Creating value through true convergence™

1. Creating value through true convergence™ Victor Agnellini President Lucent Technologies - Caribbean and Latin America Lucent Technologies – Proprietary - Use pursuant to company instruction

2. What is Convergence in the market? CUSTOMER Consumer Personal and Professional Enterprise and Consumer Enterprise and Service Provider Multi-function Devices Voicemail and email APPS Collaboration Voice over IP IMS vs. UMA Voice and Data Voice, Video and Data Optical and Ethernet NETwORK Circuit and Packet Wireline and Wireless True convergence encompasses all of these themes to deliver blended lifestyle services to the end user Lucent Technologies – Proprietary - Use pursuant to company instruction

3. Some Key Drivers in our Sector • Service Providers transforming multiple single-purpose networks to single multi-purpose (IP-based) networks, in order to • Reduce operational expenses • Improve on service variety and speed of delivery • Converge wireline and wireless infrastructures and services • De-regulation increases competition for end-customers’ wallets • New entrants can use the incumbent’s infrastructure • New Services offerings are bundled with traditional services such as voice and TV (gives new entrants reach into every household while adding ‘something new’) • Key focus for Service Providers is to increase end customer stickiness and ARPU • Through the introduction of new services and new services bundles targeted at specific customer segments • Through the introduction of higher speed broadband access, wireline and wireless Lucent Technologies – Proprietary - Use pursuant to company instruction

4. +30% Active Phone Book iLocator IP TV MMS +20% SMS “Value over IP” Opportunity +10% Change in Telecom Services Revenues Impact of Packet Services on Traditional Services • 4-5% annualized line loss for RBOCs for 2005-2007 (Deutsche Bank) • 14% drop in landline transport revenues in the US, 2000-2004 (TIA 2005) -10% -20% 1996 2000 2004 2008 2012 Service Provider EnvironmentMarket Opportunity • Enterprise IP traffic in the US growing 70% a year (TIA 2005) • U.S. and international BB access revenues projected to triple from 2004 to 2008 (TIA 2005) • International wireless revenues projected to grow at 12% through 2008 (TIA 2005) • 13% mobile subscriber CAGR for emerging markets, 2004-2009 (Pyramid) Lucent Technologies – Proprietary - Use pursuant to company instruction

5. Market Trends – Seamless Communications! • Users want access to their communications and entertainment services from many places… • Home, office, on-the-go • …using several different devices… • PC, telephone, mobile phone, PDA • …without having separate accounts • Single sign-on, common contacts, information/content delivery • …simply managed so that ‘always on’ does not mean ‘always available to everyone’ • New family of intelligent, interactive, location-based broadband services • Anytime, anywhere access to messages, contact lists, calendars and conferencing • Live video to handheld devices • Mobile access to speech-enabled web services With seamless communications, a service provider can gain larger share of the “telecom wallet” Lucent Technologies – Proprietary - Use pursuant to company instruction

6. Service convergence across networks Cable Internet IP Network Video Communications Active Phone Book UnifiedMessaging Mobile / BB Roaming Multicast Service 802.xx Access 2G/3G Presence and Location iLocator Packet Mobile Network Circuit Mobile Network Telematics People simply want services that fit their lifestyle and are available anywhere, anytime. Lucent Technologies – Proprietary - Use pursuant to company instruction

7. IMS Core Network Creating a Value in the changing paradigm The boundaries between the Telecom world and the IT world are getting increasingly blurred. Video on Demand, Video on Demand, Voicemail, Email, Voicemail, Email, Web/WAP, Email, Web/WAP, Email, Pay Per View, Pay Per View, VoIP, etc. Calendar, PIM, Calendar, PIM, MMS, IM, SMS, Wireless BCMC, Wireless BCMC, On Line Transactions, On Line Transactions, IP TV, etc. IP TV, etc. Content Services, Content Services, Gaming, etc. Gaming, etc. Messaging Telecom/ Broadcasting Streaming Web / WAP Web / WAP Services Services Services Services Services Services HTTP SMTP, IMAP SIP MM1 MIME, SOAP H323 SMS XML etc.. RTP/RTSP WAP IGMP etc. IP Networks The Challenge is to provide value in both domains Lucent Technologies – Proprietary - Use pursuant to company instruction The constant is customer personalization

8. Television Networks IP Multimedia Subsystem (IMS) NETWORK Data Networks (Internet) Phone Networks IMS & Convergence NETWORKS CONTENT USERS TV Studios, Ads, Movies Web Servers, AOL, Yahoo Messaging, Ring Tones Lucent Technologies – Proprietary - Use pursuant to company instruction

9. Multi-Media Portals & Content VoIP Common Back Office Resources Simplified Converged Applications … … APPLICATION • Session Control • Policy Management • Privacy and personalization • Single sign-on • Sharing of common data across applications SESSION ENDPOINTS • Access Agnostic • Downloadable SIP client • Seamless mobility • Common user experience Converged services providers can build and launch services faster, efficiently adapting to market changes New Application-Enabling ArchitectureIP Multimedia Subsystem Lucent Technologies – Proprietary - Use pursuant to company instruction

10. Tom User 657 555-1234 Mail and Messages Missed Calls Search Prefs Logs Contacts Calls PAB Buddy Active Phone Book One Simple Interface voice video email IM Collaboration Active phone book uses presence data to deliver Value over IPTM Lucent Technologies – Proprietary - Use pursuant to company instruction

11. Tracks people that carry mobile phones (your family, work group, buddies) Provides customized alerts when your designated group arrives at or departs from your designated areas, via email, SMS or phone call Provides privacy: users control if they can be tracked and from how far Supports SMS’ing from within the application Provides personalization: what buddies to display based on the current context and interest groups Buddy alerts, Teen Tracker iLocator Presence & Location-Enabled Services Value over IPTM Solution Components: • iLocator Application • MiLife Application Server R25 / (Platform for iLocator and ISG) • MiLife Intelligent Services Gateway R4.0/5.0 • Handset & Client Software • eSM R24/25 (Optional for Trials) Lucent Technologies – Proprietary - Use pursuant to company instruction

12. Multimedia RingBack (MmRB) Service • Allows subscribers to define what the “Caller” (Calling Party) sees or hears during the call set-up. • Text, Animated-Image, Audio, Video where audio is played concurrently with text/animated-image/video, but no synchronization is guaranteed. • The subscriber of the service is able to define different treatments (rings, images, songs, etc.) for different calling parties. • The subscriber can set conditions for when, to whom and what is played. (time, day of week, group, individual, media clip selection). Calling Party Jingle Bell Jingle Bell jingle all the way…… I’m Gone Fishing, I got me a line, … Called Party Calling Party Increasing Consumer Network Voice and Data Traffic Lucent Technologies – Proprietary - Use pursuant to company instruction

13. Blended Services Drive QoE Requirements Mobile Multimedia Video Conferencing on TV Family Finder Caller ID on TV Feature Driven BasicIP TV DVR HDTV Premium Video Long Distance VoD Broadband Data Local Voice Acuity™ ArchitectureFrom Quality of Service to Quality of Experience Creating the Network Experience for End Users • Blended Services on a Massive Scale • End-users willing to pay for new, dynamic personalized services, many of which require Service Aware QoS – VOIP, BB, Video • Video applications driving additional growth in network usage • Networks must provide more sophisticated management, integration, migration and maintenance services • Dynamic, continuous session-state, end-to-end QoS • Service aware to efficiently manage costs • Network QoE: Scale, QoS, Reliability, Resiliency • Multi-network, multi-vendor management • Legacy Migration Lucent Technologies – Proprietary - Use pursuant to company instruction