Fixed-Mobile Convergence and the Enterprise

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The World of Convergence Fixed-Mobile Convergence and the Enterprise 2007 3G CDMA North America Regional Conference October 9-10, 2007 San Diego, California Ben Vos, Vice President Core Technologies Sprint Nextel, www.sprint.com 0

Definition of Fixed Mobile Convergence 1

Market Dynamics for Voice Communications Enterprise Spend on Wireline Voice is dropping rapidly!(!" #!" $!% $ )*+!& (!! #!& ' # ( but over time, Wireless Voice will become two thirds of an Enterprise s voice budget $& & $&&( $&&, $&&' $&&- $&&# $&!& )*+!(!& (!% (!(!!, $!, -!' "!' - Source: Compass Intelligence, 6/2006, Survey of Enterprises with greater than 1,000 employees & $&&( $&&,$&&'$&&-$&&#$&!& 2

Mobility Trends in the Enterprise (large and small) MoU by Location 40% of mobile calls are made from the office 100% 40% of mobile users believe using the mobile provides them with greater privacy when in the office 75% 50% 25% 0% Total MoU In Office Out of Office 50% of all employees are using their mobile phones at their desks 55% of users making mobile calls from their desks did so because their mobile contained all their contact numbers 30% of employees use their mobile as their primary communications device Sources: Select call profile analysis, IDC 2006; Forrester 2006 3

So why don t I give all my employees a mobile phone and be done with it? Cost - mobile minutes are more expensive than landline minutes Stranded Assets I ve invested in IP PBXs and IP desk phones and do not want those investments to go to waste Lack of Integration - My deskbound employees don t need a mobile phone, but I don t want two islands of users (desk and mobile) Fixed Mobile Convergence addresses each of of these concerns, but but what s the the best best way way to to solve the the problem? 4

FMC addresses going mobile Cost - mobile minutes are more expensive than landline minutes A key key component of of FMC FMC is is cost cost efficiency many many implementations can can keep keep calls calls on-net, saving saving mobile mobile minutes Stranded Assets I ve invested in IP PBXs and IP desk phones and do not want those investments to go to waste FMC FMC is is designed to to work work in in tandem with with existing infrastructure, in in many many cases cases making making it it more more useful useful Lack of Integration - My deskbound employees don t need a mobile phone, but I don t want two islands of users The The beauty beauty of of FMC FMC is is that that deskbound, semi-mobile, and and mobile mobile employees share share the the same same feature feature capability and and environment 5

Level Set on FMC for the Enterprise FMC = Dual Mode = Cost Savings Several ways to achieve the benefits of FMC without voice over WiFi Enterprises Want Tools to make their employees more efficient, connected, and productive Cost efficiency and predictability FMC deployments requiring expensive infrastructure build-outs and handsets may not be worth it A path to mobile voice and data integration 6

An Integrated Architecture Gateways & Modems Aircards Handsets CDMA iden WiMAX Home Subscriber Service ( HSS ) MG Service Broker Call Session Control Function MGC Policy Management MGC MGC IMS Peerless Packet Network SIP Application Servers Content Application Servers MG 3 rd Party Application Servers CDMA iden WiMAX Gateways & Modems Aircards Handsets Embedded Devices MAN Cable Public Packet Network MAN Cable Embedded Devices Consumer Electronics AAV Cost Effective Flexible, reusable Maintainable, scaleable Standards-based Optical Transport Network Customer focused Highly available Reliable, secure AAV Consumer Electronics 7

A Common Service Architecture IMS APPLICATION LAYER Seamless Mobility Telephony Application Non-Telephony Application Servers OSA-GW SESSION CONTROL LAYER User Profile ENDPOINT AND MEDIA GATEWAY LAYER HSS Network Policy Rules ENUM Common User Profiles QoS Support PDF Standard Application Interface SCIM CSCF Access Agnostic MRFC BGCF MGC Common 3 rd party APIs Presence GLMS Common Charging Function Common Capabilities Common Back-office Interface 8

The Sprint FMC Solution Wireless Integration Wireless Integration is a network hosted solution that enables a Sprint PCS handset to be seamlessly integrated into a wireline environment Wireless Integration provides: Cost Efficiency on-net mobile calling for intra-company usage Connectivity - One phone number for mobile and desk phone Employee Productivity Seamless, transparent transfer between desk and mobile phone during a call One voicemail inbox using the enterprise platform One feature set for voicemail, conferencing, forwarding, etc. 9

Equipment Overview Sprint Wireless Integration 7. Sprint PCS Wireless IP Packet Core Sprint Data Center & IMS Core Media Server Media Gateway 4. 5. 6. DIA or MPLS PSTN Media Gateway 2. WAN Router 3. Enterprise ISDN PRI 1. Premise PBX (IP or TDM) Voice Mail IP Phones 10

WI offers true seamless operation AND cost containment Product Attribute Use of Ports/Trunks on Premises-Based PBX Single Voicemail Characteristics PBX Feature Extension Hard-Dollar Cost Savings Sprint Wireless Integration Efficient. Network-based, all IP service eliminates call "hair-pinning" and PBX port consumption Single VM enabled at all times and is independent of whether the mobile number or desk number is called The "always on" nature of WI makes features available at all times In addition to productivity gains, WI offers on-net mobile calling. In other words, intra-enterprise mobile calls do not decrement wireless plan minutes 11

Conclusion 2007 Is this the year of the FMC Early Adopter? Enterprises know they can improve productivity and gain cost efficiencies by integrating mobility 30-50% of mobile calls are made within reach of a desk phone Individually liable/corporate reimbursed mobile usage is an inefficient way purchasing mobile services They know they need to address the problem, but not sure how to attack VoWLAN gets a lot of the hype, but are the limitations worth the perceived cost savings? Enterprises are determining the trade-offs and making business case decisions Single Mode vs. Dual Mode Battery Life/Security Issues New Technologies WiMax, Femto-Cell 12