1 © 2006 Nokia Fixed Mobile Convergence The future of communication networks János Kurtz 11/05/2006

2 © 2005 Nokia Why Convergence? Why are we talking about Convergence? New ways of communication Operators look for new customers Users expect more for less (better services for less money or even for free) Prices are going down Competition is increasing Technology enables it (SIP, IP, fixed/mobile broadband access) Circuit switched Packet switched FixedMobile

3 © 2005 Nokia Voice calls vs. IP technology Everything goes IP But Mobile CS voice will be there for very long time IP is disrupting the traditional telecom business model From “high margin low risk” to “low margin high risk” New Virtual Network/Service Operators emerging Mobile voice ARPU is decreasing Next 1B new mobile subscribers mostly in emerging markets Voice prices are going down Tiered pricing Flat rates Free

4 © 2005 Nokia Convergence for the market Service providers Telco Operators Fixed-line operators need to resist to fixed-mobile substitution and find new revenue sources Mobile operators aim to introduce new services Competitive new entrants operators want to establish a stronger customer base VoIP Operators and Mobile Virtual Network Operators (MVNO)VoIP Operators and Mobile Virtual Network Operators (MVNO) VoIP operators wish to enlarge their service penetration through mobile-enabled offers MVNOs look for differentiating partnerships to successfully penetrate new market segments Cable OperatorsCable Operators Cable operators need to offer more than digital TV to contrast the increasing competition They are strengthening their triple play strategy introducing VoIP and launching high speed Internet Customers Business Reduction of overall communication costs Extension of PBX functionality to mobile workers Enhancement of business applications to boost productivity and gain competitive advantage Device and access independence ConsumerConsumer Convenience of a single terminal with single numbering Seamless customer experience Better quality of service, both for voice and data services Avoid multiple billing Lower communication costs (convenient price plans, discounted subscriptions…)

5 © 2005 Nokia What is Convergence? Fixed PSTN voice telephony Mobile Voice telephony Fixed VoIP telephony Mobile Multimedia services Fixed Multimedia services Unified Core ( CONTROL AND SERVICE) Multi- access Service Providers PSTN/PLMN Business Operations Support Systems For service providers For users

6 © 2005 Nokia The convergence of media & content Images MMSsAudio/music Entertainment-oriented / information-oriented content User created (images, video clips, music …) / commercial content Personal favorites (music, movies, videos, games, applications, …) Group & community (family, friends, son's soccer team, …) Everything goes Mobile Everything goes Broadband Including both fixed and mobile wireless Key success factor: value and easy to use! Applications Video clips, streaming …producing, owning, consuming, sharing, editing, storing and mixing…

7 © 2005 Nokia Real Time Video Sharing Share the moment instantly in real-time - ‘See What I See’ Enables spontaneous behaviour Share the camera view or video clip whilst in an ongoing session Unidirectional mobile video streaming between peer users Enables convergence with PC clients Ideal service for EDGE or WCDMA networks Invite Video & audio A B Ongoing session Connect with IMS Download … and play! Interactive applications Terminal pre-installed and downloadable applications Utilizes the SIP reachability and IP connectivity provided by IMS Interactive applications can be implemented with Nokia IMS in any packet network (e.g. GPRS) Services examples

8 © 2005 Nokia Internet Provisioning Charging OSS GSM, GPRS, EDGE, CDMA, WCDMA, HSPA, … WLAN, Cable, DSL,… Business partners Access from fixed and mobile networks PSTN IP Transport SMS IN MMS IMS core PoC Presence List mgmt VoIP Server MSS SIP/ISC Other AS… (IP Centrex,...) Corporate Nokia Unified Core Network

9 © 2005 Nokia Your opportunity Forum Nokia It’s free! Learn about SIP/IMS Download SIP APIs for servers and for phones Develop your own application Launch your company and service! Join Nokia Cooperative Education program Open for students Gain practical experiences at a telecom company Learn from the first line Improve your CV

10 © 2005 Nokia Thank You

11 © 2005 Nokia Services and Applications Domains SIP/IMS based services/applications Voice, multimedia, file sharing, messaging SIP/IMS provides Interworking and mobility between CS and PS Operator session control (billing/charging, filtering, etc.) Event notification and push support Possibility to deploy new application servers Non-SIP/IMS based services/applications HTTP/Web, streaming, TV, s, SAP, DBS, etc. Peer-2-peer applications: Skype, Bitorrent, EDonkey, etc. Authentication, authorization, security, mobility, QoS etc need to be addressed using mechanisms other than SIP/IMS