Convergence Isn’t Just for the Big Boys

1. Convergence Isn’t Just for the Big Boys Stephen R. Gobeli Vice President - Business Communication Systems Samsung Telecommunications America

2. SMB Applications Can Not be Written for Just the Office Networks • Broadband /Convergence • Wireless / Wire Line • Public / Private Home Personal •Home Network • Remote Access • Security Platforms • Personalized, Intelligence- based Service • Professional • Telecommuting • Nomadic SeamlessCommunication • IP based Multimedia • Voice  Data/Video • Wireless / Wire Line Ubiquitous Business Terminals • Always Connected • Converged devices • Wireless / Wire Line SMB Applications Must be Written for the Network, Platform and Terminal Enterprise •e-Commerce • Video Telephony • Mobile Office Global Trend Towards Convergence 2

3. SMB Trend Towards Convergence Multimedia Anywhere Anytime • •Expanded Personalized Employee Services • Unified Messaging, Video Messaging, Expense Reporting and Tracking • • Customer Focused MultimediaServices • Call Centers, Help Desks, Customer Facing or Revenue Generating Applications • • Ubiquitous Connectivity : Converged devices offering Always Connected experiences • Simple Access, Immediate Response 3

4. SMB Trend Towards Convergence Converged Services Delivery In the Enterprise • •Wireline : Video to be going mainstream • IP is Homogenizing Voice / Data / Video • Wire-Line throughput becoming table stakes • • Wireless: Continuously Increased demand for High Speed Data transport • Office Type connections demanded when not in the office • IP will drive Voice mobility over the Enterprise Wireless Infrastructure 4

5. SMB Trend Towards Convergence Hyper-Competitive Business Environment • •Convergence of Wired and Wireless Broadband technologies • Immediate access / connection as a competitive advantage • Competition is with messaging • • Convergence of Communication and Information services • Telecom and IT are one • Cost reduction and containment of Infrastructure • • Availability of Ubiquitous Business-changing products (Displays, Hand Held Devices, IP Phones) • Laptops are becoming Palm tops • Everything has a screen 5

6. SMB Trends: Converged Networks Ubiquitous Access Network • Maintaining Separate Networks Burdens Business Operations and Increases Costs • Copper, Fiber, IP, Fixed and Wireless • Promote IP Services / Applications as Alternative to Disparate Services • Simple Access • Simplify Training • Standardized Employee experience • Customized Customer experience 6

7. SMB Trends: Converged Networks Mobility Convergence • Combine High Speed Interactive Communications w/Mobile Communications • Ubiquitous Services Access from: • PCs, Desk Phones, Mobile Phones or PDAs. • Common Service Foundation that Merges Mobility and Fixed Communication • Customers can access the SMB anytime anywhere • Employees are accessible by customers 7

8. SMB Trends: Converged Networks Early Implementation of New Technologies • SMBs by and large are early adopters. • Focus on: • Vertical Applications such as: • Remote Medicine, Education and Consulting • Promote Video as a competitive differentiator • Revenue Generation and/or Cost Reduction 8

9. CORE COMPONENTS SMB “Needs” Convergence SMB Enterprise Network Wide Area Network Mobile Network • Display • IP Terminal • Mobility • PC • Any Media • Gateway • Server • Firewall • Hand Held Phone • Note Book PC • Wireless PDA • The Needs of the Business are driving the Networks • The Needs of the Consumers / Customers are Driving the Business 9 • 2005 DSL Forum, unauthorized use prohibited • http://www.dslforum.org

10. Anytime, Anywhere Communications Cyber Community E-Learning Personalized Information M-Office Seamlessly Connected Health Connectivity Productivity Mobility Satisfying Customer Applications • 2005 DSL Forum, unauthorized use prohibited • http://www.dslforum.org

11. Converging the SMB Screens High Revenue / Killer Applications will Converge the SMB Screens Mobile / Mobility Home Work 11

12. Consumer Electronics Infiltrating End-points - No Longer Static Devices Sold as Stand-Alone, Closed Systems • Mobile Phone Now Tool for Trading Stocks While Waiting for Train • PC Becomes Conduit to Electronic Commerce Where Consumer Purchases are Made • VPN Gateway is Central Hub Linking Scattered Resources Together • Car Becomes Communications Channel to Work, Customers & Security Integration of Ethernet and 802.11x Media Ports into Consumer Electronics Devices Growing at 29% AGR • Media Network Connections Market Grows from $51M in ’05 to >$223M in 2009 Embedded IP Devices Outlook Wireless Digital Interactive TV Automotive Security Home Gateway 12 • 2005 DSL Forum, unauthorized use prohibited • http://www.dslforum.org

13. Mobility Communications Devices Enterprise Wi-Fi Networks Bifurcated into 2 Distinct, but Interoperable Segments Data-Centric Wi-Fi Computing Network • Early Growth Driven by PC Vendors via Media Center PCs VoIP-Centric Wi-Fi Communications Network • Infrastructure Required to Support These Clients • VoIP Continues to Lag the Market Hype; Need a Driving Application – Small Business Wireless, and Video • Potential Realized by Extending Voice and Video Communications into Other Devices such as Terminals, Appliances and Automobiles Multimedia-Centric Wi-Fi Network • “Anywhere audio/video without wires” 13

14. U.S. VoIP Market Growth Opportunity to put Customers and Small Medium Businesses on the same Ubiquitous, Intelligent Network as Big Business End Users in 000s Massive Growth Opportunity Source: In-Stat MDR;  IP Telephony: A Consumer Application Worth Hearing (#IN030738IA). 14

15. “Softphone” (Terminal) • Voice Application Running on your Mobile PC • Brings your Desk, Network and Capabilities with you • IP Phone on Subscriber’s LAN (Network) • Wired Ethernet Device or 802.11x Wireless Network • VoIP over WiFi Roaming between public hotspot & home WiFi LAN • Roaming between WiFi hot spot & 3G telephony via Dual-Mode phone • IP-PBX (Platform) • Converge your Voice and Data Networks • Prepare to Converge your WireLine and WireLess Networks • Analog Telephone Adaptor (ATA - CPE) Enterprise VoIP Options 15 • 2005 DSL Forum, unauthorized use prohibited • http://www.dslforum.org

16. Enable Better Connections to Customers • Hyper-Competitive Landscape for Enterprises • Immediacy and “Virtual Touch” will be Competitive Advantages – Remove Time and Space from Business • Immediate Completion of Customer Initiated Contact • Help desks, Technical Support, etc. • Web Based Training, Learning, etc. • Faster Get-To-Market, Market Ramp for Products • Mass Customization • On-Line Customer Configuration, Ordering, Order Status, etc • Allows “Virtual” Integration of the Customer Into the Business Enterprise Network Requirements Applications Need to be Positioned as Helping the SMB to Better Compete…Money Saving / Money Generating 16

17. The Future SMB Customer… More Connected Where the SMB Applications Can Go… Think SMB-to-B, not just B-to-C • A broadband connection to the world • The gatewaysconnecting the broad- band pipe to the networks (Home and Enterprise) • The devices being connected (PCs, TVs, phones, consoles, office automation… and emerging appliances) • The networks that connect them (structured wiring/Cat5e, Wi-Fi, HomePlug, HPNA,…) • The content that runs on all (high speed access sharing, IP telephony, music distribution, photos,…) • A consistent user experience and interface across the desktop, the tv, and the handset • A complete set of installation, configuration, and maintenance offerings that will drive revenue and enable service delivery WiFi SIP Handset 802.11 + VoIP PDA 802.11 GSM + VoIP Handset 802.11 + VoIP PDA GSM + VoIP Handset 802.11 Home Entertainment Network PC Network Access Gateway VoIP Video Phone Home Gateway IP Video Phone DVR DVR STB STB Ethernet Network Applications and content Service Delivery and Enablement DSL/FTTN As consumer electronic devices and home appliances become increasingly network enabled, home gateways are expected to become heavily leveraged to provide connectivity within the home…and these home networks become enablers for multiple services they also serve to help drive customer retention. 17

18. Control VoIP Desktop Managed Services Plan (i.e. Carrier “Geek Squad”) Service Assurance Plans (e.g. desktop security and device maintenance offerings) Multi-Device User Navigation (e.g. consistent experience across desktop, handset) Intelligent Gateways (Networking Disparate Devices) Distribution Networks (eg WiFi, HomePlugAV, Structured Wiring, MoCa,…) Network Services Management System Provisioning / installation Customer Care Ordering 18 “SMB Customer” Incorporates Multiple Elements Mobility / Video Wireless Wireline

19. WireLine / WireLess, Video Interaction with Customers • Personalized Service • Application - not Equipment • Business / Lifestyle Impact Summary: “IP-Enablement for Business” 19