1. Home Zone 2.0 AKA “the state of FMC and Femtocells” March 17, 2008

2. Home Zones (What problem is the operator trying to solve)

3. Current Telecom “Battleground” Mobile Operators Fixed Operators VoIP Operators Who will own voice services in the home? “ Battle for the Building” Fixed-to-Mobile Substitution Fixed-to-VoIP Substitution Mobile-to-VoIP Substitution

4. The Mobile Operator’s Dilemma How to offer service differentiations Mobile Advantage: Common Service Experience across the network Mobile Dis-Advantage: Common Service Experience across the network Home Office Hot Spot

6. Home Zone Mobile Operator Approach for Owning the Home However, significant concerns with cellular home zones Squeezed Margins (Same Cost of Service) Standard MoU Home Zone MoU Poor Performance (In-building Coverage) Revenue Leakage (Poor Location Accuracy) Cellular Home Zone (Based on Cell ID) = Home Zone Home Zone (Or Village Zone?)

7. Home Zone 2.0 Leverage Broadband and Access Points Mobile Core Network (Circuit, Packet, IMS services) UMA Network Controller (a.k.a. RAN Gateway) Internet & Broadband Dual-Mode Handsets Wi-Fi Access Point UMTS Standard 3G Handset Femtocells Home Zone 2.0

8. Home Zone 2.0 Leverage Broadband and Access Points Addresses Home Zone 1.0 Challenges Lower Cost (Leverage broadband/IP) Standard MoU Home Zone MoU Improved Performance (Dedicated in-building radio) Targeted Zone (Radius of access point) Home Zone 2.0 (Femtocell or Wi-Fi) =

9. Commercial Home Zone 2.0 Services Talk 4 minutes for every 1 minute in your plan when on Wi-Fi £19/month Unlimited calling to land-lines and Orange mobiles when on Wi-Fi € 15/month Add-on plan Unlimited calling to US landlines and mobiles when on Wi-Fi $10/month Add-on plan € 13/month Add-on plan Unlimited calling to landlines and Telia mobiles when on Wi-Fi Unlimited calling to US landlines and mobiles when on Wi-Fi $10/month Add-on plan CB Home Run Unlimited calling to US landlines and mobiles when on Femtocell $15/month Add-on plan Airave

10. France Telecom/Orange Home Zone 2.0 Success Story

11. Vision for Home Zone 2.0 Build upon the need for cheap voice Address Threats Pain Killer Vitamin Open Opportunities Home Zone 2.0 Connected Home Compelling Mobile Data Low Cost, High Quality Voice My Music My Pictures My Videos My Computer My Tasks My Camera My Printer My Network

12. Vision for Home Zone 2.0 Build upon the need for cheap voice

13. Femtocell Market Update

15. Femtocell-to-Core Network Connectivity Primary Implementation Options SIP-Based (a.k.a. IMS based) SIP Internet Security HSS SIP MSC E, D Iu-CS Iu-PS Internet RNC-Based (a.k.a. “Iu-b based”) Iu-b over IP RAN Gateway (a.k.a. “Iu based”) Internet Iu over IP RNC Existing Mobile Core Network (Circuit, Packet, IMS services) Security & Aggregation GW (SMS) GW (SMS) GW (SMS) Femtocell Femtocell RAN GW Femtocell Radio Management Functions Core I/F

19. UMA Market Update

20. 3GPP UMA Technology Rapidly Growing UMA Device Portfolio Terminal Adaptors Dual-mode Handsets Femtocells

21. 2007 UMA Dual-Mode Handset Summary The Year of Commercialization Over 15% of handsets available from Orange FR are UMA-enabled Over 10% of the handsets from T-Mobile US are UMA-enabled France Denmark Commercial UMA Devices Commercial UMA Device Vendors 1M+ ~100K UMA Handsets Sold Commercial UMA Operators YE 2007 YE 2006 France Sweden UK Spain Poland

24. Conclusion

27. Thank you