Silviu StanescuSiemens Information and Communication Carrier

Next Generation NetworksConvergent alternatives

2

The industry versus the industry

Content is king

Users are willing to pay for high-quality services

Flat rate

Wireless voice will cannibalize or even displace wireline voice

Wireline's main value-add is fast Internet – voice will move to wireless

New services like Video on Demandhelp providers move up value chain

Connectivity is king

Users want simple, affordable services; quality is secondary

Pay per use

Wireless will stimulate growth of wireline voice

Wireline will remain the primary delivery system for voice

Cost of deploying new services is high, fast RoI unlikely

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3

Has the communication experience really improved?

Key challenges for

Users:

• Fragmented communication experience

Enterprises:

• Insufficient integration of communications in business processes

• Cost of running separate infrastructures

Carriers:

• Complexity of infrastructure drives OPEX

• Dwindling voice revenue

• High debt load

• Where are the future sources of revenue?

4

Our vision

at homeat work

on the moveM2M

WirelessWireline

Publicdomain

Enterprisedomain

5

Making the vision real for users

• Multimedia to wireline and wireless devices

• SMS and MMS to wireline and cordless phones

• Easy-to-install customer premises equipment (DSL, WLAN)

• Videotelephony merges Internet and TV

• Easy access to corporate network from home

• Attractive wireline, cordless and mobile devices

6

Making the vision real for enterprises

• Full integration of communication applications in workflows

• Joint development of integrated communication applications with IT leaders

• IBM, Microsoft, SAP

• Portals and new services that help enterprises personalize their offerings

• Anywhere anytime access to services and applications provided by enterprise networks

7

Making the vision real for providers

• Indoor/outdoor convergence sustains value of wireline network

• Wireline/wireless interoperability brings wireless features to wireline

• Flexible new business models, e.g.:

• Mobile models, e.g. pay per use

• Subscription marketing• New billing options

• Revenue-generating services

• Video telephony• Downloadable ring tones for

cordless and wireline phones• IP Centrex

8

Unified domain

Corporate networkCarrier network

Applications

End-to-end carrier grade quality of service and reliability

Unified communication experience

Branch officeMobile worker Home office Headquarters

Boosting the value of the wireline network – LifeWorks