Nortel Proprietary Information 2 The Impact of the World Wide Web on Carrier Networks – an Historic Opportunity Geoff Hall Chief Technology Officer, EMEA.

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Nortel Proprietary Information 2 The Impact of the World Wide Web on Carrier Networks – an Historic Opportunity Geoff Hall Chief Technology Officer, EMEA May 24, 2006

Nortel Proprietary Information 3 TDM Voice Network DMS-100 MMP TDM Trunks Over Transport (SDH / PDH) Network To Other Networks

Nortel Proprietary Information 4 Low Bandwidth Growth Shared Facilities Network Aware User People to People Nodal Services Integrated Nodes Proprietary & Closed Separate Networks From the Familiar World Rapid Bandwidth Growth Variable, always on User Aware Network People, Content & Autonomic Network, device & web services Separation of control and bearer Open with Gateways Converged Enabled The networks become an infrastructure for the WEB Modern What How Historical

Nortel Proprietary Information 5 The New Network Network Applications MediaVoice Services Edge Access WEB Applications Service Core Security QoS IP VPN Subscriber Control Mobility Packet-Optical (LAN/WAN) Aggregation, Distribution Interactive Media Wireless Packet-Optical IVR Policy Contact Center Application Switching CPE Security Operations, Administration, and Maintenance

Nortel Proprietary Information 6 Infrastructure Virtualization Brings Profound Change New Business Models, Customers, Opportunities Voice Networks & Services Data Networks & Services Internet Services (multimedia – anywhere, anytime, any device) Network (connectivity – anywhere, anytime) Broadband IP networking Network intelligence eBay Bell Google Virgin Mobile Yahoo

Nortel Proprietary Information 7 This Generations Place in History but…. >Exploitation of the Capability of the WEB is the Driver will only happen if it is Simple, Secure and Reliable >Technology and Standards are the Enablers Technologies and architectures must enable substitution and evolution Standards prevent Isolation >Realisation = Revenue + Regulation What gets built will be guided by rational business models Regulation determines the viable business models >Critical to Economic Performance

Nortel Proprietary Information 8 Korea – Some of the Worlds Most Advanced Service Offerings Commercial transactions made via mobile devices – subway passes, tickets, groceries, e-Money, credit card purchases, ATMs Remote digital home services – home monitoring, digital picture frames, visitor surveillance, heating control, door control, lighting control Location-based services Mobile stock trading Mobile banking Security Convenience Transactions

Nortel Proprietary Information 9 In Conclusion >The WEB has profoundly changed the Topology of carrier Networks >The WEB has Undermined the old and is creating New Business Models. >The Power of the WEB in conjunction with the Network infrastructure is a significant component of a competitive economy >Will not happen by osmosis

Nortel Proprietary Information 11 Geoff Hall Chief Technology Officer, EMEA May 24, 2006

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