1. Assuring Innovation CONTENT AND CONVERGENCE THE PERFECT MARRIAGE

2. Assuring Innovation Glenn J. Kiladis Director, Marketing

3. Assuring Innovation LogicaCMG today A major international force in IT services and wireless telecoms 20,000+ staff (3,000 in Telecom) 35 countries $3.0 billion revenues 40 years of experience in IT services A worldwide client base of blue-chip organizations Global Leader in Messaging, Mobile Content Delivery and Payments  300 Service Provider Customers Worldwide (270 Mobile Operators)

4. Assuring Innovation Global Telecoms makes up nearly a quarter of LogicaCMG Business Telco Solutions 8% Telco Product 14% Global Telecoms $659m (22%) Energy and utilities $476m (16%) Industry, distribution and transport $588M (20%) Financial services $470m (16%) Public sector $801m (26%) GT is 2 nd Largest Business

5. Assuring Innovation Some Of LogicaCMG’s Major Clients

6. Assuring Innovation LogicaCMG in telecoms… our Commitment to the Caribbean Installations serving 23+ Caribbean, Mexican And Central American Sovereign Nations Member Since 2002

7. Assuring Innovation Consumer trends for 2005 More mobiles (1.3Bn) globally than fixed lines Camera phones will outsell digital cameras Legal music downloads will exceed retail sales Growth of Wireless VoIP phone services e.g. Motorola launch VoIP Skype phone

8. Assuring Innovation Wireless Market Trends – Mexico & CALA Wireless Subscribers in CALA is rising - annual rate of 25%... Forecast to reach over 186 million subscribers by end of 2006 Wireless Data Latin America (Central America, Caribbean, Mexico & South America) set to jump from $200 million in 2002 to $5.3 billion in 2006. Caribbean is Morphing –Liberalization means that new entrants and existing operators will co-exist –Working towards Creation of the CSME (Caribbean Single Market Economy) Within Latin America, Mexico one of the largest growth markets –Mexico's mobile penetration growth 6 percentage points over the next four years, reaching 46% of the population by the end of 2009. –Mobile data revenue will reach $1.8 billion in Mexico by 2009

9. Assuring Innovation The Opportunity for Operators Basic texting $40bn (33%) Picture messaging $6bn (5.5%) Instant messaging; email $7bn (6%) Audio & video messaging $3bn (2%) Source: OC&C; Ovum; Strategy Analytics; Analysis; Yankee Group; IDC Messaging $56bn Corporate Productivity $9bn (7.5%) Email & PIM $8bn (6.5%) Internet access $2bn (1.5%) Enterprise $19bn Personalization $6bn (5%) Music & Audio $3.5bn (3%) Gaming $7bn (6%) Video & images $5.5bn (4.5%) Other $2.5bn (2%) Entertainment $25bn Information updates $9bn (7.5%) Video clip Information $7bn (6%) Location information $3bn (2.5%) Information $20bn

10. Assuring Innovation Silo Questions Functional –What functions can be provided across silos? –How do cross-silo functions increase bundle uptake? –How do cross-silo functions increase ARPU? Value Focused –Which cross-silo functions are valued by customers? –Can a cross-silo function lead to a new bundle? –How is value migration modeled and reflected in the offer? Segment Focused –How are functions being added to target desired segments? –How do the cross-silo functions bring additional desired segment customers? Market Environment –What are the competitors doing, and how is the cross-silo function making the bundle offer superior? –How agile and fast can new functions be added? –How accurate is visibility uptake / penetration / ROI models?

11. Assuring Innovation Silos by Industry Silos of Diverse Technologies –Video: Cable, Satellite, IP TV –Telephony: Circuit Switched, VoIP –Broadband / Portal: Cable, DSL also the Internet Portal –Cellular: GSM (GPRS), CDMA (1XrTT) VideoTelephony Broadband Mobile

12. Assuring Innovation Silos in Technology IPSS7PLMN IP MMS Wireless Browsing Voicemail SMS IP The Next Service… Rating & Charging Customer Profiling Rating & Charging Customer Profiling Rating & Charging Customer Profiling Rating & Charging Customer Profiling Rating & Charging Customer Profiling Network & Service provider Reality in Many Networks

13. Assuring Innovation Network connectivity and the construction of a content delivery and messaging architecture is a means to an end… users want access to their services, content, applications Any time, Any where, Any Device They don't particularly care over what kind of network they travel, how we do it and they do not care about industry acronyms we all use.

14. Assuring Innovation Convergence Trends for 2005 Convergence in Multiple Areas of Telecom 1. Technology Architecture (voice and data) Movement towards IP Converged Messaging Applications and content delivery via IMS leveraging IP and SIP 2. Simplifying Content Development for delivery to multiple platforms Content Anywhere, Anytime, Any Device 3. Operators Bundling Services across traditionally separate “Silos” to Increase Customer Loyalty and Overall Revenue “Triple or Quadruple Play” Bundling Video Broadband / Portal Telephony (VoIP, LD or Fixed Line) Cellular Other Bundling Models… Local Telephone Long Distance Mobile Television CPE and in-house wiring Other bundled services (etc…)

15. Assuring Innovation Convergence & Content Introduction new services = creation of networks based on several silos. Silos span various business structures, platforms, content delivery systems and technologies We need to recognize these silos as we plan for next-generation migration. How and what should we address to achieve the best benefits of the next-generation solution? Cingular’s 4th Quarter Earnings (ended December 31, 2004) saw strong growth in data ARPU by 65% Primarily fueled by text messaging, mobile instant messaging, mobile email, downloadable ringtones, games and photo messaging.

16. Assuring Innovation Portable Mobile Current Content Delivery System Existing Silo Approach Fixed Mobile Broadband and WirelessBroadcast Services and content specific to device and delivery system

17. Assuring Innovation The future of telecoms - unprecedented convergence FixedMobile IP to all devices over all delivery systems Mobile Broadband and WirelessBroadcast Content and services repurposed for all devices

18. Assuring Innovation Proposed IMS Interface for car shot Sample “UNIFIED INBOX” of the Future

19. Assuring Innovation Evolution of key services Voice SMS MMS Voice Data Current Services Next Generation Services Any Application Next Generation Initiative

20. Assuring Innovation “There is huge pressure on operators to change the way they deal with voice and data, and the convergence of the two……”

21. Assuring Innovation Back to IP IP technology is changing market dynamics –Low OPEX and CAPEX –Thus attracting new entrants –Combined with WIFI, IP provides alternatives IP and is the foundation for the mobile operator’s “flexible data service strategy” Migration to IP service networks needs to be managed carefully in order to garantuee continuity

22. Assuring Innovation Producers Authors & Developers (GUI, Encoding) Aggregation Publishing & Marketing ISP’s MVNO’s Mobile Operators Wireless Operators Broadcaster Cable TV Companies Content Creation Content Distribution Service design & creation Content Delivery Content User Content Assets Optimization Compliance Management Content Value Chain

23. Assuring Innovation 2.5G & 3G Supported by IP Content Delivery... Breeding ground for new services Video Content in the palm of your hand Video Ringtones Video Chat Remote Surveillance and Diagnosis Fixed and Mobile Video Calling Video Call Completion Video Gaming and Quizzing The Olympic Case Gold Medal Alert Live results ‘Famous Quotes’ Olympic Bloopers Collectable Clips ‘Golden Moments’

24. Assuring Innovation Video will play an increasing role The true power is in synergy MMS  Video Messaging  Person to Person  Content to Persons  Multimedia Album  Video Communications  Person to Person, fixed and mobile  Person to Persons  Call Completion conversation  Video Portals  Live and stored content  Streaming and Downloading  2.5G and 3G Mobile browsing

25. Assuring Innovation Three Phases of Successful Bundling 1.Product Portfolio –Common Relationship Provided By Advances in Technology and/or Changes in Government Regulation 2.Common Touch and Feel (User Experience) –Common Branding, Terminology, User Interface Similarities 3.Integration –Unifying content delivery –Providing Additional Utility to the Subscriber by Increasing the Ease of Use, Functionality and Price Point of the Overall Bundle –Fighting Price Erosion Inherent in Bundling –Increasing Stickiness

26. Assuring Innovation Convergence in Messaging and Content Delivery

27. Assuring Innovation Proposed IMS Interface for car shot Sample “UNIFIED INBOX” of the Future

28. Assuring Innovation Convergence in Content & Messaging Cingular & SBC Manage and listen to wireless and fixed line voice mail messages from a computer with Internet access. Receive fax messages… forward them via email or print them out using your computer. Read email anywhere, anytime over the Internet from a computer. Listen to your voice messages, email messages and fax headers over fixed or wireless line

29. Assuring Innovation New World Old World

30. Assuring Innovation Network Provider Telecoms Quality Commodity Service Provider IT Flexibilty Value From Present: Silo Content & P2P Telecoms & Service Provider Telecoms Quality Value FUTURE SERVICE PROVIDER ARCHITECTURE To Future: Horizontal

31. Assuring Innovation Step 1 – Enabling a device aware architecture SS7 SMSCOAM Provisioning Charging ESMEs / Applications SS7 SMSCOAM Provisioning Charging SS7 SMSCOAM Provisioning Charging MSC/STP IP SS7 GW SS7 GW MMSC Messaging Proxy GGSN Customer Care Reporting Centralising common components Enable all IP infrastructureAdd horizontal components

32. Assuring Innovation Assuring messaging innovation in IMS IMS poses challenges for operators: –business case for investment in IMS technology –migrating the current network and protecting investments –assuring interconnectivity for all customers –assuring value and user experience in a changed world Messaging Application Server (MAS) fills a current gap in the current IMS space providing storage, gateway and presence capability and offering an enhanced user experience Seamless Migration Strategy is Key

33. Assuring Innovation The Operator Challenge - Charging for Messaging and Data Services

34. Assuring Innovation Exploiting the Content Value Chain & Convergence IP framework for Messaging & Content Delivery, enables OPEX reduction, and horizontal introduction of services that level silos

35. Assuring Innovation IP & Information Flow = Power Total Visibility

36. Assuring Innovation With IP Comes Intelligence

37. Assuring Innovation BUSINESS BENEFIT

38. Assuring Innovation CONTENT AND CONVERGENCE: HAVE THE RIGHT DELIVERY ARCHITECTURE GO TO MARKET WITH THE RIGHT CONTENT DELIVERY ARCHITECTURE

39. 39 Glenn Kiladis Director, Marketing