User-Centric Broadband Vision - How to enhance & develop Information Society

1. User-Centric Broadband Vision - How to enhance & develop Information Society Séminaire FRATEL & ARCEP – Paris, Septembre 2005 Olivier Gordien – Deputy Marketing Director

2. Key market drivers The world is goingBROADBAND Nearly 123M global broadband access customers DSL Forum, Sept. 2004 The demand forUSER-CENTRIC SERVICES “Customers want to be at the center of their communications universe; whatever they want, wherever they want, whenever they want” IDC 2004 Customers looking for aTRUSTED PARTNER to help guide them through the major transitions they are facing

3. The telecommunications market evolution:3 waves of services Evolution of the End-User World New Services Adoption User-Centric Broadband Services • Any device, any connectivity • Single subscription & Authentication • Consistent personalization • Transparent synchronization Broadband Services Multiple new Connectivity Services • Fixed BB (DSL) • Wireless BB (Wi-Fi) • Mobile BB (3G)… Many new services... … but a fragmented use • Mobile Voice • LAN • Internet…

4. Broadband Enhanced Services Market Consumer market pushed by need for triple play (voice, data, video) to increase ARPU and compensate cannibalization Corporate market pushed by IP PBX adoption and IP VPN deployment Multimedia services including VoIP will drive network infrastructure evolution Application platforms must allow smooth migration and co-existence between PSTN and NGN

5. Real Triple Play in an IP/DSL world High speed internet access E-mail Peer-to-peer PC gaming Chat Broadcast TV Video on Demand Pay Per View Electronic Program Guide TV-Internet Photo-sharing Televoting Data/PC Video/TV AmigoTV: virtual living room Live video-feed in TV-show Voice/Phone Web access supplementary services Breakout services (PC – Phone) Dual WiFi/GSM handhelds Multiple VoIP lines Conferencing TV Videophony Calling line on TV 1 + 1 + 1 = 7

6. Alcatel User-Centric Broadband Architecture Business Environment UniversalBroadband Access Wireline WirelessSatellite Mobile Service Aware Edge & Data Aware Transport Service Delivery Platform Every Terminal, Everywhere Any Content Each User Consumer Environment Operations & Business Support Systems Integration & Operations

7. Universal Broadband A Multidimensional World Service Aware Edge & Data Aware Transport Service Delivery Platform UniversalBB Access Enterprise Infrastructure & Applications Wireline Content Any Terminal Wireless Consumer Environment Mobile OSS and BSS • Critical Factors for Universal Broadband Access • Addressing Multiple User Markets • Delivering Multiple Services • By Reaching multiple Locations / Geographies • Using Multiple Technologies

8. Universal Broadband Access Technology is Evolving towards Higher Bandwidth Technology evolution to higher bandwidths provides more flexibility and benefits Fiber Bandwidth WiMAX 802.16 VDSL DVB-S2 Satellite WLAN 802.11 ADSL, ADSL2plus TD-SCDMATDD UMTS HSDPA CDMA2000 EV-DV Cable DVB-S Satellite UMTS CDMA2000 EV-DO Dial-up EDGE CDMA2000 1X GSM/GPRS Mobility

9. Current deployment is optimized for HSI up to 1.5 Mbps ADSL or SHDSL >15 Kft CO or CSA IPTV/Triple Play impacts network architecture Bandwidth ~15-25 Mbps Reach < 4-5 Kft Requires VDSL or ADSL2+ bonded. Where in the network ? IPTV/Triple Play HSI Loop lengths & new services impose Deep Fiber PON 100 % subs from CO - LAM 13% 53% 77% 97%

10. Complementary Broadband Accesstechnologies Satellite Buildings / MDUs Apartments Existing Copper X-connect New Location for Electronics CO Homes Backbone Curb / MDU basement FTTArea FTTN FTTCabinet/campus FTTx Wireless FTTCurb/MDU FTTHome/apartment

11. Accessing remote & rural areas WLAN (SAT) 2 Way SAT (20<x< 50 subs./site - 1;5 Mbits/user) (< 20 subs./site – 8 Mbits/user) Wireless / WIMAX < 5 km (100>x>20 subs./site - 1;5 Mbits/user) x < 15 km CO DSLAM Aggregation x (> 100 subs. / site – >20 Mbits/user) x RemoteDSLAM < 5 km

12. New Service NetworkServices offered through IP: the move to VPN Opening the pipe for Residential and Business users Internet Video Home entertainment & work Gaming Roaming Worker PSTN Voice Business Service Provider IP Network BusinessPartner Branch Office Storage

13. Drivers for Access Convergence Voice in Broadband offering • Launch IP based Telephony bundles via residential gateway controled by MGCP • Upsell enhanced voice and multimedia services PSTN migration • Replace aging/obsolete PSTN • Consolidate networks & operations, leveraging BB installed base & growth • Enable "soft provisioning" through platform convergence Service convergence In common Platform convergence

14. Conclusion

15. Conclusion • Telecom Can be a Transformative Force • GDP Drives Telecom BUT Telecom also Drives GDP • Connecting communities has the potential to bring in wealth to those communities • Create new business opportunities for both the urban and rural communities • Improvements in Healthcare and Education particularly for rural communities • Improvements in Government related services • E-Government • Public Safety/Security • Broadband Access is a must • Many technologies available, think pragmatic • Corporate have specific needs, residential as well • Broadband access can bind them on the same network

16. Alcatel strengths in each segment Business environment • IP-PBX: Europe #1 • Contact centers: WW #1 • Voice infra: within top 4 Service Aware Edge & Data Aware Transport • Optics: WW #1 • Wireless transmission: WW #1 • NB switching: WW #1 • Multiservice WAN: WW #2 • IP multiservice edge routers: within top 3 Wireline access • WW #1 Service Delivery Platform • Extensive suite • Leading positions in IN, Mobile Prepaid, Video applications Mobile access • Largest installed base of 3G users • GSM: within top 4 • Fastest growing player Services • Professional services: within top 3 • Network outsourcing: WW #1 Wireless access • Telecom satellite: WW #1 • LMDS: WW #1

17. www.alcatel.com