Creating 3G Value Through SIP (IMS) Interworking

1. Creating 3G Value Through SIP (IMS) Interworking Ms Bridget P. Cosgrave CEO, Belgacom International Carrier Services (BICS) Bridget.cosgrave@belgacom.be

2. SIP/IMS As Foundation for 3Gs and NGNs • The IP Multimedia Subsystem Provides Multimedia Services Across Networks (fix & mobile), such as: • Instant Messaging, Video Sharing, Push-To-Talk, Gaming, Video Conferencing • IMS Uses SIP protocol To Setup Multimedia Sessions Over IP Network • SIP is a Peer-to-Peer signalling protocol to: • Locate user given SIP Universal Resource Identifier (URL) (e.g., sip:john@isp.com) • Set up session and negotiate its parameters

3. Interrogating CSCF Location Query HSS Ok Serving CSCF Serving CSCF GPRS GPRS Multimedia session SIP Strengths Are Simplicity & Extensibility • Example of call routing Invite From: sip:userA@isp.com To: sip:userB@isp.com Call-ID User B User A

4. IMS Interworking – GSMA SIP Trial • “Ultimate goal is to ensure technical and commercial interoperability of SIP-based services, from “day one” of commercial service” Fixed Operator SIP/IP Network MNO MNO GRX/IPX Carrier Belgacom SIP/IMS Core SIP/IMS Core IMS SIP Proxy

5. IMS Interworking – GSMA SIP Trial • Unique Opportunity to Test 3G Services Across Mobile Networks • All key players involved • It’s a global initiative • Remarkable Result In Phase 1 (Phase 2 Ongoing) • 3 different applications, 13 different participants, 6 different countries in less than 3 months • Trial Infrastructure Built On Existing GRX Platforms Enhanced with SIP Hubbing to Facilitate Interoperability • Hub concept successfully proven in the MMS trial • GRX platform ready to support 3G applications

6. IP 3G SIP Opens New Scenarios Of Communications • Across Services, Technologies & Business Models Video Sharing Video Calling Instant Messaging Gaming Push-to-talk VoIP • Convergence melts telecom boundaries & distinctions • The underlying technology is converging: • Services no Longer defined by access technology alone

7. ….And Brings New Challenges • What Services Do Consumer Want To Pay For? • Best effort or High Quality Services? • How Do We Guarantee Service Interoperability? • Universal service (c.f. voice, email) not “islands”. • What Are Future Retail and Wholesale Charging Models? • Users Wants “A priori” knowledge of cost • How Do We Protect Consumers Against..? • Malicious attack (e.g. Identity-theft, viruses…). • Unsolicited content (e.g. Spam, Spim, Spmms…). • Unsuitable content (e.g. adult material).

8. Universal Services, Not Island… • As SIP/IMS Based Services Overcome Distances, Next Generation Services Must Be Ubiquitous As Of Launch • Traditional Bilateral Agreements May Prove To Be Costly and Ineffective! • Slow Time To Market: High workload / resources intensive • Negative ROI: Low volume when launching new services Potentially 100’s of connections have to be set-up and managed Bilateral Model

9. Universal Services, Not Island… • Carrier Multilateral Interconnect Platforms Are Valid Alternative To Bilaterals • Quicker Time To Market • Driving Interoperability Single Connection and Contract with Carrier Hub for: • Voice • Voice/SMS Roaming • GPRS Roaming • SMS Interworking • MMS Interworking • IMS Interworking Carrier Hub

10. Business Models Set To Evolve How Do We Create Value For All Players In The Value Chain For An Economically Sustainable Future? • Internet “Religion” vs. Economics: • Is a “flat fee (used to be free)” Internet sustainable, or is “per event monetisation” the key to survival? • Learning from Past (& Present) Painful Experiences • The “dot com” boom/bust scenario, infinite marketing revenue! • The fixed Telco experience (“all you can eat” access). • Unstoppable decline of IP Wholesale Pricing

11. Business Models Set To Evolve • The Industry Ought To Converge Towards “Calling Party Pays” Principles And “Event Based” Charging Models • Provides for a fair distribution of revenue in the value chain • Best protections against unsolicited (spam) messages • Benefit For Consumers • Avoid paying for received data when no value to them • Better understanding of charges and easier managing costs • Benefit for The Industry As Whole • Ability to capture/sustain value, safely • Ability to provide quality services and products

12. Business Models Set To Evolve • Interconnect Models To Embrace Content & Applications • User services are to be distance less, not confined within one technology, media & content rich, highly interactive. • Need for A Smart Intermediary Function • Presence, Accounting, Security, E2E SLA, etc.. Fixed Operator Content Providers SIP/IP Network SIP/IP Network SIP NNI SIP NNI MNO A MMS NNI SIP NNI MNO B MMS NNI SIP NNI MMS NNI SIP NNI MMSC MMSC IPX Carrier Belgacom SIP/IMS Core SIP/IMS Core IMS SIP Proxy MMSG Inter-Operator IP Backbone (IPX)

13. Introducing… Belgacom International Carrier Services (BICS) 72% - 28% (*) 20 16 JV 12 BELGACOM BICS Traffic- B min 8 Swisscom 4 0 8th (*): Subject to Closing

14. 14% 10% 76% Key Figures 8th International Voice Carrier 13 Billion Voice Minutes 1 Bio Mio€ Revenue Headcount from 385 to 250 (end 2009) OpFCF positive as from 2005 Not Audited Figures Net Revenue Split Voice Mobile Data Capacity

15. Our “New” Credentials • Ranked 8th International Voice Carrier • 13 Billion Switched Voice Minutes • Complete Range of Carrier Products • 300+ Voice Carrier Customers • 100+ Mobile Operators Connected to Our Network • Global Network: 65 Points of Presence - 6 City Rings • Proven Track Record of High Customer Satisfaction • Unique Financial Strength • “Most Competitive Carrier” (Broadgroup Survey, 2004) • “Best Wholesale Carrier” (WCA 2003) • Global Presence: Brussels, Bern, Dubai, New York & Singapore

16. Connecting the Unconnected Thank You! 3G Services Interoperability Creating IP Value