October 10-13, 2006 San Diego Convention Center, San Diego California Convergence Isn’t Just for the Big Boys Stephen R. Gobeli Vice President - Business Communication Systems Samsung Telecommunications America

October 10-13, 2006 San Diego Convention Center, San Diego California 2 Broadband /Convergence Wireless / Wire Line Public / Private Networks IP based Multimedia Voice  Data/Video Wireless / Wire Line Platforms Always Connected Converged devices Wireless / Wire Line Terminals e-Commerce Video Telephony Mobile Office Personalized, Intelligence- based Service Professional Telecommuting Nomadic Home Network Remote Access Security Personal Home Enterprise Seamless Communication Ubiquitous Business Ubiquitous Business SMB Applications Can Not be Written for Just the Office SMB Applications Must be Written for the Network, Platform and Terminal Global Trend Towards Convergence

October 10-13, 2006 San Diego Convention Center, San Diego California SMB Trend Towards Convergence Multimedia Anywhere Anytime Expanded Personalized Employee Services -Unified Messaging, Video Messaging, Expense Reporting and Tracking Customer Focused Multimedia Services -Call Centers, Help Desks, Customer Facing or Revenue Generating Applications Ubiquitous Connectivity : Converged devices offering Always Connected experiences -Simple Access, Immediate Response 3

October 10-13, 2006 San Diego Convention Center, San Diego California SMB Trend Towards Convergence Converged Services Delivery In the Enterprise Wireline : Video to be going mainstream -IP is Homogenizing Voice / Data / Video -Wire-Line throughput becoming table stakes Wireless: Continuously Increased demand for High Speed Data transport -Office Type connections demanded when not in the office -IP will drive Voice mobility over the Enterprise Wireless Infrastructure 4

October 10-13, 2006 San Diego Convention Center, San Diego California SMB Trend Towards Convergence Hyper-Competitive Business Environment Convergence of Wired and Wireless Broadband technologies -Immediate access / connection as a competitive advantage -Competition is with messaging Convergence of Communication and Information services -Telecom and IT are one -Cost reduction and containment of Infrastructure Availability of Ubiquitous Business-changing products (Displays, Hand Held Devices, IP Phones) -Laptops are becoming Palm tops -Everything has a screen 5

October 10-13, 2006 San Diego Convention Center, San Diego California Maintaining Separate Networks Burdens Business Operations and Increases Costs Copper, Fiber, IP, Fixed and Wireless Promote IP Services / Applications as Alternative to Disparate Services Simple Access Simplify Training Standardized Employee experience Customized Customer experience Ubiquitous Access Network SMB Trends: Converged Networks 6

October 10-13, 2006 San Diego Convention Center, San Diego California Combine High Speed Interactive Communications w/Mobile Communications Ubiquitous Services Access from: PCs, Desk Phones, Mobile Phones or PDAs. Common Service Foundation that Merges Mobility and Fixed Communication Customers can access the SMB anytime anywhere Employees are accessible by customers Mobility Convergence SMB Trends: Converged Networks 7

October 10-13, 2006 San Diego Convention Center, San Diego California SMBs by and large are early adopters. Focus on: Vertical Applications such as: Remote Medicine, Education and Consulting Promote Video as a competitive differentiator Revenue Generation and/or Cost Reduction Early Implementation of New Technologies SMB Trends: Converged Networks 8

October 10-13, 2006 San Diego Convention Center, San Diego California SMB “Needs” Convergence 9  2005 DSL Forum, unauthorized use prohibited Hand Held Phone Note Book PC Wireless PDA Mobile Network Display IP Terminal Mobility PC CORE COMPONENTS Wide Area Network Any Media Gateway Server Firewall The Needs of the Business are driving the Networks The Needs of the Consumers / Customers are Driving the Business SMB Enterprise Network

October 10-13, 2006 San Diego Convention Center, San Diego California Customer Applications Satisfying Customer Applications  2005 DSL Forum, unauthorized use prohibited Connectivity Productivity Mobility Anytime, Anywhere Communications Personalized Information E-Learning Cyber Community Health Seamlessly Connected M-Office

October 10-13, 2006 San Diego Convention Center, San Diego California Converging the SMB Screens 11 Work Home Mobile / Mobility High Revenue / Killer Applications will Converge the SMB Screens

October 10-13, 2006 San Diego Convention Center, San Diego California Home Gateway Security Consumer Electronics Infiltrating End-points - No Longer Static Devices Sold as Stand-Alone, Closed Systems  Mobile Phone Now Tool for Trading Stocks While Waiting for Train  PC Becomes Conduit to Electronic Commerce Where Consumer Purchases are Made  VPN Gateway is Central Hub Linking Scattered Resources Together  Car Becomes Communications Channel to Work, Customers & Security Integration of Ethernet and x Media Ports into Consumer Electronics Devices Growing at 29% AGR  Media Network Connections Market Grows from $51M in ’05 to >$223M in 2009 Embedded IP Devices Outlook 12  2005 DSL Forum, unauthorized use prohibited Wireless Digital Interactive TV Automotive

October 10-13, 2006 San Diego Convention Center, San Diego California Mobility Communications Devices 13 Data-Centric Wi-Fi Computing Network VoIP-Centric Wi-Fi Communications Network  Infrastructure Required to Support These Clients  VoIP Continues to Lag the Market Hype; Need a Driving Application – Small Business Wireless, and Video  Potential Realized by Extending Voice and Video Communications into Other Devices such as Terminals, Appliances and Automobiles Enterprise Wi-Fi Networks Bifurcated into 2 Distinct, but Interoperable Segments  Early Growth Driven by PC Vendors via Media Center PCs Multimedia-Centric Wi-Fi Network  “Anywhere audio/video without wires”

October 10-13, 2006 San Diego Convention Center, San Diego California Source:In-Stat MDR; IP Telephony: A Consumer Application Worth Hearing (#IN030738IA).IP Telephony: A Consumer Application Worth Hearing End Users in 000s Massive Growth Opportunity U.S. VoIP Market Growth 14 Opportunity to put Customers and Small Medium Businesses on the same Ubiquitous, Intelligent Network as Big Business

October 10-13, 2006 San Diego Convention Center, San Diego California Enterprise VoIP Options 15  2005 DSL Forum, unauthorized use prohibited  IP Phone on Subscriber’s LAN (Network) Wired Ethernet Device or x Wireless Network VoIP over WiFi Roaming between public hotspot & home WiFi LAN –Roaming between WiFi hot spot & 3G telephony via Dual-Mode phone  Analog Telephone Adaptor (ATA - CPE)  IP-PBX (Platform)  “Softphone” (Terminal) Voice Application Running on your Mobile PC Brings your Desk, Network and Capabilities with you Converge your Voice and Data Networks Prepare to Converge your WireLine and WireLess Networks

October 10-13, 2006 San Diego Convention Center, San Diego California Enterprise Network Requirements 16  Enable Better Connections to Customers Hyper-Competitive Landscape for Enterprises Immediacy and “ Virtual Touch ” will be Competitive Advantages – Remove Time and Space from Business Immediate Completion of Customer Initiated Contact Help desks, Technical Support, etc. Web Based Training, Learning, etc. Faster Get-To-Market, Market Ramp for Products Mass Customization On-Line Customer Configuration, Ordering, Order Status, etc Allows “Virtual” Integration of the Customer Into the Business Applications Need to be Positioned as Helping the SMB to Better Compete…Money Saving / Money Generating

October 10-13, 2006 San Diego Convention Center, San Diego California As consumer electronic devices and home appliances become increasingly network enabled, home gateways are expected to become heavily leveraged to provide connectivity within the home…and these home networks become enablers for multiple services they also serve to help drive customer retention. A broadband connection to the world The gateways connecting the broad- band pipe to the networks (Home and Enterprise) The devices being connected (PCs, TVs, phones, consoles, office automation… and emerging appliances) The networks that connect them (structured wiring/Cat5e, Wi-Fi, HomePlug, HPNA,…) The content that runs on all (high speed access sharing, IP telephony, music distribution, photos,…) A consistent user experience and interface across the desktop, the tv, and the handset A complete set of installation, configuration, and maintenance offerings that will drive revenue and enable service delivery A broadband connection to the world The gateways connecting the broad- band pipe to the networks (Home and Enterprise) The devices being connected (PCs, TVs, phones, consoles, office automation… and emerging appliances) The networks that connect them (structured wiring/Cat5e, Wi-Fi, HomePlug, HPNA,…) The content that runs on all (high speed access sharing, IP telephony, music distribution, photos,…) A consistent user experience and interface across the desktop, the tv, and the handset A complete set of installation, configuration, and maintenance offerings that will drive revenue and enable service delivery DSL/FTTN The Future SMB Customer … More Connected Service Delivery and Enablement Applications and content Network STB Ethernet GSM + VoIP Handset VoIP PDA VoIP Video Phone Home Gateway DVR Home Entertainme nt Network PC Network IP Video Phone GSM + VoIP Handset VoIP PDA Access Gateway STB DVR WiFi SIP Handset 17 Think SMB-to-B, not just B-to-C Where the SMB Applications Can Go…

October 10-13, 2006 San Diego Convention Center, San Diego California Mobility / Video Wireless Wireline “ SMB Customer ” Incorporates Multiple Elements Customer Care Ordering Provisioning / installation VoIP Intelligent Gateways (Networking Disparate Devices) Distribution Networks (eg WiFi, HomePlugAV, Structured Wiring, MoCa,…) Services Management System Multi-Device User Navigation (e.g. consistent experience across desktop, handset) Managed Services Plan (i.e. Carrier “Geek Squad”) Network Desktop Service Assurance Plans (e.g. desktop security and device maintenance offerings) 18 Control

October 10-13, 2006 San Diego Convention Center, San Diego California Personalized Service Application - not Equipment Business / Lifestyle Impact WireLine / WireLess, Video Interaction with Customers Summary: “ IP-Enablement for Business ” 19