Dan Sprint

2002 China America Network Symposium August 22, 2002: 

2002 China America Network Symposium August 22, 2002 Dan O’Connor Vice President, Sprint International A Brave New World Trends and Opportunities in Global Telecommunications

Overview: 

Overview Global market overview Economic challenges Customer perspective Asian market trends Advancing technology Sprint vision for Asian region

Encouraging Investment and Growth: 

Encouraging Investment and Growth Global Telecom Expansion Global Growth of Web Telecom Revenue Global Growth of Web

Connections and Traffic are Increasing: 

Connections and Traffic are Increasing Asia/Pacific Europe North America Asia/Pacific Europe North America

Economic Challenges Force Change in Business Focus: 

Economic Challenges Force Change in Business Focus Worldwide economic uncertainty Financial performance pressure Continued globalization

Real World Customer Challenges : 

Real World Customer Challenges Reliability Security Customer support Cost control Managing multiple service networks Network reach In-country coverage Financial stability

Growth in Telecom Spending: Asian Region: 

Growth in Telecom Spending: Asian Region Source: IDC, Yankee Group, Probe Research, OVUM, Vertical System Group ($Billion) $11.0 Billion $31.3 Billion $13.8 Billion $17.3 Billion $21.5 Billion $26.2 Billion Business Data, IP VPN, Internet Access, and Hosting Market in Asia Pacific Region

Slide8: 

Asia Pacific: $11 Billion China: 12.9% China: 17.5% Asia Pacific: $31.3 Billion 2001 2006 Source: Statistics released by the Minister of Information Industry (MII) in China. Source: IDC, Yankee Group, Probe Research, OVUM, Vertical System Group Market Share in Asia Pacific business data and IP services to increase from 12.9% in 2001 to 17.5% in 2006 with much higher CAGR of 31.1%. China’s Data Revenue and Market Share Grows

Trends in Asia: 

Trends in Asia Greater China fastest growing sub-region in Asia Pacific Japan and Korea are burgeoning markets Similar customer requirements Leverage existing investments (Frame, ATM, Private Line) and migrate to IP slowly Need for managed services, focus on core competency Bandwidth, bandwidth, bandwidth

Interregional Bandwidth: 

Interregional Bandwidth Interregional Bandwidth Growth

Sprint Asian Backbone: 

FNAL Internet Transport Node Landing Station STM16 (OC-48) STM4 (OC-12) STM1 (OC-3) Protected C2C Southern Cross Japan - US Japan - US Seoul Taipei Tokyo Hawaii Singapore Sydney Seattle Anaheim Stockton Tacoma San Jose Sprint Asian Backbone Beijing Guangzhou Shanghai Hong Kong China-US

Advancing TechnologyMulti-service Platform: L2TPv3 Preview: 

Advancing Technology Multi-service Platform: L2TPv3 Preview Provides multi-service connectivity enabling a smooth migration from legacy technologies to IP.

Advancing TechnologyMulticasting: 

Advancing Technology Multicasting Multicast - Delivers one-to many communications across an IP infrastructure Supports conferencing, e-learning, training, and other applications Unicast Internet D D D D D D Sender Receivers

Advancing TechnologyIPv6: 

Advancing Technology IPv6 Focuses on key addressing concerns Number of available IP addresses Routing table limitations Operational challenges still remain Multi-homing is extremely difficult

Sprint in China Solid History, Strong Future: 

1995 : Opened Shanghai and Guangzhou Offices 1989: Entered China Market 1992: Beijing Representative Office Opened 1993: CAAC network expansion 1994 :Established Internet gateways in Shanghai and Beijing 1997 Tianjing Project Sprint/China Unicom 2000: Established offices in Beijing and Hong Kong 1991: Signed Jiangsu Provincial Packet Switching Network Contract 2001: Launched IP Node in Hong Kong Sprint in China Solid History, Strong Future

Slide16: 

Built & launched world’s first Public Data Network Installed first off-shore data network for a PTT Began building world’s first transcontinental all-digital fiber-optic network First to implement international VPN services First carrier offering commercial Internet access First direct dial service from all nations of former Soviet Union First to provide government-sponsored non-university internet access and services system to enterprise customers in China Implemented world’s first international broadband Internet connection Completed first international SONET survivable ring Partnered with Cisco to develop and implement first gigabit router network using Cisco 12016’s for higher performance Operated 2nd Largest IP backbone in the world (by ISP connections) First to offer IP security performance guarantees First Internet provider to offer managed Internet VPN service First Internet provider to offer native multicasting First to announce Interworking SLAs for Frame Relay and ATM Lit first Europe-wide STM-64 (10 Gbps) IP network Announced industry leading Packet Loss SLA Implemented first IPL and FR circuits over L2TPv3 Technology and International Leadership Decades of experience combined with a list of industry firsts! 1996 1997 1998 1999 2000 2001 1975 1980 1990 1984 1992 1994 1995 2002

What’s Next in the Brave New World: 

What’s Next in the Brave New World Global telecom industry will rationalize and stabilize Technology changes will “prove in” for customers and carriers Globalization will drive new opportunities for China and Sprint

Questions?: 

Questions?