Presentation at University of Novi Sad Novi Sad, 10th Sept 2008

1. Perpetual Hanger for Information Bandwidth, Social Networking and Communication's Business Evolution Dr Dragan Boscovic Senior Director, Wireless Systems and Networks ARTC, Motorola Inc Presentation at University of Novi Sad Novi Sad, 10th Sept 2008

2. PC Households Total Internet Households Broadband Penetration Exceeds Dial-up Broadband Households % of Total US Households Dial Households Source: Yankee Group 2004 Broadband CommunicationSnap Shot of Broadband Adoption Rate in USA Question: This is happening right now! Where do I put my R&D money? What are products and services that are to be in demand in next 3-5 years?

3. Technology Trends Captured by Simple Laws Moore's Law; states that the number of transistors on a chip, or its processing speed, will double every 18 to 20 months. Metcalfe's Law; simply put, it says that the value of a communications network is proportional to the square of the number of its users. Cray 1: 1976 100 MFlops 13 Mio € Motor Control Unit 2001: 100 MFlops Processor: 13 €

4. General Impatience … … or Thirst for Knowledge Months Leagues Time people are willing (need) to wait Distance People are willing (need) to travel Seconds Steps Source: The changing nature of telecommunications/information infrastructure Published by National Academies Press, 1995

5. History of Communications …..… History of Innovations • Language - verbal communication 100000 years ago • Not innovation rather an achievement • Writing came into use 5000 – 6000 years ago • The greatest invention of all time • It enables learning and knowledge transfers • Gutenberg Press revolutionized book printing in 1450 • First newspapers 1605 • Photography 1839 • Telephone 1876 • Phonograph 1888 • Moving Picture 1891 • Radio 1912 • Vacuum Tube makes transmission of sound possible in 1906 • first radio station in San Jose, CA • TV 1926 • Zworykin invents iconoscope and kinescope three years earlier • John L. Baird demonstrates television in London • Satellite, Computer and Solid State Electronics 1945, 1946, 1947 • Personal Computer 1975

6. We live in an Information Age Modern communication is most defined by introduction of Personal Computer in 1975 and Internet service in 1979 These two innovations are mostly responsible for democratization of modern communication by enhancing convenience, affordability and utility and generating a whole new concept of Computer Mediated Communication (CMC). Technology is expanding at an ever accelerating rate: Telephony took 75 years to reach 50 million users Radio 38 Television 13 Internet 4 Source: The Story of Human Communication Wilbur Schramm, Harper & Raw Publishers 1988

7. Society evolves with Communication Technology … and vice versa • Distance is disappearing as a factor in the cost of communications. • Coupled with the sense of “presence” that new technologies allows, this enables real sense of telecommuting! • Cities no longer dominate the economic landscape. • Communication Technology Redefines Social Networking • 55% of Internet users say their email exchanges have improved their connections to family members (Pew, 2000, p. 7) • 42% of college students use the Internet primarily to communicate socially (Jones, 2002) • 90% of teens using IM use it to ‘‘stay in touch’’ with geographically distant friends or friends not in their own school (Lenhart et al., 2005) • 20% of teens have asked someone out using IM, and 19% have broken up with someone using IM (Lenhart et al., 2005) Source: Preliminary Development of a Model and Measure of Computer-Mediated Communication (CMC) CompetenceDr. Brian H. Spitzberg, School of Communication San Diego State University

8. Edge NetworksCurrent Trend in Communication Networks • Increased Capabilities of Edge Devices • Processing Power, Storage • Embedded Networking My Devices - inside & outside the home Movies • Increased Bandwidth of Access Networks • Wired and Wireless Cable Ad hocWiFi Cable • Growth of Home Networking • Multiple Devices Networked WLAN DSL Music BlueTooth • Growth of Distributed / P2P Applications • Leveraging above trends FTTH Femto Cell Data IR WiBB • Explosion of Personal Content • And Contextual Information Wired LAN Satellite Photos • Ever Increasing Complexity for End User • Different technologies / interfaces – little interoperability • Unable to easily & securely access, share, manage content • Unmet need for simplification, integration, management

9. Edge Networksstructuring problem space and learning from the nature • Connection Decentralized network topologies create increased complexity and stress the need for self-organization to simplify interaction and enhance experience . • Leverage Diverse Networks • E2E connectivity across networks of different scale, coverage, technology • Composition • locate, join, and orchestrate resources • compose new services • Security & Management • manage complexity ; device & network configuration • access to resources across administrative / policy domains

10. Edge NetworksCritical Components Service Delivery Platforms Mobile Devices PAN wLAN/LAN Sensor Nets Edge Devices

11. Edge NetworksLogical Architecture and business proposition Applications Domain Administrator Interfaces Context Aggregation & analysis API Networking Middleware Interface Administration: Policies on Security, Privacy and Asset Usage Across domains Composition / orchestration engine Context sensing Session & Address Virtualization Abstraction Layer (group formation / composition & workflows) Connectivity Abstraction & Optimization Layer Asset Virtualization Abstraction Layer Connectivity Resources(heterogeneous networks) Computing, Storage and A/V Resources • Value to the Network Operator • Offload / redirect / optimize traffic • Address scalability issues • Address performance issues • Reduce cost, time to deploy new apps • Value to the End User • Richer, more personalized user experiences • Simplified use, better management of devices, content • Improved access to / sharing of content, information

12. Operator AAA, Presence, NAT Traversal, etc Home A Home B ECONS HGW Config-Control Home Content SIP Telephony IP/Cable TV & Internet Internet Ethernet & 802.11 ADSL Cable ECONS HGW PSTN FXO DVB-T Receiver Femtocell FXS Cellular POTS Telephony Broadcast TV Cellular Telephony POTS Telephony • ECONS HGW is an IP-based FMC home gateway • SIP server, B2BUA, VoIP gateway, NAT traversal client, AAA client • Performs call routing and session mobility between IP, cellular and POTS devices • Leverages distributed P2P overlay architecture managed by operator • Voice/video call • Dynamic routing to preferred user devices • Seamless session between user devices • N-way voice call via ECONS HGW • 2-stage dialing • Data/multimedia services • “Follow-me” TV service • DLNA-based media sharing Edge NetworksAn Example: ECONS solution

13. ExternalStorage AV SoftPhone SIPPhone Dual-modeCell Phone HomeTheatre PSTNLine Camcorder Radius (AAA) STUN (& TURN) DDNS Linux MCE GOOD Server BroadbandModem TV &Set top WirelessRouter POTSPhone GOOD Data Center User Devices at any location Boston Schaumburg (Intranet) Bangalore Celestia Dev ECONS Asterisk PSTN GW Intranet Internet China / Beijing Demo Schaumburg Paris Poland Edge NetworksAn Example: ECONS globally distributed testbed

14. Carrier X Carrier Y Peering Links Carrier M Content Fixed Complex Business EcosystemsFragmented Control and Vertically Integrated Services • Content Traverses Multiple Carriers as it is Distributed from Storage to End-users: • Proponents of Net Neutrality argue that content and end-users should not be obstructed from accessing any content and information. • Carriers argue that Connectivity between Content Providers and users should be based on business models. • Carrier Y is building “Broadband” infrastructure and requires ROI for investment, The options of charging for content distribution are: • Charge consumers (mobile and fixed) • Charge Carrier X: Since Carrier X is charging the content Provider for Internet access • Charge the Content Provider additional charges Mobile

15. Business Ecosystems Evolve SlowlyOutpaced by Technology Evolution? • 1922: • BBC based its initial business model on • 10 shilling license fee • 10% royalty fee on the sale of receiving sets • Now + • Apple sells one-hour TV shows on iTunes for $1.99 • 67% ($1.33) goes to the content rights owner • $0.25 for the network delivery (including caching) • Apple gets $0.41 for marketing and operations per video. Now -

16. Summary • Evolution of Communication is not erratic and chaotic • It is driven by Societal and Business needs • Modern Communication very much dependant on Technology • Current technology trends translate into a set of rules • History of Communication is a history of Innovations • Snap-shot of the present is not sufficient to “predict the present” • Problem space is interdisciplinary • Communication interrelates Society , Technology and Business • Nature and Intensity of human interaction changes over the time • Technology plays an important role but only if simple to use • Business ecosystem is very complex and competitive • Verticalbusiness models dominated early Comms services • Aggregationintegrated both networks and services over past • Over the Top focuses on services/experiences, agnostic approach to networks

17. Back Up slidesFemtocell story: an example of innovative Edge Network technology

18. Femtocell: Small BS inside your home • Issues to overcome: • Interference between WAN and femto cells • Network scalability, integration with cellular core • Simple installation, self initialization • Mobility, QoS support • Cost, under $100 • Opportunities it creates: • Easy support of FMC services Private StandardHandset Existing Mobile Service Core(CS, PS, IMS) Internet

19. Femto Management System FAP-MS FGW-MS Fm Fg HPLMN Core Network Fr Subscriber Databases Femto GW Fb-cs CS core Fa Femto Access Point Home GW Access Network Radioi/f Fb-ps PS core Mobile device FL Fb-ims IMS core SeGW HPLMN RAN Femto-subsystem reference architecture

20. RAN GatewayComponent Overview Licensed 3G Encrypted (IPSec) Tunnel RAN Gateway (RAN GW) Core Network Authentication and Access Control Server AAA D’ HLR Session Management that scales to 100K’s subscribers per shelf Wm Radius RAN Gateway App Servers PS Core Iu-PS IP Network Controller (INC) SGSN/ GGSN IMS Core Mass IPSec Tunnel Termination, Firewall and Authentication Services Internet Internet &Broadband MSC Security Gateway Media Gateway CS Core Iu-CS MSC MSC MSC SNMP TR-069 NBBS NMS High Capacity CS domain media conversion and Signaling Gateway functions Device Management that scales to millions of Femtocells OA&M Network Network Element Management integrates with existing OA&M