1. 1 Embedded Communications Gordon Quinn VP, New Business Development August 12, 2006

2. 2 Embedded Communications DEFINITION: Communications functions embedded in broader value propositions Web-based click-to-call Triple Play Example: Skype + eBay A strategic example of Convergence

3. 3 Embedded Communications >Communications as a stand-alone value proposition will become a thing of the past, or at best a niche application >The stand alone phone service will eventually go the way of the phone booth. >Money will flow to the broader value propositions >New business models will emerge We’re moving to the ‘Batteries Included’ Model

4. 4 Applications >The evolution to an embedded communications paradigm has significant implications on communications applications >Communications applications will become part of a greater eco-system >SOA – and what that becomes – will provide needed structure for applications >The barriers for application developers will fall and the number of applications will significantly increase Applications will become ‘Open Source’

5. 5 SOA and Web Services Travel Web Site Proprietary Credit Card Service Airline Booking User Browser Travel dates Destination Find availability Book ticket SOAP http SOAP Charge Bank Back Office Add to monthly statement Simple, extendable exchange of XML messages between applications Service Oriented Architecture (SOA) Framework Click to Call Service Telecom Infrastructure Travel Agency Call Center Call Confirm Messaging Service Telecom Infrastructure SMS- Confirm? Location Services Presence Services Conferencing Services Directory Services Identity Services Policy Services Web Services enable the embedding of communication functions in countless applications and business processes

6. 6 Purchase Models >Three prevalent business models will emerge: 1.Communication included as a value- add component of a broader purchased bundle 2.Communication paid for as a value added extension of an existing value proposition 3.Communications sponsored by advertising It’s becoming a buyer’s market

7. 7 The Enablers >Web Services The Internet applications model >Service Oriented Architectures The convergence hub >IMS network infrastructures “Communications electricity” >Broadband access everywhere Fixed, Nomadic, and Mobile The Foundation is Under Construction

8. 8 Who Benefits? >Service providers will offer access everywhere to trusted application- enabled networks with policy controlled QoS “Communications electricity” >Network solution providers will be able to leverage a much more cost effective infrastructure and development environment >Application developers will be able to utilize the network ‘like an SDK’ >End users - consumer and enterprise - will enjoy more powerful yet simpler communication options >Differentiation will come from creating and sustaining end-user appeal - screens and appliances are critical Everyone!

9. 9 A Time for Change Status quo is not an option

10. 10 Thank You!