AgendaGlobal Trends NGN & ConvergenceConverged Network ArchitectureNGN Advanced Services ArchitectureSIP Based Multimedia SoftPhoneUnified CentrexContinuity FMC SolutionVideo ConferencingCase Study- PSTN to NGN Migration

Global TrendsTechnology TrendsNetworks are moving towards end-to-end IP to support faster and higher BW servicesConverged Transport to provide robust high BW link between application and userNew Wireless technologies are delivering service to remote regionsBroadband is replacing dial-up to provide high speed accessNGN Core being deployed to support multimedia servicesFixed Mobile Convergence promises seamless connectivity regardless of locationIPTV is enabling new multimedia applications over Broadband now

Market/Industry TrendsConvergence of communications & entertainment - Voice, Data, & VideoAggressive growth of broadband subscribers globallyIncreasing need for higher end-user bandwidth-for Multimedia ServicesTransition from network-centric single services to subscriber-centric offering

Services Value chainService Bundling - Basic Voice-driven to multimedia service-driven business modelBasic services- Voice, Internet accessValue Added services- VMS, SMS, UMS, CRBT, IM, Presence, LBSMultimedia Services IPTV, IP Surveillance, Video Conferencing

Convergencehappening everywhere & traditionally isolated markets are overlappingConvergenceConvergence inTelecommunicationsNetworkServiceTerminalIP basedHeterogeneous environmentUbiquitousContinuity of services & contentBroadband basedSupporting mobilityConvergence facultySmart facilityUser friendly interfaceIndustry/ServiceTerminalNetworkMedia

NGN ConceptNGN is a concept for defining & deploying networks, which due to their formal separation into different layers & planes and use of open interfaces, offers service providers a platform which can evolve in a step-by-step manner to create, deploy & manage innovative services.NG Architecture :Service oriented, layered (transport, control,application)NG Services:Converged (quad play- voice, data, video & mobility)NG Access :High speed (Broadband) IP based connectivity(ADSL,VDSL, WiMax, Cable TV, FTTH)NG Transport:Ethernet, IP-MPLS, RPR, T-MPLSNG Mobile:3G+, 4GNG Internet:IPv6NG Interconnect:Capacity and Quality basedNG Licensing:Unified, Converged

NGN Converged System Architecture PSTN/PLMN & IN(CAMEL)PHS PBXV5 ANIP phone/IAD/IP TV ConsolePOTS/DSLAMGiUMGSGWTMG WiMAXGateway LayerCore SwitchControl LayerService LayerNMSOSSOSA Parlay GatewayParlay API based AS SCP (IN&CAMEL)VAS ServersSLR (VLR/HLR)Pre-paid ServerSoftSwitch Call Servers Managed IP Network 3rd party ASiMSCDMA2000IP AccessGWASN

BS

CPEBSCBTSUnified Core Network Solution for all Voice Applications

NGN Advanced Service Architecture CS-PSGiUMGSLRM3UAM2UAIUAH.248Parlay Gateway H.323 NetworkIP-TKCAP/INAPSIP/SIP-TSIP/SIP-TISUP/PRIOSSNMS iNumber iSecretary VPN Video Conference FMC Calling Card Video Call Voice Mail Instant Message ... Short Message MCN Location Service Mail Service C-Mode mService 2G/3G NetworkSIP/SIP-TCAP/INAPISUP/PRICore Switch NetworkUT iSCPExternal SCP Pre-paid Calling Card Toll Free Standard IN/CAMEL ServicesIN/CAMEL SIP NetworkH.323VAS ServerHTTP/SNSP

Advanced Multimedia ServicesSmartPhone (UTSmart) SIP Based Multimedia SoftPhoneUnified CentrexContinuity FMC (Fixed/Mobile Convergence) SolutionConferencing- Voice, message, multimediaVideo Calling & Video ConferencingiNumber- Find me Follow meCRBTUnified Messaging- Voice, Email, Fax, VideoQuadruple Play- Voice, Data, Video & MobilityVoice over BroadbandPresence & IMPSTN Emulation Services

Smart Soft PhoneSupport on Microsoft Windows 98/2000/XPEmbedded SIP soft phone for voice and video callsVoice codec G.711a, G.711u, G.729Video codec MPEG4, H.263Phone address bookFriendly GUI for service activation and deactivationAutomatic update of call records for call historyAuto answer and voice message recording/replaySMS support from/to NGN/PLMN/PSTN subscribersSecurity with password protection (MD5)Multiple call server configurationSupport of automatic upgrade from HTTP server

Enterprise Access SolutionUnified CentrexPSTNPBX SHPRISoftSwitch105xxxx06xxxx03xxxx04xxxxCentrex SZCentrex HZCentrex BJSoftSwitch2SoftSwitch3IP Core ISUPProvisoning CenterParlay GatewayParlay APIiWAC AS Centralized mService CenterEnterprise Access solution: Multi-Access based solution for Enterprise customers One System Virtually support multi Enterprise Users. Wide Area Centrex supports multi-site offices of one Enterprise Customer. Mixed Centrex Group (NGN user, PBX and mobile Centrex) [In Roadmap] IP Phone/PHS Phone (as well futures other Wireless Access Terminals) Roaming among different office

FMC-Business DriversMany households today have at least one cell phone.In these households estimated 60% of long distance calls and 36% of local calls take place on mobile phone at home (Yankee Group)14% of users use cell phones as their primary line (Yankee Group)Additional 26% of users are ready to switch as in-building coverage improves Over 50% of users place mobile calls when they are at home or office (Wireless Review) WiFi exists or can be supported in both placesTraffic on mobile network has been increasing causing QoS problem and hence subscribers churnPressure to reduce tariff for voice servicesFixed broadband availability is growing at a rapid pace - double digits in most casesVoBB provides new revenue stream for Service Provider, and also give a low cost alternative to carry mobile voice trafficLeverage low fixed line asset cost to support the mobile voice application Users need to access services seamlessly regardless of their location, active device or the network access methodLower CAPEX, Lower OPEX, Higher coverage and quality

Driving ForcesConsumers like mobile phones And all of them are not using just for mobility In >50% cases used for portability, not mobility. Consumes demands low cost for voiceBroadband is getting widely deployed Voice over broadband is not only new revenue stream for SP, but also the low cost alternative to carry mobile voice trafficLeverage low fixed line asset cost to provide the mobile voice application Lower CAPEX, Lower OPEX, Higher coverage and quality

=> Fix Mobility Convergence

With FMC, users can access the best available service whether they have mobile coverage (e.g. GSM, CDMA), Wi-Fi/fixed-line coverage (e.g. Wi-Fi SIP over broadband) or a combination of both.

Continuity - Fixed Mobile ConvergenceMOBILENETWORKMSCHLR /VLRFIXED / WIRELINENETWORKWiFi/GSM Dual Mode Handset WiFi/GSM Dual Mode Handset EXISTINGSOFTSWITCHEXISTINGMEDIA GATEWAYPSTN/PLMNNETWORKSS7NETWORKInter-Roaming between WiFi domain and mobile network

Solution fit for different OperatorsMNO (e.g. Cingular, Sprint)Improve the mobile coverage with low cost WiFi- Residential / Enterprise / Public hotspotPartner with Cable/Fixed Op to offer total package- Triple or Quadra-playNGN Operator (e.g. Vonage)Enhance their current offerings with mobile capabilityPartner with MNO as whole sell (MVNO) or roamingIntegrated Service Provider (e.g. Brazil Telecom)In-house Mobile and Fixed line operationFMC allows them to use fixed line infrastructure to offer mobile serviceThe combined infrastructure provides lower OPEX ratio comparing with pure MNOCable Operators (e.g. GCI, Comcast)Partner with MNO to offer FMCNatural extension from Triple-play to Quadra-play Voice, Data, TV/Video, MobileFMC-Enabler (e.g. VeriSign)Host equipment and provide FMC backend capability to other NGN, MNO operatorsWork with multiple small/tier 2/3 operators Dont acquire FMC subs directly

FMC Solution Advantage Service Provider PerspectiveConverged service infrastructure by consolidating the voice services between the fixed and mobile networksMobile coverage (GSM, CDMA) Offering mobility, convenience and ubiquityWi-Fi SIP over broadband Offer better quality, lower cost and feature rich capabilitiesEnhancement of Service QualityStimulates the new service opportunities to increase ARPUCapability to quickly include value added services - VMS, SMS, CRBT, FMFM, Centrex..Provides the service differentiators and creates the service stickiness to lower the churn rateReduction in CAPEX/OPEXby offloading the traffic from cellular to WLAN and spending less on infrastructure buildoutSingle set of user credentialsUsing GSM IMSI method authentication for both networks simplifying the user management System Reliability and Scalability backed by Real DeploymentBased on the proven NGN (mSwitch) platform (and its IP core)The single mSwitch solution implementation serves over 2.1 m subscribersArchitecture compliant with 3G/IMSFuture-proof via open standards

FMC Solution Advantage-User PerspectiveFMC enable users to access their voice and data services transparently, regardless of their location, device, or network-access methodOne Number and One Phone serviceWiFi SIP or GSM/CDMA coverageThe user will be able to initiate and terminate calls at any placeSeamless RoamingThe user will have non-interrupted call sessions when moving from one network to anotherUniform and consistent service accessibility & behavior independent of access especially attractive for enterprise users to extend corporate VPN to cellular networks.Reduced monthly charges & convenience of a single billSimplified and Unified service plans and payment schemes. A single always reachable phone number (Option for dual number)Availability of new servicese.g. IM, Unified VM, SMS, Unified phone book, CRBT.

FMC Value PropositionService providers can now:Reduce churn by providing single number NGN & wireless service to customersIncrease stickiness through advanced servicesGenerate new revenue through supporting roaming agreementsFuture-proof via open standardsMaintain a single cost-optimized network infrastructure

No Impact to Existing NetworksTo Existing NGN Networks:A functional module addition to the existing SoftSwitch and backend applicationAble to use the existing NGN for call processing and routingNormal NGN users are still served by existing infrastructureZero impact of the FS additionAll (home/visiting) FMC users will be served by the FMC-FSRegistration, authentication, roaming, call processing, handoverFMC-FS requires access to FMC user profile dataHSS (Home Subscriber Server) model of IMS

To Existing GSM Networks:GSM Homed FMC users appear to be regular GSM usersNGN Homed FMC users appear to be visiting GSM usersFMC-FS uses standard roaming Interface to the GSM Network

Video Conference Service CS-PISUPmSwitch Domain 1SIPSLRParlay APIConference AS CS-PmSwitch Domain 2SIPSLRCentralized mService Center iAN8000 iAN8000Video Conference Service:Multiple types of conferenceMultiple conference reservation methodsAutomatic notification to conference participantsRich set of conference management and control functionsISUPParlay GatewayPSTN/PLMN

PSTN to NGN Migration Case StudyBackgroundA leading tier 1 carrier in PhilippineOwning 2m fixed & 22m GSM mobile customers as of Q2 2006A public company listed in NYSETotal market cap of US$7.8B as of Sept 2006Total revenue US$2.5B in last 4 quartersEBITDA US$1.6B in last 4 quartersOperating margin 37%A fast growing service provider in Asia Provides fixed line, GSM mobile and broadband data service to both residential and enterprise customersProblem StatementHow to sustain and grow the fixed line service?Lots of population without telephone serviceLots of business users demand more serviceHow to increase the ARPU leveraging NGN/IMS?IPTV? FMC? Triple-play? Quadrupled-Play?How to lower the OPEX?Real estate expense in the big metropolitan area?Power consumption?Human resource required for operation?How to manage EOL/EOS of the aged TDM switches?The cost of maintaining is unbalance with the cost of buying new

UTStarcom SolutionPSTN Emulation Subsystem PES Provide services to green-field customersReplace the existing TDM switch total 7 models in place mSwitch as the core SoftSwitch + Gateways + Backend office applicationsiAN8000 as the accessCombination of DSL, DLC and VoIP AGFoundation for FMC and IPTV in the future

Phase 1: Started with 150K NGN lines capacityNetwork installation and migration planning for 3 monthsFirst TDM switch replacement/migration in March 2006 Adding customer via both old switch migration and green field expansionService extension to CentrexTargeting under served enterprise customers Phase 2: Network expansion to total of 500K NGN linesContract signed in later 2006Network fully deployedPhase 3: Planning for total of 1.5M NGN lines in 2008 Total 5m NGN lines planned in next 3 5 years150+ CO sites replaced by 3 NGN SS sites

Migration BenefitsCAPEX SavingsCentral Office (CO) consolidationSimpler network with fewer types and pieces of equipmentOPEX Cost Savings- 80%Operation and Maintenance cost reduction Reduced power consumption- 94% (Reduced air-conditioning requirements)Faster provisioning of servicesFloor Space Savings- 92%Reduced space requirementsConsolidation of cabinet areasImprovement in time-to-market for new services- 90%Faster introduction of new services Increase in RevenuesEOL managementEnd of support to critical TDM components- High cost of vendor supportStop manufacturing of componentsSalvage components to support in-house repair of modules when they run out of spares.

Blueprint of One Real CO Space Reduction19 x 11 =209ft26 x 4 =24 ft248 x 29 =1392 ft26 x 34 =204 ft2Total Space= 1392+209+24= 1625 ft2

Total Saving in One CO =1421 ft2

Greatest Experience: Cut-Over ProcedureIP, NGN, and PSTN inter-connect infrastructure configured and testedAGs installed, wired on MDF, configured, and qualifiedMigration of Digital Loop Carriers Retrofitting the access gateways in existing DLC cabinetConsolidation of cabinet areas Sample subscriber data populated, provision ADSL SubNumber migration set up and tested for lines and trunksBulk sub data migrated and tested again for all features and billingMDF- isolation pin switched so that sub lines are switched from legacy switch to AGs (a couple of minutes)PSTN tandem switches re-route traffic from legacy switch to NGN C4 (1 minute)

Thank YouThis presentation is provided by UTStarcom for planning purposes only. Changes in market conditions and/or other changes in circumstances, can affect the assumptions upon which this presentation was based or otherwise impact the contents of this presentation and therefore such contents cannot be guaranteed and are subject to change at any time without notice. Nothing contained in this presentation shall be deemed to create, modify or supplement any commitments or warranty made by the company, whether expressed, implied or statutory, in connection with the products, technology and/or services referenced herein.*Some features may require addition development and may not be ready for immediate implementation.

iNumber Find Me Follow Me CS-PISUPmSwitch Domain 1SIPSLRProvisoning Center PSTN/PLMNParlay GatewayParlay APIiNumber App. CS-PmSwitch Domain 2SIPSLRCentralized mService Center iAN8000 iAN8000iNumber is UTStarcom solution name for Find-Me-Follow-Me serviceSubscriber registers one number as a master numberThen associates other numbers to the master number- home, office ... Whenever the master number is called, the system will ring sequentially all the numbers

Flexible number bundling among SIP user, PSTN POTS, PLMN MSISDN etc.Dial one number to reach all the bundled numberSupport sequential and simultaneous ringing optionsActivated/deactivated through web/IVR

CRBTOSSNMSCS-P/iUMG #1TS(SLR, PSC)PSTNNGNAccessCRBT media libraryUser web portal/OSSCRBT media/signaling serverNFS14253

Sri Lanka ScenarioPopulation 20 million Tele density ~ 50%.* Based on forecast provided by Infonetics Research in Nov 2007NGN market in Asia provides a potential for a cumulative operator capex opportunity of approx. $3.9B* over 2007-2010 and $0.9B* in 2008Competition remains intense but rational. Strict profitability focus in Operators.All Operators considering NGN deployment and have issued RFP/Tenders

NGN Market DriversTDM switches facing EOL or reaching capacity saturationExplosive growth in Internet traffic Intense competitionTelco vs. Cable vs. Satellite vs. Wireless vs. NGNNeed for Improved Business ModelOPEX savings and top-line revenue growthNeed for Service DifferentiationEase in offering new services (VoIP, IPTV, FMC) Time-to-market and ability to provision services quickerIntegration of network resulting in huge network cost savings

Media, Industry/Services, Network, TerminalFMC (Fixed/Mobile Convergence)A wide range of mobile services that converge elements of fixed communications infrastructure to complement the core mobile service.ConferencingCalls on the users online, convenes voice and message multimedia conferences, and provides the users with various conference operations and abundant service experiences.PoC (PTT over Cellular)In compliance with the OMA PoC standards, this service provides complete end-to-end solutions, mainly Ad-hoc session, predefined (pre-arranged) group session, and chat. MessagingProvides the instance messaging function, and serves a message gateway to interwork with other message systems (SMS, MMS). UM (unified message)Provides message conversion and intelligent transfer of messages according to the user intention and location information. Presence & IMPresence service allows users status being known by others in his/her contact list; IM is a service bound with presence to enable users to send/receive messages in a almost real time manner.CRBT (Color Ring Back Tone)Customized ring back tone as Music, Song, personal recording etc. instead of normal ring back tone. iNumberNumber bundling for a group of selected numbers. All the subscribers in this group will ring simultaneously or consequentially for an incoming call to this particular subscriber. iNumber enables the service providers to provides value added service using existing network resource with incremental successful call traffic, extending the subscriber availability across wireline and wireless. Advanced WAC (Wide Area Centrex)Consolidates original Centrex user groups of different local exchanges/switches into a wide area virtual intra-network. An iWAC user can dial another iWAC user with a short number customized and unified by his company no matter where the called party is- in local area or in long-distance area. It supports the basic features of Centrex, such as call forwarding, caller ID presentation and so on. PrepaidService for all type of subscribers- POTs, IAD and SIP soft-phone users. Calls (incoming/outgoing) of the prepaid user are under real time surveillance based on available user account deposit. SmartPhoneA PC software phone product. Access CS using SIP protocol. Provides various supplementary service eg. CLIP/CLIR, Blacklist/whitelist, speed dialing, alarm service, CFU/CFBL/CFDA, Web conference and SMS etc.PESEmulating a PSTN/ISDN network from the point of view of legacy terminals (or interfaces) by an IP network, through a gateway. All PSTN/ISDN services remain available and identical; such that end users are unaware that they are not connected to a TDM-based PSTN/ISDN.

Mixed Centrex Group --- Within one CG, users could be mobile centrex subscriber, PBX subscriber and NGN IP centrex users (iAN users, Legacy POTS user, and VoIP CPEs). 198M Cellular Subscriber