Alcatel-Lucent – Internal

ServiceBusiness

Deployment

Unlocking Fiber Deployment….

Flexibility is the key

Andrea AfkhamiVice President Marketing, Wireline DivisionAlcatel-Lucent

Alcatel-Lucent – Internal

0%

10%

20%

30%

40%

50%

S.Korea Japan US Europe

FTTH/FTTB Deployments are Below Expectations

2 | FTTH Conference Milan| February 2011

Market Uncertainty has locked the door to Fiber Deployments

Economic Uncertainty

Regulatory Uncertainty

Technical Uncertainty

2%

FTTH/FTTB Homes Connected by 2010YE

30% less than 2008 estimate

Source: FTTH Council

Alcatel-Lucent – Internal

How do we Unlock the Door to Fiber Deployment?

3 | FTTH Conference Milan| February 2011

Deployment Flexibility

Business Flexibility

Flexibility is the Key!

Service Flexibility

Alcatel-Lucent – Internal

Deployment Flexibility – Many Paths to Universal Access

4 | FTTH Conference Milan| February 2011

Deployment Flexibility is the Master Key to unlocking Market Uncertainty

Intelligent Access Node

A flexible deployment:

Leverages existing assets

Adapts to changing demand

Supports technology choice

today and in the future

Supports diverse business models

Can go beyond residential access

Alcatel-Lucent – Internal

Service Flexibility - Go Beyond Residential Access

5 | FTTH Conference Milan| February 2011

Service Convergence is the key to increasing your Return On Investment

Mobile

Home

Enhanced Services

New Services

Business

Residential Access

Application

Management

Small Cells

FTTD

Digital Signage

Smart Grid

VODIPTV

Application Delivery

Home Media

Sharing

EBBA

EnterpriseMobile Backhaul

Security

Targeted

Advertising

Content Delivery

Analytics

Alcatel-Lucent – Internal

Unlock More Value from the Network with Application Intelligence

6 | FTTH Conference Milan| February 2011

Why Application Intelligence in Access?

What is it? What can we do with it?

•Leverages the Access Node’s unique assets

•Utilizes embedded processing,

local caching & external I/Fs

•Offer new services

•Enhance existing services

•Optimize network operation

•Unique knowledge about activity in the last

mile

•Unique locationto enhance and

protect services

Application Intelligence in Access opens the door to new Revenues & improved Service Delivery

Alcatel-Lucent – Internal

Business Flexibility – Embrace new Business Models

7 | FTTH Conference Milan| February 2011

Multiple Business Models:

Partner to Benefit Both Companies

Share Assets, Customers, Services, etc.

Consumer Broadband Access,

Services (IPTV, VoD, etc.)

Exposing Access Assets to 3rd PartiesAvailable Bandwidth,

Caching, etc.

Business Passive Infrastructure, Bit Stream, Services

New Business Models unlock a path to new Revenue Sources

Alcatel-Lucent – Internal8 | FTTH Conference Milan| February 2011

• Deployment Flexibility is the Master

Key to addressing Market Uncertainty

• Service Flexibility & Business Flexibility

are the keys to increased ROI

• Application Intelligence unlocks

more value from your network

Flexibility is the Key

Alcatel-Lucent – Internal

ServiceBusiness

Deployment

Thank You

9 | FTTH Conference Milan| February 2011