1. TISPAN Convergence Session (WS12) Latin America Challenges - How TISPAN Can Help Brasilia, November 9th - 10th Juan Pablo López Anadón Product Support Manager Next Generation Networks Juan_Pablo.Lopez_Anadon@alcatel.com.ar

2. Index • Introduction • Our experience in Latin America • Latin America Markets specifics • Typical deployed applications • Most common problems • Regulatory needs • TISPAN benefits • Conclusions and recommendations

3. Introduction • Latin America is often relegated, from the remote view of equipment providers, global service providers, to a second or third place... Its needs, life, internal challenges and geography are not taken into account when defining generic solutions or designing future technologies. • How can we change that? ?

4. Our experience in Latin America • Latin America Specifics • Market still growing • Mobile penetration growing • Broadband penetration growing • Small ARPU • Increased customer awareness • Social inequities • Dynamic market • High competition • Cost sensitivity • National regulations/ standards

5. Our experience in Latin America • Typical deployed applications in Latin America are: • Migration / Optimization of existing Services and/or Infrastructure • Broadband IP Telephony (residential) • Voice over IP for Corporate Market • Enhanced communication/collaboration • Managed Communication Services • Contact Centers

6. Our experience in Latin America: • Broadband IP Telephony (definition): It is a communication service between IP based users, that includes voice, video, data and multimmedia services. • Deployments: limited scale as a defense mechanism against CLECs? • Future: advent of Wimax, 3Play, could it bring more scale?

7. @ Large, Medium Networks Communication Solutions Small SoHo Our experience in Latin America: • VoIP for Corporate markets: incluing all communicaton solutions given by Service Providers to Enterprises • Initial deployments were focused on site integration and cost reduction • More integrated / added value services are started to be considered recently Communication as Services • Subscripcion; xx€ por mes, por usuario; plazo • Más allá de conectividad y tráfico: • Telephony • Fixed-Mobile • Messaging • Conferencing • Contact Center Enterprises Service Providers

8. PP Our experience in Latin America • Most common problems encountered are: • Investment levels / IRR • Remote communities (large areas w/ low population) • Interconnection problems • Internal (within operators own network) • External (IP interconnection within two or more operators) • Interoperability problems • Cost of terminals • Codec costs (specially for softphones - royalties costs)

9. Our experience in Latin America • Most common problems encountered are (2): • Need to tailor solution for national variants • Regulation uncertainties for new services/technologies • No voice in standardization or industry bodies • Solution coverage: • Generally 95% of requirements are easily covered, but the remaining 5% are complex, needing 3rd parties or heavy integration

10. Regulatory needs • Regulatory needs vary from country to country, however the following main questions are seen in several of them: • IP interconnection: • regulation is non-existing/missing • routing / billing shall also be defined altogether • Can incumbent operators offer multimedia services? What about 3Play? • Can CLECs give VoBB over another provider’s broadband access? • Can the access’ owner deny it? • If not, how profit is shared? • Numbering/addressing related: • Fixed-Mobile convergence (e.g. single number, interconnection fee, etc) • VoIP based numbering • National specificity's (Call Collect, CAS R2, mandatory supplementary services). Do they need to be supported in a TISPAN network? • Old regulations: f.e. what happens when lifeline is required (vs VoWiMax)?

11. TISPAN Benefits • How can Latin America countries benefit by TISPAN? • Clear standard definition • Reducing RFx time preparation (know specs) and answering • Reducing Time to Market (already known solutions) • Simplifying usage of 3rd parties to cover 100% of the requirements • Investment stability (re-usage guaranteed) • Interconnection: • Clearly defined procedures for roaming, interconnection and billing • Protocols: SIP-I, others (protocols and procedures) • Compliant products are expected to interwork easily • Infrastructure costs • Having vendors interwork easily / less customization needed • reducing integration costs • Reduction of IT costs TISPAN Std Specs

12. TISPAN Benefits (2) • How can Latin America countries benefit by TISPAN? • Terminals related: • Standardization reduces costs • Provisioning/Security reduces deployment costs • Numbering/addressing related: • VoIP based numbering: Tel URI / SIP URI domains • Local ENUM, National ENUM, Global ENUM • Portability/Roaming easily addressed • Network preparation • Securities/Vulnerabilities • Common Defense • End to End QoS

13. TISPAN: Latin America specific needs • The following points are specific common needs among several Latin America operators (not addressed yet): • PBX (DID) or IP-PBX connection to a TISPAN NGN base network core • IP Contact Center Application: standardization • Codecs usage: definition/inclusion of royalty free codecs in IM-MG

14. Conclusions and Recommendations • Conclusions/ Recommendations • TISPAN can greatly help Latin American operators to simplify its future network evolution and reduce integration costs • Other important requirements like convergence, numbering/addressing, billing and ip-interconnection are covered • It is highly recommended to align base local regulations on the international bodies such as TISPAN, ensuring its industry support and further reducing the implementation efforts • It is encouraged that local Latin America operators take a more active role within the TISPAN working, to ensure that local requirements are treated in the base standards

15. TISPAN WS12 ALCATEL CONVERGENCE - Brasilia 2006 www.alcatel.com

16. La Telefonía IP sobre Banda Ancha • En los ultimos años, el mercado ha evolucionado y crecido de forma espectacular en los mercados desarrollados • Fenomeno Vonage, AT&T CallVantage y otros nuevos entrantes en USA. • 3 millones de usuarios en USA, con un crecimiento esperado a 28 millones para el año 2008*. • Se esperan 22 millones de usuarios en la UE para el año 2008*. *De acuerdo con estudio de IDC