1. Triple Play Symposium June 13 and 15, 2006 Todd D. Benjamin President & CEO

2. www.rodopi.com 2 Rodopi Software, Inc. Global provider of web based IP service automation, billing, & customer care software & solutions Founded in 1998, headquarters in San Diego, CA USA Software licensed to over 1,000 service providers in 50 countries, including broadband ISP, ASP, telephony, video, web hosting

3. www.rodopi.com 3 The Challenge… “It's called triple play. And to pull it off will require as much systems integration finesse as putting a man on the moon, maybe a bit more.” Dan Baker Research Director, Dittberner OSS/BSS KnowledgeBase

4. www.rodopi.com 4 Managing Triple / Quad Services User interaction Service activation Service assurance Traffic management Revenue assurance Profitability analysis Supply management

5. www.rodopi.com 5 Converged IP Services In its initial incarnation, “Triple Play” was tied together (if at all), by the bill –e.g. POTS + DSL + Satellite TV Separate systems managed each service, with line item consolidation at the end In the future, services will be tightly integrated as will the systems that support them

6. www.rodopi.com 6 Lifestyle Service Segmentation Number of subs per service Segmentation General lifestyle marketsSpecialized lifestyle marketsBranded lifestyle markets 2003 2006 Increasing reliance on management systems

7. www.rodopi.com 7 Implications of Specialized Services Systems need to be nimble, support quick time to market and flexibility Operations and management systems themselves will be segmented Highly network aware billing and service delivery Integration across the service provider, across networks, and among trading partners

8. www.rodopi.com 8 IP Enables Convergence IMS allows for unified delivery platform Services can be truly integrated at a functional level – whole new range of offerings Operations systems can enable new business models and new paradigms –Service Oriented Architectures –Migrate legacy vs greenfield development Third party applications can be seamlessly integrated for distribution in native bundles

9. www.rodopi.com 9 User Interfaces A unified user interface is one of the greatest challenges in converged services –Service access –Service administration (configurations & settings) –Account management (transactions) Generally want to manage user interaction through a dual portal on the primary video device and pc –Remote (off-site) control through mobile device or pc User interfaces should be normalized to common look and feel

10. www.rodopi.com 10 User Experience – Easy to Buy Integrated Product Bundles & Pricing Clear Marketing & Communications Streamlined Purchase Path Automated, Predictable Delivery

11. www.rodopi.com 11 User Experience – Easy to Use Integrated Services / Intuitive Operation Single Panel Administration Single Point of Contact and Responsibility Customer Choice and Self-Care

12. www.rodopi.com 12 Bundling The Triple / Quad Play Sourcing services – in house vs. outsourced Bonding with suppliers’ systems Packaging challenges Pricing flexibility and models Competition

13. www.rodopi.com 13 Triple / Quad Billing One Time Installation Adds Downloads Monthly Recurring Internet Phone Basic / Enhanced Video Usage (fixed & variable) Content (eg VoD) Msgs, calls Volume discounts, promotions, on-net / affinity Single Bill Electronic or Paper Presentment Online Review Flexible Rating & Bundling Any Type of Usage Real Time Charging Flexible Payments

14. www.rodopi.com 14 Issues - Triple / Quad Billing Effectively modeling complex services –Product specifications and automation –Volume discounts, buckets, and cross-sales Control of outsourced services Single bill design and presentment Economies?

15. www.rodopi.com 15 New Revenue Opportunities New Consumer Services –e.g. Lifestyle Services New Business & Wholesale Services –NW Access, 3 rd Party IMS Apps Targeted Advertising –Infomercials, a la TiVo –Internet placements – origination and destination Management systems should be designed to invoice and audit ALL sources of revenue

16. www.rodopi.com 16 Outsourcing & Wholesale Services Unbundled access to networks & customers Buying access vs securing distribution Selling access vs distributing applications Virtual network operations and operators

17. www.rodopi.com 17 Example – Service Outsourcing Third Party NW/Data Center Service Provider NW/Data Center Web Enabled Back Office / OSS Integrated Service Bundle Broadband Access VoIP Email Video Wireless Security Etc. Provisioning Billing & Payments Supply Chain Mgmt Customer Mgmt wsdl

18. www.rodopi.com 18 Customer Center Issues Denial of service (video) Service issues (faults) at multiple layers of delivery infrastructure Unified access to customer information Third party provided services Effective reporting

19. www.rodopi.com 19 Build vs Buy Internal Development - High resource commitment + Maximum control ? Cost to procure - Development risk - Ongoing cost to maintain - Scalability risk ? Competitive advantage Commercial Product(s) - Capital commitment + Amortized R&D ? Cost to procure + Quantified TCO - Cost of customization ? Modularity (req’d features) The PROCESS for making the decision is often more critical than the result – exercise objectivity.

20. www.rodopi.com 20 Conclusions New Approaches for New Challenges Systems Planning is Key – Understand and Document the Business Model and Processes Business Processes Should Start with the Customer Experience Build for Flexibility, Plan to Iterate, Implement Open Architectures

21. Todd D. Benjamin tbenjamin@rodopi.com www.rodopi.com