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Leveraging SIP for Next-Generation Mobile Services

Leveraging SIP for Next-Generation Mobile Services. LongBoard Inc. www.longboard.com October 14, 2003. Agenda. LongBoard Introduction Why SIP for Wireless What Users Want Killer SIP Based Mobility Application - One Phone What Enterprises & Carriers Want Market Opportunity

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Leveraging SIP for Next-Generation Mobile Services

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  1. Leveraging SIP for Next-Generation Mobile Services LongBoard Inc. www.longboard.com October 14, 2003

  2. Agenda • LongBoard Introduction • Why SIP for Wireless • What Users Want • Killer SIP Based Mobility Application - One Phone • What Enterprises & Carriers Want • Market Opportunity • How is the New Service Delivered? • Summary

  3. LongBoard Overview • Emerging company with market traction • Leading supplier of wireline IP Centrex applications to the Japanese market • Customers and trials with carriers in Japan, Europe, US • Founded in 1999 • Experienced management team • $60 million equity capital raised – premier venture capital firms & corporate investors • Voice application software for carriers • Carrier grade SIP application server for next-gen networks (Softswitch architecture) • Enterprise and residential calling features • IP Centrex , and Advanced applications – OnePhone, Voice Chat • Web-based self provisioning of phone service • Next generation service creation • Selected Partners • Siemens, NEC, Sun, NextGen – Nisho Iwai • SIP technology expertise • 25+ Patents filed Headquarters Santa Clara, CA Development Center Raleigh, NC

  4. Market Drivers to Leverage SIPin Next Gen Wireless Networks • Cellular has a capacity and coverage challenge • Unlicensed spectrum indoors helps alleviate capacity problem • Indoor access points alleviate indoor coverage problem • Enterprises are already wired with high-speed LAN • By 2004, 50% of Fortune 1,000 will have 802.11 investments (Gartner Group, ’01) • 802.11 equipment pricing declining rapidly • “Indoor” versions of standard cellular equipment (eg, wireless PBX) • Expensive • Don’t extend the enterprise feature set to cellular • Don’t improve the enterprise phone • Mobile operators are better positioned vs. wireline carriers to exploit 802.11

  5. Why SIP? • Voice service is becoming a commodity • SIP functions at the signaling level • Provides existing phone features • Allows for intelligence to be distributed either to end-points or in the core • Aids scalability by reducing central office/MSC equipment and complexity • SIP enables use of Application Servers to provide variety of functions – voice, video & data • Unique telecom services • Mobility • Messaging & Presence • Web interfaces & hosting • Standard Open APIs for new services and new revenue • Delivery of services without changing the network

  6. SIP vs. Other Protocols • SIP Allows for Technology to Start in the Core and Move to the Edge • New technology is typically first deployed in the core of the network • Small Number of Subscribers, Expensive Technology • Technology typically moves to the endpoints • Larger Subscriber Rates, Cheaper Technology

  7. Home Phone SBC US$25 AT&T US$25 Home PC SBC US$45 Office PC Mobile Phone Sprint PCS US$75 Laptop PC Earthlink US$20 WiFi/CDMA Enabled PDA Verizon US$100 Why SIP for Wireless? Office Phone Telco US$50 Comm Expense Sprint PCS $ 75 Verizon $100 SBC $ 80 AT&T $ 25 Earthlink $ 20 OfficeTelco $ 50 Total $350 • Each Device Supports 1or More Media (Voice, Email, IM, Video) • All Devices Now Support Voice

  8. Home Car Airport Hotel Remote Office Where We Use Devices • Main Office

  9. What Users Want • One phone number, one voicemail • One set of services • Extension dialing, transfer, divert, conference, corporate directory, etc. • Personalized service management • Screen out unwanted calls, ensure important calls always reach • Presence enabled calling • Multi-media enabled • Voice, video, instant messaging available when required • Accessible from any client device • Office phone, home office phone, laptop PC, wirelessPDA, mobilephone • Global accessibility from any location • In the office, at home, on the road, anywhere in the world!

  10. Single Phone Solution Killer SIP Based Mobile Application • Provides ubiquitous voice services, using a single handset across both the enterprise and the public cellular networkwith a single phone number • Services Provided Over • VoWLAN (802.11 or BlueTooth) Enterprise Network • Public Cellular Network (GSM or CDMA)

  11. Trunk Gateway Trunk Gateway Media Server Session Border Controller Apps Server Access Device Router with Wireless Access Point SoftSwitch SIP Phone Windows XP Workstation Unified Messaging Application Server ENUM Server Presence Server Analog Phone WiFi Enabled PDA SIP Phone SIP Applications Server in the Network

  12. MSC Trunk Gateway Trunk Gateway Packet Data Node Cellular Service Provider PSTN WiFi Access Point Router Router Carrier Network Phone OnePhone Service Provider Enterprise One Phone Service Delivery Architecture Feature Server LongBoard Application Server

  13. OnePhone Benefits for Enterprise • User mobility and productivity • One Phone, One Number, One Voicemail, One Directory, One Bill • Instant Voice Chat conferencing enabled with ‘click-to-conference’ and ‘presence’ • Enterprise cost savings • Single phone; full and consistent features • 50%+ reduction in CAPEX per user • 35% reduction in total cost of ownership • Increased control • Outsourcing: predictable expenditures • Restricted dialing, etc. control costs • Teleworker support • Easy migration path • Simple migration to full voice-over-IP • Single Phone as PBX adjunct orreplacement Installed CAPEX Comparison per User Traditional Enterprise One Phone Solution Wired Wireless Phone Phone Desk set $450 $500 $300 Cell Phone $250 $0 Wireless Network $0 $20 $20 PBX Port $200 $135 $0 Cable Install $150 $0 $0 Total $1,050 $655 $320 Source: SpectraLink, 2003

  14. One Phone in the Enterprise Features & Benefits • Simple, Robust, Flexible, High Integrity Service • Single number, single voice mail from any location • High voice quality and capacity, exceeds PSTN • Location independence: local/remote wireless users • Click-to-call: missed, outgoing or incoming calls: Select contact from phone directory • Instant Voice Chat conferencing with presence • Security: MAC authentication, WEP, WEP key tumbling; WPA; 802.11 via RADIUS Long Term Architecture for ROI • Simple migration to full VoIP, mobile IP telephony: scalable to meet future requirements • Reduces cap-ex, op-ex: PBX feature set extended to wireless phone: eliminates PBX • Eliminates dedicated LD between offices; flexible US-based numbering/dialing plans • Integrated, converged applications platform, new apps available via common interface • Easier & faster provisioning of new services, customized policy routing for all trunks

  15. One Phone in the Enterprise Features & Benefits Reduced OpEx, Increases Affordability • Centralized management and security for simplified control and lower TCO • Self configuration reduces OpEx, change personal settings from any location • Provides users with access to critical office communications, regardless of current location • Access & manage via simple web-based PC or OnePhone • Determine how calls are handled and routed to individual • Shared partitionable management views via SNMP or Web browser • Delivers wireless mobility to the office at attractive price levels • Gives IT managers a real choice about how to deliver enterprise-wide connectivity to users Seamless Integration • Simplifies migration to full voice-over-IP, mobile IP telephony • Integrates with legacy PBX systems, uses existing LAN infrastructure Compliance • CALEA, E911

  16. OnePhone in the Workplace Early Adopters for Single Phone Solution Healthcare Universities Horizontal • No WiFi frequency interference • PC Tablet apps + voice in hospital • Features throughout carrier footprint for doctors • Dissatisfaction with Centrex • HIPPA compliance driving CAPEX • High % mobility workers • Professional services firms • Sales & field force automation • Client and customer accessibility • Features extend university support to off campus staff • Early adopters of WiFi voice to reduce cellular on campus • WiFi data to attract wireless gen students • Lots of dissimilar PBXs & v-mails

  17. What Carriers Want • New revenue from new services: profitable growth • Favorable impact on churn, ARPU, EBITDA • Offsets voice price-per-MOU erosion • New revenue stream: $60-80 per sub per month • Strengthened value-added role • Improved segment penetration • Increasingly ‘sticky’ account control • Improved wireless network utilization • Portion of cellular traffic migrates to wireless LAN • WLAN carrier unloads cellular operator’s radio network • Attractive market • Participate in WiFi growth

  18. What Carriers & Enterprises Require Service Integrity • Solution must provide voice quality that exceeds PSTN • Even in conditions where 30% packet loss occurs • Seamless access point handoffs • Seamless inter-network (and inter-technology) roaming • No loss of the secure connection • Minimal delay transitioning call to macro cellular network • Security on wireless LAN • Automatic phone authentication; keys are securely distributed • Wireless VPN with multiple classes of security • Rogue access point detection • Wired Equivalent Privacy standard 64 and 128 bit encryption • Temporal Key Integrity Protocol (TKIP) & WPA: response to WEP vulnerabilities • Seamless enterprise integration • Simplifies migration to full voice-over-IP, mobile IP telephony • Integrates with legacy PBX systems • Uses existing LAN infrastructure

  19. Carrier Opportunity One Phone Concept • Extend Carrier’s enterprise service offering • In-building coverage with full PBX features on one wireless handset in the office • Full business voice features in the cellular environment on same wireless handset • Use existing cellular and enterprise infrastructure • Outdoors: Cellular IP data path for signaling combined with legacy cellular for voice • Indoors: VoIP over enterprise wireless LAN • Carrier-branded solution • Hosted IP Centrex service • Service bundle with handset • Instant Voice Chat (conferencing+PTT+presence) VoIP over wired- and wireless-LAN Campus OnePhone Today’s 2.5G Network OnePhone LAN Switch MSC

  20. Demand Indicators for Single Phone Solution • Wireless LAN Uptake Increasing • Today: 1 million access points in US enterprises • Enterprise penetration 30-50% by EOY 2003 • 2006: 25M+ enterprise access points worldwide • PBX replacement under consideration • Purchases for Y2K issue ending economic life • Enterprise VoIP moving to mainstream • IP PBX & IP Centrex: from 20% - 60% lines shipped during 2001-06 • IP Centrex market validated by ILECs • Trend towards outsourcing Timeframe of Enterprise Plans for IP Voice via LAN Sources: Gartner 11/02, Merrill Lynch, Raymond James, 2002

  21. Market Opportunity U.S. Addressable Market • Addressable • 84 million+ enterprise extensions on PBX, Centrex, Key Systems • 1418M immediately addressable • 1990s PBXs at end of economic life • Revenue potential • Service provider: $10-12B annually* • Handset mfg’r: $6-9B (20-30M units) U.S. Enterprises * 20% of 80M lines @ $70 / month / user Sources: Merrill Lynch, Yankee Group 2002 Corporate Wireless Survey, CSFB, Piper Jaffrey, Mercer, RWY Enterprises

  22. Carrier Implementations of OnePhone Requires Partnering • A carrier needs: • A commercially available dual mode handset (preferably sold by cellular carrier) • Wi-Fi integration capability or Wi-Fi managed service • IP backbone and PSTN Gateway(s) • Channel to customer • SIP voice platform and fully application that provides a single set of services across enterprise and cellular networks • IP Voice Service capability (or partner to provide) • A carrier gets unique service offering to targets generating ~$80 per month per number

  23. OnePhone Handset Standards based • 3GPP standards mandate IP connectivity and SIP for handsets Availability • Several handset mfgr’s integrating 802.11 • 802.11 chip sets solve power mgmt issue • GPRS trial units 4Q03 • GPRS commercial availability 1Q04 • CDMA 1XRTT availability 2Q04 Pricing • Retail target for Pocket PC ~ $480 - $550 OnePhone with 802.11b and Cellular • High-end Pocket PC • Fully featured • CDMA or GPRS • WiFi via SDIO slot as interim • Replaceable battery • Talk time 2-3 hours

  24. Instant Voice Chat Enhances One Phone Bob Paul Gary Rich Bill • Click-to-Talk + Presence +Conferencing • “One-Click” conference Complements Push-to-Talk

  25. Sample Solutions

  26. Competitive Landscape Service OnePhone LongBoard 3G Promise Ericsson Centrex SBC In-Building Everywhere Converged PBX Avaya IP PBX Cisco Wireless PBX RadioFrame PBX Alternative MOT, Avaya WiFi – 3G Data Nortel PBX Nortel Product

  27. Summary • SIP-based VoIP enables a single, number, single phone and seamless service from any location • Leverage 802.11/cellular seamless roaming • Moving to SIP for mobility enables incremental applications to be added such as Voice Chat & IP Centrex • Users and carriers benefit from these new services: the market potential is robust • Technology available, service integrity is robust

  28. Thank-you!

  29. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example - Registration Cellular Service Provider PSTN IP OnePhone Service Provider Enterprise

  30. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call PSTN subscriber 19193613200 dials OnePhone subscriber 14085713350 Cellular Service Provider PSTN IP OnePhone Service Provider Enterprise

  31. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call PSTN routes call to OnePhone Service Provider Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  32. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call Trunk Gateway sends call request notification to LMAP that 19193612200 is trying to reach 14085713350 Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  33. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call LMAP looks up current registration for 14085713350 and forwards call request notification to IP address 10.1.8.32 Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  34. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call Cellular Service Provider PSTN IP OnePhone alerts user of incoming calls from 1919361220 Enterprise OnePhone Service Provider

  35. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Enterprise Example – Incoming Call Cellular Service Provider PSTN IP User answers call resulting in a voice connection being established via the WiFi Network Enterprise OnePhone Service Provider

  36. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example - Registration Cellular Service Provider OnePhone goes out of range of enterprise WiFi Access Point PSTN IP Enterprise OnePhone Service Provider

  37. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example - Registration Cellular Service Provider OnePhone sends notification to cellular service provider registering subscriber 14084204579 as being contactable via cellular network PSTN IP Enterprise OnePhone Service Provider

  38. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example - Registration Cellular Service Provider OnePhone sends notification via cellular data network to LMAP registering subscriber 14085713350 as being contactable at cellular phone number 14084204579 PSTN IP Enterprise OnePhone Service Provider

  39. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example - Registration Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  40. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call PSTN subscriber 19193613200 dials OnePhone subscriber 14085713350 Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  41. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call PSTN routes call to OnePhone Service Provider Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  42. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call Trunk Gateway sends call request notification to LMAP that 19193612200 is trying to reach 14085713350 Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  43. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call LMAP looks up current registration for 14085713350 and forwards call request notification via the cellular data network Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  44. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call LMAP initiates a secondary voice call request to cellular telephone number 14084204579 via the cellular voice network Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  45. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call OnePhone correlates the two call requests and alerts user of incoming calls from 1919361220 Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  46. LMAP MSC Trunk Gateway Trunk Gateway Packet Data Node WiFi Access Point Router Router Cellular Example – Incoming Call User answers call resulting in a voice connection being established via the cellular voice network Cellular Service Provider PSTN IP Enterprise OnePhone Service Provider

  47. One Phone- Place a Cellular Call

  48. One Phone-Receive a Cellular Call

  49. One Phone- Place a SIP Call

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