1. Silviu Stanescu Siemens Information and Communication Carrier Next Generation Networks Convergent alternatives

2. 2 The industry versus the industry Content is king Users are willing to pay for high-quality services Flat rate Wireless voice will cannibalize or even displace wireline voice Wireline's main value-add is fast Internet – voice will move to wireless New services like Video on Demand help providers move up value chain Connectivity is king Users want simple, affordable services; quality is secondary Pay per use Wireless will stimulate growth of wireline voice Wireline will remain the primary delivery system for voice Cost of deploying new services is high, fast RoI unlikely ? ? ? ? ? ?

3. 3 Has the communication experience really improved? Key challenges for Users: Fragmented communication experience Enterprises: Insufficient integration of communications in business processes Cost of running separate infrastructures Carriers: Complexity of infrastructure drives OPEX Dwindling voice revenue High debt load Where are the future sources of revenue?

4. 4 Our vision at home at work on the move M2M Wireless Wireline Public domain Enterprise domain

5. 5 Making the vision real for users Multimedia to wireline and wireless devices SMS and MMS to wireline and cordless phones Easy-to-install customer premises equipment (DSL, WLAN) Videotelephony merges Internet and TV Easy access to corporate network from home Attractive wireline, cordless and mobile devices

6. 6 Making the vision real for enterprises Full integration of communication applications in workflows Joint development of integrated communication applications with IT leaders IBM, Microsoft, SAP Portals and new services that help enterprises personalize their offerings Anywhere anytime access to services and applications provided by enterprise networks

7. 7 Making the vision real for providers Indoor/outdoor convergence sustains value of wireline network Wireline/wireless interoperability brings wireless features to wireline Flexible new business models, e.g.: Mobile models, e.g. pay per use Subscription marketing New billing options Revenue-generating services Video telephony Downloadable ring tones for cordless and wireline phones IP Centrex

8. 8 Unified domain Corporate networkCarrier network Applications End-to-end carrier grade quality of service and reliability Unified communication experience Branch officeMobile workerHome officeHeadquarters Boosting the value of the wireline network – LifeWorks