2.) Network Transformation Summary Slide: Highlights the challenges of the carrier in terms of managing/optimizing the total cost of ownership and creating services differentiation by focusing on the Quality of the Experience. Clearly, the carrier that is able to offer the most innovative services first with a high level of reliability and at a competitive price will continue to secure the &quot;preferred&quot; higher ARPU/margin customer segment. The focus of this slide is to once again convey the need for the carrier to engage in an IP Transformation effort which will assist the carrier in reducing their costs on per M/bit basis while being able to insure that they are able to support higher volumes of traffic but with a guaranteed level of reliability. It too should be noted that by moving to IP the overall network latency factors will continue to be improved and thus allowing for an improved QoE in terms of supporting VoIP based solutions. In addition, new delay sensitive services like Mobile TV and/or Video Streaming based solutions will be able to be offered with a guaranteed QoS.
Consumer lifestyles are changing The lifestyle of the consumer in Latin America is experiencing change due to the advancements in technology, media and communications The web is being used not only as a means of just getting information but also as an education and productivity tool Music, pictures, video are increasingly available and stored in digital form in user’s homes or in shared servers & portals Gaming with interactivity is growing in LATAM (just look at the “dots” of the players in a map) People in Latin America are demanding access to their entertainment and communications services all the time, from anywhere BUT just like we’re used to having our services from a fixed-line, at the same time, we demand the same experience on our mobile platforms Given the advances in technology we WILL be ON from the time we get up until the time we go to sleep We will have an ALWAYS ON experience Service providers must not only look at traditional “communications” revenue sources, but deepen their presence in home networking and understand the new drivers for consumers in regards to media and entertainment A presence in the home is clearly an opportunity for Service Providers and we’ll get into that in the next slide
“ Own the Home” as a Strategy New interactive services are being developed that are quickly being adopted by the latin american consumer at home. Fixed mobile convergence (FMC) is a key component of the Digital Home network Improves customer experience Increases the operator’s revenues and reduces costs Home monitoring cameras with WiFi, WiMAX interfaces Surveillance from ANYWHERE Upload download pictures and data to/from your devices anytime anywhere Watch TV and get phone messages on your screen Be connected to the world from your living room, office or on the go ALU market research shows that these new services are of interest to consumers in our region: Home Management (control lights, temperatures, your “toaster” etc.) Home Monitoring (check your house when you’re away, or check on someone else’s house: an elder family member, security, etc.) Content sharing is growing significantly in our region with social services like Hi5, the latin version of myspace, and others. Every user is a producer of content, and content is most often created and shared from the home Multiscreen applications taking off with the adoption of Video clips and Mobile-TV. What you traditionally watched in your TV, now you can watch in your laptop, mobile gaming device, laptop, mobile phone or eventually your car screen!! Effective Content Access – Consistent user experience across multiple screens Enabler for these new services are the “Converged Femto Cell Applications” 70% of calls are made from home 50% of users complain about indoor coverage Femto Residential Gateway as a hub for new services Femto cells allow service providers to “own the home” and be able to deliver new services for increased revenues with lower backhauling costs Femto solutions will enable the adoption of broadband at home in a massive scale.
Particular focus on 3 key technologies (OFDM, MIMO and/or Beam forming) which are the pillars of our WiMax story and lay the foundation for our LTE offer. Clearly an area of weakness for Ericsson in particular.
Summary of our partnership with NEC and the benefits/synergies that the 2 firms have created by consolidating R&D efforts in the LTE access segment. We too are highlighting the fact that our market leadership in WiMax (802.16 - 2005) has provided ALU with a series of fundamental building blocks (radio design/optimization in the access to terminal partnerships with the CE/IT segments) which provide us with a competitive advantage over Ericsson/Nokia Siemens).
The mobility and convergence situation of telecommunications ...
Mobility and Convergence in Latin America Victor J. Agnellini President, Caribbean and Latin America Las Vegas – April 2, 2008
Market Needs & Trends for Latin America Mobility and Convergence are key to enabling these changes End users are becoming increasingly web-centric <ul><li>Social Networking (peer to peer): 500 million globally </li></ul><ul><li>Web browsing surpassed TV viewing for the millennials </li></ul>Broadband is growing All IP transformation <ul><li>Fixed Latin American broadband subscribers: 17.8 million (24% CAGR) in 2007 </li></ul>“ Social inclusion” Programs reduce “Digital Gap” <ul><li>Broadband-enabled endpoints are now more affordable </li></ul>Mobile TV <ul><li>Pocket TV, rather than TV </li></ul><ul><li>Personalization: </li></ul><ul><li>PrimeTime becomes MyTime </li></ul><ul><li>Interactivity </li></ul><ul><li>Compelling User Interface </li></ul>Wireless is ubiquitous today <ul><li>Wireless has surpassed Fixed in number of lines and revenues </li></ul>Fixed-Mobile Convergence driven by operators <ul><li>Enables converged services </li></ul><ul><li>Cost efficiencies </li></ul><ul><li>Customer loyalty/acquisition </li></ul>
Mobile Penetration and Trends in Latin American Countries
Broadband Penetration and Trends in Latin American Countries
Consumer Lifestyles are Changing…. Always ON Experience
New Opportunity for Services in the Home – Femto Cell Solutions Next major step in mass-market broadband innovation <ul><li>Femto provides </li></ul><ul><li>Better indoor data rates </li></ul><ul><li>Improved service quality, and increased usage </li></ul><ul><li>Increased penetration and customer loyalty </li></ul><ul><li>Reduced backhaul costs </li></ul>Home Management Home Monitoring Content Sharing Multiscreen Applications Web & Interactivity Network Converged Digital Home 3G Converged Femto-Cell Applications!
SP 2 SP 1 <ul><li>Customer Profile </li></ul><ul><li>First Screen </li></ul><ul><li>Service interconnect </li></ul>Monetizing opportunity, e.g. via advertising, identity management, e-commerce, enterprise This is clearly no longer about service providers battling with other service providers… this is now about ‘leadership’ in the communication market Recall what this is all about… The battle for customer ownership
Alcatel-Lucent’s 4G Vision and Position « 4G » - Let’s agree on what we are talking about today! 3G Wireless Broadband Access 4G Today Tomorrow >100 Mbps Mobile 1 Gbps Fixed Seamless Compatibility (Any network/terminal) VoIP Full QoS control 2G GSM/EDGE CDMA LTE WiMAX 16e-2005 UMTS / HSPA HSPA+ EVDO Rev 0/A/B 3G OFDM MIMO/BF IP
Alcatel-Lucent – NEC LTE Joint Venture <ul><li>Joint-venture for the development of LTE wireless broadband solutions </li></ul><ul><li>R&D resources pooled together onto ONE single LTE product for all customers </li></ul><ul><li>The two companies leverage </li></ul><ul><ul><li>LTE R&D started separately in 2006, and market-proven expertise in key next-generation technologies such as OFDM, MIMO, IP, </li></ul></ul><ul><ul><li>field-proven wireless expertise to smoothly integrate LTE onto existing W-CDMA/HSPA and CDMA/EV-DO networks. </li></ul></ul><ul><li>First commercial releases available in 2009 </li></ul>LTE Technical leadership, Scale, and Time to market +
Alcatel-Lucent “4G” Positioning <ul><li>Large wireless installed base </li></ul><ul><li>500K sites with 300 customers </li></ul><ul><li>Intimate with 12 out of 15 MSPs </li></ul>Wireless presence Alcatel-Lucent Assets for “4G” Large presence in “4G” first-mover markets High-growth economies US, Korea, W. Europe IP Service routing <ul><li>Number 2 worldwide </li></ul><ul><li>3+ times bigger than other wireless suppliers </li></ul><ul><li>Tier-1 references </li></ul>WIMAX <ul><li>22 national and regional deployments </li></ul><ul><li>70+ trials </li></ul><ul><li>World’s first commercial WIMAX 3,5 GHz network </li></ul><ul><li>Technical leadership (flat IP, P&Play, interference management) </li></ul><ul><li>Evolutionary end-to-end solution </li></ul>Flat architecture - Femto cell Wireline triple play <ul><li>Number 1 in DSL </li></ul><ul><li>Number 1 in TPSDA </li></ul><ul><li>Number 1 in IPTV </li></ul>IP transport (META) <ul><li>Number 1 in optics </li></ul><ul><li>Number 2 in IP/MPLS </li></ul><ul><li>Market leadership on packet microwave </li></ul><ul><li>Early achievements (LSTI, LGE ..) </li></ul><ul><li>Joint-venture with NEC </li></ul><ul><li>Selected by operators leading LT E </li></ul>LTE