Innovation for the Future … Today

2. Innovation for the Future … Today Kelly Kanellakis Leader, Strategic Planning and High Performance Networking February 21, 2008

3. Enterprise Consumer A New Era • Global, mobile workforce • Global, online customer base • Interaction, not information – without the wait! • Open Networks • More devices – 3rd party devices • Focus on content to drive new revenue Carrier • Mobile, more connected • Ubiquitous • Impatient – more content, less wait! • Drive innovation

4. Enterprise Consumer Hyperconnectivity Hyperconnectivity Anything that SHOULD be connected and would benefit from being connected, WILL be connected – People to People – Machine to Machine People to Machine Carrier Carrier

5. Enterprise Consumer Hyperconnectivity Hyperconnectivity True Broadband Communications Enabled Applications Anything that SHOULD be connected and would benefit from being connected, WILL be connected Carrier Carrier

6. Enterprise Consumer … Drives Technology Investments Hyperconnectivity 4G PBT 40Gig Unified Communications Applications Services True Broadband Communications Enabled Applications Anything that SHOULD be connected and would benefit from being connected, WILL be connected Carrier Carrier

7. Enterprise A Revolutionary User Experience! Consumer To Deliver A Revolutionary User Experience Hyperconnectivity Anything that SHOULD be connected and would benefit from being connected, WILL be connected Carrier Carrier

8. Application Wireless Enterprise Carrier Wireline Infrastructure Nortel Differentiation

9. Nortel Advanced Research Labs Mission • Primary and product research into technology areas to advance communications that change the way that people live, work and play Who We Are • CTO Research - group of 200 people dedicated to advanced research and development for Nortel • Education and expertise across a broad range of technologies and disciplines • Currently doing research into 3 major areas, with multiple projects in each area Where we are • Ottawa, Billerica (Boston), Harlow, Richardson, RTP (Raleigh), Beijing, Toronto, Santa Clara,

10. The Importance of Interaction External Research Customer Incubation Advanced Research Labs Open Innovation Lab Business Units Common Engineering

11. Advanced Technology Program Focus Revolutionary User Experience • End-Customer Centered Innovations to revolutionize the way we work, collaborate, and communicate in the new hyperconnected world, leveraging Nortel’s ATOM. High Performance Networking • Research in the infrastructure and performance of networks to address the demands of next generation end-user applications Wireless • To create true broadband wireless connectivity for future carrier and enterprise spaces • To create paradigm-changing wireless technology enablers such as Multi-hop Relay, Gigabit RAN and Unwired Enterprise

12. Sound Leverage our existing knowledge and IPR in audio to drive new end user focused solutions Vision Take advantage of low cost video equipment and 3D interfaces to add new dimensions to the user experience Information Leverage data acquired from context applications and real-time input from vision and sound to facilitate interactions Rev U - Revolutionary User Experience Research Situation awareness Prototype • Mobile HF Interface • 3D Audio • Voice controls • Whisper Audio Scanning Emotion Detection 3D Displays • Everyone Everywhere • Multi-user Multi-touch • 3D Visualization • Local and remote Facial Expressions Emotion Detection Situation awareness • Perceptive • Communication • Auto-connect / share • Social Aware Topic Extraction Enterprise Ads

13. Wireless Applications Enterprise Carrier Wireline Infrastructure Advanced Research Highlights – High Performance Networking • Network Knowledge Plane • Proactive ApplicationPerformance Management Quality of Experience – • Usability • Latency • Availability • Security • Wireless backhaul Optimization (capacity/control knobs) • Ethernet synchronization Automation of Infrastructure management & operation • Design for performability • Video Service Assurance • Time Distribution over Ethernet • Carrier Ethernet Protocols (PLSB) • Infrastructure as a Service • Service Assurance • SLA Monitoring • DARPA Research

14. Wireless Applications Enterprise Carrier Wireline Infrastructure Advanced Research Highlights – Wireless and Mobility • WiMAX Evolution • LTE Evolution • OFDM-MIMO • Multihop Relaying • GREEN cell site • Integrated Antenna/ Remote Radio • GigaBit RAN • Unwired Enterprise • RF Coverage, Capacity, Security • Enhanced 802.11n • mm-Wave System • GiFi and .11HVT • RF coverage, capacity • 4G Backhaul • High Performance VoIP • Femtocell

15. External Research Program • 45 Projects with 20 Leading Universities • Leveraged investment 50:1 • Access to average 30 Invention disclosures / patents annually • 750+ senior research and post grads engaged globally • R&D projects in many areas, including open source, end-to-end security, seamless roaming, OFDM/MIMO, NGN optical, sensor networking, living the future… “Our investments in technology innovation initiatives with more than 20 major universities around the world help insure we’re solidly positioned to meet our customer’s needs not only today but into the future as well.” (Mike Z)

16. Skills Competencies for the Future • Solutions • Network engineering • Solutions design • Operations • OAM • Network mgt • Fault configuration • Accounting, billing • Provisioning • End-User Apps • & Software • Multimedia apps • Video • Web 2.0 • Web Services • End-User Context • Identity • Location • Presence • Mobility • Policy • Advanced Networking • Routing • L4-7 • Ethernet • MPLS • Network Security • Protocols • H248, H323, SS7, V5.2, PRI, ISUP, SIP, GIP • S/W Platforms • Carrier grade • Call processing • System software • Platform based • H/W Platforms • Digital design • Platform based • Packaging • Mechanical • High Performance • Hardware • Wireless access • Optical access • ASICs/FPGAs

17. Application Wireline Enterprise Carrier Wireless Infrastructure Creating the Future Today! A Revolutionary User Experience! Services