October 4-7, 2004 Los Angeles, CA Changing the VoIP Paradigm: Delivering Value over IP John Meyer President, Lucent Worldwide Services

October 4-7, 2004 Los Angeles, CA 2 What Is Convergence? Voice over IP Enterprise and Consumer Optical and Ethernet Broadcasting Wireline and Wireless Circuit and Packet Voic and Voice, Video and Data Collaboration Enterprise and Service Provider Personal and Professional Device Independence

October 4-7, 2004 Los Angeles, CA 3 Convergence Is More Than Voice Voice over IP Enterprise and Consumer Optical and Ethernet Broadcasting Wireline and Wireless Circuit and Packet Voic and Voice, Video and Data Collaboration Enterprise and Service Provider Personal and Professional Device Independence True Convergence encompasses all of these themes to deliver blended lifestyle services to the end user TM

October 4-7, 2004 Los Angeles, CA 4 Migrate Existing Voice Service to VoIP - Converge Communication Services Converge wireline/wireless telephony services WiFi Mobile High Speed Data (EVDO) Blended text and voice services VoIP over wireless & wireline Next Generation Lifestyle Services  Multimedia content services and messaging  Video telephony / conferencing  Interactive gaming Next Generation Lifestyle Services  Multimedia content services and messaging  Video telephony / conferencing  Interactive gaming Value Value over IP™: Context-sensitive Communications Lifestyle services increase End User Retention and Value

October 4-7, 2004 Los Angeles, CA 5 Delivering Value over IP™  Watching Bloomberg TV news items via high-speed data access  Conference on a colleague via VoIP or IM to see the news  Discuss investment opportunities linked to news while researching segment companies  Send video clip with an or voice message to colleagues who couldn’t conference on  Later, click to set up and dial conference call with colleagues, researchers, et. al.

October 4-7, 2004 Los Angeles, CA 6 Pent-up Demand for Lifestyle Services  Delivering Value over IP is more than just delivering Voice over IP:  Mass market research proves pent-up demand for lifestyle-impacting services  Demand is supported by a high willingness to pay – and to switch  Opportunity in combining feature- driven applications with voice and data interaction  Successful uptake requires ease of use and ability to experience seamless access to applications Every Day Every Other Day 2-3 Times Per Week Once A Week Less Than Once A Week How Often Do You Think You Would Use “More Than Words?” Source: Lucent Technologies primary research

October 4-7, 2004 Los Angeles, CA 7 Delivering Value over IP™: IMS “Always-On” Access & Device-Independence IP/MPLS Core Internet IP Network iDEN™ Access Circuit Mobile Network Packet Mobile Network IP Network Media Resource Server (eMRS) Application Servers Softswitch (LSS) MiLife™ ISG Media Gateway SDHLR Cable IMS Brings the Network to You

October 4-7, 2004 Los Angeles, CA 8 Converging Operations Converging Networks Converging Telecom/IT Creating Value Requires Strong Network Integration Converging Applications Multivendor Capability Customer Service Excellence Bell Labs Innovations Program Management Knowledge Management Business Strategy Business Strategy Solution Architecture Solution Architecture Solution Implementation Solution Implementation Operate & Maintain Operate & Maintain

October 4-7, 2004 Los Angeles, CA 9 Created VoIP multivendor network design, migration plan, test plan and lab environment for European service providers IP TV integration for Telefonica Spain Imagenio service Lucent as a Network Integrator Delivers Value over IP™ Consulted on VoIP implementation strategy & plan to County Government Helped a major U.S. university migrate from a TDM to VoIP network Developed security incident response system for Alestra with annual ROI of 250%

October 4-7, 2004 Los Angeles, CA 10 Key Takeaways  Value over IP™ –More than just Voice –It’s all about the end-user  IMS provides the cornerstone, offering benefits to service providers, enterprises and end-users  Lucent as a network integrator helps smooth the transition to convergence solutions –Simplification –Smooth integration –Reliability and security