1. TEC Sept. 2011 Deutsche Telekom, Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) Expanding Our Silicon Valley Presence and Activities In the Heart of US Innovation

2. IEEE SV ComSoc Jan 2012 Deutsche Telekom in Silicon Valley Overview Introduction to Telekom Silicon Valley Presence Introduction to DT’s Silicon Valley Innovation Center  Advanced Development Projects Currently Underway  Presentations From Three Partners Wrap up

3. EUR 62.4 Billion Revenue in 2010, Half of it Outside of Germany 3 rd Largest Corporate Venture (T-Ventures) 2 nd Largest Data Center Operator (T-Systems) Significant Carrier Footprint (T-Mobile)  Represented in ~50 Countries Worldwide  About 200 Million Customers  Approx. 26.2 Million Fixed-Network Lines  11.5 Million DSL Lines Within DTs Networks  39 Million Mobile Customers DT Branded Software Development (Products & Innovation)  On-line Commerce; Automotive and Real-estate Search; Music, Video, & Game Downloads, Home Entertainment, and Other Consumer Apps R&D facilities in Germany, Israel, US  Significant R&D in: Advanced Networks, Cross Domain Middleware and M2M, IT and Cloud, Future Communication and Analytics Deutsche Telekom is More Than a Telecommunications Operator Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

4. Deutsche Telekom is More Than Just a Telecommunications Operator Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

5. T-Ventures US: Funding Innovation e.g.:  Cool Iris, Ciphercloud, Pie Digital, Ruckus Wireless, ChooChee and others Business Development: Strategic partnerships, Evaluations, and Transfer, e.g.:  AppDirect, Groupon, Dropbox; Blue Jeans Networks, plus several in evaluation Strategic Parnerships: Scouting Emerging Trends, Incubators and Startups Silicon Valley Innovation Center, nee, T-Labs  Innovation and Development, Partnerships and Integration, Incubation, Transfer Connected to Telekom‘s Business and Operating Units, T-Ventures, T-Mobile Deutsche Telekom in Silicon Valley Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

6. Expanded Academic Research Partnerships  Extended Focus Includes Advanced Development.  Encompasses Networking, Cloud, Mobile, & Enabling Technologies & Platforms SVIC’s Mission: Innovation, Integration, Incubation  Develop, Demonstrate and Transfer Technologies/Applications/Services  Leverage Open Source and Collaboration with Valley Companies and Startups Proximity in SV + Engineering Expertise + Reach  Match Internal Initiatives with Emerging Capabilities  Extend Internal Engineering Resources  Mutual Benefit for DT and Partners  Transfer of Innovative Products Silicon Valley Innovation Center Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

7. Innovative Development Create a Branded Experience  Advanced Networking  Service Enablement  Mobile and Cloud  Architecture and Design  Reference Implementations Incubation Mutual Exposure, Feed-back, Feed-forward,  Strategic Early Stage Start-ups  Access to DT resources Spin-ins, Collaboration Integration It’s About Reach, Mutual Benefit  Startups to Established  Interface to DT Systems, Business Units, Customers –Europe, Not Only Silicon Valley Enabling Services and Platforms Developer Access & Consumer Market  Access to DT Services  Platform and APIs for –Developer Community –Application and Service Creation SV Innovation Center Four Keys Activities Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

8. The Premise: Use Software Defined Networking to Create a More Cost Efficient and Better Managed Data Center Architecture Build on our Collaboration with the Stanford Clean Slate Program  Version 1.0 of Open Flow Architecture and Reference was Developed  Supported and Adopted by Network Equipment Vendors Implement an Open Flow Architecture in a Data Center, Validate and Influence the Evolution of the Implementation and Standard Silicon Valley Innovation Center Innovation, Integration, Incubation Software Defined Networking: Future Data Center Architectures

9. Silicon Valley Innovation Center Innovation, Integration, Incubation Software Defined Networking: Potential for Cost Savings Save OpEx Intel and APC report that OpEx for is 50% that of the total expenses  Reduce through:  Easier management and quicker resolution of problems.  Reduced support fees for deployed solutions (from lower margins)  Power conservation based on adaptive energy-aware workload routing Save CapEx Deploy inexpensive hardware that uses merchant silicon DT operates 90 datacenters world- wide and more are being built

10. Simplify data center networks and control Redesign the control plane, Retain must-have functionality, e.g., IPV6, Mcast Develop DC network management services Build on prior OpenFlow Network Virtualization R&D Broadly Adopted by Network Equipment Manufacturers Validate in Data Center Networks  Reduce Complexity, Flatten the Hierarchy and Centralize Control Realize DC Network Benefits  Application/flow Monitoring and Migration  Better Diagnosis and Debugging  Improved Provisioning, Work Load-balancing Demonstrated Q4 2011 Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) Software Defined Networking: Future Data Center Architectures Core Aggregation Rack Edge Controller Transform Resource layer Computing, Storage L2 switching Service layer Firewalls, Load-balancers L3 routing Today’s DC network arch Internet Current Data Center Architecture Future Data Center Architecture

11. Open Mobile Platform: Mozilla and Boot2Gecko The Premise: It’s Possible to Create a Vendor Neutral, Browser-based Mobile Platform By Taking Advantage of Three Converging Trends  Increasing Network and Handset Performance  HTML5/JS’s use as Application Development Languages  Cloud-based Services to Support Storage, Applications, and Media And Building on Mozilla’s Proven and Trusted Brand to  Better Support Carrier-Centric Requirements  Enable and Enhance Carrier Differentiation  Support a Growing Developer Ecosystem  Increase Consumer Choice Silicon Valley Innovation Center Innovation, Integration, Incubation

12.  Owner with Governance Control  Mobile Platform native APIs  OS specific Services  Appstore regulation incl. Billing  Core Internet Services  Monetization Ecosystem Lock in Today, Verticals Dominate AppleRIM Googl e MS/N okia Boot to Gecko (B2G) Web/HTML5 based Mobile Platform  Truly Open Governance  Open source  OS platform with open APIs  Open Internet for Consumer/Developer  WebApps on html5  Any Source and App Shop  No Ecosystem Lock in + OEM(?) + Developer + (MNO) html5 ‘True Open Mobile Internet’ Mobile Platform: Mozilla and Boot2Gecko Open Source Developer Community: Large Numbers of Developers World– Wide; Curated Contributions Trust and Existing Consumer Base: Tens of Millions Consumers Proven Product Quality: Tens of Millions installs, Billions of Hours of Operation Credibility and Browser Market Penetration: 30% Penetration, Second Most Popular Browser Unbiased, Open Development, Source Code, Roadmaps: Its all Public Standards Driven: Mozilla’s Active Participation in Standards Bodies; javascript Creator Browser, and Web Expertise: Firefox, Thunderbird, Firebug Security FF is Robust; B2G Security Model Provides Additional Resilience Mozilla

13. Mobile Platform: Mozilla and Boot2Gecko, DT Collaboration Telephony, Including Billing API Linux-based microkernel Data traffic offloading / management NFC services and interfaces Network access optimization User experience customization DT Potential B2G Contributions Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) Target Phone Affordable Smartphone  Essential smart phone  Early prototype, based on B2G code base  Prototype Early 2012 Prototype Use Cases, e.g.,  Basic services,  Telephony – call setup  On-Board Devices,  Messaging, Bluetooth, WiFi  Login DT Hotspot and browse  Open Web Apps  App-Discovery in Open App Store  Access Latest of Mozilla’s Store Content  NFC use cases  HTML5 Cloud Services  Pandora, LinkedIn, facebook, DropBox, etc  DT Cloud services (HTML5 Version for Each Service)  User Alerts/push notification: incoming email  Performance Basic Cloud Operator friendly Open ness Special Essential Features, in part

14. The Premise: Its Possible to Develop an Early Warning System for Earthquakes and, Alert:  Those in the Path  First Responders  Emergency Medical and Rescue Teams By Complimenting Existing Seismological Sensors  With Mobile Phones as a Very Large, Ad-Hoc Sensor Array, And Preserve Network Efficiency and Access Silicon Valley Innovation Center Innovation, Integration, Incubation Large Scale Sensor Network for Earthquake Detection and Warning

15. Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) DroidShake: Android-based Sensor Network for Earthquake Detection and Warning Goal: Build a System for Smart Phones to Detect Seismic Signals and to Provide Input to Detection and Warning US Geological Survey: Network of 300 High Precision Detectors within California UC Berkeley: Back-end Correlation and Prediction, Model Validation, Event Rendering, iOS clients SV Innovation Center: Android-based Clients and End-to-End Communication with Back-end System Collaboration with UC Berkeley and US Geological Survey DT droidShake + UCB IOS sensor network ( energy-efficient sensing) Local data filter reduce network load UCB Scalable data processing (ShakeMap generation) Real-time broadcaster (Map or warning message) Emergency Response Social Network Alerts USGS Seismic detectors Seismic data Sensor-net data Aggregate, Correlate, Predict

16. 16 Silicon Valley Innovation Center Innovation, Integration, Incubation (I3) 50 iterations / package size, midday tests on live T- Mobile network (1K)(2K)(3K)(4K)(5K)(6K) (1K)(2K)(3K)(4K)(5K)(6K) 50 iterations / package size, internal WiFi access point DroidShake: Android-based Sensor Network for Earthquake Detection and Warning

17. The Premise: Combine Telekom’s Strengths with its Emergent Consumer & SMB Cloud Offering to Develop a Communication as a Service Platform Supported Within T-Cloud Services and APIs Provide simple, easy to use APIs to  Interface to DT Core Telecom Assets.  Ease New Service Integration With  Telephony,  Messaging,  Social Networking into the Developer’s Core IP. Foster a Cloud-based Developer and Application Ecosystem Silicon Valley Innovation Center Innovation, Integration, Incubation Enabling and Facilitating Future Capabilities Communication as a Service (CaaS)

18. Value Proposition: Simplified Telco for Web Developers Telecom PSTN Web Standards DTMF Codec negotiation uLaw transcoding Asterisk SMPP Realtime CPU capacity planning SIP TTS licensing Multiyear contracts Web-ification of Telephony Communication as a Service (CaaS)

19. Silicon Valley Innovation Center Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) Belladonne: Open Source SIP Video Phone  Development and Integration Choochee Cloud-based pbx and Telephony  Integration Support Mozilla/B2G: Smart Web-phone  Development, Collaboration NEC: Open Flow Controller/Switch  Evaluation Nicira: Open Flow Controller:  Evaluation, Integration, Trial Nimbula (cloud service platform):  Installation, Evaluation (deferred). Among Others Partnering Innovation Labs T-Systems Business Development T-Venture Strategic Partnerships P&I Chief Product and Innovation Office P&I’s Enabling DBU Universities Venture Partners Various Professional Forums, e.g.,  IEEE, TEC, Silicon Valley Forum, GABA Telefonica, (other SPs), too External and Strategic Relationships Who We Work With

20. Time Scale  Near Term to Future Need  Address a Gap, Anticipate Market and Demand Business Drivers  Business and Operational Units  Core Telco, Media, Cloud, Data Center Operations  Enabling new Businesses and Partnering Functional Relevance  Networking, Mobile, Media, Platforms & Services Innovation Across Multiple Dimensions and Domains Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 )

21. Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) Silicon Valley Innovation Center Innovation, Integration, Incubation (I 3 ) But we are part of a pipeline