1. The Guttenburg Principle…and the link with innovation is? Paul Adams, Director, Strategic Marketing - EMEA, Alcatel-Lucent

2. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE GUTTENBURG PRINCIPLE… AND THE LINK WITH INNOVATION IS? Paul Adams February 2013

3. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE PRINCIPLE OF THE THING… “The mass distribution of information is possible, but expensive and therefore institutionalised”

4. 4 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. Connections (Billions of units) TOTAL FIXED CONNECTIONS – VOICE, BROADBAND, INTERNET 2008 – 2015 CAGR BROADBAND CONNECTIONS (2011 – 2015): 9.0% INTERNET TRAFFIC DRIVEN BY SERVICES LIKE NETFLIX, HTTP, YOUTUBE Source: Sandvine, Gartner INCREASING FIXED BROADBAND PENETRATION REAL-TIME ENTERTAINMENT ON MULTIPLE SCREENS 53.6% of peak aggregated traffic in U.S. comes from Real-Time Entertainment on multiple screens NORTH AMERICA PEAK PERIOD TRAFFIC DISTRIBUTION BROADBAND AND INTERNET ACCESS ARE DRIVING FIXED ACCESS CONNECTIONS 0.2.4.6.8 1.0 1.2 20082009201020112012201320142015 Total voiceTotal broadbandTotal Internet (Dial-up + broadband)

5. 5 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. RESIDENTIAL DEMAND CONTINUES DRIVING HIGHER SPEEDS AND FIBER REMAINS THE TECHNOLOGY OF CHOICE FOR MOST PLAYERS: INCUMBENT SPS, CABLE, UTILITIES Source: Gartner, IDATE CONNECTIONS (MILLIONS OF UNITS) BROADBAND CONNECTIONS – (2008 – 2015) 30% 41 % 91 % REGIONAL VDSL VS. FTTH SUBSCRIPTIONS - JUNE 2011 46 % SUBSCRIPTIONS (MILLIONS OF UNITS) BROADBAND ACCESS LEADING IN GROWTH DSL IS THE DOMINATING TECHNOLOGY DSL account for 60% of broadband fixed access connections in 2011 141 million ultra-fast broadband subscribers by 2015 0 100 200 300 400 20082009201020112012201320142015 FTTH/FTTP/EthernetDSL 500 Cable modemOther high-speed 0 10 20 30 40 50 Western Europe Eastern and Central Europe North America Latin America ASIAMiddle East and Africa FTTH/B VDSL BT, Belgacom, SwissCom, DT, P&T Luxembourg, Telekom Austria, Orange France, and Turk Telekomunikasyon Telefonica AT&T, Telus, Bell, Telmex

6. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED.

7. Institution Individual Means of production & distribution “consumer”

8. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. INSTITUTIONALISED INNOVATION

9. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. “the collective consumer”

10. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. INSTITUTIONS TO INDIVIDUALS AND POWER MOVED FROM…

11. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. THE CHILREN ARE OUR FUTURE A slightly scary digital native