Experiences with deployment of IMS/FMC and new services

1. Experiences with deployment of IMS/FMCand new services Martin Niekus Manager – Strategic Standardization EMEA Lucent Technologies – ProprietaryUse pursuant to company instruction

2. Overview • IMS Early adopters – Lessons LearnedLucent Worldwide Services (Morgan Stern) • KPN IMS Contract • New Applications for Converged Networks Lucent Technologies – ProprietaryUse pursuant to company instruction

3. BellSouth Selects Lucent Technologies’ Next-Generation Solution for Consumer VoIP FOR RELEASE TUESDAY NOVEMBER 08, 2005Lucent provides IMS-based technology and end-to-end multivendor network integration services for BellSouth’s new consumer Voice Over IP offering Atlanta and Murray Hill, N.J. – Lucent Technologies (NYSE: LU) today announced that BellSouth (NYSE: BLS) has selected elements from Lucent’s IMS-based (IP Multimedia Subsystem) solution, including network integration and technical support, to be the platform for BellSouth’s Voice Over IP service for residential customers in its nine-state territory. KPN Selects Lucent Technologies to supply IMS solution to replace legacy network while supporting existing and new service FOR RELEASE: WEDNESDAY, SEPTEMBER 6, 2006 Lucent to provide key IMS elements and serve as integrator for multivendor standards-based IMS solution to replace KPN’s public switched telephone network HILVERSUM, The Netherlands –- Lucent Technologies (NYSE:LU) today announced that it has signed a contract with KPN, The Netherlands´ largest service provider, to deploy an IP Multimedia Subsystem (IMS) solution that will replace KPN’s legacy public switched telephone network (PSTN). This follows Lucent’s appointment as the prime integrator for its All IP network, announced on August 28 where Lucent Worldwide Services will provide network transformation services including the network design, systems integration, deployment, maintenance and support services. Cingular Wireless selects Lucent Technologies’ IMS-Based Solution for Evolution to Next-Gen Services FOR RELEASE MONDAY OCTOBER 17, 2005Solution will enable Cingular to rapidly develop and launch exciting new end-user applications over its 3G networkAtlanta and Murray Hill, N.J. — Cingular Wireless and Lucent Technologies (NYSE: LU) today announced that Cingular has awarded Lucent a four-year agreement to provide a comprehensive IMS-based (IP Multimedia Subsystem) solution that will enable Cingular to rapidly develop and launch a broad range of new personalized voice, video, data and multimedia services. SBC Communications Selects Lucent Technologies Multimedia Platform to Enable Anytime, Anywhere Access to Consumer IP Services FOR RELEASE TUESDAY OCTOBER 18, 2005SBC to deliver innovative new IP applications on subscribers' wireline and mobile devices San Antonio and Murray Hill, N.J. — SBC Communications Inc. (NYSE: SBC) today announced Lucent Technologies (NYSE: LU) will provide a comprehensive IP Multimedia Subsystem (IMS) platform that will help SBC integrate wireline and wireless services in new and powerful ways, and deliver anytime, anywhere access to a "grand slam" of next-generation Internet Protocol (IP)-based services — both wireline and wireless voice, high-speed Internet access and video. Lucent and Manx Telecom Expand Next-Gen Converged Fixed/Mobile NetworkFOR RELEASE MONDAY JULY 24, 2006 LONDON – Manx Telecom, a subsidiary of O2, and Lucent Technologies (NYSE: LU) today announced a comprehensive agreement that continues the evolution of Manx Telecom’s network to support a wide array of "blended" Voice over Internet Protocol (VoIP), data and video services over a converged network that combines third-generation (3G) wireless technology and the latest wireline broadband access capabilities. Under the agreement Lucent will supply Manx Telecom with additional elements of its industry-leading IMS solution to support advanced multimedia services. Based on a number of IMS early implementations worldwide Lucent Technologies – ProprietaryUse pursuant to company instruction

4. Technology Challenges • Reinforcing the Layer 2/Layer 3 Infrastructure • IMS requires high levels of stability, availability, and consistency across network elements, such as DNS and IP topology. • New requirements for OA&M, redundancy, backup, signaling, bearer traffic, VPN, may require significant changes to existing network models. • Securing the IMS • The distributed nature of IMS creates new requirements for a distributed security implementation. • IMS must provide: Confidentiality, Communications integrity, Privacy, Availability. • Performance Engineering for the IMS • The distributed nature of IMS, along with new traffic characteristics & services, require new planning models. • Encompassing: Element-level view, Application-level view, End-user quality-view, Aggregate (core network) view • IMS Interoperability • Interoperability testing becomes increasingly more complex as the number of elements & vendors in the solution grows. • Key criteria include: Manufacturer/model/revision, Service/product definition, Usage scenarios, Required features, Existing infrastructure. Lucent Technologies – ProprietaryUse pursuant to company instruction

5. Organizational Challenges • Convergence isn’t just about technology • Changes in the technology are prompting carriers to consider organizational convergence • Processes & best practices need to be standardized across organizational boundaries • “Carrier grade” operations processes must apply to resources that may be owned & maintained by IT personnel • Interfaces and responsibilities must be clearly defined • Up-front executive commitment from all involved parties is critical, because issues will occur over the course of the project Lucent Technologies – ProprietaryUse pursuant to company instruction

6. Operational - Challenges Operational Expense associated with network migration • Cost savings may be a driver, but it may take a while to get there • Fault resolution across multiple network and access domains • Troubleshooting becomes more complicated • Demarcation points need to be clear Capital Investment Required for Next Gen Network Components Current Network Hybrid Network IMS Network Present Transition Future Lucent Technologies – ProprietaryUse pursuant to company instruction

7. Migration Program Challenges & Risks • Major program schedule delays are caused by • Failure to commit to key architectural decisions • Changing priorities due to changes in drivers & business case • Insufficient Attention to Transport, Network Databases, Signaling/IN, OSS • Lack of Coordination among Multiple Vendors • Inadequate Program Management • Operational Issues during Transition • Provisioning, Billing, Maintenance • OS Migration Must Account for Transitional Network • Dual Provisioning • Database Synchronization • Customer Care, Fault Resolution, Troubleshooting • Impacts • Customer Dissatisfaction, Increased Operational Costs, Delayed Revenue Lucent Technologies – ProprietaryUse pursuant to company instruction

8. Best Practices • The importance of the Solution Architect • Maintains purity of IMS technical vision • Provides technical leadership across multiple functional and organizational teams • Strong Program Management is essential • Set firm dates for milestones and push hard to stay on schedule • Maintain the appropriate lab facilities • Minimum of two labs - one for current environment, one for next release • Formalize interactions across vendors, internal orgs, and partners • Develop detailed interface specifications with all interested parties at the table with written commitments for specific responsibilities • Formalized IMS program joint-ownership sessions • Institute a “Solution Management” function • Multivendor IMS is a reality, carriers need a way to ensure integrity of the solution over time Lucent Technologies – ProprietaryUse pursuant to company instruction

9. Overview • IMS Early adopters – Lessons Learned • KPN IMS Contract • New Applications for Converged Networks Lucent Technologies – ProprietaryUse pursuant to company instruction

10. Scope of Contract • Supply & deploy an IMS based solution to replace KPN’s legacy PSTN network: • Hardware & Software for core IMS components (Lucent Session Manager, USDS, Lucent Network Gateway & Controller, SurePay Charging & Real Time Rating platform) • Hardware & software for telephony application server (Lucent Feature Server 5000) • 3rd Party products to perform role of SBC, legalintercept etc…. • As the Prime Integrator, Lucent will be responsible for: • Network design & supply of the replacement network • Systems integration • Deployment & maintenance services Lucent Technologies – ProprietaryUse pursuant to company instruction

11. Business Drivers • Drive New Revenue Streams • Be pro-active & invest in the future today • Maintain broadband growth momentum with FTTC • Deliver high bandwidth content services • Defend existing revenue streams in declining traditional telco market • Need to significantly reduce costs base:Opex savings of 850 million Euros over 5 years • Business wide simplification of processes & systems • Reduction in the amount of real estate to deliver existing &future services • Reduce transport costs • Reduce the number of people required to deliver improved share holder value Lucent Technologies – ProprietaryUse pursuant to company instruction

12. OSS/BSS various interfaces BTS OMC-P Net-Net EMS eSM OMC-H SBC VoIP OLO’s Overview of SolutionPSTN Replacement & New Services SECURITY DCN IN Lucent FS5000 USDS VitalQIP SurePay Other App Servers TelephonyApplicationServer HSS CCF DNS/ ENUM Rf SIP ISC SIP ISC Cx Lucent SM Lucent SM Lucent NC LI Gateway SIP Mi SIP Mj P/I/S-CSCF BGCF MGCF SIP-I Acme SIP Mr SIP Mg Audio Codes MRF H.248 Mn SIP Gm Lucent NG TDM Voice TDM OLO’s MGW Lucent NC Acme AGCF/VGW SBC STM-1 IMT H.248 SIP Gm SIP Gm Color Legend: NG-DSLAM NG-DSLAM ALL IP Core IMS FTTH POTS POTS xDSL xDSL PSTN Replacement ATA New Services Lucent Technologies – ProprietaryUse pursuant to company instruction POTS POTS POTS

13. Key Solution Characteristics • Common 3GPP & TISPAN compliant platform for delivery of legacy PSTN and next generation services • Future proof investment • New services can be deployed at incremental cost due to re-use of the IMS core components • High availability plug & play platform • Flexible deployment model options • Centralised or • Highly distributed: possible to distribute IMS functions geo-graphically • Highly Scalable platform • Easy to increase capacity of the IMS core network at a very granular level (at the P/I/S-CSCF level if required) • Add capacity where it is required: optimises Capex Lucent Technologies – ProprietaryUse pursuant to company instruction

14. Integrator for All IP Next Generation Network • The contract scope covers services for both the network infrastructure as well as the IT infrastructure for the ALL – IP project: • program management, • network design and planning, • integration, and migration services, • security, network and process redesign consultancy services • Duration: 4 years Lucent Technologies – ProprietaryUse pursuant to company instruction

15. Overview • IMS Early adopters – Lessons Learned • KPN IMS Contract • New Applications for Converged NetworksActive Phonebook(Tom Anderson) Lucent Technologies – ProprietaryUse pursuant to company instruction

16. iLocator – Presence & Location-Enabled Services • 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 • Solution Components: • iLocator Application on the MiLife Application Server • MiLife Intelligent Services Gateway • MAP Licensing Server • Handset & Client Software Lucent Technologies – ProprietaryUse pursuant to company instruction

17. voice Tom User 657 555-1234 Mail and Messages Missed Calls Search Prefs Logs Contacts Calls PAB video email IM Collaboration Active PhoneBook (APB) One Simple Interface Buddy Lucent Technologies – ProprietaryUse pursuant to company instruction

18. Bill answers the call from Mary and discusses the situation. Mary Ann, his administrative assistant, covers his calls after two rings. Bill, a claims rep. is at the site of a serious bus accident. • Mary, the president of the bus company, calls Bill’s number. The call rings on both Ann’s and Bill’s phones (presence enabled simultaneous ring). A Service Scenario: Insurance claims investigation Mobile Office extension & call pick-up • Ann picks up the call for Bill after two rings • Ann notes on her ActivePhonebook display that Bill’s availability status is ok to accept only urgent calls via push-to-talk. She considers this urgent as she also knows his location from the iLocator display. • Ann contacts Bill using click/push-to-talk service (VoIP to Wireless). Bill gives his approval & Ann uses “click-to” transfer the call to Bill. Lucent Technologies – ProprietaryUse pursuant to company instruction

19. Bill and Mary decide they need to bring a bus representative into the discussion, they click-to-conference in the bus sales representative. Bill Mary A Service Scenario: Insurance claims investigation(Continued) Bill is talking to Mary on his 3G phone device about the accident. Mary wants to understand quickly if her company is at fault. • Bill initiates a Push-to-Show session with Mary showing the likely cause of the accident is a faulty bolt that caused the wheel to fall off. • He then instant messages Ann for any records on recent claims related to faulty bolts. Ann file transfers the record abstracts. • Mary looks up the bus’s maintenance record. It might be a manufacturing defect on the bus. She file transfers a copy to Bill’s phone. Lucent Technologies – ProprietaryUse pursuant to company instruction

20. Conclusion: • IMS based NGN’s are being deployed now! • Based on 3GPP and TISPAN standards. • In Mobile and Fixed applications. • Replacing Legacy PSTN networks. • And introducing new revenue generating services. • With Voice, Data and Video capabilities. Lucent Technologies – ProprietaryUse pursuant to company instruction

21. Thank you Lucent Technologies – ProprietaryUse pursuant to company instruction