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BUSINESS MADE SIMPLE 2 Innovation for the Future … Today Kelly Kanellakis Leader, Strategic Planning and High Performance Networking February 21, 2008

3 A New Era Enterprise Carrier Consumer Global, mobile workforce Global, online customer base Interaction, not information – without the wait! Open Networks More devices – 3 rd party devices Focus on content to drive new revenue Mobile, more connected Ubiquitous Impatient – more content, less wait! Drive innovation

4 Hyperconnectivity Carrier Anything that SHOULD be connected and would benefit from being connected, WILL be connected – People to People – Machine to Machine People to Machine Hyperconnectivity Enterprise Carrier Consumer

5 Hyperconnectivity Anything that SHOULD be connected and would benefit from being connected, WILL be connected Hyperconnectivity True Broadband Communications Enabled Applications Carrier Enterprise Carrier Consumer

6 True Broadband Communications Enabled Applications … Drives Technology Investments 4G PBT 40Gig Unified Communications Applications Services Anything that SHOULD be connected and would benefit from being connected, WILL be connected Hyperconnectivity Carrier Enterprise Carrier Consumer

7 To Deliver A Revolutionary User Experience A Revolutionary User Experience! Anything that SHOULD be connected and would benefit from being connected, WILL be connected Hyperconnectivity Carrier Enterprise Carrier Consumer

8 Nortel Differentiation Wireline Application Wireless Enterprise Infrastructure Carrier

9 Nortel Advanced Research Labs Mission Primary and product research into technology areas to advance communications that change the way that people live, work and play Who We Are CTO Research - group of 200 people dedicated to advanced research and development for Nortel Education and expertise across a broad range of technologies and disciplines Currently doing research into 3 major areas, with multiple projects in each area Where we are Ottawa, Billerica (Boston), Harlow, Richardson, RTP (Raleigh), Beijing, Toronto, Santa Clara,

10 External Research Common Engineering Open Innovation Lab Business Units Customer Incubation Advanced Research Labs The Importance of Interaction

11 Advanced Technology Program Focus High Performance Networking Research in the infrastructure and performance of networks to address the demands of next generation end- user applications  End-Customer Centered Innovations to revolutionize the way we work, collaborate, and communicate in the new hyperconnected world, leveraging Nortel’s ATOM. Revolutionary User Experience Wireless  To create true broadband wireless connectivity for future carrier and enterprise spaces  To create paradigm- changing wireless technology enablers such as Multi-hop Relay, Gigabit RAN and Unwired Enterprise

12 Prototype Research Sound Leverage our existing knowledge and IPR in audio to drive new end user focused solutions Vision Take advantage of low cost video equipment and 3D interfaces to add new dimensions to the user experience Information Leverage data acquired from context applications and real-time input from vision and sound to facilitate interactions Rev U - Revolutionary User Experience Mobile HF Interface 3D Audio Voice controls Whisper Everyone Everywhere Multi-user Multi-touch 3D Visualization Local and remote Perceptive Communication Auto-connect / share Social Aware Audio Scanning Emotion Detection Situation awareness Emotion Detection Facial Expressions 3D Displays Enterprise Ads Topic Extraction Situation awareness

13 Wireless Carrier Infrastructure Wireline Enterprise Applications Advanced Research Highlights – High Performance Networking Quality of Experience –  Usability  Latency  Availability  Security  Network Knowledge Plane  Proactive Application Performance Management  Infrastructure as a Service  Service Assurance  SLA Monitoring  DARPA Research  Video Service Assurance  Time Distribution over Ethernet  Carrier Ethernet Protocols (PLSB)  Wireless backhaul Optimization (capacity/control knobs)  Ethernet synchronization Automation of Infrastructure management & operation Design for performability

14 Wireless Carrier Infrastructure Wireline Enterprise Applications Advanced Research Highlights – Wireless and Mobility  Unwired Enterprise  RF Coverage, Capacity, Security  Enhanced n  mm-Wave System  GiFi and.11HVT RF coverage, capacity 4G Backhaul High Performance VoIP Femtocell OFDM-MIMO Multihop Relaying GREEN cell site Integrated Antenna/ Remote Radio GigaBit RAN  WiMAX Evolution  LTE Evolution

15 External Research Program 45 Projects with 20 Leading Universities Leveraged investment 50:1 Access to average 30 Invention disclosures / patents annually 750+ senior research and post grads engaged globally R&D projects in many areas, including open source, end-to-end security, seamless roaming, OFDM/MIMO, NGN optical, sensor networking, living the future… “Our investments in technology innovation initiatives with more than 20 major universities around the world help insure we’re solidly positioned to meet our customer’s needs not only today but into the future as well.” (Mike Z)

16 Skills Competencies for the Future Solutions Network engineering Solutions design Operations High Performance Hardware Wireless access Optical access ASICs/FPGAs H/W Platforms Digital design Platform based Packaging Mechanical S/W Platforms Carrier grade Call processing System software Platform based End-User Context Identity Location Presence Mobility Policy Advanced Networking Routing L4-7 Ethernet MPLS Network Security Protocols H248, H323, SS7, V5.2, PRI, ISUP, SIP, GIP End-User Apps & Software Multimedia apps Video Web 2.0 Web Services OAM Network mgt Fault configuration Accounting, billing Provisioning

17 Wireline Wireless Services Infrastructure Carrier Enterprise Application Creating the Future Today! A Revolutionary User Experience!

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