Fixed-Mobile Convergence

Convergence... A new world of business opportunities

Businesses and consumers are looking forgreater simplicity and convenience fromtheir telephone service. They want greaterindoor and outdoor mobility and moreand more want this mobility integratedwith their fixed telephone service – withexcellent quality and ‘fixed-like’ pricingwhile indoors. And they want thesimplicity and easy interface that a single,all-encompassing telecoms service canprovide.

With these demands, the largely separateworlds of fixed and mobile are beingdriven together. In the first stage the mainfocus will be on voice applications,expanding with time to data andmultimedia domains.

As an operator, ease of use is a bigadvantage for your business customersand residential subscribers... and a majorrevenue opportunity for your business.Alcatel’s Fixed-Mobile Convergencesolutions provide you with the opportunityto differentiate your services and capturenew major revenue streams. And we canhelp you achieve greater operatingefficiencies and cost savings by movingyour business onto a common platformand systems to support these services.

Today, as the global market leader inFixed-Mobile Convergence, Alcatel offersa range of integrated mobility solutionswhich can be tailored to the specificneeds of your customers.

We can work with you to developprofitable opportunities for your businessand residential customers based on theconcept of Fixed-Mobile Convergence. It’s a concept that combines the best offixed and mobile telephony in anintegrated service to your customers... a service that will win you increasedcustomer loyalty and a host of newsubscribers. The time to act is NOW.With Alcatel, the migration path to Fixed-Mobile Convergence is simple. And theinvestments you make today will provide a solid foundation for reaping rewardsnow and in the future.

Alcatel’s global presence and wideranging capabilities mean that we cansupport your business where ever andwhen ever you need us around the world.Our professionals in more than 130countries have a deep understanding of their local telecommunications market.They understand both fixed and mobilemarkets. They know the regulatoryenvironment, the socio-political issues, the latest market trends and the serviceexpectations of your customers.

For you as an operator, the key to theFixed-Mobile Convergence opportunity is just a single telephone call away.

1

What is drivingFixed-Mobile Convergence?

Your residential and business customersare on the move. As the world continuesto shrink and innovation brings newservices to consumers and business, yoursubscribers want to stay in touch whetherthey are on the move, at home, in the caror at the office.

End-users... in business and at home...are driving the move towards one-servicetelephony. They are wanting a singleservice available seamlessly via fixed lineand mobile phones... but at a lower costfor fixed and mobile calls and an overallbetter quality of service delivery.

According to leading telecoms analysts,almost two-thirds of mobile telephonyusers would like a single telephonenumber for their fixed and mobileservices. And over half say that they wanta single telephone bill covering bothservices. This means that around 20% ofcombined fixed and mobile telephonyrevenues will come from combined Fixedand Mobile services by the year 2002.

Telecoms operators face newchallenges. Increased competition. Price decline. Erosion of margins. Thechallenge of attracting new customers andretaining existing subscribers. The need toboost call traffic to optimize your networkand generate better returns. Substitutionof fixed services by mobile. The need toachieve lower cost structures. And theneed to differentiate your services fromthose offered by your competitors.

2

Fixed-Mobile Convergence provides animportant answer to these challenges...and a host of business benefits. It offersyou new revenue opportunities, thechance to stand out from other operators...and a source of new profit streams.

Fixed-Mobile Convergence also meanssimple, user-friendly operations andcustomer billing. It means better customerservice, including one-stop shopping.Better accountability to your subscribers.And perceived better value for money.

Your customers get the best of bothworlds... the combined benefits of fixed,cordless and cellular services without thedownside. And access to a broaderrange of services to match their needs.This means better quality at lower prices...all via a single number... and all on thesame handset.

Subscriber demands, the pressures facingoperators and continued technologicaladvances all mean that Fixed-MobileConvergence offers you a businesspassport to greater competitiveness andimproved profitability.

3

4

Alcatel’s Two Phones-One Service is a firstphase capability that is readily availablenow. The service enables you tointroduce Fixed-Mobile Convergencesolutions to your customers and to buildthe right customer and service base. We offer a safe route for getting in at the ground level then moving on to offer afull range of FMC options when yourbusiness and subscriber base are ready.

Residential and SoHo subscribers –A single set of convenient services

For your residential and small office-homeoffice (SoHo) subscribers today, TwoPhones-One Service means you canprovide them with:

• One number with an automatic access hunting mechanism

• One voice mail service with the ability to notify messages to the subscriber on both their fixed and mobile services

• One telephone bill for all calls, with allpossible discount schemes

• One common pre-paid system for both fixed and mobile services.

Corporate subscribers – Greater mobility and flexibility

For your corporate customers, TwoPhones-One Service from Alcatel enablesyou to integrate mobile phones with yourcustomers’ PABX or corporate networkservice and offer a range of new servicefeatures including:

• One number for the PABX extension and the mobile handset

• Automatic call forwarding to themobile handset when the fixed extensionis not answered, with the same callscreening and barring capabilities of the PABX

• Abbreviated dialing codes - the ability to reach employees’ mobile handsets using abbreviated dialing as part of a company’s private numbering system

• One voice mail with notification on both their fixed and mobile services

• One Virtual Private Network to better integrate and control fixed andmobile services.

The bottom line for your corporatecustomers is the ability to manage mobilephones more efficiently and to achievemuch greater control over use and costs...the top two concerns for decision-makerswanting to provide extended mobilecommunications facilities for their work forces.

One common set of services usingtwo phones... available now

Fast introduction, smoothtransition

Two Phones-One Service from Alcatel is quick and easy to implement via yourIntelligent Network platform. So you do not need to make any major structuralchanges to your current network. You canpackage and introduce these new servicesto your business, residential and SoHocustomers very quickly.

The end result is increased customersatisfaction, increased revenue... and an open door to next-generationservices offering profitable revenuestreams. All with minimum risk andfinancial investment.

5

ONE NUMBERONE VOICE MAILONE BILLONE PRE-PAIDONE VPN

6

ONE PHONE

ONE NUMBER

ONE VOICE MAIL

ONE BILL

ONE PRE-PAID

ONE VPN

7

True service convergence... One Phone-One Service

One Phone-One Service is just around thecorner. And Alcatel offers you theopportunity for a clear, trouble-free pathto the advanced FMC solutions andservices. Our One Phone-One Servicecapability delivers to your corporate,residential and SoHo subscribers all thebenefits of a single integrated fixed andmobile telephone service. It combines thebest of fixed, cordless and cellulartechnologies.

More services, more features,more freedom

For residential subscribers, we havebeen the driving force in establishing One Phone-One Service via a singleGSM terminal with enhanced softwarefunctionality known as CTS (CordlessTelephony System). Indoors, the singlephone connects to a CTS home basestation. When outside, it connects to themobile cellular network. The CTS homebase station can be connected both to afixed analogue or digital network, and tothe mobile cellular network via the GSMradio interface. And for this reason, OnePhone-One Service fits your network, nomatter what form it takes.

For your corporate customers, One Phone-One Service is a solution thatcombines a high quality radio interfaceindoors with various corporate servicessuch as PABX services. This means thatwhile indoors the employees’ mobilehandsets behave like new PABX

extensions, offering the same high qualityand set of services as the other extensionson a company PABX. Put simply, it allows the GSM phone to become theemployee’s single handset, both indoorsand outdoors, at the office and on the move.

Energizing your business

For you as an operator, One Phone-OneService puts you in the driving seat to:

• offer your customers the convenienceof having a consistent set of services – allvia one terminal

• provide your subscribers with thecommunications tools to maintain bettercontact with their customer base

• generate increased revenues. Theconvenience, ease of use and familiarityfor your customers offered by One Phone-One Service encourage a higher volumeof call traffic

• sell additional profitable services tocorporate, residential and SoHosubscribers

• build stronger relationships with yourcorporate customers and greatly enhancecustomer loyalty.

One Phone-One Service can be yourpassport to greater customer satisfaction,improved customer loyalty and increasedcall revenues. And it allows you to stayone-step ahead of your competitors byoffering new, differentiated services.

Intelligent Network technology (IN) is atthe heart of Fixed-Mobile Convergence.

Bridging the gap, adding value

For Two Phones-One Service and OnePhone-One Service, IN technologyprovides the gateway for bridging the gap between fixed and mobile, enablingyou to offer your customers a complete set of common core telephony services.These include an expanded range ofvalue added services and the exchangeof information needed to locate thetelephone subscriber... Indoors, outdoors,at work, at home or on the move. In turn,these common core services meanopportunities to drive greater operatingefficiency and achieve stronger return on your network investments.

As an operator, you also benefit from our open, scaleable approach to INwhich enables you to evolve from ourentry level solution right up to thecomplete Alcatel IN platform whilemaintaining full service functionality andsubscriber data. This means totalinvestment protection while allowing youto handle a growing subscriber base,increased call traffic and the introductionof new services.

Better customer care, improvedcash flow

Fixed-Mobile Convergence also providesanswers for improved customer service,faster responsiveness, better support, andcustomer demands for more detailedbilling and usage information.

8

Network convergence... Achieving more with less

IN

CCBS

TMN

SWITCHING

TRANSMISSION

9

For effective deployment, your customercare and billing systems need to beintegrated and harmonized. Onceachieved, you are in the strong position tosatisfy your customer’s support and billingrequirements in an integrated, unified way.

With Alcatel’s FMC capabilities, the same customer care and billing systemcan be deployed easily for both fixed and cellular networks. For your business,this means improved economies of scaleand substantial cost savings.

Integration - Maximizing yourresources

FMC also allows you to structure youroperations better, and to rationalize anddeploy your people, assets and resourcesmore efficiently. For example, you canintegrate your marketing teams, yourdistribution channels and your after-salescustomer service.

Going further, FMC allows you tointegrate physically your networks andsystems more tightly. And it gives you theoption to share easily the same transitnetworks, IN platforms, customer care and billing and network managementsystems, thereby helping you to furtherreduce costs.

Deploying multi-functional switches thatcan operate both in fixed and mobilenetworks delivers further synergies as itallows a single network to provide all theservices that previously required severalnetworks... plus many new services.

Common switching platform

Our multifunctional switch offers acommon and seamless switching platform.Armed with this capability you can use the solution to deliver both fixed andmobile services. Naturally, you can also share the servers required for service creation and provision, networkmanagement and supervision, andultimately subscriber data management.

The end result? Greater customersatisfaction, exciting new revenue streams,more repeat business and greateroperating efficiencies.

This is a world where your business andresidential customers will be demandinggreater convenience and portability and a wider range of service features. Fast development and deployment of the services they want, packaged the way they want, is vital.

Investing now

Operators are recognizing that they needto be ready with the Intelligent Networkinfrastructure and open systems to respondquickly with the right services to meetthese demands.

This means making the necessaryinvestments in Fixed-Mobile ConvergenceNOW, by adding IN capabilities to yournetwork so that it can interact with thecorresponding fixed or mobile network,allowing you to deliver an expandedrange of services to customers as if theywere using a single network.

When introducing Two Phones-OneService, you may want to focus on one or two priority market segments. Onceyou are delivering this service to yourcorporate customers, there will beopportunities to expand the service to small office, home office and residential customers.

Migration strategyand the road ahead

10

ONE PHONE

ONE SERVICE

TWO PHONESONE SERVICE

11

The investments you have made in Fixed-Mobile Convergence via your IntelligentNetwork platform will allow you toincrease the range of services you provideto these customers... at only marginalincremental cost.

A smooth migration path

Alcatel offers you a clear and smoothmigration path from Two Phones-OneService to One Phone-One Service asyour customers’ demand for expandedservices and greater convenience grows.We are continuously developingenhancements to these mobility solutions,including wideband mobile data solutionsthat are transparent to you and yourcustomers. These solutions give you a smooth and easy migration andupgrade path.

Next-generation mobile services

New services emerging from the convergence betweentelecommunications, informationtechnology, media and entertainment are fueling the development of thirdgeneration mobile communicationssystems (UMTS) and satellite mobility solutions.

Alcatel is a driving force in thedevelopment of global standards forUMTS and is developing technology tomake UMTS work through your network.As an operator you will benefit by beingable to better control and manage theUMTS services you ultimately offer to your customers... and at a lower cost.

With solutions based on open systems,Alcatel is the solid, effective investment.We offer a smooth growth path in Fixed-Mobile Convergence for all types of operators - whether you are an established or new market entrantoperating a fixed or mobile network.

Fixed-Mobile Convergence offersimportant answers to the challenges youface each day in your business.

Whether you are an existing operator or a new market entrant running a fixedand/or cellular network, Alcatel is gearedto work with you so that you stay one step ahead.

We offer your business a clear FMCstrategy and a smooth migration path sothat you meet your subscribers’ evolvingneeds for increased communicationsmobility... from Two Phones-One Service to One Phone-One Service. Or acombination of the two. So you and your customers can be a touch ahead.

Our FMC solutions are based on openstandards and designed for quick andeasy deployment. This means that theywork as effectively in mixed suppliernetworks as in Alcatel networks.

And because our systems and platformsare designed for use in both fixed andmobile networks, you have anunprecedented opportunity to streamlineyour business and reduce operating costs.Through common IN platforms, commontelecommunications managementnetworks, common switching platformsand common transport networks.

Alcatel’s FMC capabilities also allow youto develop a single integrated customercare and billing system. The result... lowercosts and improved customer service,satisfaction and retention.

Our FMC solutions cover the entire service delivery spectrum and value chain, including transmission, switching,intelligent networks, terminals andancillary services. Our solutions aresuited to all operators, no matter whatnetwork assets or infrastructure youalready have

Over to you. We are here to listen, andarmed with the solutions to respond.

Be a touch ahead

12

The information in this brochure is generally applicable to the equipment described. However, Alcatel is committed to continuous research and development. Changes may therefore be made in the future

without prior notice. All rights reserved ©1999, Alcatel, Paris, France. Designed by Saatchi & Saatchi, London. Printed in the European Union. The pulp used in this brochure comes from managed forests

which practise extensive reforestation. The processes involved in manufacturing ensure careful control of waste and minimum use of chlorine bleaching.

3CL 00372 0002 TQZZA Ed. 01

54, rue La Boétie, 75008 Paris, FRANCETelephone: +33 (0)1 40 76 10 10 - Fax: +33 (0)1 40 76 59 06

marketing@www.alcatel.com