© 2006 AT&T Knowledge Ventures. All rights reserved. The Age of Convergence: Delivering a New Era of Collaboration Eric Shepcaro Senior Vice President AT&T Business Development October 12, 2006

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 2 Discussion Topics The Age of Convergence is (finally) here The drivers for convergence The four points of convergence Impact on the enterprise What’s next?

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 3 Delivering Meaningful Convergence Anytime, anywhere collaboration … using any device

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 4 More than half of larger businesses have adopted VoIP in their operations today July 2006 The Age of Convergence All the pieces are coming together Over 622 billion minutes of VoIP traffic was carried by service providers worldwide in 2005 March 2006 Nielsen Ratings March 2006 Broadband Penetration Tops 68% in US 28.5 million subscribers will use residential VoIP VoIP by May 2006 The U.S. business market for network- based VoIP will grow to approximately $3.3B by 2010, a combined annual growth rate of 31.4% between 2004 and January 2006 Millenials multi-tasking lifestyle rely on IM, Mobile Devices, Social Networking Websites both in their personal and business lives August 2006 More than 50% of businesses use IM as part of their business solutions 2006

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 5 Internet PVR/DVR Residential Gateway or Router/Modem Broadcast Television Cable, DBS, Telco Media Client Media Server Control/Automation Network Networked CE Devices Broadband Sharing & Printer Sharing Mobile Devices Needs to support: Data delivery High Definition TV Voice services Content sharing Security, Safety, Automation VoIP services Digital Video, Imaging & Audio Fixed voice (Pots, cable, VoIP) Broadcast Television Cable, DBS, Telco Mobile Voice Quad Play Digitally controlling your..... Entertainment E-World Environment (Safety, Security & Energy) Source: InStat, March 2006 Consumer: The Digital Home Needs and Drivers

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 6 Web/ App Server Integrated VPN Global MPLS Network Network-Based Firewall MPLS VPN Storage Branch Office Remote Offices and Workers Suppliers/ Distributors Headquarters Internet Data Center Over Any Device Business: A New World of Needs Efficient transactions are a given — to win, you need more than that Labor continues to shift to low-cost regions Service and personalization make the difference Converged networking environments require flexible access, class of service, management and continuity services Collaboration and information will supercharge the productivity of knowledge workers

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 7 Four Points of Convergence  Optimize the application infrastructure  Use IP-MPLS to enable application convergence  Integrate on-net options for wireless and fixed connections  Take advantage of services over IP

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 8 Business Convergence to IP/MPLS Private Line FR/ATM Internet Voice W L WiMax Radio(s) LOS Radio Node W W L Common, Global IP Network Traffic classification based on priority Packet marking to identify class Policing to discard excess traffic Shaping to queue the traffic Fair queuing to ensure all traffic gets through Congestion Management to prevent bottlenecks

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 9 VoIP Enabling Enterprise Networks VoIP on Managed IP & VPN Services Interoperable Network- & Prem-based VPN’s IP LD / IP Local Call Routing / Toll Free Features AT&T’s SoIP Infrastructure Single, scalable, common platform Support TDM & IP hybrid environments Plug & Play capability VoIP Enabling Premises Solutions IP Telephony Interoperability & Certification Managed IP Telephony & LAN Service Network-based IP Telephony Remote Worker Conferencing – Audio / Web Enabling IP Call Centers SoIP Applications Control over IP Traffic and Provisioning through a single portal Consistent service levels across all Services Integrating Client Experience AT&T Services over IP Product Strategy

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 10 Near real time Silos across disparate platforms Fixed rule set Manual, reactive Discreet resources and service Interoperability issues Application instability Separate Networks, Systems and Applications AT&T Global MPLS Network Interoperability Application stability Virtualized resources and services Performance SLAs On-demand, automated Integrated platforms Dynamic policies Management Portal Optimizing the Application Infrastructure Dynamic Network Architecture

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 11 Voice Video Messaging Integrated Collaboration Applications Conferencing Take Advantage of Services over IP

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 12 VoiceConferencing MessagingVideo A New Definition of Collaboration Dynamic Network Applications Multi-modal Ubiquitous Device independent Intelligent and integrated Delivered in New Ways Predictive Personalized Global Highly Secure Delivering New Efficiencies Improved business performance Enhanced corporate agility Increased operational control Strengthened security

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 13 Consumer Convergence Opportunities Integrating the “three screens” Voice Wireless Broadband Gaming/Music Remote-access DVR Remote-access parental controls Mobile video Gaming portal Interactive content Electronic sell-through On-screen info Caller ID on the TV Shared music account

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 14 Integrated Collaboration in Action… a real-world scenario

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 15 Convergence at Play within AT&T Integrated call center applications –Instant access to relevant customer information Technology of the Future delivered today –21,000 field technicians empowered with wireless-enabled networking to access diagnostics, customer orders and network information Visibility and Control with BusinessDirect –Customer portal enables real- time access to network performance information, service and ordering Distributed Workflows Infrastructure Consolidation Resource Virtualization Enhanced Relationship Management

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 16 IP Multimedia Subsystem Enables Anytime, Anywhere Applications Wireless Wired Wireless Networks IMS Cellular Voice/Data Wired Data Networks Wired Voice Networks Converged IP Network Wireless IP Network Anytime,AnywhereApplicationsAnytime,AnywhereApplications All networks speaking the common language of IP The IP Multimedia Subsystem (IMS) is a network architecture that enables new converged services while allowing for the interoperability of these converged services between subscribers. Legacy networks

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 17 Enterprise Network Convergence Solutions Business Challenges Solution Client Benefits Standardized services and costs across all properties Convergence on a single unified networking infrastructure “We are very much interested in the convergence of our network” Gustaaf Schrils, IHG vice president of technology and services “The competence, the emerging technology, the infrastructure, the relaiblity – all of those are key ingredients that help us convince our franchisees that AT&T is the best solution for them”. Predictable cost per hotel room, no matter how many local or long distance calls a guest makes with VoIP Economies of scale with a secure, reliable and flexible infrastructure Converged InterContinentals voice, Internet and data using VoIP Implemented AT&T Toll-Free Service helping to ensure every guest can connect with InterContinental hotels prior to checking-in AT&T ACCU-Ring dedicated SONET service consolidating the company’s private line, switched and enhanced voice, data and video services for highly reliable, secure networking

© 2006 AT&T Knowledge Ventures. All rights reserved. Page 18 Progression of the Age of Convergence IP Networking is delivering real value –For consumers: convergence of digital media, devices, access and mobility options –For business: performance, agility, control and security – and the power of collaboration No two solutions will look alike… IP Convergence provides flexibility Better management of bandwidth, storage and computing power More options for all markets, including smaller businesses and consumer A New Era of Collaboration

© 2006 AT&T Knowledge Ventures. All rights reserved. The Age of Convergence: Delivering a New Era of Collaboration Eric Shepcaro Senior Vice President AT&T Business Development