BrasilTelecom - ICT OSA Workshop Mar2006

Slide 2: 

BRASIL TELECOM SERVICE VISION and OSA/Parlay March/2006

Our Footprint: 

Our Footprint Third largest RBOC-like Company in Brazil Dominant market position in its concession area (Region II) 9. 6 million Lines in Service (LIS) 9 5 % market share for local services 58.7% market share in the interregional LD segment and a 33.8% market share in the international LD segment (quarterly average) Metropolitan access networks in S ão Paulo, Rio de Janeiro and Belo Horizonte Provides bandwidth services through a 2-ring, 22,000 km submarine fiber-optic cable system, connecting Brazil, USA, Venezuela and Bermuda 23% of the Brazilian population (42 million inhabitants) and 27% of the country’s GDP (US$100 billion) Key Statistics BRP 12 Months* Mkt Cap (02/21/06) R$MM 7,326 Gross Revenues R$MM 14,687 EBITDA Margin 33.6% * 2005 unaudited result.

Who We Are...: 

Who We Are... 10 million clients – fixed-line telephony 3.2 million active internet clients – ISP (BrTurbo, iBest, iG) more than 2.2 million mobile accesses more than 1 million broadband subscribers Market value of more than R$ 7 billion Revenues in 2005 of R$ 14 billion FMCA (Fixed Mobile Convergence Alliance) executive member

Dominant position in the Market: 

Dominant position in the Market Increasing leadership Inter-region International Success in new segments Local * Intra-sector Intra-region Data * Mobile * Q2/2005

Success in mobile telephony: 

Success in mobile telephony (thousand lines) Accesses in Service ARPU of R$ 27.8 31% of post-paid clients Note: ARPU: Average revenue per user and SAC: Subscriber acquisition cost

Challenges in a Convergent World: 

Challenges in a Convergent World Voice Cannibalization Fixed Mobile Substitution Broadband Commoditization Trends Multi Media Services Fixed-Mobile Convergent Services Content Services Reaction

Marketing drivers: 

Marketing drivers New business model aim to retain operator’s margin; Cost and time reduction for new service suppliers and applications; Break barriers for convergent service development; Reduce service deployment delays between different markets; Increase application developers universe.

Network evolution: 

Network evolution

NGN Deployment: 

NGN Deployment 2001 2002 2003 2004 2005 2006 IN Services NGN Wide Area Centrex NGN Multi-Media Conference GSM/GPRS/EDGE Network Parlay/OSA Gateway VoIP Service

Service Layer Vision: 

Service Layer Vision

Service Layer Vision – path to All IP: 

Service Layer Vision – path to All IP

OSA/Parlay SCFs in BrT: 

OSA/Parlay SCFs in BrT MPCC/UI CAMEL MPCC/UI INAP-CS1(+) MPCC/UI SIP (planned for 2006) HOSA UI (SMS and MMS Messaging) User Status User Location (planned for 2006)

Lessons learned: 

Lessons learned Service Development and Deployment Convergent Services Operational Model Network Integration and Vendor Partnership Vendor’s implementation maturity Business Model

Thank You!: 

Thank You! sbribeiro@brasiltelecom.com.br Tel: +556134158434 Mobile: +556184018034 Sebastiao Boanerges Ribeiro Network Architecture