Echo Boomers, also known as Generation Y or Millennials, are the generation born between the early 1980s and mid-1990s. They are the children of Baby Boomers and the oldest are now entering adulthood. They have grown up in a digital world and have never experienced life without technologies like mobile phones and the internet.

1. WHO ARE THE ECHO BOOMERS?
Echo Boomers are the generation born between the early 1980s
and the mid 1990s. They are the children of the baby boomer
generation of the 1950s and 1960s. There are over 250 million
of them and the oldest are now moving into adulthood to
become the first true digital citizens.
They are also known as: ‘Generation Y’, ‘Bridgers’ or
‘Millennials’. Most have grown up in a world where they’ve
never ridden in a car without a seat-belt, spent a day at the
beach without sun cream or left home without a mobile phone.

2. Real World Quadruple Play:
Converging Fixed and Mobile
Broadband
25 September 2006
Jeremy Steventon-Barnes
jeremy.barnes@tellabs.com

3. Key Message
Consumers demand
services that are
instant, intelligent, and
indispensable
Converged services
require deep fibre for
high quality triple play,
plus bandwidth scaling
for mobile broadband

4. Agenda
>Convergence trends
>Triple play and deep fibre
>Mobile broadband

5. About Tellabs
> Over 30 years’ experience
> Leader in North American
fibre access
> Over 1/3 of global wireless
calls are made on Tellabs’
customers’ networks
> Solutions in about
300 networks in about
100 countries
> About 3,700 employees
> 2005 annual revenue $1.9B

6. Operator Challenges
Fixed Operator Business Challenges
Source: Infonetics, “Service Provider Plans for IP, MPLS, and ATM”
Reducing opex and creating new services are key to
growing revenues and beating the competition

7. Operator Challenges
Mobile Operator Business Challenges
Again: creating new services and reducing opex
Source: Infonetics, “Service Provider Plans for Next Gen Mobile and Wireless Broadband”

8. Convergence Vision
Converged Network
Mobile
Business
Access
Residential
Access
New services, opex synergies, lower churn…

9. 31st May 2006
Orange Pioneers Total Communications:
Integration of Mobile, Fixed-Line and Broadband
plus business communications services
- Orange, Wanadoo, Equant and Etrali unite under the Orange brand
- A single customer experience from sales to service
- Launch of free Orange broadband for Orange mobile Pay Monthly customers
- Free fixed-line calls to Orange mobiles with new "Anytime" broadband talk
service
- Future converged services announced, including One Phone, single email and
one address book across mobile and broadband
- Orange Business Services: a single banner for all business services
31st May 2006
Orange Pioneers Total Communications:
Integration of Mobile, Fixed-Line and Broadband
plus business communications services
- Orange, Wanadoo, Equant and Etrali unite under the Orange brand
- A single customer experience from sales to service
- Launch of free Orange broadband for Orange mobile Pay Monthly customers
- Free fixed-line calls to Orange mobiles with new "Anytime" broadband talk
service
- Future converged services announced, including One Phone, single email and
one address book across mobile and broadband
- Orange Business Services: a single banner for all business services
Convergence by Orange

10. Convergence by Sky
18 July 2006
BRITISH SKY BROADCASTING PLC
Free Broadband for Sky Customers
Launch sets new standards in quality, ease and savings
18 July 2006
BRITISH SKY BROADCASTING PLC
Free Broadband for Sky Customers
Launch sets new standards in quality, ease and savings

11. Convergence by Vodafone
30 May 2006
Vodafone Group
Strategy update from Vodafone
“In the context of changing customer requirements and the growing
convergence of mobile, broadband and the internet, Vodafone's third
strategy objective will be to innovate and deliver on customers' total
communications needs.”
30 May 2006
Vodafone Group
Strategy update from Vodafone
“In the context of changing customer requirements and the growing
convergence of mobile, broadband and the internet, Vodafone's third
strategy objective will be to innovate and deliver on customers' total
communications needs.”
> 1 September: “Vodafone Germany launched … flat rate …
fixed, mobile and DSL services”
> 11 September: “Vodafone to deliver fixed-line broadband services in the UK”
> 15 September: “Vodafone Italy and Fastweb announce joint broadband initiative”

12. Marco Tronchetti Provera
ex-Chairman, Telecom Italia
[“The Economist”, 14 Sep 2006]
Thanks to
broadband, telecoms
and the media are
converging
and that is where we
are moving
Convergence by Telecom Italia

14. 3play and 4play defined
Triple play (telecommunications)
From Wikipedia, the free encyclopedia
In telecommunications, the Triple Play service is a
marketing term for the provisioning of the three
services: high-speed Internet, television (
Video on Demand or regular broadcasts) and
telephone service over a single broadband
connection.
Triple Play has led to the term "Quadruple play" (or
4play) where wireless communications is introduced
as another medium to deliver video, Internet and
voice content. The grouping together of services (as
triple or quadruple play) is called multi-play.
Triple play (telecommunications)
From Wikipedia, the free encyclopedia
In telecommunications, the Triple Play service is a
marketing term for the provisioning of the three
services: high-speed Internet, television (
Video on Demand or regular broadcasts) and
telephone service over a single broadband
connection.
Triple Play has led to the term "Quadruple play" (or
4play) where wireless communications is introduced
as another medium to deliver video, Internet and
voice content. The grouping together of services (as
triple or quadruple play) is called multi-play.

15. Multi-play bandwidth needs
HDTV in multi-play  need for deep fibre
SDTV Stream 1 = 4Mbps
PVR Stream = 4Mbps
Premium HDTV Stream = 12Mbps
SDTV Stream 2 = 4Mbps
High Speed Data and VOIP = 5Mbps
AoD/VoD Stream = 4Mbps
Gaming Stream = 4Mbps

16. FTTx Options
Local
Exchange
150m
FTTC
FTTP
1.2-2.4km
FTTN
BPON/GPON
ADSL2+/
VDSL2
GE
100M
100M
10-20M
VDSL2

17. Fibre costs in for
greenfield deployments
FTTP Per Home Capital Costs
Parity with Cost of
Deploying New Copper
Source: In-Stat/MDR
Fiber
Copper

18. Triple play summary
> 3play is as old as cable modems
> 1st
generation 3play with IPTV over
ADSL2+ only delivers SDTV
> Satellite, cable and competitive
operators are offering a growing
menu of HDTV plus instant Internet
> To compete, incumbent operators
need deep fibre, ie FTTP or FTTC

20. Mobile Broadband
>4play is more than just
adding mobile voice to 3play
>Mobile broadband is being
realised through 3G HSPA
>Data traffic grows rapidly
 large bandwidth upgrades
>Revenue growth is slower
>Operators must decouple
bandwidth from cost…

21. Europe: Mobile Revenue Trends
2004 2005 2006 2007 2008 2009
0
50
100
150
200
250
300
US$Bn
18% 21%
24% 27% 30% 32%
Voice Data
Source: Pyramid Research
Data revenue grows steadily…
But data traffic grows dramatically…

22. Mobile Operator Revenues
Backhaul Costs (traditional approach)
Margin Squeeze
Mobile Margin Trends?
Cost-effective backhaul OR margin squeeze?
Time
Money

23. Mobile Network Evolution
> Wireline broadband as a precedent
> Minimise backhaul opex
> Reduce leased line bandwidth for 3G data
with statistical gain
> Substitute Metro Ethernet & DSL for
expensive TDM leased lines
> Deploy Ethernet Microwave with adaptive
modulation
> Converge with wireline broadband
infrastructure where possible
> Anticipate new standards
and services

25. Summary
Consumers demand
services that are
instant, intelligent, and
indispensable
Converged services
require deep fibre for
high quality triple play,
plus bandwidth scaling
for mobile broadband