Deliver Your Solutions Through Carrier Networks & Watch Your Profit Grow! May 16, 2007

1. Deliver Your Solutions Through Carrier Networks & Watch Your Profit Grow! May 16, 2007 William Streit IBM Steven Maroulis Nortel

2. Agenda • The Converged Network Opportunity • The Nortel/IBM Alliance • Nortel Introduction / Focus • Key Applications Focus • The SOA Opportunity • Service Delivery Platform Focus / Tooling • The Ecosystem Opportunity for Partners • Partner Program • Benefits / Responsibilities for Ecosystem Partners

3. Reduce operational expense Find new sources of revenue and profit Move to next generation networks Improve the customer experience Telecom Challenges Source: 2006 IBM Global CEO Survey

4. Reduce operational expense Find new sources of revenue and profit Move to next generation networks Improve the customer experience Telecom Challenges • New competitors • Converging ecosystem + …with Innovation often being driven by new competitors and ecosystem players

5. Now Then Multiple services ondifferent technologies 1 Product 1 Technology Own the process top to bottom Voice, Text, Video, Data Collaboration The Changing Environment: Then and Now

6. Nortel and IBM IMS Alliance Overview Ecosystem + + • Carrier VoIP and Softswitch Leader • SIP Communications Experience • Wireless and Wireline Core IP and Access Networks • Network Security Expertise • Professional Services • 100+ Nortel Application Developer Partners • Wide variety of devices and clients • Standards Compliant • Mass Market Availability • Best-In-class service enablers • Pre-integrated solutions for rapid development • Service Delivery Platforms Experts • Service Creation Environment • Industry Leader in Middleware & SOA • Industry Leader in Servers • Industry Leader in Systems Integration …to Deliver an End-to-End IMS Solution!

7. Nortel Carrier Portfolio Strategy • Develop a horizontally integrated Services Delivery environment that allows service deployment independent of underlying network architecture (PSTN, Wireless, Cable, IMS) • Enable the migration of existing VoIP network elements to IMS to minimize CAPEx SOA / Web Services Applications IMS, Application Enablers & SOA Mediation Wireline Data Enterprise Wireless Network Applications Core Access

8. Nortel VoIP and Multimedia Solutions Multimedia Applications Server Superclass Softswitches SS7 Network Element Management Media Server CS 1500 Series Universal Signaling Point AS 5200 CS 2000 Series MS 2000 MS IEMS ENET IW Gateway MCS Client (multimedia) TDM Peripherals SIP IP Network Hybrid Interworking SIPUnistim IP lines (Centrex IP) Border Control Point IP to other carriers H.323 SIP NCS H.248 MGCP SIP H.248 TGCP Carrier Hosted H.248 Trunk Gateway Access Gateway CMTS CS 1500 Gateway MG 9000 MG 15000 IAD Standard Line Interfaces POTS, xDSL, video MTA IP PBX Key System H.323 Terminal (VoIP VPN) TDM Trunks Carrier or Enterprise Enterprise VoBB Legacy Peripherals and remotes TR-08, GR-303, LCM/RLCM Cable Class 4 Long Distance Class 5 Residential / Business

9. Nortel SIP / VoIP / IMS leadership (March 2007) • Nortel ranked #1 in Carrier IP Telephony with 23% share during Q3 '06 (note: we ranked 9 points above our closest competitor). • Source: Dell'Oro, IP Telephony Carrier Total Worldwide (3Q06) • Nortel has sold nearly 40,000,000 Carrier VoIP ports worldwide • Source: Nortel sales data though 1Q06 Trunk ports + Class 5 RTUs • Nortel has over 1000 SIP Enabled Systems in-service in Carrier Networks globally • Source: Nortel • - CS 2000 Capable of SIP – 319 "Live" in service (183 XA-Core based CS 2000 and 136 Compact PCI based CS 2000 – Compact) • - DMS-10 600 Series Capable of SIP - 677 nodes in service • - MCS 5200 with SIP – 87 nodes in service • Nortel Global Services Team has planned and installed 1000s Carrier VoIP and Multimedia systems worldwide. • Source: Nortel Global Services Team Nortel is number one vendor worldwide for carrier VoIP solutions

10. Overall Carrier Packet Voice (revenue) Q3 2006 NGN Market Share Nortel 23% Others 30% Cisco 14% Lucent 5% Huawei 7% Siemens 7% Sonus 7% Ericsson 7% Nortel is the overall global leader in the Carrier VoIP Market. source: Dell’Oro Group “Q3 2006 IP Telephony Carrier Market Share” • #1 in Worldwide Carrier Voice over Packet 2005 (Dell’Oro) • #1 in Worldwide Softswitches 2005 (Dell’Oro) • #1 in Worldwide Media Gateways 2005 (Dell’Oro) • #1 in Worldwide Voice over IP Gateways 2005 (Dell’Oro) • #2 in Worldwide Voice over ATM Gateways 2005 (Dell’Oro) • Largest telecom provider in US to replace TDM network with Packet network (Verizon) • First North American deployment of carrier grade Local Tandem VoP network (Verizon) • First deployment full-featured long distance VoIP network - US (MCI) • First deployment of significant Class 4/5 local network transformation to VoP (Sprint) • First global cable VoIP deployment (Kabel BW) • 23 out of 48 cable operators building their own VoIP networks have selected Nortel

11. OPEN OPEN OPEN • Successful VoIP Program • Extensive IMS Testing • Partner IOT Programs Nortel Carrier Developer Program • Extensive Customer Trial Testing • Standards test fest commitment • Includes all IMS Categories • 175+ interoperability test scenarios • 60+ venders engaged for testing • 60+ client/device test scenarios • 50+ application/enabler tests • IBM-Nortel Joint Developer Program • Joint Solution IOT Labs • Nortel Certification at IBM Labs • Recruitment and Promotion • Education & Enablement • Online Resources • Launched February, 2007 • 10+ years program experience • 3rd party certification with Nortel • Multiple Tiers of Partners • Includes CS 2000 and MCS 5200 • 115 Members registered • 110 Licenses issued • 101 certified products • An Expanded Developer Program for IMS • Delivers Extensive Ecosystem of IMS Options • Covers All Elements of the IMS Architecture • Provides “Best In Class” Service Options • Let’s Customer Choose IMS Partners • Standards Based Toolkits Available Online • Launched Q4, 2006 An Advanced Developer Program to Meet Evolving Customer Need

12. Enablers HSS 1000 Subscriber Data Presence, XDMS, Billing to other carriers PBX Key System H.323 Terminal (VoIP VPN) Enterprise VoIP and IMS Developer Program Open Interfaces 3rd Party AS 5200 AS 2000 MCS 5200 Application Servers ISC CS 2000 Sh MG 15000 MGC 2000 Media Gateway Control ISC BCP 7200 CSC 1000 Call Session Controller Gm Native IMS SIP Clients/Devices PES 2000 PSTN Emulation Broadband Access FFTP WiFi HFC Cell DSL WiMAX MG 9000 MG 15000 Standard Line POTS, ISDN IP-PBX MTA/IAD TDM Trunks Carrier or Enterprise Legacy Peripherals and Remotes TR-08, GR-303, LCM/RLCM Laptop IPTV PocketPC IP-Phone CellPhone Class 4 Long Distance Class 5 Comprehensive list of Interfaces available for download

13. What are the benefits of joining? • Access to dedicated test facilities • Access to downloadable IMS Specifications • Access to Technical Documentation and Whitepapers • Professional staff and technical assistance to resolve problems • Dedicated partner manager • Showcase of applications at Nortel’s IMS Customer Experience Demo Centres • Higher quality products for your Customers Focus on enabling mass deployment of IMS based services

14. Levels of Interoperability Testing Nortel has different ranges of interoperability depending on your customer requirements. Registered validates a basic feature set. This allows your products to be considered on Carrier proposals that require Nortel interoperability. Compatible is more comprehensive and involves testing with wider range of end-points. Carriers generally consider this level of testing as the level of IOT required prior to integrating into their network. Upon completion of compatible testing you get the right to use a Nortel Compatible brand mark on your product Distinct IOT levels, depending on Customer requirements

15. What are the steps to join? • Typical lead times from initial engagement to actual lab testing are under 6 weeks • Actual test time takes 3-6 weeks and can vary widely depending on device complexity, features and problems found. • Join the Nortel Developer program by visiting nortel.com/developer • Request a quote for services • Download the specifications • Sign the standard test agreements • Issue PO and schedule testing • Execute test plan, document results Easy to sign up and schedule testing

16. Nortel IOT - 175+ Interoperability Events and growing Transit Networks PSTN & Cell Networks Applications & Enablers Applications Layer Core Infrastructure IMS Core NNI Control Layer Transport Gateways Transport Layer Access User Equipment Clients & Devices

17. IBM’s Vision Become a “keystone” within the emerging converged ecosystem and enable individual players to participate successfully within it. Helping drive innovation Improving member competitiveness Supporting the introduction of new players and new business models as they arise Ultimately increasing the overall vitality of the ecosystem Converged Ecosystem Telecom IP core networks IPTV, wireless Broadband, WAN Access / bandwidth ConsumerElectronics Media Rich content PCs, Smart-phones Digital Rights Mgt PVR, games consoles Branding Faster, cheaper chiptechnology Packaging Broadcasting Battery technology ITServices Applications Middleware Suppliers Network Equipment ISVs,,Systems Integrators, IT Suppliers, Middleware Web services Managed Services

18. Helping to Shape Next Generation NetworksIBM is a Leader in IT & Industry Related Standards • Application Server • Parlay • JCP • ETSI • SessionControl • 3GPP • 3GPP2 • MSF • Liberty Alliance • OMA • Transport & Endpoint • W3C • IETF • SIP Forum • OSGi • OSS / BSS Integration • TMF • DMTF • Web Services-I • OASIS WSDM • OASIS WS-Security • Physical • ITU-T • IPCC • Blade Center Over 160 business integration technology patents First integrated private UDDI directory First Web Services Gateway

19. The Telecommunications Industry Network Tapping ISVs to Bring Solutions to Market Faster

20. Modular service components Standardized interfaces Reusable service functionality means faster time-to-market and creates new feature combinations Standards-based connectivity between network layers and integrated BSS/OSS systems Simplified administration and management Common platform Control across all elements, control of revenue, security, and costs. Supports self-provisioning and care Simplified, standards-based, carrier grade services platform, separate from underlying transport network Next Generation Network ArchitecturesMigrating the Network to a Lower Cost Structure The application of a Service Oriented Architecture (SOA) to the Telecom Network

21. The Framework for Building Next Generation SDPs IBM Service Provider Delivery Environment - SPDE Service Delivery Environment Service Execution Service Choreography Process Choreography User Service Domain Process Choreography IN Services IMSServices M2MServices ContentServices IPTVServices OperationsSupport &BusinessSupport Systems Fulfilment, Assurance, Billing Service Management Domain Content, Subscriber, Service, And Device Management Services Brokerage Domain Service Creation Environment Creation, Modelling, LifecycleManagement Service Deployment Environment Prototyping, Packaging, Testing, & Deploying Network Delivery Domain Mobile & Fixed User Device Domain Device Client

22. IBM Software - supporting the NGN service lifecycle Enabling flexible creation, delivery and management of next generation IP-based services Integrate composite services Establish a Unified Service Creation Environment Deploy and run converged service applications RUP Plug-in for IMS SIP Toolkit Converged SIP/HTTP App Server Presence Server IMS Connector Telecom Web Services Server Deliver customized service content across multiple devices Monitor and manage next generation services and user experience quality

23. System Integration Services The Nortel and IBM alliance with other partners has created an end-to-end IMS solution addressing telecom key business drivers Applications Service Delivery Platform OSS/BSS Service creation Service plane Service Mgmt Control plane Traditional Fixed & Mobile Networks Transport plane OAMP Client Access Networks Our Solution has successfully fused the IT and Telecom network inflection points with core competencies (product/services) from both firms

24. IMS Service Application Focus Areas IP Centrex Push to X Hosted PB X Messaging Video Fixed Mobile Convergence Gaming IMS Infrastructure Social Networking Unified Messaging Voice Enabling Enterprise/ SMB Vertical Applications

25. Communications Enabled Applications • Consumer • By market area: Families, Kids, Boys, • Girls, Teens, Moms Location Services • Sports • Music Messaging • Ring tones Calendar • Icons Diary • Wallpaper • Games • Gambling • Entertainment • Dating • Photo • News • Social Networks • SMB • Commerce • Finance related • m-finance • Balance • Inquiries • Quotes • eWallet • Intra-company communications • Publishing • Advertising • OBO • Enterprise • Horizontal • Mobile workforce management • Intra-company communications • Fleet Mgmt.,Route Tracking /Delivery • Inventory Management • Field-Services Automation/Asset Management • Sales-Force Automation • Vertical • Healthcare services/monitoring • Retail • Utility • Construction • Insurance • Legal

26. IBM Products & Solutions IBM Products & Solutions Nortel Products & Solutions Nortel Products & Solutions Nortel and IBM Alliance OverviewSolutions Delivery Model Joint Solution Architecture & Joint Solution Roadmap Solution Stage Resources Joint Recruitment Prospects + Many More Joint Dev Programs Engaged Joint Developer collaboration Joint Labs Enabled Led Solution Enablement IBM Products& Solutions NORTELProducts& Solutions Verified Customer Trials & Demos Joint IOT IBM Led Services Engagement Nortel Led Services Engagement Commercialized Joint GTM 3rd Party ISVs 3rd Party ISVs Comprehensive end-to-end Solutions Service Deliver Model

27. The Nortel and IBM IMS Enablement and innovation Centers Montpellier, France Ottawa, ON Beijing, China Richardson, Texas RTP, NC IMS Enablement and Innovation Centers • Host to our Developer and Interoperability Programs • Live ecosystem off partners including our end-to-end IMS Solution • Host to live customer demos and trials globally • Provide executive briefings as well as technical hands-on workshops

28. Build Market Technical & training Marketing Dedicatedguidance and nurturing Sell Collaborate Business Partner success throughout business cycle • Build: Technical Support and Training • Access to leading-edge, tools resources and experts via online, virtual environments, email/ chat/phoneor face-to-face • Integrated resources for seamless experience • Marketing • Marketing campaign tools that extend ISV marketing resources • Access to IBM's telenurturing to progress ISV leads • Collaboration • Mature partner community with expertise across industries, geographies and technologies • Value Networks: Formal and facilitated partner-to-partner collaboration to drive new opportunities • Selling • Access to 40,000 person global IBM sales team • IBM Sales Connections provides simple, effective approach for partners to access sales team and document results

29. Next Steps Sign up Get Enabled Let’s go to market together !

30. THANK YOU !