1. Biggest Opportunities for Improving Network Values Presented By: Victor Glass, NECA At the NITRD Workshop: Complex Engineering Networks

2. Biggest Opportunities: Policy Redirecting regulatory reform from services to networks FCC focuses on voice and DSL Should focus on maximizing the social value of smart packet networks Needs to consider interconnection arrangements with both transport and content delivery networks 2

3. Biggest Opportunities: Company Specific Reorient business plan towards becoming a smart network provider Market Research Value of smart network features Identify new applications for smart features New Pricing Strategies and Billing systems Company/customer education 3

4. Selected Opportunities In-Depth Improve techniques for valuing smart networks – Survey -- characteristic models don’t really work Suppose estimated a characteristic model for personal computers. Would the model have said an IPAD would sell? Personal example – working with postal service on a virtual network to cut delivery costs and enhance business offerings Conduct learning studies – What are the most effective techniques to inform potential customers about the value of smart network features? Example smart pricing – value of bandwidth, delay, use of the Internet 4

5. Selected Opportunities In-Depth (Cont’d) Understand the challenges for upgrading billing systems Company perspective Customer perspective 5