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November 22 nd , 2005

IDATE Business Models and Profitability Workshop Robert Chu Director of Telco/Media/Utilities Sector IBM France-North West Africa. November 22 nd , 2005. IBM’s Position in the 3G Mobile Operator Value Chain. Flexible, open standards Integrated Platform (IP-T) for Next Generation Network.

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November 22 nd , 2005

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  1. IDATE Business Models and Profitability WorkshopRobert ChuDirector of Telco/Media/Utilities SectorIBM France-North West Africa November 22nd, 2005

  2. IBM’s Position in the 3G Mobile Operator Value Chain Flexible, open standards Integrated Platform (IP-T) forNext Generation Network • Multi-access Content & Service Delivery Platforms • Converged Services Platforms Service Provider Infrastructure Services Users Personal Partnership for Enterprise Services Networks • Differentiated customer management & converged CRM/billing systems Applications & Content Service Delivery Platform Home Devices Enterprise OSS/BSS

  3. With the availability of 3G and other broadband networks, enterprises are elevating wireless solutions to a strategic level in their IT development plan AMR Research recently surveyed utility CIOs and found that despite cuts in IT budgets, companies are launching 5-year spending plans in the following three directions: - Customer portals - External (B2B) integration - Wireless 1990's 2000 2003 2005 Technology Broadband (3G/WiFi/WiMax...) Private Voice Networks 2G (e.g GSM) 2.5G

  4. SMB / LARGE ENTERPRISE SERVICES PROCESS - CENTRIC MANAGED COMMUNICATION HORIZONTAL VERTICAL SERVICES CENTRIC APPLICATIONS APPLICATIONS E - mail Sales Force Automation Hosted Horizontal Internet Access l l l l Personal Information (industry - specific) Applications Intranet Access l l Management Field Force Automation Hosted Vertical Enterprise Portal l l l Knowledge Management (industry - specific) Applications Messaging l l Basic Sales Force Asset Monitoring Alerting l l l Automation Supply Chain Wireless IP VPN l l Management (Track and Wireless LAN l Trace Solutions, RFID Conferencing l tags) Video Call (point - to - point) l Telematics l PREFERRED GO TO MARKET PLAYER MOBILE OPERATOR (SMB) MOBILE OPERATOR IBM IBM (LARGE ENTERPRISES) Communications Services and Horizontal Managed Services may be sold to “ Strong ” Vertical Applications Application - with “ one size fits all ” SMBs by telecom operators but require require extensive customization for each approach – are currently sold by mobile a systems integrator/ hoster for large enterprise and need to be sold thru a operators enterprises systems integrator IBM and the 3G Mobile Operator can complement their core skills and market access to provide the full spectrum of enterprise services

  5. Bar Code Scanner iM1100 iO1500R Handheld Barcode Scanner iR1200 iR1200 Plus iRx • Barcode • Scanner • Keypad HDT502 IBM and Nextel Joint Process-Centric Solutions Currently Available 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 Rugged Tablet or Laptop OEM Devices ARCOM Gateway Im240 Network Trials Broadband Asset Monitoring Field Force Auto. Asset Monitoring CDPD/WECM SFA/FFA solutions Other Future Solutions Solutions LMR N/W SO RIM/WEA I605 7510 Handsets I930 (WIDEN)

  6. Enterprise Managed Services: IBM can offer “risk-sharing” solutions to the operator thru Capex free, on demand pricing SMB A Mobile Shared Managed Users Enterprise Wireless IT IM/PIM/email Infrastructure Operator 3G Network Servers SMB B ("one size Mobile and Messaging Infrastructure Users fits all") SMB C IBM Hosting Centers (ex Bell South) Mobile Users Business Model $ $ Operator IBM SMB Workforce Mobility Wireless ASP fee, On Demand fee (on Enterprise airtime and device demand pricing) included (on demand pricing)

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