Mobile Location and the transformed network

1. Mobile Locationand the transformed network October 2003 Martin DawsonNortel Networks MLC Architectmdawson@nortelnetworks.com Thank you � It is my pleasure to be with you today and to speak to you on behalf of Nortel Networks. Thank you � It is my pleasure to be with you today and to speak to you on behalf of Nortel Networks.

2. Nortel Networks at a Glance� Our history� Over 100 years at the forefront of major technological innovations in telecom Our operations� Serving more than 150 countries Our people� Approximately 36K employees worldwide Our financials� 2002 Revenues of US$10.6B 2002 R&D expenditure of US$2.2B Let me first give you a very brief snapshot of our company, starting with our history. We have a proud tradition of innovation and leadership in shaping the world of communications. Established more than a century ago, Nortel Networks has participated in major developments in the evolution of communications networks worldwide.� Leading change has always been Nortel Networks competitive strength. We have transformed and reinvented ourselves countless times. What was once a pioneering telephone manufacturing company, supplying primarily the Canadian market, is now one of the world's largest global providers of high-performance Internet and advanced "carrier grade" data networks that provide the quality, scalability and reliability to serve as a new foundation for global communications. Nortel is currently delivering networking and communication services and infrastructure for customers in more than 150 countries, including established carriers, network operators, wireless service providers and enterprises. Nortel is approximately 36,000 employees strong, of which about 1/3 are in R&D. We act on the belief that our people are our strength, knowing that the knowledge, commitment and talent of our employees drives our success. In 2002, Nortel Networks achieved revenues of US$10.6B. Let me first give you a very brief snapshot of our company, starting with our history. We have a proud tradition of innovation and leadership in shaping the world of communications. Established more than a century ago, Nortel Networks has participated in major developments in the evolution of communications networks worldwide.� Leading change has always been Nortel Networks competitive strength. We have transformed and reinvented ourselves countless times. What was once a pioneering telephone manufacturing company, supplying primarily the Canadian market, is now one of the world's largest global providers of high-performance Internet and advanced "carrier grade" data networks that provide the quality, scalability and reliability to serve as a new foundation for global communications.

3. Our Customers Service providers Public network carriers Wireless operators Multi-service operators (cable companies) Enterprises Small, medium and large businesses Financial institutions Educational institutions Hospitality industry Healthcare facilities Public institutions and government agencies Other industries In generating that revenue, we have two categories of customers: service providers and enterprises. On the service provider side: We provide network solutions to the world�s largest and most successful public network carriers (could add local/relevant examples). These organizations provide everything from basic telephone service to Internet access to high-performance data networks. The service provider category also includes wireless operators (could add local/relevant examples) that provide voice and � increasingly � Internet and data services. We also serve multi-service operators, mainly cable companies branching out into new voice and data services (could add local/relevant examples). On the enterprise side: We provide network solutions and services to all types of businesses, from small and-medium sized companies to Fortune 500 multinational corporations. (could add local/relevant examples). In fact, we�re a supplier to nine of every 10 Fortune 100 companies, representing more than 45 million users and addressing many sectors, including financial services, health care, and retail. We�re also helping many other organizations and institutions � in government, education, and other fields.In generating that revenue, we have two categories of customers: service providers and enterprises. On the service provider side: We provide network solutions to the world�s largest and most successful public network carriers (could add local/relevant examples). These organizations provide everything from basic telephone service to Internet access to high-performance data networks. The service provider category also includes wireless operators (could add local/relevant examples) that provide voice and � increasingly � Internet and data services. We also serve multi-service operators, mainly cable companies branching out into new voice and data services (could add local/relevant examples). On the enterprise side: We provide network solutions and services to all types of businesses, from small and-medium sized companies to Fortune 500 multinational corporations. (could add local/relevant examples). In fact, we�re a supplier to nine of every 10 Fortune 100 companies, representing more than 45 million users and addressing many sectors, including financial services, health care, and retail. We�re also helping many other organizations and institutions � in government, education, and other fields.

4. Our Organization Addressing the needs of multiple markets and customers Leveraging technology portfolio across various market segments Common technological and networking expertise, operations and customer service To deliver solutions that meet the unique needs of our varied customer markets, we are organized into four leadership categories: Wireless, Wireline, Optical and Enterprise. In 2002, our revenue was split as follows: Wireless: $4.2B; Enterprise: $2.6B; Wireline: $2.3B; and Optical: $1.5B. Our core strength is technology. We leverage our technology portfolio across multiple markets to both maximize our �return on R&D�, as well as to enable ubiquitous solutions for end users. We are a world leader in "packetizing" networks for wireline service providers and we're applying packet technology to wireless and enterprise networks as well. Tying it all together is our dynamic optical foundation, the backbone of communications networks. We are maximizing our common technology and networking �know-how�, global operations and customer service across all our markets and lines of businesses. To deliver solutions that meet the unique needs of our varied customer markets, we are organized into four leadership categories: Wireless, Wireline, Optical and Enterprise. In 2002, our revenue was split as follows: Wireless: $4.2B; Enterprise: $2.6B; Wireline: $2.3B; and Optical: $1.5B. Our core strength is technology. We leverage our technology portfolio across multiple markets to both maximize our �return on R&D�, as well as to enable ubiquitous solutions for end users. We are a world leader in "packetizing" networks for wireline service providers and we're applying packet technology to wireless and enterprise networks as well. Tying it all together is our dynamic optical foundation, the backbone of communications networks.

5. E911 Driven Technology Development

8. Transformed Network Architecture So with that kind of a service capability in mind, what�s the transformed network going to look like? It�s going to be packet. Consensus, everybody understands that, now it�s a matter of when and how fast and what�s the business cases? It�s going to be packet because only a packet structure will handle all services. If you don�t have packet, you�re going to have separate networks for separate services. It�s going to have, on one packet structure, different services that require different capabilities of that structure. In the world where you had one service on one infrastructure, the capabilities were defined and they weren�t variable. In the world of the transformed network, you�re going to have to be able to call up different latencies for different services, different bandwidths for different services, different quality of service, different attributes of delivery of capability. And you�re going to have to be prepared to pay for it because it�s going to cost different amounts of money, and that gives you a very very powerful infrastructure. So different services running on the infrastructure. And a key part of this transformed network is what we call the Services Edge. Networks don�t have an explicit edge when it�s one service on one network, it connects to the access and it�s one configuration. Multiple services on one network. At the edge, you need the security. At the edge, you also need mobility functionality, which is in fact an edge function, so GGSN in a wireless world for those of you that know the different blocks�quality of service or quality of experience if you like, I put IP-VPNs here because it�s really a security issue�and subscriber control. Now, I�ll talk a little bit in a moment what the network functionality is there, but this capability of �what�s at the packet edge and how does it operates�, is transforming networks. So network is packet, it�s got secure multimedia services running on it, supported with the services edge, it�s broadband throughout. Not broadband in every instance, but broadband capability throughout so you can get the multimedia broadband experience, and it�s an optical layer at the foundation of all networks. So on one hand, this is the network transformation, these are what the networks are going to look like going forward, and whether it�s a wireless carrier network or a wireline carrier network, this is the network. They are not really different, they�re the same core, different access. Take core in the most expanded sense. Whether it�s a carrier network or an enterprise network, in a significant enterprise network this is what the network looks like. So at one level, this is a statement of what I believe the network functional architecture is in the industry, at another level, this is Nortel�s investment plan. We�re really investing on these building blocks and going to market with our different entities. And on this network, it needs to be very capable, it needs to export its capability so it�s easy for third party software providers or applications providers to get the resources they need from the network and the attributes they need from the network to deliver the applications. And for that the network needs to command value.So with that kind of a service capability in mind, what�s the transformed network going to look like? It�s going to be packet. Consensus, everybody understands that, now it�s a matter of when and how fast and what�s the business cases? It�s going to be packet because only a packet structure will handle all services. If you don�t have packet, you�re going to have separate networks for separate services. It�s going to have, on one packet structure, different services that require different capabilities of that structure. In the world where you had one service on one infrastructure, the capabilities were defined and they weren�t variable. In the world of the transformed network, you�re going to have to be able to call up different latencies for different services, different bandwidths for different services, different quality of service, different attributes of delivery of capability. And you�re going to have to be prepared to pay for it because it�s going to cost different amounts of money, and that gives you a very very powerful infrastructure. So different services running on the infrastructure. And a key part of this transformed network is what we call the Services Edge. Networks don�t have an explicit edge when it�s one service on one network, it connects to the access and it�s one configuration. Multiple services on one network. At the edge, you need the security. At the edge, you also need mobility functionality, which is in fact an edge function, so GGSN in a wireless world for those of you that know the different blocks�quality of service or quality of experience if you like, I put IP-VPNs here because it�s really a security issue�and subscriber control. Now, I�ll talk a little bit in a moment what the network functionality is there, but this capability of �what�s at the packet edge and how does it operates�, is transforming networks. So network is packet, it�s got secure multimedia services running on it, supported with the services edge, it�s broadband throughout. Not broadband in every instance, but broadband capability throughout so you can get the multimedia broadband experience, and it�s an optical layer at the foundation of all networks. So on one hand, this is the network transformation, these are what the networks are going to look like going forward, and whether it�s a wireless carrier network or a wireline carrier network, this is the network. They are not really different, they�re the same core, different access. Take core in the most expanded sense. Whether it�s a carrier network or an enterprise network, in a significant enterprise network this is what the network looks like. So at one level, this is a statement of what I believe the network functional architecture is in the industry, at another level, this is Nortel�s investment plan. We�re really investing on these building blocks and going to market with our different entities. And on this network, it needs to be very capable, it needs to export its capability so it�s easy for third party software providers or applications providers to get the resources they need from the network and the attributes they need from the network to deliver the applications. And for that the network needs to command value.

9. Where does location fit in the transformed network?LCS � Network architecture elements

10. Where does location fit in the transformed network?Location � Two key pieces Gateway Location Center Application interface for location services Application authentication Privacy checking Access independent Examples � GMLC, MPC Serving Location Center Determines the location Talks to access network and user device Understands the access it serves Examples � SMLC, PDE

11. Location � Place in the transformed network Gateway Location Center Application interface for location services Application authentication Privacy checking Access independent Examples � GMLC, MPC Serving Location Center Determines the location Talks to access network and user device Understands the access it serves Examples � SMLC, PDE

12. e.g. VoIP E911 Application