Buckle Up for Safety:

Telecom Ready for the Passing Lane

Prepared for:

MaRS Global Leadership Series

3 October 2007

2

Agenda

! Experience: Telcordia Perspective

! Reach: National Security

! Innovation: WiMAX, Telematics

! The Road Ahead

! Q&A

3

The Telcordia Perspective

! Known as the chief architects of the telecommunications

system in the USA

! The global market leader in telecom software and

services worldwide

! We hold over 880 patents for world class innovation in

ADSL, ATM/SONET, AIN, optical networking/WDM,

wireless (3/4G, Bluetooth®, cellular, mobility), and security

! Telcordia holds leadership positions in the industry’s most

respected standards bodies and forums

! Our reputation as the “networkers’ networker” is evident in

our industry-leading implementations

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Convergence Experience: Puts the

Consumer in the Center of the Action

5

Wireless

Convergence: Industry Experiencing aPeriod of Hypercompetition

Peer2Peer Peer2Peer SuitesTraditionalVoice over IP

Wireline

Cable

NewMedia

Consumer&

Business

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Reach: Redefining “Network”

TSAT Mission Operations System (TMOS) will

enable a space-based high-capacity

communications system

U.S. Defense Department's "Internet in the Sky"

Mobile Virtual Network Operator

(March 30, 2004, Toronto, ON): The

Virgin Group And Bell Mobility

Today Announced Plans To

Launch Mobile Voice And Data

Services In Canada

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Reach: National Interests (USA)

National Security Telecommunications Advisory Committee:

! Program Scope: implementing national security andemergency preparedness communications policy

! Communications Complexity: interdependent, diverse,software-based, multi-x, quadruple-play

! Globalization issues: interdependence, joint ventures,cross-border vendor mergers

! Information infrastructure: an inextricable link betweenTelecom and IT

! Dependence on information infrastructure by commerceand government alike

! Private vs. Public interests: critical to the government;owned and operated by the private sector

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Reach: A Global Industry

December 26, 2006:

KDDI Announces

Restoration of

Undersea Cables

Destroyed by the

Taiwan Earthquake

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Reach: Unwanted Reach

May 17, 2007 (IDG NewsService) -- A spree ofdenial-of-service attacksagainst Web sites inEstonia appears to besubsiding, as thegovernment calls forgreater responsemechanisms to cyberattacks within the EuropeanUnion. Photo: The First Post

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Innovation: WiMAX

! Provides wireless data over long distances

! Built from a clean sheet of paper: data is the starting point,not a voice network trying to morph to fill data needs

! Considered the key to bridging the digital divide

! Greater capabilities, greater opportunities

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Turning a Ford Five Hundred

sedan into a wireless

communications center

Telematics: computing +

communications

Innovation: Telematics

! Motivation: more traffic, more safely, over static infrastructure

! Requirements: massive scalability, reliability, security, privacy

! Result: convergence of safety, convenience, information,entertainment (“Vehicle Infrastructure Integration”)

! Applications: micro traffic reports/routing; SMS fast foodordering; local merchant instant discounting (e.g., oil change)

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The Road Ahead: A Collision of Business

Models [Source: Yankee Group]

Carrier -Centric

Search -Centric Community -CentricCE-Centric

Commerce -Centric

ConnectivityCentric

Communications

Centric

New Media -CentricTraditional

Media -Centric

Enterprise -Centric

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The Road Ahead: Lessons from Lean Industries

! Low-Cost Airlines

! Banking

! Consumer Goods

and Retailing

Best Practices

•High Levels of End-to-

End Process Automation

•Customer Self-Service

•Just-In-Time Capacity

Management

•Demand-Based Pricing

•Seamless Partner

Integration

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The Road Ahead: New Value ChainsIPTV Example

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The Road Ahead: What to Expect

2 Yrs. 2-5 Yrs. 5-10 Yrs.

Technology

Assimilation

Bandwidth

Expansion

•Location-

Aware

Technology

•Femtocells

•Wi-Fi

802.11a/b/g

•IP Multimedia

Subsystems

•Fixed-Mobile

Convergence

•Fiber-to-the-X

•Mobile WiMAX

•cdma2000 EV-DO

•Internet Protocol

Television (IPTV)

•Near Field

Communications

Mobile Payment

•4G Cellular

•Adaptive

Antennas

Source: Telcordia, Gartner

General Availability

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Downshifting for the Passing Lane