Video Conferencing Are you thinking about it?

1. Video Conferencing Are you thinking about it? Diane Richter AT&T

2. Agenda • Video Conferencing, why now? • Questions to ask yourself • Components of a video network • Video Hardware • ISDN video conferencing • IP video conferencing

3. What is driving the growth of Video Conferencing • Reduce Business Travel • 9-11 • Business down turn • Save money • Increase production • Migration to IP is finally real • Can use the same network as the rest of data services.

4. Video Industry Statistics • Revenue Potential • Generated $2.3B 2001 • $6.8B by 2007 • Market saturation 5% • Projected Compound annual growth rate 2001 – 2007 18.6% • 2001 Network Type • ISDN 85% • IP 10% • ATM 5% • 2007 Projected Networks • ISDN 11% • IP 85% • ATM 2%

5. Top Applications in 2002 Application Travel avoidance Supplier/customer relationships Distance Learning Legal, Depositions & Partner meetings Executive Recruiting It is all about getting the right person in the right place at the right time

6. How do you train your employees? HR? New products? New systems or procedures? Are you happy with web training or teletraining? What about your sales meetings? How often do you meet face to face? Would it help to meet more often? Project planning meetings? If you met more often and spent less time traveling, would you be able to get a product developed more rapidly? How much new revenue do you think you could generate if you traveled less but met more often? Meetings with key customers and suppliers? Would it help to have better access to your suppliers? Do you know if they have video conferencing? Tell me about your travel policy and budget Is your company under pressure to reduce expenses? Has your travel budget been affected by the weakened economy? Do you have any new security policies that affect business travel? Have the new airport security measure impacted the productivity of your traveling employees? Where does your travel department report into? Is that department interested in reducing expenses? What is your business need?

7. When was the last time you saw video conferencing? The technology is constantly improving. If it has been > 1years, it is better, less expensive and easier to manage and use now. Are most of your meetings internal or external? Internal, you can utilize your existing IP network External we offer a secure gateway that allows you to call to either ISDN or IP endpoints without investing in the hardware What type of LAN/WAN network do you have in place? Video can run effectively over MIS, ATM and IPeFR, as well as ISDN. Public internet is not a business quality alternative. Did you know that 84% of all video hardware is capable of either IP or ISDN calling? You may not need to covert your existing video hardware, it could be IP capable today. Consider…

8. IMUX ISDN PRI MCU BRI Videoconferencing Network Components H.320 • Dedicated ISDN lines to • every end point • Predictable performance • Metered usage charges H.323 • Utilizes existing • infrastructure • LAN: Ethernet • WAN: IP • Higher fixed cost, but… • “All you can eat” WAN ISDN 10/100Ethernet GW Or AVGS MCU

9. ISDN or H.320 • Cost • Usage sensitive pricing • Great for variable utilization • But,may not be the best choice for every desktop • Most widely used video network • Intercompany application • ISDN embedded base • Legacy H.320 hardware • Proven and reliable • Bandwidth has guaranteed performance

10. IP or H.323 • Fixed costs • Forecast expenses • Allows for technology convergence • Integrates into data network infrastructure • IT staff can focus on a single network platform • Fits into network expansion plans • IP connectivity is on every desktop • Greater accessibility • New video hardware is IP capable • Allows better multimedia and data collaboration

11. Typical IP Video Deployment

12. The Gateway Choice With a service provider Within your own network • Who will assume responsibility for purchase, installation, configuration, maintenance, and troubleshooting of gateway equipment? • Who will plan for and design network for gateway placement?

13. ATM IP enabled Frame Relay MIS AT&T’s Video GatewaySafe, secure communications between public and separate private networks Benefits • Provides an Easy Transition Path Between Network Architectures • Allows you to Track and Manage VC Usage by providing Usage Detail • Lower Capital/Resource Required to Deploy & Manage Video Network Features • Browser interface • Global Directories • Favorites List • User status indicators • Point and Click Call Launching • MCU capabilities • Supports speeds up to 768 KB • Consolidated Billing • Advance Scheduling • Automatic email notification AT&T Video Gateway Service ISDN Internet Private Networks Public Networks

14. H.320Room System H.320MCU MCM GK/Proxy ISDN MCM IP/VC 3520/3525/3540 GK/Proxy IP/VC 3530 H.323/H.320 Gateway VTA IP/VC 3510/3540 H.320Room System H.320Desktop H.323 MCU IP/VC-Based Enterprise Videoconferencing Network H.323Desktop H.323 Group System AT&T IP H.323Desktop H.323Desktop

15. Effect of Latency, Jitter, & Packet Loss What is the effect of... • Latency • Video lag time • Awkward conversation • Too much = packet loss • Jitter • Intermittent lag • Awkward conversation • Too much = packet loss • Packet loss • Image artifacts • Audio artifacts • Too much = video unusable Delay < 150 ms. end-to-end Jitter < 150 ms Packet loss < 1-3%

16. Routingetc. Video Voice Data How Much Bandwidth Do You Need? Video Data Rate + 20% = Bandwidth Required Video Data RateBW Required 128kbps = 153kbps 384kbps = 460kbps < 33% of Link Capacity 512kbps = 614kbps 768kbps = 921kbps < 75% of Link Capacity 1.5Mbps = 1.8Mbps Link Capacity

17. Quality of Service Means Prioritization and Metering of Traffic Desktop Conferencing, Distance Learning Mission-Critical Applications E-mailWeb Browsing FTP Built into all Cisco Routers and Switches with Cisco IOS™

18. Why Video over AT&T’s IP? Quality • CoS on access bandwidth and AT&T’s Managed IP Network preserve business class video quality • Simplifies network management and improves network return on investment • Clears a path toward the innovative video applications of the future and simpler IT management

19. AT&T’s Video Offer Converged networks • MIS • IPFR • ATM • ISDN Managed Bridging Services • AT&T Video Bridging Service (ISDN) • AT&T Video Gateway Service (IP) Solutions Outsourcing • AT&T Solutions Hardware Resale • Cisco • Polycom Implementations Support • Professional Services • Alliance Program

20. AT&T Belief SystemIt is all about convergence • IP video conferencing will surpass ISDN within the next few years • Our customers do not want nor need to build a separate network for video conferencing. • We encourage our customers to invest in a high quality, high reliability network infrastructure and run their video over it. • We provide network based enablers that will seamlessly provide gateways between our networks and other users. • If our customers want to build their own gateway, we can help them engineer network and choose the right components.

21. Videoconferencing Solutions What does AT&T Offer? ü = AT&T offers üConsulting - Fee-based Advice on videoconferencing over IP Videoconferencing Rooms - Fully equipped and supported videoconferencing room rental üEndpoint Equipment - Camera/codec/screens for PCs or videoconferencing rooms (Co-marketing with Polycom) üPremise Based Gateway Equipment - IP - ISDN protocol conversion equipment operating on customers premise (Co-marketing with Cisco) üNetwork Based Gateway Equipment - IP - ISDN protocol conversion equipment operating in the network (AT&T Video Gateway Service) üNetwork Services - ISDN, ATM, Frame, MIS supporting videoconferencing (AT&T network services) üVideoconferencing Mulitpoint Bridging Service - Provides call set-up and hands-on support of a customer’s videoconferencing multipoint calls/events; (AT&T Video Bridging Service)