Slide 1: Gary Taylor Director of Mobility & Convergence 25 November 2004 The Future of Telephony Welcome to the world of Fixed Mobile Convergence
Slide 2: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 3: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 4: Breaking the shackles of PSTN Voice as an Application Voice The Voice Application is embedded in the Infrastructure Messaging Video Voice PSTN Infrastructure Enhanced Flexibility Releasing Innovation IP Infrastructure Fixed Devices Flexible Devices
Slide 5: VoIP innovation….. we have been first to market for voice over IP BT Broadband Voice Emulating normal telephony • BT Broadband Voice launched in December adds immediate value to Broadband • Demonstrating BT as a technology leader - first to market gaining experience • Complements BT Together ‘BT is broadening its use of VoIP and going with the trend of traffic migrating away from the legacy of the public switched telephone network in favour of mobile services and Internet protocols Other operators should closely manage their plans for VoIP’ Gartner Dec 2003
Slide 6: We see VoIP as an opportunity… 70% of IPT sales now include LAN sales BT has doubled its LAN market share Revenue growth from £80m to £154m New ways to communicate with BT Communicator New incremental revenues from customers using BT to communicate with voice and text Enterprise Adoption of IP Applications 80% 70% 60% 50% 40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 IP Telephony Unified Communications IP Contact Centres Unified Conferencing Access to new integrated communication markets delivering new market opportunities worth over £300m to BT Source: Forrester, Giga Research
Slide 7: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 8: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 9: A fragmented world of services and devices ‘Today our lives are complicated by multiple networks and devices resulting in duplicate applications and information and numerous service contracts and bills’
Slide 10: Each world brings its benefits Convenience Personalisation Mobility Quality & Reliability Cost Bandwidth
Slide 11: A joined up world In the future, we will be able to access all our applications and information on our choice of device, utilising the best network available with one customer experience
Slide 12: Delivering the vision Five key building blocks 1. Building a mobility customer base
Slide 13: Building a mobility customer base • BT Mobile has in excess of 300,000 business and consumer connections • BT was the first to launch a public wireless broadband service - BT Openzone - now with in excess of 7,000 hotspots in prime UK locations and a global footprint through the Wireless Broadband Alliance of some 20,000 hotspots • BT Global Services offers managed mobile, managed BlackBerry, secure remote access, managed applications and sales/field force automation • BT is fast becoming the UK leader in secure, network centric, machine-to-machine (M2M) applications
Slide 14: Delivering the vision Five key building blocks 1. Building a mobility customer base 2. Developing and delivering compelling convergence propositions
Slide 15: Convergence Propositions Case Study - Project Bluephone • Combining the value of Broadband with mobile services – Enhancing the value of your broadband connection – Increasing data speeds to your mobile handset (phase 2) • Protecting the customer from technology • Devices move seamlessly across networks • Reduced price calls when in the home or the office • Mobile handset-centric • • • Mobile feature set on the fixed network Service to the 11% of UK homes with no (or poor) coverage Initially using class 1 Bluetooth (in-building range of 20-25 metres)
Slide 16: How it works UMA technology: • Access Point in the home acts as a cell site and connects to GSM network via broadband line • Calls and data sessions are placed and received exactly as they are today on GSM networks • Supports any wireless bearer e.g. Bluetooth, Wi-Fi • Enables in-call handover between Access Points and GSM cells 3G nd adba bro MSC HLR
Slide 17: Delivering the vision Five key building blocks 1. Building a mobility customer base 2. Developing and delivering compelling convergence propositions experience 3. Developing and delivering ‘one’ converged customer
Slide 18: One Converged Customer Experience One number One bill One point of contact One directory One voicemail Convergence - ‘Now its coming, nothing will ever be the same again’ Ovum 20th May 2004
Slide 19: Delivering the vision Five key building blocks 1. Building a mobility customer base 2. Developing and delivering compelling convergence propositions 3. Developing and delivering ‘one’ converged 4. experience Driving industry investment and innovation including the development of next generation devices customer
Slide 20: Industry Investment & Innovation Fixed Mobile Convergence Alliance (FMCA)  Chaired by BT  Supporting BT’s strategic aims for a wide device market  2 primary goals  accelerate telco entry into the Convergence market by sharing trial results and technology selection decisions  drive handset vendor support by issuing product requirements for the key Convergence technologies  Founding members (BT,Korea Telecom, Swisscom, NTT Com, Brasil Telecom Rogers Wireless) represent 145 million customers  New members announced in October 2004 - AT&T Corp (US), Bezeq (Israel), Cegetel (France), KPN (Netherlands)
Slide 21: Delivering the vision Five key building blocks 1. Building a mobility customer base 2. Developing and delivering compelling convergence propositions 3. Developing and delivering ‘one’ converged 4. experience Driving industry investment and innovation including the development of next generation devices customer 5. Building a network and platforms with seamless converged capability
Slide 22: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 23: Convergence sits at the heart of the future Voice and Data Fixed and Mobile A true multi media experience which will transform the way we communicate A fusion which allows customers to enjoy the best of both worlds Comms and IT Enabling businesses to deliver the most appropriate information or communication when and where required Media and Network Reinventing home entertainment
Slide 24: Moving To SIP • SIP and UMA are complementary – leadership in UMA is important to capture SIP leadership • Wi-Fi VoIP • Double play - Convergence to the mobile and wireless for the laptop • Leverages BT’s investment in its fixed network – high speed and low cost – brings fixed network economies to bear •Integrated with BT’s 21CN
Slide 25: 21C - A Platform for Mobility & Convergence Away from Home or Office Mobile Network GSM/GPRS & 3G with Vodafone Interfaces to Vodafone Network BT 21C Network Around the Office Enterprise Networks LAN & WiFi At Hot Spot Wireless Access WiFi 21C SIP/IMS Infrastructure for VoIP, Video, Messaging & Broadband Data Services Converged Voicemail Converged IM/SMS/MMS At Home Residential Broadband Access DSL & Cable PSTN Legacy Interfaces to PSTN
Slide 26: The future of integrated communications Personal Profile Manager Presence Information Integrated Communications Vision Messaging IM & email Collaboration Unified Directory Many Devices Supported Integrated with leading applications Single Secure sign-on (One Identity) Voice Application
Slide 27: Dramatic Change Customer Transformation • Personalised Customer Service • Converged Mobile Devices • Single Set of Applications and Information BT Transformation • Customer Solutions not Products • Converged Network • Universal Communications Company Industry Transformation • SP not just Fixed or Mobile Operators • A Converged Communications Market • New partnerships