AlcatelChandel2

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Rajesh Chandel Alcatel-Lucent South Asia Broadband for All- - End-User Services

Alcatel-Lucent “Broadband for ALL” Vision: 

Alcatel-Lucent “Broadband for ALL” Vision The Situation: 6 billion people worldwide…but only: 2.7 billion mobile subscribers 470 million broadband*(wireline & wireless) subscribers Source: Alcatel-Lucent (2006) The Stake: Broadband is a necessity for economic and social growth E-health E-education E-government E-environment E-business E-agriculture E-employment E-science * Speeds > 128kpbs Source: ITU E-applications The Mission: Enable “Broadband for ALL”

Enabling social and economic development : 

Enabling social and economic development Internet as prime communication tool… offering useful end-user services… regarding local daily concerns… Internet as a public utility… e-education e-health e-government Internet offered via community access… no more barriers for illiterate people… no barriers of affordability… Broadband enables the uptake of applications…

Agenda: 

Agenda 1. The Challenge 2. The Entry User- Bottom of the Pyramid 3. Internet User Segment- Personal Broadband 4. Advanced User- Personalized and Blended Services 3. Alcatel-Lucent- Your Partner

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1 The Challenge

Innovative Services for Each User Segment: 

Innovative Services for Each User Segment Innovative Entry Mobile Services Broadband Community Centers Affordable Broadband Services Personalized and Blended Services

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2 The Entry User - Bottom of the Pyramid.

Affordable Services for Entry Users:: 

Affordable Services for Entry Users: Now profitable: Shift focus from gross margin to ROCE (return on capital employed): High-volume business at low ARPU Lower capital needs thanks to new business models such as hosted services Source: CK Prahalad and Allen Hammond “Serving the World’s Poor, Profitably” Harvard Business Review, Sept 2002 The World Pyramid Targeting the bottom of the pyramid is a lucrative business

Innovative Entry Mobile Data Services: M-Banking Brings Banking Services to All: 

Innovative Entry Mobile Data Services: M-Banking Brings Banking Services to All End-User Benefits: access to banking services for the un-banked: Payment of bills through SMS, incl. micro-finance loan payments and airtime Cash-in/Cash-out in selected outlets M-payment (retail purchase) Peer-to-peer money transfer incl. international Service Provider Benefits (direct or through a partnership with a bank): Increased SMS traffic Increased customer loyalty Banking revenues (depending on business model) Proven Market Success in the Philippines G-Cash from Globe 1,3M G-Cash registered users transactions for $100M/day Alcatel-Lucent Convergent Payment Smart Money: 3M subscribers incl. 1M subs to Smart Padala, transferring $50M/month from abroad to their relatives Source: Chemonics International, March 06

Innovative Entry Mobile Data Services:Advertising-sponsored calls to enable more affordable communications: 

Innovative Entry Mobile Data Services: Advertising-sponsored calls to enable more affordable communications Low-income users are big market for all industries: (source:World Resource Institute, statistics for India) Alcatel-Lucent Applications BOP (bottom of pyramid): incomes <$3000/year 98,6% of population of India 55% of total country income Specific packages: Lower price per minute User agrees to receive advertising messages in mobile call experience Different options for non-intrusive end-user experience: Advertising on idle screen Push SMS Ring-Back Tone

Broadband Community Centers: 

Broadband Community Centers A shop or community center in a rural village equipped with one or more Internet-connected PCs.

If people cannot travel to access the kiosk.... Bring the centre to their doorstep: 

If people cannot travel to access the kiosk.. .. Bring the centre to their doorstep Mobile Broadband Community Centre The Mobile Broadband Community Centre uses a 3-wheeled motorbike to provide broadband services and deliver e-governance applications.

Services in Broadband Community Centers: 

E-Government Payment of taxes, vehicle registrations, trade licenses, birth and death documents E-Education Provide schools Internet access in small cities, villages and also in rural areas E-Agriculture Information on market prices, Dissemination of agriculture information, easy transactions through direct relationship with buyers E-Business e-commerce for extended network of customers and suppliers e-transactions (efficiency) for supply chain and payment Efficient Delivery Model: Self-service (Internet literate) or staff-assisted (non-Internet literate) Shared cost of devices (PCs and modems) Business Model: Public-Private Partnerships Public subsidies for building, PCs, staff, communications User charges for private partner: per public service transaction + commercial services (Internet access, voice communications, desktop publishing…) Services in Broadband Community Centers Attractive value proposition and business model Ready for expansion to small cities & rural areas In-building Broadband Community Center

Broadband Community CentersThe Example of India: 

Broadband Community Centers The Example of India A first Step before Personal Broadband E-Seva, Andra Pradesh, E-Government E-Choupal, E-Agriculture Objective set by Indian Govt: 100,000 centers by the end of 2008 More than 150 e-services (beyond E-Gov): registrations, payment of bills.. 7 million transactions a year Business Model: Public Private Partnership Market prices, weather forecast, forums.. 9 States, 6500 centers, 38500 villages covered 3,5 millions farmers Business Model: Private (ITC) Objective: 1 small center for every 6 village (24000 villages total in the State)

New Development Model based on ICT: 

New Development Model based on ICT

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3 The Internet User - Personal Broadband

End-User Market Research Shows High Potential for Broadband@Home: 

End-User Market Research Shows High Potential for Broadband@Home 70% are interested in broadband connection at home Question: How interested are you in having a broadband connection at home? (Sample: 2118 Internet Café users) ST Not interested ST Interested Quite interested Not interested at all Very Interested Do not know 3 Additional Findings: Nearly 60% of those interested intend to subscribe within a year Only 50% say broadband is available where they live 1/3 would prefer pre-paid payment for future subscription Alcatel, Quantitative Survey, August 2006: Total of 2100 in-person internet café users interviews in Brazil, Russia, Egypt, Kenya, India, Malaysia and China

Addressing the Barrier of PC Penetration: 

Operator and/or Government negotiates deals with PC manufacturers and acts as: PC dealer: Provides discounts for PC purchase to new broadband subscribers Virtual bank: Monthly broadband subscription package includes leasing fee for PC Addressing the Barrier of PC Penetration Low-cost PCs and innovative models: Facilitating PC acquisition or leasing “Classmate PC” Sept 06 (soon available at board level) Patnership Intel & Alcatel-Lucent to jointly increase PC and Broadband Penetration

Affordable Broadband Services for Internet Users: : 

Pricing and billing strategies Affordable Packages For Mass-Market Broadband Affordable Broadband Services for Internet Users: From 128 kb/s to 1 Mb/s Innovation to address specific user needs and limit cannibalization New wireless CPE for residential Pre-paid/Post-paid, Metered/Un-Metered, Download limits Home Zone tariffs, Bundles with voice For shared broadband (internet cafes and small businesses): CPE multi-user, SLA’s, security packs Technologies: EDGE, 3G, WiMAX, DSL, FTTU Towards Advanced Broadband Packages Mobility Mobile office Mobile TV Converged services Technology: Evolution of 3G High Performance Triple play Managed Communications Technologies: DSL, FTTU Need for advanced payment capabilities and management of quality of service by user profile

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4 Advanced User - Personalized and Blended Services

Advanced Users Demand a Customized Experience: 

Advanced Users Demand a Customized Experience These users today… Are empowered, better informed, switched on Enjoy freedom, mobility and independence Can get everything they want, anywhere, anytime Create their own playgrounds, communities, comfort zones Can create multiple identity profiles, particularly on-line Services must be relevant, context-aware and personalized, yet simple, to avoid commoditization

Service Providers Must Offer Personalized Services: 

From: Disconnected devices Information overload Inconvenience Cumbersome experience Not available everywhere To: Connected devices Relevant information Convenience Effortless experience Available everywhere Service Providers Must Offer Personalized Services Service personalization delivers lasting incremental value — increased revenues and loyalty

Services Need to be Blended, Not Just Bundled: 

Services Need to be Blended, Not Just Bundled What is service blending? Interwoven fixed and mobile voice, data, video and other multimedia content User-centric experiences anytime and anywhere Meaningful interaction between different devices, content and services Service blending advantages Makes communication and collaboration easier Enables service providers to extract full revenue potential from their service portfolios Blending enhances and simplifies users’ personal and professional communication experiences

Innovative Services- An example A Personalized and Blended Service: Communications TV: 

Innovative Services- An example A Personalized and Blended Service: Communications TV The subscriber can: Receive and route phone calls on their TV Record program while taking the call then resume program when call ends Control options Manage address book Forwarding policy Privacy Call history View service subscriptions IPTV + IMS Blended for my lifestyle = Communications TV

Broadband Services for Advanced Business Users:Mobile Push e-Mail: 

Broadband Services for Advanced Business Users: Mobile Push e-Mail End-User benefits from innovation Proven, easy-to-use mobile e-mail service (always on) Now with innovative payment options (“pay N’ go”) Service provider benefits Differentiation: very high-demand/high-profile service for high-ARPU mobile professionals (from enterprise to “prosumer”) Fast to market: any mobile network (GPRS, EDGE, WLAN, CDMA, UMTS…), ASP model Alcatel-Lucent Mobile E-Mail (Blackberry Integration & New Payment Options) Blackberry kind service now available with innovative payment options

Broadband Services for Advanced Home Users:Video Services for Wireline Networks: from VOD to full IPTV Service: 

Broadband Services for Advanced Home Users: Video Services for Wireline Networks: from VOD to full IPTV Service VoD Portal: a first step towards IPTV End-User Benefits: Personal TV my content @ my time (complement to broadcast) Choice of devices: PC, TV.. Service Provider Benefit: Differentiation with first« triple-play » offers Fast-to-market: Alcatel-Lucent MediaMotion and IPTV solutions Different options to meet specific market needs and business scenarios Microsoft TV: a new TV experience End-User Benefits: best TV experience Broadcast: HDTV, instant channel change, pause live Personal TV: VoD, personal video recorder Service Provider Benefit: Differentiation with best TV experience Launched June 2007 in Santiago de Chile

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5 Alcatel-Lucent: Your Partner

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World leader in broadband, broadband multimedia and applications #1 in triple play deployments - 40+ triple play projects including AT&ndT Lightspeed #1 in converged business communications -- BT Corporate Fusion #1 in customer interactions -- Genesys World leader in IMS and Next Gen Networks World leader in CDMA, enabling advanced wireless services Extensive end user knowledge –15 global research projects, in 17 countries Service modeling and go-to-market support through MAP and advanced Bell Labs modeling Helping service providers align diverse technology elements required to offer personalized and blended services: Enable user-centric experiences that transcend fixed/mobile boundaries without technology bias Applications to support the delivery of user-centric services to any user, over any device Global tools and proven methods to identify and target revenue generating services Time-to-market advantage through accelerated competitive transformation solutions Global technology ecosystem leader Alcatel-Lucent User Centric Experience: Unique Value

Alcatel-Lucent The First Truly Global Communication Solutions Provider: 

Alcatel-Lucent The First Truly Global Communication Solutions Provider 130 countries 80,000 employees Annual Revenue €18.3 billion ~ 1/3 Europe ~ 1/3 North America ~ 1/3 Rest of the World #1 in wireline, #3 in wireless #1 in OSS #2 in services #1 in Europe for enterprise communications solutions €2.7 billion investment 25,000 active patents held 6 Nobel Prizes won Market Position Worldwide Presence Leading R&D Capabilities Diverse Customer Base A Leader in IPTV, Carrier and Enterprise IP, NGN/IMS, and CDMA and UMTS

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www.alcatel-lucent.com