1. Yankee Telecom Group Industry Forum | November 9, 2004 The New Carrier Model for the Next Generation (and this generation) Network G. Keith Cambron President & CEO SBC Laboratories

2. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation Network

3. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation Network

4. 90’s Enterprise Network Customer Network Carrier Network Logical Layer Physical Layer 90s networks were characterized by metallic access, and frame relay and ATM connectivity. APPS IP FRATM T1 SONET ENET FR T1

5. Evolving Network – Facility Based LANs and WANs Carrier Network GigE has moved to access and core networks, eliminating costs and complexity, and enabling extended customer LANs and facility based WANs. ENET Gig E FR ATM APPS IP T1 NG SONET ENET FR T1 Gig E Customer Network Logical Layer Physical Layer

6. Multi-protocol label switching (MPLS) is enabling network-based private virtual LANS and WANS. National coverage and scale are essential to success. Evolving Network – Network Based LANs and WANs Carrier Network Customer Network IP ENET Gig E FR ATM APPS IP T1 ENET FR T1 Gig E MPLS NG SONET

7. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/ Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation Network

8. Evolving Network – Network/Hosted Applications The evolving IP network is a perfect platform for the introduction of network and hosted applications. Customer Network Carrier Network APPS FireWall APPS IP ENET Gig E FRATM FireWall IP T1 ENET FR T1 Gig E MPLS NG SONET Internet Access Unified Comm Hosted VoIP

9. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation Network

10. Consumer Network – The Beginning Customer Network Carrier Network Internet access was the application that drove consumer IP access. IP ATMENET APPS IP ADSL SONET ENET ATM ADSL Internet Access Logical Layer Physical Layer

11. Consumer Network – FTTH FTTH is the design of choice for new build neighborhoods beginning in 2005. FTTH supports access speeds of +30 mbps. Customer Network Carrier Network IP ATMENET APPS IP BPON SONET ENET ATM BPON Internet Access Unified Comm Logical Layer Physical Layer

12. Consumer Network – FTTH & FTTN FTTH and FTTN enable new classes of consumer apps, such as IP TV. Home networking emerges as a key technology. APPS Firewall IP/WiFi ENET VDSL2 Internet Access Consumer VoIP IP TV IP Firewall ENET VDSL2GPON SONET

13. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation Network

14. Wireless – Wireline Convergence Voice convergence is already happening with the introduction of Unified Communication. That trend will continue with SIP forming a common foundation. Data convergence is following WiFi and Edge/GPRS deployment. SIP IP Wireless Voice Hosted VoIP FTTx/WiFiGSM Unified Comm Firewall IP Internet Access FTTx/WiFiGPRS/Edge

15. A Carrier Network for Next Generation Services > Evolution of Enterprise Network Services > Introduction of Network-Based/Hosted Applications > IP Enablement of the Consumer > Convergence of Wireline IP and Wireless Networks > Keys to the Next Generation

16. Keys to the Next Generation > National footprint and scale matter > Access and Core Networks must work in a unified design > Hosted Applications build upon other service offerings and simplify adoption and operational support > Seamless interworking across wireless and wireline voice and data services can be achieved through a standard infrastructure

17. A Carrier Network for Next Generation Services Thank You