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State of SoftswitchState of SoftswitchOctober 2001October 2001

Tracy VentersTracy VentersDirector, Product ManagementDirector, Product ManagementSonus NetworksSonus Networkstracytracy..ventersventers@@sonusnetsonusnet.com.com

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AgendaAgenda

What are we talking about and why is it important?

Next Generation network components

Applications for the softswitch network

Application roll-out

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Rapidly Growing MarketRapidly Growing Market

Source: Synergy Research Group

Circuit Voice (1.3)% CAGR

Packet Voice89.5% CAGR

0

10,000

20,000

30,000

40,000

50,000

2001 2002 2003 2004 2005

$US

Mill

ions

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Free PC to PC Calls

Free PC to PC Calls

Future Applications

Future Applications

Packet Voice Becoming MainstreamPacket Voice Becoming MainstreamO

ppor

tuni

ty

Business Access

Business Access

TrunkingTrunking

Residential Access

Residential Access

Enhance

d Service

s

Enhance

d Service

s

Int’l Toll Bypass

Int’l Toll Bypass

Internet OffloadInternet Offload

Time

5

All Major Carriers Are Moving To Packet VoiceAll Major Carriers Are Moving To Packet Voice

Next-Gens

IXCs

PTTs

ILECs

MSOs

CLECs

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Packet Voice ServicesPacket Voice ServicesEconomic ImperativeEconomic Imperative

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Softswitch OpportunitySoftswitch Opportunity

Cap and growSlow migration to packet voice in the growing regions and segments.

Enhanced servicesIncrease revenue by adding IP services to converged network clients.

Converged networkReduce operational cost of managing two disparate networks.

Market adaptabilityRoll out new services faster through build or buy strategy.

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Leverage Web Server Development Leverage Web Server Development ModelModel

IP network infrastructureInternet protocols (SIP, XTML, HTML, HTTP, etc.)

Open systems standardsServer platforms, development tools

Virtual armies of well-trained programmersUNIX, C++, Java, PCs, Windows, etc.

Rapid service development and deploymentTest market first, then ramp at Internet scale

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Architecture ComparisonArchitecture Comparison

Services

Call Control

Switching

Circuit Switches

Call Control

Switching

SoftswitchServices &

Applications

Media ServersFeature ServersApplication Servers

Media Gateway ControllerSoftswitch

Media Gateway

Open Standards

Open Standards

• Proprietary solution• Centralized functionality• Expensive to adapt to

changes

• Open standards• Multi-vendor solution• Ease of service enhancements

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Feature Group D(Co-Carrier) Trunks

Inter-Machine Trunks (IMTs)

IXC1

IXC2

CLECMedia GatewayMedia Gateway

SoftSwitch

Signaling Gateway

EO

EO

EO

Packet Network

SS7/C7

Class 4 TandemClass 4 TandemClass 4 TandemClass 4 Tandem

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LocalAccess

LocalAccess

Packet Network

Media GatewayMedia Gateway

SoftSwitch

Signaling Gateway

SS7/C7

Long DistanceLong Distance

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Packet Network

ISP1

ISP2PBX

PRI

SoftSwitch

Signaling Gateway

Media Gateway

SS7/C7

PSTN

Internet Call DiversionInternet Call Diversion

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Business Access SolutionBusiness Access Solution

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Residential AccessResidential Access

PSTN

Packet

Residential Services over xDSL

SoftswitchIP, DSL, Analog VoIP/Cable

Residential Services over Cable

PSTN Access

Policy Server

Signaling GW

Media GW

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PSTN

Packet

MGCP/xDSL

Business Services over xDSL

PSTN Access

IP CentrexIP CentrexLegacy

PBX

Legacy PBX

IPPhone

IP PBX

Policy Server

Softswitch

Signaling GW

Media GW

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Packet Voice Services Packet Voice Services EvolutionEvolution

Internet Call DiversionInternet Call Diversion

Toll/Tandem TrunkingToll/Tandem Trunking

Business PBX AccessBusiness PBX Access

Class 5 Business ServicesClass 5 Business Services

Class 5 Residential ServicesClass 5 Residential Services

App

licat

ion

Time

Enhance

d Service

s

Enhance

d Service

s

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SummarySummaryCarriers have moved from:

Can you do that? toHow do you do that? toWhen can you deliver?

There is still a huge opportunity. It has be shifted by about year.

There are still hurdles to overcome.TDM expectations and standardsThe “Killer Apps”

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Thank You!Thank You!