NTT's Next Generation Network Development Takashi Ebihara of NTT presented on NTT's next generation network (NGN) development at a 2008 conference. Key points included: 1) NTT plans to deploy its NGN commercially in 2008 in Tokyo and Osaka and expand coverage to all fiber access areas by 2010. 2) NGN combines advantages of traditional telephone networks and IP networks with features like enhanced reliability, security, quality assurance and open interfaces. 3) NTT will collaborate with partners through forums and test beds to jointly develop innovative new services leveraging NGN's capabilities.

1. International Institute of Communications 2008 Annual Conference in Hong Kong NTT’s Next Generation Network Development Takashi Ebihara Next Generation Network Office Technology Planning Department Nippon Telegraph and Telephone Corporation November 2008

2. Agenda Broadband Deployment in Japan NTT’s NGN Development Key Features of NGN Deployment Plan Open Innovation through NGN Conclusion

3. 0 5 10 CATV 15M Broadband Mkt Share 29M 42% CATV 13% 45% 32% 41% 27% 13M ADSL FTTH ＮＴＴ WEST ＮＴＴ EAST Others Broadband Deployment in Japan As of Jun 08 (Source: MIC) FTTH Mkt Share JUN 03 DEC 03 JUN 04 DEC 04 JUN 05 DEC 05 JUN 06 DEC 06 JUN 07 DEC 07 JUN 08 ADSL FTTH 12M 4M 13M CATV Annual Growth <Jun 07  Jun 08> FTTH: +35% A DSL: -11%

4. 3G Mobile Deployment in Japan Source: Telecommunications Carriers Association of Japan 20 40 60 80 100M 2004 2005 2006 2007 As of Dec 07 下り 3.6Mbps 上り 384Kbps 833M <83%> 172M <17%> HSDPA launched by NTT Docomo in Aug 06 ３Ｇ ２Ｇ

5. Why NGN Now? Dependable Social Infrastructure NGN New Business Opportunities Productivity Enhancement Agility to Market Safe & Secure More Fun More Convenient Society Business Individuals Economic Growth Emerging Social Issues <Aging, Medical & Health Care, Education, Disaster Management etc.>

6. Background of NGN Development NTT Group Increasing Internet traffic Emerging converged services Maturing IP technology Standardization activities Market & Technology NGN Secured full IP Networks Revenue Generation thru new service Simple & economical networks

7. Key Features of NTT’s NGN NGN Open Interfaces Enhanced Reliability Increased Security Service Quality Assurance One of the world-first NGNs commercially implemented Combining the advantages of traditional telephone networks and IP-based networks

8. UNI Edge Node Call Admission Signal Network Control Server Core Network Optical Access NGN Three prioritized classes to fulfill variety of customer needs e.g. -High-Definition TV conference -7KHz high-quality voice telephony -Retransmission of over-the-air TV programs 1. End-to-end Quality Assurance Top Prioritized High Prioritized Prioritized Best Effort

9. 2. Increased Security Blocking spoofing and unauthorized access - Unique NGN circuit ID is allocated and checked for spoofing protection - Blocking unauthorized access and unwanted traffic at edge nodes Edge node Control signal Voice & Data Unauthorized access spoofing Network Control Server

10. 3. Enhanced Reliability Designed to be as reliable and stable as traditional telephone networks - Network architecture with scalability to tens of millions customers - Reliability enhanced with redundancy and management capabilities etc. Core network Edge network Core node Edge node Network control server Redundancy in architecture Traffic control in case of congested Prioritize critical communications in times of disasters Non-prioritized Communications Prioritized Communications Traffic Control System ・・・

11. 4. Open Interfaces for Innovation Open access to NTT’s NGN by publishing interconnection interfaces - Creates eco-system for a rich diversity of new businesses and services - Enables collaborative partners to develop new innovative business models that best utilize NGN VoD SNI NNI UNI Other NGN Ethernet service providers Internet service providers IP broadcasting VOD Telephone Videophone ISP access Intranet IP broadcast NGN HGW Multicast Unicast Interactive (inside network) Interactive (network-to-network) Internet connection Ethernet service

12. NGN Deployment Plan Mar 08: NGN commercial launch in Tokyo & Osaka Mar 2008 End of FY2010 End of FY2008 FY 2010: Expand to entire current fiber access areas

13. Evolution of NGN in Future Expand NGN service area to current fiber access service area FY 2010 FY 2012 FY 2008 NGN + LTE <Full IP Network> ● 地域ＩＰ網からＮＧＮへのマイグレーション完了 NGN <fixed> + 3G Mobile Full-fledged Service Convergence FY 2011 FY 2009 LTE to be launched 20 M FTTx subs (10M NGN subs) Migration from existing IP network to NGN to be completed Creating and rolling out broadband and ubiquitous services in line with customer needs by leveraging full-IP network infrastructure

14. Broadband Ubiquitous Society Mobile Home Business Telepresence Presence Mobile broadcasting IPTV N-VOD Digital cinema Virtual cohabitation & Virtual office Broadband Ubiquitous Society Home control 7-khz high-quality telephony Mobile Computing Femtocell One-number phone Telemedicine Digital signage Metaverse (Virtual space sharing) Healthcare SaaS Telework

15. Joint-Development of Innovative Services Internet NGN Application Platform SNI NNI user Broadcasting Finance Consumer Electronics Collaboration with other industry partners UNI A variety of IP-enabled devices ISP ISP Video distribution Open Innovation & Value Creation Other NGN, etc New collaborative opportunities by the NGN’s open interfaces so as to create new applications that best utilize NGN Medicine Advertisement Education Healthcare

16. Next-Generation Services Joint-Development Forum Service Creation & Business Development Next-Generation Services Joint-Development Forum Business Partners Info & Environment Incubation Support Biz & Tech Seminar Marketing & Technology Consulting NGN Test Beds NTT’s R&D Inputs Exhibition Space Value-added Interfaces Capital - Joint-development with business partners from various industries - Eco-system for service creation & business development

17. Conclusion FTTH > ADSL & 80+% 3G penetration  Time to go for NGN to leverage ultra-fast access NGN: Taking best parts of PSTN and IP networks  Reliable, Secure, Service Assurance & Open Interfaces 20M fiber access by FY2010 and complete NGN migration by FY2012 Various collaborative opportunities for service creation  Conducive to tackling social issues