1. www.sonusnet.com Leveraging Carrier Service Value Across Converged Networks Haydn Smith

2. 2 Introduction  Carriers are converging wireline and wireless networks  Creating brand, ‘sticky’ customers and price-resistant bundling  Adding new network services that create value  Moving from current islands of services to architecture that supports common services across multiple network types.

3. 3 Service Value Fonix iSpeak(TM) Brings Personalized Voice Services to the Apple iPhone(TM) Users Can Launch a Playlist or Search Contacts and Dial by Voice Internet, phone, and cable Just $33 each per month When you subscriber to all three.

4. 4 Managing Incumbency  Fixed line revenue is under pressure  New entrants  Combo pricing plans  Traditional features (call fwd, etc) no longer command a premium  Fixed asset expense rising  Switch maintenance costs – end of life elements  Real estate - Heating/air-conditioning. Power  Staff costs  Need to reduce operational expense  Make it transparent to satisfied customers  React faster to market pressure  Need to reduce churn  Create new revenue opportunities  New compelling experiences

5. 5 wBefore -Legacy voice features wDuring -Bundled services wBeyond -Voice is part of blended services Before, During & Beyond Legacy Migrations  Subscribers are living within 3 phases of Network Migrations

6. 6 BeforeDuringBeyond Subscribers’ Expectations  Legacy Features  POTS Customers  Don’t force change – encourage it  Feature simulation can be important  Bundled services - Triple play  Derived voice  Feature simulation can be important  Expect new/more voice feature  Messaging  Voice blended into applications – not a specific offer  IP based VoBB, WiMAX, 3G  Device independent  Medium independent  Legacy features will not likely define offer’s success

7. 7 Network Migration – Two Concepts IP Add on X IP Add on Y Newer IP Control TDM Box NGN/ IMS IP Solution Legacy Approach They try to force the past into future BeforeDuringBeyond IP/H.248IP/SIP AGCF MSANCORE NGN architecture is the future but accommodates the past

8. 8 Service Convergence from a Single IP Core SIP TA Picocell Femtocell MSAN IP Broadband Network NGN Core ServiceEngine PLMN/ PSTN Trusted Partner IP Networks

9. 9 SERVICES

10. 10 Layered Service Advantage  Scale is not compromised for 80% of traffic that is typical voice calls  Add conferencing and other enhanced services into the same architecture  Low incremental costs to add n+1 service – create new experiences without new overhead OSS - Provisioning Customer Interface Secure Core Network Subscriber Services Enhanced Services Service Creation 80% 15% 5% Customer has the same interface to access, add or manage services Consistent look & feel – consistent branding Easier to upsell svcs Reduces process changes for every new service Reduces overhead/ cost Speeds network changes/upgrades

11. 11 Enhanced Services Service Creation  Forwarding rule are based on application and device preferences  Presence on your cell phone  Calendar status from Google  Personal portal settings  A combination of these factors Secure Core Network Subscriber Services New Experiences From Traditional Services  Standard call forwarding feature activation  Applied across one or many devices  Same user experience  Universal connectivity between devices and networks  NGN or IMS New experience - leverages call forwarding

12. 12 Experience Creation  Blending services together (new or old) to create new customer experience  Can be simple or sophisticated  Often involves multiple devices or media types working together  Goal is differentiate services to maintain and grow customer base  Compete on more than just price Mobility WiFi ▪ WiMax ▪ 3G Collaboration E-mail ▪ IM ▪ Biz apps Connectivity B-band ▪ Mobile ▪ New Devices User Profile Provisioning ▪ Portal Security Authentication ▪ Credentials Replicating 20 year old features is not enough

13. 13 New Revenue from Applications Web 2.0 Webtop I want to see and manage all my messages in one place I want to manage my contacts, see their presence and organize them according to activity I want to manage all my social networks How can I see if my contacts are near by? Replicating 20 year old features is not enough

14. 14 IP Business Trunks are Hot  Own the end customer  Bundle all voice & data bandwidth  Upsell enhanced services from the network  Conferencing  Hosted Contact Center  Messaging  Mobility  Easy for carriers to sell and deploy  Appealing to End User’s IT managers  Eliminates premise gateway hardware costs  Federate services between sites

15. 15 IP Trunks Leverage Core Services POTS/ISDN IAD/Gateway PBX IP IP Business Trunks - Legacy Security Feature Delivery Service Creatio n IP-PBX IP Business Trunks – IP-PBX IP Security Feature Delivery Service Creatio n IP Phone IP Centrex ( Hosted PBX) IP Security Feature Delivery Service Creatio n Voice VPN

16. 16 FMC - With Enterprise PBX – External Call  Network anchors all calls to the business DN  mobileEdge handles handoff to macro network  All business services to the mobile phone handled from the core Feature Server Border Element 908-789-4722 Simultaneous Ring -SIP mobilEdge A/IP (or IU/IP) 908-555-1002 MSC Caller NGN / IMS core IP-PBX IP Trunk

17. 17 Connect Mobile Workers Inside The Office  “5 Bar” Coverage  Market to IT manager – not every user  Reduce churn and shopping  Reduce acquisition spend  3G data for business applications  Constrain/manage user access  Education, manufacturing, etc PICO CELLS

18. 18 Management Insight Customer Portal Insight Customer Portal Feature Configuration Account Access VM Logs End-User Interface Service Provisioning ASX GSX Phones IAD Voice Mail Network Resources IMX Network Activation PSX w Residential, Business or both w Used to configure user features w One server required Insight xAuthority Service Activation Engine Feature Bundling Resource Configuration Manual Tasks VoIP Activator IP Trunking Activator (future) IP Trunking Activator (future) w Automated, Flow-Through Provisioning w Streamlined business view for front & back office staff w Service Specific “Activator Modules” w Standardized API for interface into OSS/BSS CSR End User Network Operations

19. 19 Service Activation Insight xAuthority Resource Activation Service Provisioning Modules Sonus Drivers VoIP Microsoft Driver Hosted Exchange Business Services SMB Services OSS/ J Service Activation API WSDL / JVT Feature Packaging Service Provisioning Order Handling / Fallout Resource Activation Bulk Provisioning and Migration IPUnity Driver Activation Workflow Network Adaptation

20. 20 Sonus Bridges The Divide  One architecture  Enables core connectivity and manages the user experience  Better subscriber experience  Simulates legacy features and enables next generation user experiences  Proven integration with legacy PSTN networks and architected to the latest IMS / TISPAN standards  Carrier-class expectations connect to Web 2.0 services  Medium agnostic: from copper to fiber to wireless  THANK YOU Using IP technology to efficiently bring 20th century technology, voice, into a 21st century multi-media, multi-modal world