2. All rights reserved © 2002, Alcatel — 2 Day 2: Wednesday 5 June 2002 09:00am Session II Broadband: The Demand Side Broadband and The Borderless Enterprise Geof Heydon Director, Broadband Market Development – Alcatel Asia Pacific

3. All rights reserved © 2002, Alcatel — 3 OECD Seoul BB Workshop – 5 June 2002 I am a consumer citizen I am an employee I am always late for the TV news I want to work at home I need more time I only pay for what I need My kids are hooked on interactive games! My wife manages our finances I am me! Multiple Services, Single access Multiple Services, Single access I am a parent … a new set of market dynamics

4. All rights reserved © 2002, Alcatel — 4 OECD Seoul BB Workshop – 5 June 2002 Business Attitudes t Dunn & Bradstreet, February Internet study t E-Business provided no positive impact t 49% not using Internet for business transactions t 20% decrease in 1 year t Companies are trying e-business, then giving up What is the e-business problem? And more importantly, What is the solution?

5. All rights reserved © 2002, Alcatel — 5 OECD Seoul BB Workshop – 5 June 2002 The Next Economy t Peter Drucker in the Economist Magazine t The “Next Society” t Knowledge is now the primary competitive factor, highly portable t Growing number of knowledge workers are external t Part time, temporary, contractor, consultant t A global resource The future corporations will be much smaller Ecosystem. Augmented by Confederations, syndicates, cooperatives

6. All rights reserved © 2002, Alcatel — 6 OECD Seoul BB Workshop – 5 June 2002 Alcatel Technology enables the Borderless Enterprise The Borderless Enterprise Characteristics t Core business focused t Competitive leadership t Absence of Internal borders t External Links to expert firms of any size t Satisfying the end customer t Temporarily uniting people for a specific purpose t Any people, any where, any time

7. All rights reserved © 2002, Alcatel — 7 OECD Seoul BB Workshop – 5 June 2002 Why is all this relevant to the Telecommunications Industry? t Through the demand for instant, secure, intelligent and low cost convergent broadband networks t People friendly devices and applications t A network delivering Anywhere, anything, anyhow and to anyone The Borderless economy - businesses of all sizes collaborating and technology has a key role to play

8. All rights reserved © 2002, Alcatel — 8 OECD Seoul BB Workshop – 5 June 2002 The Borderless Enterprise Foundation t 1 Broadband Communications t Always on, fast t The next global utility t 2 Convergence – the three C’s t Communications, Content, Commerce t Intelligence t Much more than voice and data t 3 Advanced Interaction Solutions t Conditional Access t Privacy, billing, Copyright t Interoperability delivering real efficiencies Effective business practices of the future

9. All rights reserved © 2002, Alcatel — 9 OECD Seoul BB Workshop – 5 June 2002 Residential Drivers t 1 Broadband Communications t Always on, fast t The next global utility t 2 Convergence – the three C’s t Communications, Content, Commerce t Appliances t Much more than voice and data t 3 Advanced Interaction Solutions t Conditional Access t Privacy, billing, Copyright t Flexible and multiple services & providers Valued Entertainment & Information Services The Video based Entertainment Foundation

10. All rights reserved © 2002, Alcatel — 10 OECD Seoul BB Workshop – 5 June 2002 Alcatel is becoming an increasingly Borderless Enterprise t Alliances t Applications partners t technology groups t manufacturers t 3G m-Net Consortium t Governments, Service providers t Shanghai Collaborative Management & Information Centre t Travel costs cut by 50% t 10% increase in customer contact t 3G Reality Centre t Content and applications development collaboration

11. All rights reserved © 2002, Alcatel — 11 OECD Seoul BB Workshop – 5 June 2002 Conclusion t The future of business looks bright t Innovation continues in core enabling technologies t The Borderless Enterprise will thrive on:- Adding business value - the “People Factor” Cost effective Broadband access Network Convergence Interaction Technologies