Nortel Confidential Information 1 Mobile Broadband : The Key Ingredient in Driving Multi-Media Convergence Iqbal Syed, Senior Manager Wireless, Nortel CALA June 21 st 2006

Nortel Confidential Information Nortel CANTO2 Agenda >Market Dynamics - Why is Converged Multimedia bundle important? >What Are the Enabling Technologies to Drive Multimedia Convergence? >Key Considerations & Nortel Experience

Nortel Confidential Information Nortel CANTO3 New Market Environment voice carriers data carriers wireless carriers enterprises consolidation enterprises wireless carriers wireline carriers MSOs VoIP carriers

Nortel Confidential Information Nortel CANTO4 Broadband Service is Changing the Dynamics DSL/Cable Mobile Intense Competition for Broadband Service Set Net-based Operators VoIP Presence/IMGaming PoC Video Services File Sharing Conference Services Web Push ? Fixed Operators MVNO

Nortel Confidential Information Nortel CANTO5 End of the Voice Only Model? APRU% from non voice services Money will flow to the broader value propositions

Nortel Confidential Information Nortel CANTO6 The Revenue Challenge Retain Legacy Revenue Maximize Bundle Revenue Capture Spending From Revenue to Segments Expand into new Markets Generate New Spending Single Services Bundled Service Voice/BB/Data Fixed Mobile Convergence Entertainment TV/Gaming New Applications Increase Share of Wallet and Total spending

Nortel Confidential Information Nortel CANTO7 Creating New Services Creating killer applications is about having the right environment! Mix and Match Mobile Networks Video Voice Presence Messaging Push to XGaming Connect... Interact… Engage… Move… LocationConferencing IMS Empowered

Nortel Confidential Information Nortel CANTO8 VoIP and Multimedia Collaboration Personalization EMPOWERED BUSINESS Fixed/Wireless Voice Fixed/Wireless Video Wireless Handheld Services Push to X Converged Access Contact Center Presence-Enabled Business Services SLA Policy Control Gaming IPTV Personal Media Mobile TV Converged Media Calling Converged Desktop EMPOWERED ENTERTAINMENT EMPOWERED MOBILITY “Changing the way we work” “Changing the way we engage” “Changing the way we move” “Changing the way we interact” Empowered Services EMPOWERED COMMUNICATION

Nortel Confidential Information Nortel CANTO9 Live Mobile TV and Video Services

Nortel Confidential Information Nortel CANTO10 COMMUNICATION ENTERTAINMENT MOBILITY BUSINESS Service Opportunity / Landscape 2006 – 2009 Emerging Services Global Revenue M-Payment Converged Mobility Location-Based Push-to-X P-WLAN $52 B Video on Demand Content Download Online Gaming $146 B $301 B $306 B Communication Mobility IP Contact Centers Speech Recognition Integration Identity Management Threat Management Web Security Storage Security Intrusion Prevention RFID Call Management Surveillance Collaboration Messaging IP Telephony 2-Way Video Source: Internal Nortel Estimates

Nortel Confidential Information Nortel CANTO11 Agenda >Market Dynamics - Why is Converged Multimedia bundle to the operator? >What Are the Enabling Technologies to Drive Multimedia Convergence >Key Considerations & Nortel Experience

Nortel Confidential Information Nortel CANTO12 Operator Challenges & Key Technology Enablers Competition and VoIP Traffic increase New Applications Mobile Broadband Driving down cost/bit Access Agnostic Intelligent Core Leverage IMS Based Service Time to Market Capex/Opex ROI

Nortel Confidential Information Nortel CANTO13 Speed Fixed Local Area Nomadic Wide Area Mobility 100 kbps1 Mbps GPRS, Mobile Circuit Switch 1xRTT, EDGE UMTS / HSDPA 1xEV-DO a/b/g 10 Mbps100 Mbps e, 3GPP Evol ADSL OFDM / MIMO Existing n NG –DSL / DLC FTTx / PONS Cable Modem Wireless Mesh Network d Why is Mobile Broadband Key? 4G

Nortel Confidential Information Nortel CANTO14 What is OFDM? Radio Access Air Interface Principles TDMA, PDC GSM  GPRS/EDGE AMPS, TACS, NMT LTE, AIE, WiMAX CDMA  EVXDO UMTS  HSDPA TD-SCDMA 1G2G 3G 4G Frequency Time Frequency Time Frequency Time Frequency Time FDMA TDMA CDMA OFDMA  User #1  User #2  User #3  User #4

Nortel Confidential Information Nortel CANTO15 What is MIMO?- Multiple Input Multiple Output 4x1 STTD Code Rate = 1 4x2 STTD Code Rate = 2 4x4 Spatial Multiplexing Code Rate = 4 UL virtual MIMO UL Adaptive MIMO Down link Up link MIMO Increases throughput

Nortel Confidential Information Nortel CANTO16 Mobile Broadband: A New Paradigm WIMAX Any Operator VoIP and Data 100 Mbps Centrino Embedded Internet IEEE Intel & Others $20 - $40 / month Millennials - Youth 3G+ Mobile Operator Voice and Data 40 Mbps $200 Handsets Telecom ITU Qualcomm $50 - $70 / month Business – Middle Age Business Driven Choice

Nortel Confidential Information Nortel CANTO17 36% 3G+ Cost Transformation Moore’s Law applied to mobile broadband Enabling Mobile xDSL Making Wireless Broadband a Reality 100% 3.6Mbps 9% 1% 0% 20% 40% 60% 80% 100% 120% GPRS <2003 UMTS 2004 HSDPA 2006 HSOPA/ LTE $/ Mbps as % of GSM 0 40 Throughput (Mbps) $/MbpsPeak Throughput (DL) OFDM MIMO

Nortel Confidential Information Nortel CANTO18 What is WiMAX, IEEE802.16, WiBro? (802.16d) eWiBro WiMAX IEEE802.16Korea TTA WiMAX Forum IEEE defines air interface standards WiMAX Forum cleans up, fills gaps and certifies product

Nortel Confidential Information Nortel CANTO19 WiMAX Cost Transformation MIMO Delivers Highest Capacity BTS, Lowest Cost per bit 4x4 MIMO 2x2 MIMO 8x1 AAS 4x1 AAS SISO 3G Best Value

Nortel Confidential Information Nortel CANTO20 Bringing it all together with IMS Applications Aware… End User Aware… Device Aware… APPLICATIONS CONTROL ACCESS The explosion of IMS applications increases revenue Identity management allows new levels of personalization Converged effect increases application value From the Intelligent Network to the Intuitive Network

Nortel Confidential Information Nortel CANTO21 IMS Architecture for Converged Services Apps Access CSC 1000 HSS 1000 Control Third Party Apps Service Enablers AS 5200 IPTV Headend Content Servers Middleware DSL STB FTTP Mobile Home Vacation Home Common Services being deployed today VoD Gaming MM Collaboration PSTN INTERNET MGCF DSL PDF Application ubiquity Resource control Single Subscriber Authentication Unified Session Control 3G WiMAX

Nortel Confidential Information Nortel CANTO22 Agenda >Market Dynamics : Why is Converged Multimedia bundle to the operator? >What Are the Enabling Technologies to Drive Multimedia Convergence >Key Considerations & Nortel Experience

Nortel Confidential Information Nortel CANTO23 Mobile Broadband Business Considerations Unlicensed vs Licensed Population Density Existing assets and the level of support for legacy services SPECTRUM + LEVERAGING ASSETS TARGET MARKET AND BUSINESS MODEL Service set, Voice or VOIP +Data/Video Mobile Broadband 3G/4G Complementary Residential /Business/ Wholesale COMPETITIVE LANDSCAPE DSL, Cable, Satellite, Other Wireless Broadband operators what is the market Time to Market Considerations

Nortel Confidential Information Nortel CANTO24 Why Nortel ? Nortel Wireless Experience Over 200,000 BTSs Deployed 65 Networks Over 70k BTS In 19 Countries CDMA 111 Networks 10 GSM-R 81 GPRS 15 EDGE GSM/GPRS Leading in UMTS/HSDPA underlying technologies and evolution: CDMA -> more than 50% of EVDO deployments VoIP -> More than 40% market share OFDM/MiMO -> 38 Mbps in 5 MHz demonstrated in lab Security: Leveraging carrier & enterprise solutions & partnerships 24 Networks 13 UTRAN 20 PCs 8 VCs UMTS World’s 1 st Citywide Mesh deployment 10,000 APs cover 90% of Taipei WLAN/Mesh e d WiMax

Nortel Confidential Information Nortel CANTO25 SIMPLIFICATION To achieve cost leverage NETWORK CONVERGENCE To achieve flexibility PARTNERSHIPS and ALLIANCES To achieve time to market TECHNOLOGY LEADERSHIP To achieve growth To enable our customers to generate new revenue opportunities, reduce operating costs, enhance customer service and productivity by leveraging our investments and technology innovation. Nortel Value