Information and Communication Networks

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1 Information Communication Networks Siemens AG 2003

2 Information Communication Networks New Horizons for the of SIP-Based Siemens AG 2003 Bernd Schneider,

3 Agenda!!!! Conferencing s! Entertainment s! Business s! 10/20/2003 page 3 Information Communication Networks

4 Cutting costs is not going to save the Network Providers industry International Long Distance National Long Distance Share/Price Decline: -68%/-62% in the UK Share/Price Decline: -47%/-49% in the UK CapEx OpEx Revenue streams? Carriers need to find growth markets establish new business models Information Communication Networks 10/20/2003 page 4

5 Key dilemma Broadb data Revenues are determined by flatrates Q/02 2Q/02 3Q/02 4Q/02 Data Volume Voice Volume Voice Revenue Data Revenue Source: Incumbent Carrier 10/20/2003 page 5 Information Communication Networks

6 In the NGN network s are the key differentiator O P E R A T O R O P E R A T O R O P E R A T O R s/ Provider Transport Access Vertical Integration vs. VoIP MAIL IM WEB PSTN ISDN QoS IP Core Network GSM UMTS ADSL Horizontal Layer Unbundling s Offerings are not longer limited to Network Operators # Everyone can offer services W-LAN /20/2003 page 6 Information Communication Networks

7 require new Business Models Open Ecosystem or Open Network Model Content Provider Operator End User Content Charge Charge Per minute, Per volume, Per content, etc. Traditional Business Models will not work under these new conditions 10/20/2003 page 7 Information Communication Networks

8 It s not bwidth but services that count Revenue per unit of traffic in Euro per megabyte in 2002 Assumptions:! One SMS equals 128 bytes! SMS costs EUR Hi 0.02 Internet 0.04 Local call 0.12 Long distance SMS 10/20/2003 page 8 Information Communication Networks

9 SURPASS,, Enabling s Kids, Fun, Entertainment s Community & Messaging s Business & Communication Management s End User Enabling s Ring Back Music, (Video Telephony, Audio/Video/Gaming on Dem) Presence, Charging, Content Management, Micropayment, QoS Control Push-to-Talk, Chat, Instant Messaging (IM), SMS to IM, Push s, Unified Messaging (UM) Presence, SMS GW, Charging, Directory s, ENUM, Push GWs IP Centrex Business Connection Office Integration EasyConnected Perfect4U/Me Call Waiting Internet Click to Dial Presence,Charging, Security, Directory s, ENUM, QoS Control 10/20/2003 page 9 Information Communication Networks

10 SURPASS,, Enabling s Broadb Telephony s Conferencing MM Telephony s End User Teenline, Voice over BroadB Prepaid Calling Card Video Telephony, Video Conferencing, Audio Conferencing, Online Conferencing Enabling s Presence, Flatrate/Prepaid Charging, Directory s, ENUM Presence, Charging, Conferencing Bridge, Directory s, ENUM, QoS Contol 10/20/2003 page 10 Information Communication Networks

11 Category: Entertainment s - Use Cases PC to Phone Family oriented Communication Martha - 31, Daughter Jaymie - 16 Mr. Mrs. Robinson - 65 Business Communication Improved Customer Relationship Mr. Mark Johnson 45 Investor Ms. Stella Ruiz 33 Business Consultant Phone Phone I can t live without you addresses the need for more quality in life for different target groups Grace - 27 Jason /20/2003 page 11 Information Communication Networks

12 Category: Entertainment s - Description Why can Video Telephony now be successful? " Users are ready " Major Push for MMS UMTS to come " PC penetration is very high " Broadb penetration is high " End devices (Set-top boxes, Hardphones, softphones) are inexpensive Factors for success: " Reach the critical mass by big bang /building public momentum " Bundle with value added applications " Eliminate the users fear " High quality experience " Right price The Right ing Mix! 10/20/2003 page 12 Information Communication Networks

13 Category: Conferencing s A New Way of Communication revenue in billions $ Conferencing World years Audio Conferencing Video Conferencing Online Webcasting Online Conferencing Source: Derived from worldwide numbers from IDC Raymond James Associates (RJ&A), 2002 : " Wainhouse research: a year after September 11, Conferencing: 64% very important, a year earlier: 44% " According to IDC RJ&A, the conferencing services market growth from $3.5 in 2001 to $13.6 in 2005 or CAGR 41% The need for conferencing increased dramatically after Sept. 11 SARS 10/20/2003 page 13 Information Communication Networks

14 Category: Conferencing s Web-based Presence Enabled Conferencing " Visual presence-status icons " All attendees can see, who is present who is talking " Can share presentations Instant Messages 10/20/2003 page 14 Information Communication Networks

15 Did you know ,140 41,020 that transaction costs make up over half of the world gross domestic product? Worldwide gross domestic product in billions of 1990 international dollars (estimated) Transaction costs Other Sources: Bradford DeLong, Wallis/North 10/20/2003 page 15 Information Communication Networks

16 Category: Business s OpenScape Communication Presence-Based Communications Personal Workgroup Productivity Collaboration Application Application Communication Broker Multi-Resource Collaboration Open Application Architecture 10/20/2003 page 16 Information Communication Networks

17 Category: Business s OpenScape Personal Communication Portal Buddy List showing Presence Status by Media Personal Collaboration Session Menu Intuitive Interface for Effective Contact! 10/20/2003 page 17 Information Communication Networks

18 ! Network Providers need to move from providing network connection to offering value added services which provide for higher profits! Shift towards Open Ecosystem with content services! Messaging, Conferencing, Entertainment, Business s together with Enabling s (Presence) provide for attractive service offerings in high growth markets " Incumbent operators should: " Offer services asap as services provide a low churn rate (profiling, registration, customization) " Users will dem services to be offered ubiquitous over all networks (internet, fixed, mobile) with the same hling 10/20/2003 page 18 Information Communication Networks

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