will replace revenues lost in the traditional legacy PSTN Networks will continue to be islands due to security and specialized functionality requirements The existing VoIP enabling network elements will rapidly evolve as more generic applications are made available, Standardized signaling schemes, conventions are required for application developers