1. UTStarcom Confidential1 FMC: Driving the Transition to IMS Guanglu Wang Director Intl mSwitch Product Management September 10, 2007 Guanglu Wang Director Intl mSwitch Product Management September 10, 2007

2. UTStarcom Confidential2 Everybody is Pursuing FMC NGN/VoIP Operators High subscriber acquisition cost Must improve ARPU Must lower churn rate Mobile Network Operators Mobile are becoming saturated ARPU is decreasing Competition from cable MSO Fixed Line Operators Losing customers to Wireless Substitution Losing customers to cable voice services Need to bundle with Mobile Cable/MSO Operators Mobile service is the only missing leg for quadruple play Competition from Telco IPTV

3. UTStarcom Confidential3 What Customers Tell Us FMC, messaging and IPTV are among the most important service initiatives IMS evolution and modernizing legacy switching and access are the most important network initiatives HOWEVER How to justify the investment for building an full IMS network? What immediate benefit carriers can have for an full IMS network? What if IMS does not bring long term return as it has promised? …

4. UTStarcom Confidential4 USER DEVICES ACCESS APPLICATION Networks Today — Before IMS Networks today are mostly purpose built Different Back office Separate User Devices Segregated Access Technologies Separate Networks SESSION Fixed Voice Mobile Voice Video Data

5. UTStarcom Confidential5 USER DEVICES ACCESS APPLICATION Fixed Data Fixed Voice Mobile Voice IMS Network – Final Destination Share resources, enable multiple services, reduce costs Video Application Servers Converged Devices Possible Access Independent Of Service Type Common Session/Control SESSION

6. UTStarcom Confidential6 Question – A Million Dollar One How do we get from point A to point B AND Without getting broken Without losing customer today Without being exposed to uncontrollable risk AND Without being got FIRED!

7. UTStarcom Confidential7 UTStarcom Believes IMS has unclear future if it cannot bring both short term and long term benefits to the carriers FMC is a perfect application that bridges today and tomorrow – Meets customer need today Build up a ROI-based FMC application is the first step toward full IMS network ROI-based FMC provides smooth migration path to full IMS architecture – Meets customer need tomorrow

8. UTStarcom Confidential8 Fixed Voice Mobile Voice USER DEVICES ACCESS APPLICATION First Step: ROI-Based FMC FMC meets customer requirements today, with evolution to full IMS network architecture later Video Function Specific Application Servers Dual-Mode Handset FMC uses Cellular, Broadband, WiFi FMC Leverages Fixed Voice Softswitch SESSION Data

9. UTStarcom Confidential9 FMC Evolution to IMS 0. ROI-based FMC Solution FMC FEATURE SERVER NGNSOFTSWITCH SIP MAP GSM

10. UTStarcom Confidential10 FMC Evolution to IMS 1.Disaggregate SG function from the existing Continuity FS FMC FEATURE SERVER NGNSOFTSWITCH SIP MAP SG GSM

11. UTStarcom Confidential11 FMC Evolution to IMS 2. Fine tune the SIP interface to Isc to interwork with S-CSCF FMC FEATURE SERVER S-CSCF ISC MAP SG GSM

12. UTStarcom Confidential12 FMC Evolution to IMS 3. Disaggregate HLR/VLR function from existing FMC and replace with Sh interface to interwork with HSS FMC FEATURE SERVER S-CSCF ISC MAP HSS Sh SG GSM MAP

13. UTStarcom Confidential13 FMC Evolution to IMSFMCFEATURESERVER S-CSCF ISC MAP 4. Provide the Ro Interface to interwork with Charging Function HSS Sh Charging Ro SG GSM MAP

14. UTStarcom Confidential14 FMC Evolution to IMS 5. Fully comply with IMS with all internal logics and external interfaces FMC FEATURE SERVER S-CSCF ISC MAP HSS Sh SG GSM MAP Charging Ro

15. UTStarcom Confidential15 Application Layer Gateway & Interworking Multiprotocol Access IMS Converged Core SIP Continuity FMC MSGOSAPTTRBTIM PSTN NGN CDMA GSM Gateway HSS CSCF MGCF FTTX DLC VoIP ISDN POTS Core IP/Optical Backbone Continuity Path to IMS

16. UTStarcom Confidential16 THANK YOU Contact: Guanglu.Wang@utstar.com