IDATE Conference Nov 19 th – 21 st 2003 TSI Network Consolidation Offering Jody Craft

1. IDATE Conference Nov 19th – 21st 2003 TSI Network Consolidation OfferingJody Craft T-Systems International EVP, Product Management IP

2. TSI Network Consolidation Offering Market Trends. Worldwide Retail-Market: 2003-2006 bn € CAGR 2,0 % CAGR 1,1 % CAGR 11,6 % CAGR 41,3 % CAGR 23,5 % 250 200 150 100 50 0 Business Voice Legacy Data IP Solutions Mobile Solutions Hosted Services Two digits growth rates: IP services, Mobile services, Hosting services Source: DETECON 05/03, Gartner 06/02, IDC, OVUM 09/02, EITO 2003,Pyramid 02/03,GfK

3. Enterprise Telecom Outsourcing Drivers • Consolidation pressure is a demand driver for alternative platform sourcing concepts to • strengthen carrier competitiveness in future markets Financial drivers: • Reduction of capital cost and investment volume • OPEX Reduction • Fix/Variable cost shift Strategy drivers: • Refocusing resources to core competencies • Detachment of non core activities • „Enabling marketing“: increased Customer Satisfaction & Loyalty Outsourcing Decision Innovation drivers: • Need to reallocate resources for new technologies • Access to leading edge know-how of suppliers • Benefit from converging technology trends Political/Regulatory drivers: • International trend for network infrastructure sharing • Regulation pressure • Need for increased flexibility

4. The Traditional Approach Today: Different network applications have different communication requirements. Home-Office network platforms Headquater Public Telephony Branch Office Internet/Intranet Leased Lines/ATM-PVCs Production Site

5. Voice Services VPN Services e-Service Area Internet Services ASP/eMarket Services MX Cache/Proxy Collaboration UMS, VoIP MX-Relay FW, VW, IDS, Cont.Sec. Web, DNS PSTN Site A Peering Routers Internet C Hosting Services CoS Site x MPLS Site B C C Peering Routers CoS Firewall services Dial In Services DialPoP GSM PSTN Service Management Center (SMC) Partners Remote Users TSI Consolidated Infrastructure Approach

6. IPLS Internet IP2 other PSTN/ GSM T-Systems e-Service AreaThe MultiCustomer eSA provides the infrastructure for solution modules. eService Area hosted corporate applications B2B exchanges (extranet) Hosted web applications Intranet shop solutions (MyCSM) Mail servers Internet shop solutions Intranet web server Encryption services Internet web server Voice services (ToIP) Authentication servers Firewall servers DSL ATM concentrator Platform, Partner, ... Unified Messaging server Dial Access DSL access Mobile access Intl. access corporate mobile portals

7. T-Systems –IntraSelect MPLS • Combinable with each other to fit exactly • Clearly and transparently defined services • Absolutely compatible • High degree of scalability • Extremely flexible IntraSelect MPLS offers a coordinated system of solution modules that fit exactly. Individual Solutions StandardServices & Modules

8. ITC Personnel ITC Personnel ITC Personnel Intranet Access ITC Personnel Corporate Network Consolidation Leased Line / ATM / FR Additional Feature: Internet Access ITC Personnel Additional Feature: Telephony over IP CoO2: Router Management Internet Access Additional Feature: Standard web services, Portals, BPO CoO2: Internet Security & Remote Access-Services S2M PSTN Access CoO2: PABX, Voice Equipment, Servers CoO2: Web & Enterprise Application Servers Process-Solution/Portals time CoO2: Cost of Ownership TSI Customer Network Consolidation StrategyValue Proposition: Cost Reduction Cost Reduction Roadmap I (Example) Cost

9. TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap II (Example) Unified IP MPLS platform replaces dedicated IP, ATM and Leased Line Infrastructure: Reduced access cost IT Personnel IT Personnel IT Personnel Intranet Access IT Personnel Corporate Network Consolidation Leased Line / ATM / FR Additional Feature: Internet Access IT Personnel Cost Additional Feature: Telephony over IP CoO2: Router Management Internet Access Rental Additional Feature: Standard web services, Portals, BPO CoO2: Internet Security & Remote Access-Services S2M PSTN Access Rental CoO2: PABX, Voice Equipment, Servers CoO2: Web & Enterprise Application Servers Process-Solution/Portals time CoO2: Cost of Ownership

10. TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap III (Example) Multiple decentralized internet access lines are integrated into the corporate IP MPLS core: Reduced access cost and optimal security IT Personnel IT Personnel IT Personnel Intranet Access IT Personnel Corporate Network Consolidation Leased Line / ATM / FR Additional Feature: Internet Access IT Personnel Cost Additional Feature: Telephony over IP CoO2: Router Management Internet Access Additional Feature: Standard web services, Portals, BPO CoO2: Internet Security & Remote Access-Services S2M PSTN Access Rental CoO2: PABX, Voice Equipment, Servers CoO2: Web & Enterprise Application Servers Process-Solution/Portals time CoO2: Cost of Ownership

11. TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap IV (Example) On-net telephony integrated into the corporate IP core: Only one access line per site, cost effective IP-Telephony IT Personnel IT Personnel IT Personnel Intranet Access IT Personnel Corporate Network Consolidation Leased Line / ATM / FR Additional Feature: Internet Access IT Personnel Cost Additional Feature: Telephony over IP CoO2: Router Management Internet Access Additional Feature: Standard web services, Portals, BPO CoO2: Internet Security & Remote Access-Services S2M PSTN Access Rental CoO2: PABX, Voice Equipment, Servers CoO2: Web & Enterprise Application Servers Process-Solution/Portals time CoO2: Cost of Ownership

12. TSI Customer Network Consolidation StrategyValue Proposition: Cost ReductionCost Reduction Roadmap V (Example) Integration of standard and dedicated hosting solutions: Only one access line per site, reduced server cost. IT Personnel IT Personnel IT Personnel Intranet Access IT Personnel Corporate Network Consolidation Leased Line / ATM / FR Additional Feature: Internet Access IT Personnel Cost Additional Feature: Telephony over IP CoO2: Router Management Internet Access Additional Feature: Standard web services, Portals, BPO CoO2: Internet Security & Remote Access-Services S2M PSTN Access Rental CoO2: PABX, Voice Equipment, Servers CoO2: Web & Enterprise Application Servers Process-Solution/Portals time CoO2: Cost of Ownership

13. Scalability From Low to Very High speed access for Sites/Users Use Any Access Technology Small to Very Large number of Sites Security Guarantees FR/ATM equivalent without needing encryption Protection from the open Internet Flexibility Any-to-Any communication Easily Add / Remove Sites/Users IP addressing freedom Ready for Future Applications MPLS based IP-VPN ServicesValue Proposition for Corporate Customers Performance Guarantees • Multiple Classes of Service for Data Voice & Video Applications • SLAs with predictable latency, throughput, availability, packet loss, jitter • Coverage & Reach • ONnet Coverage for highest performance, functionality and SLA • OFFnet, Global coverage for far-away Sites, Extranet extensions and Remote Users Price/Cost Efficiency Leverage IP’s lower price per bit One Access Line, One Network Outsourced Solution

14. Collaborative Services: Mobil Portals Exchange Services, Business Process Services Application Hosting: eCommerce, Datenbanken, E-CRM, Intranet/Internet Provider Services ERP, e-Learning, Terminal-, Web-Server, Content Mgnt.., e-Service Area Security-Module Administration-Moduls Basic Web Hosting: (Hosting-Area) Managed Hosting Services, Messaging, Storage, eMail, Housing (Colocation) IP-VPN(as platform)IP-based virtual privat network Telecomunication ServicesStructure The tailored modul for every request for Hosted Services: Hosted Services opens the view to horizons. Solid and flexibel.

15. Back Up

16. Forecast: Europe’s Managed Network Services Market, 2003 To 2008 Source. Forrester Research, 2003

17. IP Services – IP VPN based on MPLSIntraSelect MPLS - Coverage Telekom owned Network infrastructure – core network MPLS-enabled IP network since 2003 with 53 countries and more than1000 PoPs (excl. Germany)

18. T-Systems International & LDComPartners in France for a Strong Future • LDCom is T-System International’s preferred partner in France as a reseller of T-Systems’ International Network Services • LDCom ensures a nationwide coverage in France for T-Systems’ corporate customers • T-Systems International provides international connectivity and reliablilty worldwide along with end-to-end management • Customers in France benefit from global knowledge and service with a local face to the customer

19. IP Services – IP VPN based on MPLSCustomer applications High Video Conferencing  Needs for higher bandwidth in companies through the increasing use of ERPs (SAP, Siebel, Citrix etc.) HTTP Web Web-based Apps AGILE Bandwidth Requirements Voice SMTP Mail Medical Telemetry Microsoft Exchange Low Low High Latency Sensitivity

20. CoS Profile CoS Profile Application Application ACSIS (SAP) INTERACTIVE AGILE ACCESS BAAN INTERACTIVE CADENZA LAN2LAN CLARIFY INTERACTIVE CERES LAN2LAN LOTUS NOTES CFMS LAN2LAN CITRIX INTERACTIVE CODA LAN2LAN DOCUMENTUM LAN2LAN ENERGY SYSTEM INTERACTIVE FIN WEB ACCESS FRIGATE LAN2LAN FTP ACCESS HTTP WEB ACCESS I2 DEMAND PLANNER LAN2LAN IS LOGISTICS INTERACTIVE JD EDWARDS INTERACTIVE LAN2LAN MFG PRO LAN2LAN MICROSOFT EXCHANGE ACCESS MIMI (SAP) INTERACTIVE NA4 LAN2LAN NOVELL GROUPWISE LAN2LAN ORACLE INTERACTIVE PEOPLESOFT INTERACTIVE PIN LAN2LAN SAGA LAN2LAN IP Services – IP VPN based on MPLSCoS vs. applications

21. CoS Profile Application SALES/SERVICES EDGE LAN2LAN SAP INTERACTIVE SCALA LAN2LAN SIEBEL 2000 INTERACTIVE SIEBEL 7 INTERACTIVE SMTP ACCESS TELNET Interactive VANTIVE INTERACTIVE IP Services – IP VPN based on MPLSCoS vs. applications

22. IP Services – IP VPN based on MPLSIntraSelect MPLS Shared utilization of available bandwidth: • Data traffic (Business & Economy) utilizes reserved bandwidth of other categories if there happens to be low traffic there at any given time. • As soon as priority data transfers are due, these are immediately given higher priority again. Voice Stream (Video etc.) Business (SAP etc.) Economy (E-Mail etc.) Result: Capacities are optimally utilized – even at peak times.

23. IP Services – IP VPN based on MPLSIntraSelect MPLS - SLA 1 According to geographical SAP location 2 Optional support levels available on demand: Extended, 7x24h 3 Compensation schemes are defined in the separate SLA document 4 Comfort Service Level is only available in association with the ISDN/DSL backup option

24. IP Services – IP VPN based on MPLSIntraSelect MPLS:One Platform – Many Benefits. 4 Classes of Service Multiple VPN service 53 countries Dynamic routing 56k – 155M bandwidth Voice VPN’s Site Backup and Redundancy IP Telephony Integration Flat-rate pricing Private Content Services Telecommuter Services Video Services (Multicast) Traveler Services Managed Extranet Services Internet Access Integration ASP Services Firewall Services Virtual ISP Services Secure off-net Access Unified Communications Intranet Hosting/Co-loServices E-commerce Encryption Services via Internet & VPN End-to-End SLA’s Dial in via Internet & VPN Web based reporting

25. Forecast: Europe’s Managed Network Services Market, 2003 To 2008 Source. Forrester Research, 2003

26. 2003 2006 Market Trends and development The trend goes to outsourcing and managed IP services! Source: EITO 2003,Pyramid 02/03

27. Internet T-Systems e-Service Area hosted corporate applications B2B exchanges (extranet) Internet (Web)applications Intranet shop solutions (MyCSM) Mail servers Internet shop solutions IP VPN Intranet web server Encryption services Internet web server Voice services (ToIP) Authentication servers Firewall servers Unified Messaging server PSTN/ GSM corporate mobile portals e-Service Area