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ALCATEL LUCENT ISRAEL

DIGITAL MULTIMEDIA SOLUTIONS

March 2013

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ALCATEL-LUCENT AT A GLANCE

DJSI leader in Technology

2,655 patents in 2011

29,133 active patents

Collaborate with

250+ universities

2011 Adjusted operating

margin 3.9%

72,000 employees 100+

nationalities

TR50

Most Innovative Companies 2012

2012 revenues € 14.4 B

130+ countries

7 Nobel prizes

400G photonicDSL vectoring Carrier cloud lightRadio400G IP XRS Core router

2011 R&D/Sales

15.7%

Motive Customer Experience

1000+ CUSTOMERS(NETWORK OPERATOR)

1M+NETWORKS

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• Leading technology provider to all communication companies(IP, Optical Transmission, xDSL (+Vectoring), FTTH, WiFi, Small Cells, Network Management & Optimization).

• LTE leadership serving the upcoming major mobile networks upgrades.

• Works closely with the Ministry of Defense for it’s communication infrastructure.

ALCATEL-LUCENT ISRAELLEADING THE COMMUNICATION MARKET, STRONG R&D PRESNECE

Alcatel-Lucent Sprint Innovation Presence Alcatel-Lucent Israel customer

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•THE CLOUDBAND BUSINESS UNIT WAS BOOTSTRAPPED IN ISRAEL IN MID 2011

•THE TEAM IN ISRAEL, INCLUDES THE BU MANAGEMENT, R&D, PRODUCT MANAGEMENT, SALES AND OPERATIONS

•TEAM INCLUDES PEOPLE WITH BOTH TELECOM AND IT/CLOUD EXPERTISE, MANY ARE “RETURNING” ISRALIES THAT GAINED EXPERIENCE WORKING FOR OTHER MNCS ABROAD

CLOUDBAND BUSINESS UNIT

SETTING UP BUSINESS LEADERSHIP AND R&D IN ISRAEL DEMONSTRATE ALU’S STRONG BELIEF IN THE TECHNICAL AND BUSIENSS CAPABILITIES IN ISRAEL

COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION

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CloudBand Description The ProblemNetwork Service Providers are looking to transform their business to achieve:1. Agility – Ability to introduce and grow their services rapidly2. Operational Simplicity – Planning, deployment, life cycle management3. Cost Efficiencies – Reduction of HW & SW costs, manual processes and increased asset utilization4. New Revenue Streams– Cloud services

CloudBand

CloudNode

Carrier PaaS

Management System

Our SolutionDisruptive software-based platform that leverages cloud architectures and network services to enable our customers to:1. Move relevant network functions to run on distributed

scaled-out cloud platform2. Provide end to end management, automation and E2E

cloud infrastructure3. Differentiate cloud service offerings leveraging the

network for new revenues

Target Markets1. NFV(Virtual Telco): Virtualization of network functions for business

agility and operational simplicity2. Carrier Public Cloud: New revenue-generating cloud services

targeted at enterprises and consumers

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DMS BUSINESS SNAPSHOT

HEADQUARTERS: HAIFA, ISRAEL

BACKGROUND: BASED ON ACQUISITION OF THE ISRAELI (HAIFA) STARTUP, MOBILITEC, IN 2006

EMPLOYEES: 120 ( 75 ISRAEL )

OVERVIEW:

THE TEAM IN ISRAEL, INCLUDES THE BU MANAGEMENT, R&D, PRODUCT MANAGEMENT,

SALES AND OPERATIONS THE ALCATEL-LUCENT DIGITAL MEDIA SOLUTIONS (DMS) IS A MULTI-TENANT CLOUD-

BASED TECHNOLOGY PLATFORM DESIGNED TO DELIVER INNOVATIVE CONTENT SERVICES FOR CONSUMERS AND ENTERPRISES.

BECAME THE WORLDWIDE LEADER OF DIGITAL MEDIA SERVICES INCLUDING THE WORLD LARGEST TIER-1 TELCOS

KEY CUSTOMERS:Mobile Nigeria

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EVOLUTION OF DIGITAL CONTENT MERCHANDIZING

2005 2000 2007 2009 2010 2011 2012 2013

Ringtone store

WAP Content Store

IPTV VOD Store

Mobile App Stores

eBook Store

Multi-content stores

E-Campus stores

Enterprise Mobile Content

Mobilitec Founded Acquired by ALU

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THE COMPLETE DIGITAL MULTIMEDIA SOLUTIONS PLATFORM

Enables user-specific, contextual, social, and interactive discovery,

and a search experience tailored to device being

used.

DISCOVERY

Optimizes delivery to any device with support for video transcoding/DRM,

downloads and streaming and personal media

lockers.

DELIVERY

Supports flexible payment mechanisms including rent,

buy, loan, ad-sponsored, subscriptions, bundles,

discounts and in-app billing

PAYMENTS

Ingests content, defines meta-data structures,

manages catalogs, and leverages tools and APIs for

service creation.

CONTENT MANAGEMENT

Leverages customer activityto improve user experience.

SUBSCRIBER MANAGEMENT

AND ANALYTICS

Promotes content usage with tools for marketing,

campaigns, branding, etc…

MERCHANDISINGAND

MONETIZATION

PLATFORM SOLUTIONS

Enabling users to discover, purchase and consume any

digital content.

Multimedia Content Stores

Augmenting TV shows, live events & advertisements

with targeted content.

advanceTV

Enterprise private App and Content “Stores”. Working

with BYOD.

Enterprise Mobility

Give students access to

curriculum / course content on any

connected device.

eCampus

+ Future Solutions …