2. It’s About Time. Providing Integrated Services Over Copper & Cable February, 2001

3. Overview Today’s Topic: Providing an Integrated Services Package Over Copper and Cable What’s Cool About Integration Opportunity for Integrated Services Implementing Services Strategic Considerations

4. What’s Cool About Integration Integration future proofs the SP’s business Realizes the service providers’ dream: One connection; multiple revenue streams Provides ARPU protection Keeps SP on favorable price and margin curves Aids Customer Retention

5. Integrated Services Opportunity Voice Security: –Firewall/Virus Protection –Filtering –VPN’s Messaging –Translation –Integrated Video –Mail –Conferencing

6. Opportunity Con’t Collaborative Work –Virtual Meeting –Shared Whiteboard Web Design/Web Hosting Caching/Peering ASP Services ECommerce

7. Opportunity Rough total for all these is in Multiple Billions of Dollars Service integration assures continued participation as more and more of everyday life migrates to networks.

8. Implementing Services

9. Voice CPE –Up to 16 simultaneous voice channels on a single copper pair –Soft provisioning of additional voice channels - no truck roll –Integrated voice and data solution –Focused on SME and high-end residential market POTS Data: Internet, etc. Standard ADSL ADSL Line ADSL with “derived” voice POTS Data: Internet, etc. ADSL Line

10. Voice “Bundles” SOHO and small businesses –Package high speed data and multiple voice lines –PBX/Key systems attached to/integrated into modem –Small Centrex groups Residential –Package of high speed data and multiple voice lines –Home working environment (PC, Phone, Fax) –2nd and 3rd line (pairgain) E.g. Install for 2nd line POTS and be data ready

11. Voice Gateways ADSL-NT ASAM Mini-RAM... ADSL-NT... ASAM Service providers Access providers End users Service management... ATM backbone... Data backbone ATM edge Corporates Isp’s BAS ATM or FR pipes IP-tunnels PSTN GW

12. Security: DSL Access: PPPoX with L2TP tunneling DSL ATU-R DSLAM DSL ATU-R Shasta BSN L2TP Tunnels LACLNS ATM Access ATM Core SP VR CVR CoSine IPSX IPSec Tunnel L2TP Tunnel IPSec TunnelsPPPoX Tunnels PPPoE and PPPoA sessions through to the correct CVR One L2TP tunnel for each enterprise, with the ability for multiple PPP sessions per tunnel LAC STM-1

13. Leased Line Access: Direct CPE Metro Loops ATM Core SP VR CVR CoSine IPSX IPSec Tunnel IPSec TunnelsPPP Local Access Channelized T1 or fractional service Channelized DS3 Timeslot groups for each customer is mapped from the Channelized DS3 through to their respective C-VR.

14. IP Services with CoSine solution IPSec VPNs Managed Firewalls VPDN for secure dial Extranets Frame Relay Integration n Irrespective of method used, once the customer traffic reaches their CVR, value add IP services such as VPNs, Firewalls, NAT, Anti Virus, etc can be provisioned exactly the same way for each subscriber

15. Putting It All Together

16. Trends: Business Users (1) DecentralizingOutsourcing Intra-/Extranet Supply Chain Integration Access to advanced services for SME/SOHO VPN Virtual Office ASP Roaming Web Hosting Source: Asia/Pacific Telecom Network Services Market 1999-2004, IDC

17. Voice-Data Convergence Trends: Business Users (2) More than 60% of APAC companies are integrating or will integrate data and voice. A large share of these companies will use Voice over Packet to communicate across the supply chain (suppliers, customers and channels/resellers). Source:WAN Manager Survey - Jul 2000, IDC

18. Business Services Access Node Access Node Access Node Enterprise Large Business Small Office Home Office Mobile Telecommuter Switch/Router End-user applications WW Local connect (roaming) Single Authentication VOICE VPN PRI, Centrex, VoIP DATA VPN Internet, Intranet, Security, Privacy, Management Outsourced Firewall, Routing E-Commerce, Co-working increasingly need more network services VPN, Security, Privacy AAA, Billing Policy, QOS, SLA VoIP, Fax/IP, Transport which can be provided by network operators

19. Residential Services Switch/Router Access Node Private Residential Content Application Provider Server farm Voice POTS, ISDN, VoIP Dial up Internet Always on Internet Videoconference Web hosting, E-mail, E-commerce S&F Fax/IP, Unified messaging Audio/Video Streaming Interactive Digital TV End-user applications increasingly need more network services VPN, Security, Privacy AAA, Billing PPP, tunneling IP pool management Remote Access Services RT Fax/IP, VoIP, Transport which can be provided by network operators

20. Strategic Considerations When ? –Now –Plan for Migration What is proper sequence ? –Start with most likely to be broadly adopted –Build critical mass –Differentiate to vertical need –Take a prudent chance

21. Strategic Considerations Functionality at Edge or Core? –What works when your customers’ need it –What will continue to allow you to differentiate –What suits your organization’s skill set

22. Summary Integration can help future proof an SP’s business Integration can begin today Take prudent risks to differentiate toward your key segments