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Published on December 1, 2007

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Slide1:  Telekom Austria Technology Strategy Roadmap Future Universal Network (FUN) Helmut Leopold Mai 2nd, 2001 - confidential - Slide2:  Increasing competition and a value shift are driving Telekom Austria to make a strategic shift to become a multiservice provider (1) Estimated figures based on European market data, aligned with Austrian market figures, TA market share excludes mobile revenues Source: IDC, OVUM, Goldman Sachs, www.aspnews.com, BA&H analysis Total Austrian Telecom Market 1) – 2000–2004 – 67 100 Value-Added services including IP, data and multimedia products and services Mobile voice and data products and services Fixed voice products and services including voice value added services Austrian Market Size – ATS Bn. – TA Market Share Value Added Services (Multimedia) Mobile Fixed Voice In more detail, the F.U.N. project ought to accomplish strategic and tactical goals in the technology and process area:  In more detail, the F.U.N. project ought to accomplish strategic and tactical goals in the technology and process area Technology Process Value Shift (Strategic) Network Status (Tactical) Introduction – Project Overview The overall product and service portfolio reflects an increase in next generation products and services:  (1) Products and services offered project based and mobile services are not included (2) Includes products and services categorized as under development, in preparation and in the future The overall product and service portfolio reflects an increase in next generation products and services Information Sources for Products and Services Products and Services by Product Segment(1) -Beginning 2003- 82 58 140 Current Products Future Products(2) Voice + VAS (IN) 51 IP + VAS (Multimedia) 55 Transport 34 Five key issues for the Future Universal Network (FUN):  Five key issues for the Future Universal Network (FUN) Capacity in the access network (Access) Transport capacity in the core network (Backbone) Intelligent traffic control (Edge) Voice Data Integration and migration New Multimedia-Services (CPE and SW-Platforms) Why ADSL ? (2) Market demand:  Why ADSL ? (2) Market demand Residential customer Internet Access as the “initial application” ! Always on ! Flat rate tariff ! Business customer Cost effective alternative for traditional leased lines uncontended connectivity (VPN) higher bandwidth ADSL Infrastructure Rollout in Austria:  100.000 Lines installed Lienz Bischofshofen Leoben-West Bruck a.d. Mur Steyr- Tabor St. Johann im Pongau Leoben-Ost Leoben-Mitte Graz Leoben Villach Traun Hallein Tamsweg Hall in Tirol Wien Innsbruck Mitte Zwettl Krems St. Pölten Stockerau Haid Ebensee Seewalchen Timelkam Gallneukirchen Rum Völs Klagenfurt Nord Imst Hötting Pradl Bregenz Mitte01 Bregenz Mitte02 Voitsberg Bärnbach Fürstenfeld Bad Radkersburg Murau Knittelfeld Mürzzugschlag Judenburg Liezen Deutschlandsberg Leibnitz Weiz Pöllau Hartberg Gratkorn Kalsdorf Dobl Völkermarkt Hermagor Feldkirchen St.Veit Velden Ferlach Feistritz Oberwart Güssing Jennersdorf Oberpullendorf Stegersbach Pinkafeld Amstetten Baden Hollabrunn Horn Mistelbach Scheibbs Neunkirchen Tulln Waidhofen/Th Waidhofen/Y Melk St.Valentin Ebenfurth Ybbs Gutenstein Miesenbach Mödling Pressbaum Leobersdorf Wilhelmsburg Fischamend Linz Fadingerstraße Grünstraße Haydnstraße Kleinmünchen Leonfelden Linz Puchenau Wegscheid Alpenstraße Fuggerstraße Moosstrasse Paris-Lodron Residenz Wals Lehen Itzling Bad Hofgastein Schwarzach Grödig Reutte St.Anton Telfs Seefeld Brixlegg Jenbach Landeck Kufstein Wattens Schwaz Mayrhofen Neustift Fulpmes Serfaus Kolsass Kaltenbach Zell Kirchbichl Söll Ellmau Kirchberg Westendorf Alpbach Kundl Wild Schönau Fügen Ischgl Bürs Bürser Berg Feldkirch Lustenau Silbertal Tschagguns Schruns Egg Zwischenwasser Koblach Klaus Mäder Höchst Ehrwald Axams Kematen Sulz Piesting Röthis Götzis Bruck/L Gänserndorf Korneuburg Wels Ried Steyr- Grünmark Neusiedl/S Götzis Altach Rankweil Weiler Hohenems Dornbirn Nüziders St.Anton Lorüns Stallehr Bludenz Vöcklabruck Graz Villach Wien Klagenfurt Zwettl St. Pölten Pregarten Ebensee Enns Timelkam Laakirchen Gleisdorf Klagenfurt West Imst Köflach Studenzen Kalsdorf Hausmannstätten Semriach Velden Feistritz Pinkafeld Wr.Neudorf Klosterneuburg Langenzersdorf St.Valentin Brunn/Geb Ebenfurth Ybbs Gutenstein Miesenbach Purkersdorf Breitenfurth Pressbaum Oberwaltersdorf Leobersdorf Laxenburg Felixdorf Pottendorf Bad Vöslau Traiskirchen Neulengbach Böheimkirchen Linz Fadingerstraße Grünstraße Haydnstraße Kleinmünchen Leonfelden Linz Alpenstraße Fuggerstraße Moosstrasse Paris-Lodron Wals Lehen Itzling Bad Hofgastein Bad Gastein Großgmain Elixhausen Grödig St.Gilgen Serfaus Fügen Ischgl Vandans Hörbranz Frastanz Thüringen Satteins Übersaxen Fußach Sulz Piesting Röthis Nenzing Villach-Mitte Villach-Süd Villach-Ost Villach-West Graz Traun Gmünd Zwettl Krems St. Pölten Stockerau Nord Süd Ost West St. Johann Klagenfurt SüdOst Schendligen01 Schendligen02 Tulln Linz Fadingerstraße Grünstraße Haydnstraße Kleinmünchen Leonfelden Linz Kitzbühel Salzburg Eisenstadt Henndorf Lamprechtshausen Eugendorf Neudorf Matrei Mittersill Zell am See Matrei Stainach ADSL Infrastructure Rollout in Austria Technical problems: 2% > 3km LEX Radius: 2% not in the ADSL Rollout: 3% Market coverage: > 75% DSL Market Evolution Service Adoption Rate:  DSL Market Evolution Service Adoption Rate DSL services are expected to continue currently observed super fast market adoption. ADSL is forecasted to be responsible for most of the growth. Telekom Austria achieved a great success in ADSL penetration so far ....:  Telekom Austria achieved a great success in ADSL penetration so far .... Number of ADSL subscribers – pro 1000 PSTN lines – Quelle: European Competitive Telecommunications Association, Januar 2001 (Quellendaten 3.Q 2000) Slide10:  TA´s optical High performance backbopne - DWDM Network Western Ring St.Johann – Innsbruck – Dornbirn – Feldkirch – Innsbruck - Bischofshofen Eastern Ring (H1) Salzburg – Linz – St.Pölten – Wien Schiller Wien Arsenal – Eisenstadt – Graz Graz - Klagenfurt - St Johann/B´Hofen - Salzburg separated parallel Ring (for 1:1 protection !) slightly different structure for ORF WDM network (1 WL) max. capacity per WDM relation:  320 Gbit/s max. capacity, per fibre link (1st Ring.)  640 Gbit/s max network capacity (2nd ring - protection !) St.Pölten Salzburg Linz Wien Innsbruck Graz Feldkirch Klagenfurt B‘Hof St Johann 32 WL 32 WL 32 WL 32 WL 32 WL 32 WL 31 WL 32 WL Eisenstdt Wr. Neustadt 32 WL 32 WL 32 WL 32 WL 32 WL New Framework: Investment-Mix and “Shareholder Value” :  Investment Mix Budget New Framework: Investment-Mix and “Shareholder Value” Gewinn Gewinn Slide12:  TDM ATM IP-MPLS Copper ATM Stage 1 2001 IP ATM SDH TDM IP IP ATM TDM SDH Stage 3 2005 Stage 2 2002 TDM DWDM ATM Copper ADSL SDH * DWDM Copper xDSL TDM ATM Copper ATM SDH * xDSL xDSL * = Metro-DWDM ** = OTH - Optical Transport Hierarchy Multiservice (IP/ATM-MPLS Multiservice (IP/ATM-MPLS DWDM Main Actions Today We propose to deploy an IP-MPLS Network over three evolution stages OTH** Three next steps for the Future Universal Network (FUN):  Three next steps for the Future Universal Network (FUN) Intelligent traffic control cost efficient network operations and extension lower OPEX Voice Data Integration and migration Investment protection ! Service Convergence secure networks Decrease cost of ownership ....:  Decrease cost of ownership .... The main focus of interest has changed...:  The main focus of interest has changed... Technology Enable Market Mass roll-out 1990 1997 1999 - DMT(ANSI T1.413) - ATM (QoS, MUX) - G.DMT, G.Lite, G.HS - Service delivery models (DSLF) - Network architectures - PPPoX - BRAS - 1st carrier class eqt - 1st network roll-outs (US) - Carrier class: - Manageability - Ease of provisioning - Investment protection - Fulfillment (Time to market) 2001 Next Generation Access - Convergence - VoDSL - Business access - Streaming Video - ... Critical Success Factors Today’s challenges End-to-end service provisiong .... Key enablers - critical success factor:  End-to-end service provisiong .... Key enablers - critical success factor ... ... L2TP, MPLS,... VPN IP/ATM edge BRAS DSLAM ASP & industry vertical ADSL MSP RSP Virtual routing VPNs Integrated e2e view: Agility (MACs), LL emulation, upselling, SLA Streamlining operations... ... cost efficient provisioning processes ?:  Streamlining operations... ... cost efficient provisioning processes ? Provisioning Technology - Back end skill required - OPEX/Line Integration in Business Process Yesterday - BRAS user driven - Edge manually - Access manually Engineer None: operational overlay Today Mainstream - BRAS user driven - Edge flow-through - Access flow-through Conceptual integration Full blend into OSS Tomorrow Service-level specification - CRM - Workflow - workforce scheduling - line ordering / testing - proactive helpdesk / SLA mgt New service offerings ... High end service „Video streaming“:  New service offerings ... High end service „Video streaming“ Slide19:  Standort Feldkirch Server-LAN Server-LAN Standort Wien Set Top Box MM-LAN Graz Linz CS 7206 ATM ADSL-LAN MM-LAN Multimedia Fieldtrial Network Architecture ATM Server-LAN ADSL-LAN CS 7206 The video service offering enhances the stickiness of the ADSL offer – break-even is expected by the end of 2003:  The video service offering enhances the stickiness of the ADSL offer – break-even is expected by the end of 2003 Product Cost and Revenues for the Video Service Offering Revenue, Cost in MATS Subscriber ‘000s Revenue Cost Subscriber Financial Evaluation – Multimedia Note: Cost equals allocated OpEx and Depreciation – See appendix for details. Voice/Data Intergation .... Build on today´s business ... “:  Voice/Data Intergation .... Build on today´s business ... “ „All IP“ Multiservicenetz der TA (2005):  „All IP“ Multiservicenetz der TA (2005) PSTN Access Internet WWW GSM Leased Lines Integrated access xDSL “All IP” Multiservicenetz (IP/ATM/MPLS) Backbone UMTS Optical Transmission and Switching (OTH) ....the main focus for the next step ....:  ....the main focus for the next step .... .... technology may make something possible, the applications could make it happen, but, usability and affordability will make it a success !

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