Transforming Services With A Service Delivery Environment (SDE) FITCE Presentation

1. Transforming Services With AService Delivery Environment (SDE)FITCE Presentation Patricia Lopes September 23, 2008

2. Agenda • The Connection is Not Enough • Transforming Service Creation and Delivery • Staying Ahead of the Competition

3. End users demand new types of services and are willing to pay • Interactivity • Accessibility • Simplicity • Security Consumers value experiences adaptable to their life style Enterprises value efficiency, productivity and cost reduction • Ease of use • Personalization • Reliability • Mobility

4. Beyond Classic Telephony Towards Seamless Communications Widget Mash-up Video Call Video Share Browser Plug-in Multimediaservices with voice Social networking and Web 2.0 services Conversationalservices Messagingservices MultiMedia messaging Presence-enabledaddressbook withVoIP Visual voice mail

5. Anywhere, Anytime, Any Device Connectivity The multi-screen experience Multi-screen device preferences Television PC Mobile phone Need fulfillment On a video TV screen in your car None of the above Keep me from missing shows Ability to watch television/programming when away from home Multi-screen device preferences by age Give me more flexibility in watching television/finishing programs/watch things on my time Can occupy/entertain my children Entertain me/keep me from boredom (while waiting/in the car/away from home) Ability to record programs when not at home Access/connect to large variety of media at any time Service connects/gives me control of/access to a variety of devices at once • 13-17 • 18-25 • 26-35 • 36-45 • 46-54 TV PC Mobile phone TV in car Source: Alcatel Lucent Primary Market Research, North America 2008

6. Willingness To Pay For Services They Want Loyalty Services Growth Services % very interested Low-Value Services Niche Services Relative impact on sales revenue (£/Month) Source: Alcatel-Lucent Research Jan08,

7. 2 Transforming Service Creation and Delivery

8. Transforming Service Creation and Delivery • Increased importance of intangible assets • Subscriber Intelligence • Authentication • Rating and billing • Brand • Need for flexibility, Innovation and reduced costs • Deliver more services • Deliver personalized services • Leverage third-party services • Manage quality of experience

9. The why and how the communications industry is transforming Enriched Communications Experience ServiceAgility New Partners and Business Models Rapid Service Innovation Quality ofExperience Top 10 drivers for successful service innovation according to service providers 1 Improve time to market of new services, reduce time to integrate new services 2 Increase flexibility in how we deliver new services (e.g., across network infrastructure) 3 Prevent revenue erosion and increase customer loyalty 4 Gain access to new revenue streams via new business models (e.g., advertising, rev. sharing with 3rd parties, QoS SLA enforcement) 5 Reduce cost of service creation 6 Serve new customer segments and markets 7 Develop close relationships with enterprise customers by telco-enabling their business processes/workflow systems 8 Access to large communities of developers AND Engage with 3rd parties in the creation and provisioning of new services 9 Access to new content-based value chain (e.g., 3rd party content) 10 Leverage end-user generated content and media (e.g., social networking) Source: Alcatel-Lucent Analysis 2008, Heavy Reading Survey Services Innovation

10. Why SDE, and not just SDP? Transforming how Service Providers create, deliver and manage services SDE Service delivery environment Third party apps/content Service operations SDPs Service factory Silos Service enhancements Federated control Service-Optimized SDPs and Common Service Enablers Service-Optimized SDPs but Risk of Services Silos! Service-Optimized Networks

11. Telco and IT — Requirement for Efficient NG Service Delivery Telecom Best Practices IT Best Practices As a service in an IP world becomes a piece of software, delivery of a service requires a combination of Telco and IT best practices • Skills, cultures and best practices for service lifecycle management • End-user services and devices • Network infrastructure and related operational processes • Application servers and related operational processes • Business interactions with content and application partners • Increasingly comprehensive customer home networks • Integrated of OSS/BSS with IT management for a complete service view for Fulfilment, Assurance, Billing and Customer/Partner care Shift the business from managing networks and IT systems to managing services and end user experiences

12. Supporting Service Providers in Transformation to Telco 2.0 Network Transformation Services Transformation Service Delivery Environment Business & Consumer Network Environments Universal Broadband Access ServiceAggregation ServiceEdge Federated Control Service Enhancements Service Factory Service Operations Data-Aware Transport Data-Aware Transport Triple Play Service Delivery Architecture ServiceOrientedArchitecture Business Transformation and Professional Services A SPs competitive SDE must bind network, services and business together in a flexible and reliable way

13. 3 Staying Ahead of the Competition

14. Staying ahead of the competition • Demonstrate service agility: enable rapid service creation, reduce operational costs and complexity and enable alternative business models • Exploit service personalization and context awareness • Provide service blending across networks to blend telephony and non-telephony features (e.g., web, entertainment) • Manage the end-to-end communications experience: dynamic policies and management of network traffic and resources • Reduce total cost of ownership • Common enablers • Automation of processes • Create flexibility to adapt to new business models • Foster rapid services innovation and increase revenues by tapping into third-party offerings

15. Conclusion • Constructing a carrier-grade SDE enables an increase in revenues and margins • Rapid creation of new context-aware services • Value through blending and personalization and reuse of SDE components across SDPs • Differentiation through Quality of Experience for the end-user • Links network-based real-time systems with standard interfaces to billing and support systems through flexible operational and business processes • Helps providers attract and retain subscribers • Enables lower operational costs, and faster time to market • Allows Service Providers to efficiently create, provision and manage a myriad of products and services running over the converged network • Uses a Service Oriented Architecture (SOA) as the base for application integration • The path varies for each communication provider: modular implementation

16. You Can Get There From Here Expose: New business models with 3rd parties • 3rd party service and content ecosystem • Revenue sharing • Portfolio innovation • Service and data exposure SDE Innovate: Service blending for more revenues • Mashups • Orchestration • Multiscreen content delivery Consolidate: Enhance and improve time to market • Portal restructuring • Unified user profile/identity • Real-time rating/charging • Presence, community, … Blended services Differentiation • Any media on any device • Digita home evolution Stovepipe Services High-Speed Internet Enhanced services Digital TV • Interactive content (incl. Advertising) • Remote/network PVR Voice/IN services Commercial bundles VoIP Innovation A Modular Approach Towards High-value Connections

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