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2. Nortel Confidential Information BUSINESS MADE SIMPLE 2 The Future of Telecommunications John A. Phillips Nortel, ETSI General Assembly Chairman 2007 World Electronics Forum, Tel Aviv, 5 th November 2007

3. 3 Industry Landscape Future 2000 1990 1995 2007 Expectations/Trends Connectivity Network Build- Out Mobility & Intelligence Pervasive, Personal Broadband Everything Connects Everything Connects Every Application Communicates Every Application Communicates Broadband Access is Everywhere

4. 4 Pervasive personal broadband Hyper-Connectivity – evolution from being fully connected, (meaning everybody is on the network), to being hyper-connected, (meaning the range of devices and entities on the network far outpaces the number of people consuming the services offered by those devices). Communications-Enabled Applications – applications to support new levels of network-aware intelligence and an intuitive interaction experience through advanced technology frameworks such as IMS and Services Oriented Architecture (SOA). True broadband – the communications experience is so seamless that users no longer have to consider which technology – wire line or wireless – is being used to make a connection. They simply communicate, anywhere, anytime from whichever device is most convenient. Most importantly, the broadband experience becomes so economical that the range of uses exceeds any experience of the past.

5. 5 Hyperconnectivity is Real and Happening Now By 2010, worldwide: 4-fold growth in Internet Commerce to 100B transactions 1-2 billion A-GPS- enabled handsets Person to Machine Europe – mobile phones now outnumber people (103% penetration) Global mobile IM grew 33% 2H06 Person to Person iPhone available in June; hyper- connectivity at applications level 98% of all CPUs today are embedded (by 2010 – 14 billion connected, embedded devices) 70%+ of all 2007 cars in U.S. have iPOD connectivity Machine to Machine Sensor pocket in Nike shoes 100 million iPODs sold (market to double 2005 – 2010) One Laptop Per Child

6. 6 Anything that can be connected and would benefit from being connected will be connected

7. 7 Addressing the Challenge and Opportunity of Hyperconnectivity Hyperconnectivity “True” Broadband Communications- Enabled Applications Pillars of Hyperconnectivity

8. 8 True Broadband Broader wireline bandwidth to the home and office Ubiquitous wireless coverage with less expensive infrastructure, more flexibility, wider bandwidth Seamless integration so the user doesn’t have to know which Unwired homes, offices and public environments

9. 9 Mobile Data True Broadband – by Wireless Connecting Everything That Should Be Connected Mobile VOIP Broadband Home Metro HotSpot Multimedia Distribution Mobile Video Extended Enterprise 802.16 View 802.16 View 3G View 3G View

10. 10 Communications-Enabled Applications Every Application will have Built-In Communications Capabilities

11. 11 3GPP’s IP Multimedia Subsystem IMS – 3GPP’s IP Multimedia Subsystem – is a multi- vendor SIP connection engine providing access to generic application servers from any connected party IMS provides applications-enabling service capabilities to a service-aware applications layer: SIP connection Resource access control Collection and delivery of charging data Presence, security, … With recent updates to support wireline access as well as wireless,

12. 12 Service Oriented Architecture SOA is the collection of policies, practices, and frameworks by which the implementer ensures that the right services are provided and consumed to create business value Key business functions are modularized as re-usable and loosely coupled services, with well-defined interfaces, that can be invoked in a defined sequence to form business processes From a one-service network to a multi-service network Interoperable Loosely Coupled Re-Usable Composable SOA Characteristics Platform independent Services with describing interfaces using XML Formally defined Messages Services can be discovered Policies to define services SLA

13. 13 From Proposition to Implementation The proposition Anything that can be connected and would benefit from being connected will be connected Unwired homes, offices and public environments Every Application will have Built-In Communications Capabilities From a one-service network to a multi-service network The implementation There are opportunities and challenges …

14. 14 Businesses that embrace innovation and scale will capture the opportunity of Hyperconnectivity Hyperconnectivity: Opportunity & Challenge Opportunity Increased productivity Better communications experience A more connected world (societal good) Challenge Scale is unprecedented Today’s networks not designed for Hyperconnectivity New technology required to transform much of IT and Telecom

15. 15 From the User Point of View Simplicity New technology has to hide its complexity from the user Security New technology has to provide all of the right security attributes, including adequate privacy in a hyperconnected world, to inspire confidence in its use Dependability New technology has to be very dependable because people will increasingly depend on it Global standards to achieve the vision

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