All IP. Is Swisscom ready to take up the challenge? Ueli Dietiker, CEO Swisscom Fixnet Ltd Felix R. Graf, VP TV & portal Swisscom fixnet Ltd

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1 All IP Is Swisscom ready to take up the challenge? Ueli Dietiker, CEO Swisscom Fixnet Ltd Felix R. Graf, VP TV & portal Swisscom fixnet Ltd 19 Sept 2006

2 What does IP mean for Swisscom? 2 New business model Investments in infrastructure Investments in services

3 Agenda 3 1. Infrastructure a) Transmission-Networks Current Future b) Access, in particular VDSL2 Services a) VoIP b) IPTV 1. Conclusion / Outlook

4 1a) Current situation: "x" different physical networks 4 Telephony Data Broadband Mobile Long dist. level Regional level Customer & terminal

5 1a) Current practice: Overlapping, redundancy, complexity 5 Physical Networks IT systems (etom)

6 1a) Future: "ALL IP" = Time to market & increased efficiency, cost savings Services Network control VoIP One Phone IMS Messaging IPTV Technology One technology, one network & operation Unified IT for controlling the network Long dist netwk level Regional netwk level Product Convergence Access via fixed & mobile Time to market Rapid implementation of target group specific applications Customer & terminal End2End IP universally used, in the network and in the home 6

7 1a) Future: IMS (IP Multimedia Subsystem) = Control Layer for "ALL IP" 7 ALL IP Network Services Messagin g IP TV IP CTX IMS Control VoIP OnePhon e IMS Core IMS enables multimedia services to be accessed by all devices, regardless of the access technology IP Transport

8 1a) Leading edge 3Play network architecture already built Legacy NEW NEW ADSL VDSL FTTB Pilot 5 Mb Mb > 50 Mb * 924 Accessnet -> High Speed Technology 14 Metres -> Redundancy & Quality NEW 1 Core -> High Tech & Capacity * Tel. remains Legacy Fibre Copper 8

9 1b) ADSL from a central regional transmission point (RTP) has limited coverage Access networks Distribution boxes ADSL RTP HSI: 98% ~2 km 3P : ~70%

10 10 1b) Provision to cabinets provides VDSL with additional bandwidth Central Office VDSL Mb/s R (m) Cabinet VDSL 750m

11 1b)Cabinet build-out 11

12 Agenda Infrastructure a)transmission-networks Current Future b) Access, in particular VDSL2 2. Services a) VoIP b) IPTV 1. Conclusion / Outlook

13 2a) Bluewin Phone First VoIP service on the Swiss market 13 Sample configuration of VoIP 2ndLine DECT telephone with FXO interface (PSTN) and LAN port for VoIP calls Customer operates two phone numbers on one handset SIP Profiles Internet WEB-GUI Config. Server ADSL/ Cable Analog Line Router LAN FXO DECT/GAP PSTN IP Base

14 14 2a) Customer requirements Residential SME Corporate Cost reduction through simplified infrastructure Transparency and budget planning Increased productivity Ease of use & service availability Reliability and quality Investment protection

15 2a) Extract from market research report on Internet telephony usage (VoIP) in Switzerland Only 94 (Q1) / 103 (Q2) of the 1000 asked use VoIP Of these VoIP users less than 10% use Internet telephony exclusively 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 7% 10% 03_2006 (n=94) 06_2006 (n=103) 09_ _2006 VoIP and trad. telephony VoIP only as yet 15

16 2b) Definition of IPTV 16 IPTV (Internet Protocol Television) refers to the digital transmission of TV programs and movies over a digital data network. The service uses the Internet Protocol (IP). The transmission of digital video signals requires high data rates (e.g Mbps for HDTV). IPTV can therefore only become a reality with the wide diffusion of broadband subscriber lines (VDSL) and the introduction of new compression techniques (VC1, H.264). IPTV is a broadband IP connection that feeds television signals directly to the TV set combined with interactive services via remote control. The drivers of IPTV include Video on Demand (VoD), exclusive content (in particular sports), digital Videorecorder (PVR) and high definition TV (HDTV); technology, i.e., TV over IP, is (still) irrelevant for the consumer

17 2b) Swisscom s triple screen vision 17 Key elements: Content rights for all offers Platform control; joint and separate elements Marketing & Sales

18 2b) What is IP TV from Bluewin? 18 Powerful content Easy to use useful functions Continuous development

19 2b) IP TV: BluewinTV vs. Internet TV Streaming 19 Screen Video-rate Control Zapping&VOD Content Availability DRM TV Ca. 2.5 Mbps Remote Control Instant Major studios, 3 languages Switzerland Closed, PKI PC Below 1 mbps Keyboard Delayed (>3 secs) Varying Varying open

20 2b) Services 20 TV Internet-Guide Magazine

21 2b) Implementation 21 Build on existing solutions wherever possible Involve partners in development of new solutions Microsoft Cisco Alcatel Cinétrade Tandberg

22 Agenda Infrastructure a) Networks Current Future b) VDSL Services a) VoIP b) IPTV 1. Conclusion / Outlook

23 3) Conclusion 23 "Is Swisscom ready to meet the IP challenge?" Yes, Major changes need to be addressed Large scale investments Basis for many possible services Customer decides, not the technology Different business model same approach

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