1. Delivering IMS Services Can you build a business around this stuff? Mark F. Whittier Vice President, Corporate Marketing

2. Tekelec Confidential ’05 | 2

3. Tekelec Confidential ’05 | 3 What IMS Brings to the Table Operator End User Multimedia delivery across fixed and wireless Increased productivity and satisfaction with communication devices Transparent service access in both traditional and IP-based networks Service based on a consistent user profile Transition technologies increase brand awareness (messaging / presence) Services that bridge the legacy and IMS worlds – allowing greater ROI Mobility services that increase revenues and provide added value for customers Flexible architecture for application growth

4. Tekelec Confidential ’05 | 4 This old analogy… Infrastructure Railroad Transportation/Logistics

5. Tekelec Confidential ’05 | 5 This old analogy… Infrastructure Railroad Transportation/Logistics Works here too… PSTN Communications/Services

6. Tekelec Confidential ’05 | 6 So, what’s your point?  Some fundamental assumptions of “phone” networks no longer apply 1.End-user no longer equals a phone  Now, a bundle of access devices, IP address(es), service preferences, customized GUIs, etc. 2.Operator/service provider no longer equals an access network  Truly a “service provider”  Stop banging your head against the wall looking for the “killer app” and transform your network – and your business plan – to enable  Access independence (“Mobility”)  Functional portability (“Media-ability”)  Individualized service bundle (“Me-ability”)  Centralized call control, OSS,  Application “experimentation”

7. Tekelec Confidential ’05 | 7 Value proposition-based business plan Problem: Pleasing each subscriber on their terms, “Me-Ability” (market-of-one, micro-casting, mass customization, customer centric) What’s needed: Subscriber-based network. Knowledge of subscriber preferences, behavior and commercial standing at the individual subscriber level Problem: Content must be secure; delivery must assure quality What’s needed: Managed network. Secure, trusted, digital domain with strengthened identity management and QoS for high-value sessions Problem: No killer app or clear service direction? What’s needed: De-risk failure. Permit carriers to fail frequently, quickly and inexpensively as they uncover differentiated services and gather information Problem: Building brand loyalty What’s needed: A single service provider across access domains. Service control and performance insight to solidify the customer relationship Problem: Networks are defined by end-points, but value resides in binding humans to others, to content or to Web Service-based applications What’s needed: An IMS-based architecture with a robust concept of Presence, tied together with Web Service enabled application layer

8. Tekelec Confidential ’05 | 8 Moral of the story 1.Boldly go… into IMS-land -  Based on SIP, call control, session border control, mobility management …all kinds of good stuff inherent in VoIP services today  Has the flexibility for you to base your business plan on solving customer problems and not the search for the holy grail  Enables Mobility, Me-Ability and Media-Ability 2.Seek out vendors who - Have key IMS elements today and already provide key components of the IMS infrastructure (no wasted investment) Provide key transitional technologies that can manage service delivery across the SIP/TDM divide (radically increasing subscriber base/ROI) Have a clear vision of the promise of the IMS architecture Stop banging your head against the wall – Stop depending on the “killer app” and build your business plan on value!