Continuity - F ixed Mobile Convergence

1. Continuity - Fixed Mobile Convergence • CS (Call Server) • SG (Signaling Gateway) • SLR (Subs Location Regiser) • PSC (Processing Server for CDR) MAP over SS7 FIXED / WIRELINE NETWORK MOBILE NETWORK HLR /VLR EXISTING SOFTSWITCH SS7 NETWORK MSC EXISTING MEDIA GATEWAY PSTN/PLMN NETWORK Hot Spot Wireless WiFi/GSM Dual Mode Handset WiFi/GSM Dual Mode Handset Inter-Roaming betweenWiFi domain and mobile network

2. Solution fit for different Operators • MNO (e.g. Cingular, Sprint) • Improve the mobile coverage with low cost WiFi- Residential / Enterprise / Public hotspot • Partner with Cable/Fixed Op to offer total package- Triple or Quadra-play • NGN Operator (e.g. Vonage) • Enhance their current offerings with mobile capability • Partner with MNO as whole sell (MVNO) or roaming • Integrated Service Provider (e.g. Brazil Telecom) • In-house Mobile and Fixed line operation • FMC allows them to use fixed line infrastructure to offer mobile service • The combined infrastructure provides lower OPEX ratio comparing with pure MNO • Cable Operators (e.g. GCI, Comcast) • Partner with MNO to offer FMC • Natural extension from Triple-play to Quadra-play – Voice, Data, TV/Video, Mobile • FMC-Enabler (e.g. VeriSign) • Host equipment and provide FMC backend capability to other NGN, MNO operators • Work with multiple small/tier 2/3 operators – Don’t acquire FMC subs directly

3. FMC Solution Advantage – Service Provider Perspective • Converged service infrastructure by consolidating the voice services between the fixed and mobile networks • Mobile coverage (GSM, CDMA) – Offering mobility, convenience and ubiquity • Wi-Fi SIP over broadband – Offer better quality, lower cost and feature rich capabilities • Enhancement of Service Quality • Stimulates the new service opportunities to increase ARPU • Capability to quickly include value added services - VMS, SMS, CRBT, FMFM, Centrex.. • Provides the service differentiators and creates the service stickiness to lower the churn rate • Reduction in CAPEX/OPEX • by offloading the traffic from cellular to WLAN and spending less on infrastructure buildout • Single set of user credentials • Using GSM IMSI method authentication for both networks simplifying the user management • System Reliability and Scalability backed by Real Deployment • Based on the proven NGN (mSwitch) platform (and its IP core) • The single mSwitch solution implementation serves over 2.1 m subscribers • Architecture compliant with 3G/IMS • Future-proof via open standards

4. FMC Solution Advantage-User Perspective • FMC enable users to access their voice and data services transparently, regardless of their location, device, or network-access method • ‘One Number’ and ‘One Phone’ service • WiFi SIP or GSM/CDMA coverage • The user will be able to initiate and terminate calls at any place • Seamless Roaming • The user will have non-interrupted call sessions when moving from one network to another • Uniform and consistent service accessibility & behavior independent of access • especially attractive for enterprise users to extend corporate VPN to cellular networks. • Reduced monthly charges & convenience of a single bill • Simplified and Unified service plans and payment schemes. • A single always reachable phone number (Option for dual number) • Availability of new services • e.g. IM, Unified VM, SMS, Unified phone book, CRBT….

5. FMC Value Proposition • Service providers can now: • Reduce churn by providing single number NGN & wireless service to customers • Increase stickiness through advanced services • Generate new revenue through supporting roaming agreements • Future-proof via open standards • Maintain a single cost-optimized network infrastructure

6. No Impact to Existing Networks • To Existing NGN Networks: • A functional module addition to the existing SoftSwitch and backend application • Able to use the existing NGN for call processing and routing • Normal NGN users are still served by existing infrastructure • Zero impact of the FS addition • All (home/visiting) FMC users will be served by the FMC-FS • Registration, authentication, roaming, call processing, handover • FMC-FS requires access to FMC user profile data • HSS (Home Subscriber Server) model of IMS • To Existing GSM Networks: • GSM Homed FMC users appear to be regular GSM users • NGN Homed FMC users appear to be visiting GSM users • FMC-FS uses standard roaming Interface to the GSM Network

7. Video Conference Service Video Conference Service: • Multiple types of conference • Multiple conference reservation methods • Automatic notification to conference participants • Rich set of conference management and control functions Centralized mService Center Conference AS Parlay API Parlay Gateway mSwitch Domain 2 mSwitch Domain 1 SIP SIP SLR SLR CS-P CS-P ISUP ISUP iAN8000 iAN8000 PSTN/PLMN

8. iNumber – Find Me Follow Me Centralized mService Center • iNumber is UTStarcom solution name for Find-Me-Follow-Me service • Subscriber registers one number as a master number • Then associates other numbers to the master number- home, office ... • Whenever the master number is called, the system will ring sequentially all the numbers • Flexible number bundling among SIP user, PSTN POTS, PLMN MSISDN etc. • Dial one number to reach all the bundled number • Support sequential and simultaneous ringing options • Activated/deactivated through web/IVR iNumber App. Parlay API Parlay Gateway Provisoning Center mSwitch Domain 2 mSwitch Domain 1 SIP SIP SLR SLR CS-P CS-P ISUP iAN8000 iAN8000 PSTN/PLMN

9. CRBT UT CRBT Suite User web portal/OSS NMS OSS PSTN CRBT media library TS (SLR, PSC) CRBT media/signaling server 2 NFS 1 5 CS-P/iUMG #1 4 3 NGN Access

10. PSTN to NGN Migration Case Study Background • A leading tier 1 carrier in Philippine • Owning 2m fixed & 22m GSM mobile customers as of Q2 2006 • A public company listed in NYSE • Total market cap of US$7.8B as of Sept 2006 • Total revenue US$2.5B in last 4 quarters • EBITDA US$1.6B in last 4 quarters • Operating margin 37% • A fast growing service provider in Asia • Provides fixed line, GSM mobile and broadband data service to both residential and enterprise customers Problem Statement • How to sustain and grow the fixed line service? • Lots of population without telephone service • Lots of business users demand more service • How to increase the ARPU leveraging NGN/IMS? • IPTV? FMC? Triple-play? Quadrupled-Play? • How to lower the OPEX? • Real estate expense in the big metropolitan area? • Power consumption? • Human resource required for operation? • How to manage EOL/EOS of the aged TDM switches? • The cost of maintaining is unbalance with the cost of buying new

11. UTStarcom Solution • PSTN Emulation Subsystem – PES • Provide services to green-field customers • Replace the existing TDM switch – total 7 models in place • mSwitch as the core • SoftSwitch + Gateways + Backend office applications • iAN8000 as the access • Combination of DSL, DLC and VoIP AG • Foundation for FMC and IPTV in the future • Phase 1: Started with 150K NGN lines capacity • Network installation and migration planning for 3 months • First TDM switch replacement/migration in March 2006 • Adding customer via both old switch migration and green field expansion • Service extension to Centrex • Targeting under served enterprise customers • Phase 2: Network expansion to total of 500K NGN lines • Contract signed in later 2006 • Network fully deployed • Phase 3: Planning for total of 1.5M NGN lines in 2008 • Total 5m NGN lines planned in next 3 – 5 years • 150+ CO sites replaced by 3 NGN SS sites

12. Migration Benefits • CAPEX Savings • Central Office (CO) consolidation • Simpler network with fewer types and pieces of equipment • OPEX Cost Savings- 80% • Operation and Maintenance cost reduction • Reduced power consumption- 94% (Reduced air-conditioning requirements) • Faster provisioning of services • Floor Space Savings- 92% • Reduced space requirements • Consolidation of cabinet areas • Improvement in “time-to-market” for new services- 90% • Faster introduction of new services • Increase in Revenues • EOL management • End of support to critical TDM components- High cost of vendor support • Stop manufacturing of components • Salvage components to support in-house repair of modules when they run out of spares.

13. Blueprint of One Real CO Space Reduction 6 x 34 =204 ft2 48 x 29 =1392 ft2 Total Space= 1392+209+24= 1625 ft2 Total Saving in One CO =1421 ft2 19 x 11 =209ft2 6 x 4 =24 ft2

14. Greatest Experience: Cut-Over Procedure • IP, NGN, and PSTN inter-connect infrastructure configured and tested • AGs installed, wired on MDF, configured, and qualified  • Migration of Digital Loop Carriers • Retrofitting the access gateways in existing DLC cabinet • Consolidation of cabinet areas • Sample subscriber data populated, provision ADSL Sub • Number migration set up and tested for lines and trunks • Bulk sub data migrated and tested again for all features and billing • MDF- isolation pin switched so that sub lines are switched from legacy switch to AGs (a couple of minutes) • PSTN tandem switches re-route traffic from legacy switch to NGN C4 (1 minute)

15. Thank You This presentation is provided by UTStarcom for planning purposes only. Changes in market conditions and/or other changes in circumstances, can affect the assumptions upon which this presentation was based or otherwise impact the contents of this presentation and therefore such contents cannot be guaranteed and are subject to change at any time without notice. Nothing contained in this presentation shall be deemed to create, modify or supplement any commitments or warranty made by the company, whether expressed, implied or statutory, in connection with the products, technology and/or services referenced herein. *Some features may require addition development and may not be ready for immediate implementation.