2. 2 The FMC Vision Deliver any service to any subscriber anywhere Great subscriber experience over many network types Seamless mobility between networks

3. 3 Telecom Market: Challenge & Opportunity Steep decline in core business –Voice represents ~ ¾ of most operators’ revenue –Mobile growth slowing, ARPU declining (e.g. Homezone) Explosion of Internet-based multi-media services –Higher bandwidth, quality-sensitive services including IPTV, VoIP, Streaming video, self publishing, P2P, etc Growing number of Broadband Access alternatives –WiFi access explosion in homes, offices, hotspots, cities –WiMAX / WiBRO deployments planned Step-function improvement in mobile devices –Processing, storage, display, dual (WiFi / Cell) mode Integrate camera, MP3 player, TV, phone and more

4. 4 FMC: Promise but Problems The possibilities are compelling… –Service revenue forecasted to explode to $80B –Powerful simplification / cost savings value proposition to subscribers –Broadband can improve service profits by up to 10x …but fundamental issues to mass market deployments exist –No standards-based FMC solution beyond UMA –No fixed operator FMC solution –No enterprise / SIP FMC solution –No IMS standards-based (mass market) handsets Mass-market FMC requires a standards-based solution beyond UMA, compliant with IMS

5. 5 Path to Mass Market FMC Interrupted! GSM operators pursue indoor minutes Improved indoor coverage Introduction of 1st standards-based, mass market dual- mode phone No standards- based FMC solution for fixed operators No carrier-based enterprise FMC services No SIP-based service capability or handset support No clear UMA migration path to IMS Standards-based, IMS compliant FMC infrastructure and mass market handsets Common IP infrastructure Rapid delivery of new services

6. 6 What’s Required: Inter-working! Inter-working of key standard technologies UMA / SIP / IMS Improved time to market for dual-mode services Clear migration to full IMS approach

7. 7 UMA/SIP/IMS Inter-working Benefits Solution for Fixed operators to reclaim lost minutes Solution for mobile operators to penetrate lucrative SMB IP Centrex Market Standards-based technologies; Clear path to IMS Compelling business case –Sample Mobile Operator achieves breakeven in five quarters –120% ROI in a five year period –72% of incurred cost is subsidization of phones

8. 8 Conclusion 2007 will be the inflexion point for dual- mode / FMC services Inter-working UMA with SIP/IMS is the right approach –Enhances existing UMA deployments –In line with IMS –De-risks IMS handset maturation –Enables SIP/IMS -based services for Fixed and Mobile operators today! Don’t let the acronyms cloud what’s important!

9. 9 Thank you! Keith Higgins Vice President of Marketing higgins@stoke.com