Lucent’s VoIP applications enable service providers todifferentiate their services, helping to reduce customerchurn and effectively increase revenue per customer

Accelerate™

Lucent’s Voice over IP Solutionsfor Service Provider Networks

This white paper addresses:• The value of Voice over Internet Protocol (VoIP)

• Key VoIP applications

• Lucent’s Service Intelligent™ Accelerate™ solutions for networks

• The Lucent Advantage™ for delivering on the value of VoIP

Accelerates carriers’ ability to rapidly deploy the enhanced services that consumers and enterprises desire today

2

Introduction .......................................................................................3

Delivering the “Value” in VoIP ............................................................3

Opening the Door to New Revenue ....................................................3

VoIP Applications................................................................................4

Addressing the VoIP Demand .............................................................5

Accelerate™ Solutions for Service Provider Networks .........................5

At the Application Layer .............................................................................6

At the Session and Call Control Layer.........................................................7

At the Transport Layer.................................................................................7

Complete Network Operations and Professional Services Support .......8

Partnership Programs .........................................................................9

The Accelerate™ Solution Advantage.................................................9

Conclusion ......................................................................................10

Glossary ...........................................................................................11

About Lucent Technologies ..............................................................12

Contents

3

Introduction

Voice over Internet Protocol (VoIP) holds the promise of providingcustomers with exciting new end user features and services whilereducing costs. Today, enterprises continue to seek VoIP solutions from amultitude of vendors. Similarly, residential customers with broadbandaccess can choose from a wide range of VoIP providers. The questionremains… what are the long-term enduring values of VoIP that can beleveraged for sustainable cost and revenue advantages? This paperprovides an overview of Lucent’s Accelerate™ program that recognizesthe increasing value of VoIP and discusses Lucent’s solutions for deliveringon this value.

Delivering the “Value” in VoIP

Lucent’s Accelerate™ VoIP strategy delivers more value over IP on next-generation and converged networks and is designed to place carriers onthe fast track to new revenue-generating services — whether that meansadding capabilities to an existing circuit-driven network or building aGreenfield, softswitch-driven network. There are Accelerate™ solutionsfor wireline and mobile operators that include next-generation voice anddata systems, software applications and professional services to meetspecific network needs. Accelerate™ solutions can generate new VoIPrevenue and increase profitability by:

• Enabling service providers to win new business from enterprises andconsumers through the rapid delivery of new voice and data applicationssuch as unified communications, collaboration, click-to functionality,speech-to-text and IP Centrex

• Increasing return on investment (ROI), leveraging existing networks whiledeploying next-generation solutions where it makes economic sense

• Delivering operational support, end-to-end security, and a full scope ofexpert services, from design and planning to maintenance and support.

Opening the Door to New Revenue

Revenues and margins in service providers’ traditional businesses areunder pressure. Service providers are looking for the key that opens thedoor to new revenue. The key depends on finding the right applications,and the right way to enable and deliver those applications to end-users.

The ongoing battle to gain a share of the – “telecom wallet” includesspending on Internet, long distance, local, wireless, and cable. Wirelessdisplacement and next- generation network convergence are the leadingstrategies being pursued by many wireline service providers. Wireless andcable operators are aggressively going on the offense to win new customers.Wireless LAN technology growth offers complementary coverage to cellularfor mobility, and can be used as a limited mobility solution for wirelinecarriers that don’t have mobile operator partners. Wireless Local NumberPortability (LNP) is expected to be a major market disruptor and stimulantto churn, especially for incumbent wireline operators.

4

VoIP Applications

Both consumers and businesses are calling for services that unify themultitude of communications mechanisms and increase productivityenabling users to do more with less time and resources. Basic voice anddata communications will remain the number one revenue generatingapplication for service providers. Other key areas for service providers toaddress include:

• Retaining the reliability, quality, and reach of existing voice networks

• Taking advantage of new opportunities for operator value-add over basicvoice through efficiency, personal productivity enhancements (e.g.scheduling, collaboration) that can be offered via VoIP and enhanced withother forms of communication (text, pictures, video) and information(presence, availability, location)

• Facilitating the use of new revenue-generating services to address a largepercent of the untapped market potential. The youth market will adapteasily to a difficult user interface if there is a “cool factor”, but opportunityexists to enhance busy adult lifestyles with new revenue-generatingservices that are easy to use and can improve efficiency.

• Enabling seamless user access to these key services independent of theirselected network technology (e.g., number portability)

Whether users are managing a business or a sports league, they wantproductivity enhancers regardless of the network access method – forexample, access from a PC, mobile device, home phone, office or hotellocations, etc.

However, mobility is no longer just wireless:

• Users want seamless access to their service from multiple devices –PC/Internet, Personal Digital Assistant (PDA), cell phone, office phone,etc. Wireless LAN technology offers cost effective in-building coverage forvoice and data as a complement to third generation (3G) Code DivisionMultiple Access (CDMA) and Universal Mobile TelecommunicationsSystem (UMTS) mobile service, and it is a natural companion tobroadband data.

• VoIP and multimedia services offer additional revenue generatingpotential to 3G, Wireless LAN technology and broadband transportofferings, and the flexibility to rapidly create new converged services thatwork seamlessly across all these access types.

• Different devices and access methods have a different ability to carry richinformation, and the network needs to be aware of how a user isaccessing the network to provide the most relevant information. Presence,availability, and location improve the level of service that applications candeliver to users.

• Security and privacy considerations must be taken into account across thesolution as the services are offered across multiple access techniques withvarying levels of protection.

5

Addressing the VoIP Demand

The above demands promote opportunities for such applications asInstant Messaging (IM), Multimedia Portals, IP Centrex, UnifiedCommunications, Video Collaboration, and Short Message Service (SMS).These are applications that integrate voice and data, providing a way tobenefit from offering these two together rather than separately.

The question is, how should service providers address this opportunityeffectively?

The answer is with Voice over IP and next-generation voice networking.It is becoming increasingly clear that VoIP is no longer a nicheopportunity but is rapidly moving into the mainstream.

Lucent believes that “lowering operational costs” is widely understood to bea given. The differentiator therefore is what Lucent can deliver to serviceproviders to help them increase their revenues. At Lucent, the “V” in VoIPindicates more than just “voice”. It indicates value – delivering the “value”that customers and end-users demand, a value that will differentiate serviceproviders’ network services from competitive alternatives.

Lucent’s Accelerate™ solutions deliver value over IP through applicationsthat enhance a user’s life and can help service providers increase revenue.

This is a strategy supported by a robust portfolio of applications, productsand solutions that can drive VoIP services and revenues for new orexisting networks, enabling the enhanced applications that serviceproviders need – today. For service providers, this clearly defined strategycan deliver the services users want, when and where they want them.

Accelerate™ solutions incorporate systems, software and services withbuilt-in service intelligence, security and reliability. Accelerate™ solutionsare specifically designed to enable service providers to speed to market thenew and enhanced services their customers demand and expect.

Accelerate™ Solutions for Service Provider Networks

In the service provider’s network, Accelerate™ VoIP solutions willprovide:

• Service delivery in a consistent manner, spanning wireline and wirelessnetworks

• A simple to operate network with automated provisioning and activationthat gives subscribers flexibility and control

• A Service Intelligent™ network architecture where the needed servicesare deployed and interfaces are open, enabling future serviceenhancements

Lucent’s Accelerate™ VoIP portfolio of solutions removes the confusionand risk that can be associated with investing in a VoIP strategy and itsimplementation.

Increasing demand for VoIP*

• Domestic and international wholesaleVoIP originating in North Americaincreased from 14 billion minutes in2002 to 26 billion minutes in 2003

• By 2007, it is estimated that themajority of North American carrierswill have migrated a significant portionof their traffic to VoIP

• In 2002, VoIP calling card/prepaidtraffic represented only about 16% oftotal prepaid wireline traffic in NorthAmerica. By 2007, VoIP is estimated toaccount for 70% of all prepaid traffic inNorth America.

* Elka Popova, Frost & Sullivan, 2003“VoIP Services, Timeframe andCharacteristics of Carrier Deploymentof VoIP and IP Telephony.”

6

At the Application Layer

Lucent’s service delivery architecture adds Service Intelligent™ value tonew and existing wireline and wireless networks. The architecture isbased on the emerging Third Generation Partnership Program (3GPP) IPMultimedia Subsystem (IMS) standards, which enable access-agnosticservices so users can get the services they want, where they want, andwith the device of their choice. Several wireless and wireline operatorsare adopting this standard approach to VoIP and multimedia services toprovide efficient use of their network infrastructure and to speed time tomarket for new applications. Lucent is offering a truly converged wirelessand wireline service delivery architecture centered on the LucentSoftswitch (LSS).

Lucent’s application enablers simplify the path to new applications byproviding Application Programming Interfaces (APIs) that enable easycreation of innovative applications by Lucent as well as 3rd party softwaredevelopers. Lucent’s key application enablers for VoIP services include the:

• Lucent EBS Communications Manager, which supports desktopconvergence so carriers can offer customers one “window” to voice anddata applications, including new IP Centrex, services.

• AnyPath® Messaging system, which can integrate new media-richapplications with voice messaging capabilities.

• PacketIN® Application Hosting Environment (AHE), which supportsSession Initiation Protocol (SIP) VoIP applications as well as legacy INprotocols for interworking with the Public Switched Telephone Network(PSTN) and existing mobile networks. As a high availability applicationserver platform, PacketIN® AHE is designed to enable rapid developmentof applications that can reside on it in the network.

• MiLife™ Intelligent Services Gateway (ISG), an OSA/Parlay gateway thatmakes it easy for Internet and VoIP application developers to design andbuild innovative applications that can securely leverage information thatis available from the operator’s network, such as user location, presence,availability, and call control.

• MiLife™ SurePay® prepaid solution and e-commerce gateway, an industryleading prepaid billing solution that enables prepay as well as spendinglimits and micro billing for non-telephony transactions and content.

• Flexent® Super Distributed Home Location Register (S-DHLR), a next-generation home location register that supports ANSI-41 and GlobalSystems for Mobile Communications (GSM) networks. It evolves to be astandards-compliant home subscriber server that consolidates user dataand authentication for multiple access methods including public WirelessLAN technology hot spots, and keeps a central repository of user dataassociated with many applications.

• Lucent Softswitch (LSS), as a telephony application server, the LSSprovides the basic voice capabilities for Lucent’s UMTS mobile switchingcenter, as well as Class 5 services and custom calling features that willenable services to work seamlessly across wireless and wireline networks.

• And a very large suite of other value added revenue-generatingapplications supporting both circuit switch and VoIP networks.

7

At the Session and Call Control Layer

The LSS is at the heart of the Accelerate™ portfolio of Voice over IPproducts. It is a high availability multimedia call control platform thatsupports SIP as well as legacy PSTN protocols to enable interworkingbetween VoIP and legacy telephony networks. Lucent has pioneeredadvances in mobile voice coder management on the LSS to improve the quality of mobile VoIP calls and reduce operational expenses in their backbone networks (transcoder-free operation). The LSS alsoprovides a host of wireline applications supporting local VoIP subscriber,tandem and toll services. The LSS has the capability to interwork a widerange of VoIP protocols including SIP, H.323 and Media Gateway ControlProtocol (MGCP).

For existing Time Division Multiplexing (TDM)-based voice networks, the5E-XC™ IP-enabled switch provides integrated, high capacity IP trunkinginterfaces and a SIP-based IP feature support to enable Plain Old TelephoneService (POTS) endpoint integration into next-generation networks.

Small scale loop-based voice applications can utilize the iGEN™ CompactSwitch to deliver complete class 5 functionality on a pack, with the industry-leading 99.999% reliability. When combined with an integrated VoIP packetinterface, the iGEN™ Compact Switch provides a way to efficiently integratePOTS endpoints into a next-generation VoIP core network.

As part of the Lucent Technologies Accelerate™ mobility productsportfolio, Lucent has introduced the new Flexent® packet switch forCDMA 2000 IP core evolution. The Flexent® switch is a true packetswitch, based on Ethernet technology, and is the first platform to evolveexisting 5E-XC™ switch and Mobile Switching Center (MSC) elements,providing network packet evolution. This enables providers to reuseexisting network components while increasing both capacity andcoverage, and decreasing the existing footprint.

At the Transport Layer

Lucent’s new Intelligent Media Gateway (IMG) connects standardtelephones to either the traditional voice network or a VoIP network. Thisenables service providers to deploy a flexible solution today that canevolve to a VoIP network to support customers using standard telephonesand services, or IP phones and services, including computer telephony.

The iMerge® Gateway connects to any circuit switch and provides all oftoday’s Centrex services to IP endpoints, while continuing to servetraditional endpoints within the same Centrex group.

The AnyMedia® Access System supports voice, Digital Subscriber Line(DSL) data and other special services over a copper loop. When integratedinto a next-generation VoIP network, the AnyMedia® access system is anideal platform to provide robust converged, next-generation services.

MaxTNT® and APX® Universal Gateways provide VoIP trunk gatewaycapabilities; enabling any service on any port.

Packetstar® PSAX Multiservice media gateways support voice over packetservices for a broad range of ATM multi-service applications.

8

The award-winning Lucent VPN Firewall Brick® is the broadest suite ofcarrier-grade IP solutions for delivering service level-assured securityavailable today.

In the mobility domain, the Flexent® radio network controllers and basestation product lines for UMTS and CDMA2000, support the highest speedmobile data networks available (up to 2.4 Mbps) in the market today.Platforms are designed for flexibility to incorporate emerging wirelessQuality of Service (QoS) standards to better enable real-time VoIPapplications like Push-to-Talk (PTT), while keeping in mind the key QoSneeds for these real-time data applications and also evolving radiotechnologies such as CDMA20001x-EVDO and 1x-EVDV and UMTS HighSpeed Uplink Packet Access/ High Speed Downlink Packet Access(HSUPA/HSDPA).

Figure 1: A Clear Path to Service Intelligent™ Next-Generation Networks.

Lucent’s Accelerate™ solutions leverage the entire portfolio of Lucent’sAccess, Transport, and Multi-Service Switching products including theStinger® DSL Access Concentrator product line, the Metropolis® ADM andDMX Optical transport products and Lucent’s Multi-Service Switchingsolutions.

Complete Network Operations and Professional Services Support

With network operations software, and consulting, deployment, andmaintenance services, the Lucent Network Operations Software (NOS)and Lucent Worldwide Services (LWS) organizations help serviceproviders speed their time to revenue, and lower deployment costs asthey migrate to VoIP Networks.

Service Intelligent Gateways

Leverage TDM assets and link

to Lucent Softswitch for

Next Generation Applications

Applications at the top deliver service consistency across

endpoints

Lucent Softswitch call control interworks

any endpoint to any endpoint

Application Servers: Messaging, Web Portals, …

TDM Access Access MGW IP Access Wireless Access

LSS Call Control

5E-XC™ PSTNIP TransportNetwork

UniversalGateways

AnyMedia®

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The NOS portfolio includes:

• Navis® iOperations portfolio – a complete Operations, Administration, andMaintenance (OA&M) portfolio to support end-to-end servicemanagement of mobility (as well as wireline) products.

• Navis® iAssure™ portfolio – a suite of service quality managementproducts that enable operators to track their network performance andengineer it to provide superior service quality.

The LWS offerings include:

• Multi-vendor Applications Integration for new revenue generatingapplications

• Security Consulting Practice to assure that operator networks are robustand secure against fraud and intrusion

• Rapid Deployment Capabilities to enable operators to go from concept torevenue as quickly as possible

• Managed Services Offerings to help operators run their day-to-dayoperations

Partnership Programs

As part of the Accelerate™ VoIP portfolio of solutions, Lucent hasestablished strategic partner programs with the intent of creating anenvironment that allows the industry to continuously generate newvalue-based services. Lucent’s solutions and value become more powerfuland effective when combined with best- of- breed partnerships thatenable service providers to enjoy the combined benefit of the best of whatLucent and the industry offers.

The Accelerate™ Solution Advantage

Lucent’s competitive advantage is a focused approach to value anddesigning networks top-down while building them from the bottom-up.Lucent is committed to enabling and offering applications that generateuser value and service provider revenue with a robust portfolio thatprovides quality solutions at all levels of the network: call control,transport, access and applications. Surrounding the hardware andsoftware is a complete operations and security package that is designed,engineered, maintained and supported via world-class services.

In addition to the above differentiators, what sets Lucent’s VoIP solutionsfurther apart from the competition are partnerships with industry leadersthat provide the flexibility to operate in multi-vendor environments

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Lucent’s Accelerate™ solutions have complete:

Systems — Accelerate™ VoIP solutions are ready to deploy with:

• A common application layer to serve wireline and wireless networks, VoIP and TDM endpoints, speeding network convergence

• New Intelligent Media Gateway elements that enable VoIP access to loopbased networks

• Investment protection that provides next-generation migration plans

• Packet interfaces that allow next-generation services on circuit drivennetworks

• Lucent Softswitch that includes next-generation software focused onnext-generation services.

Software — Accelerate™ solutions simplify operations management of VoIP with the Navis® iOperations portfolio for provisioning, IP management and service quality assurance

Services — Accelerate™ solutions provide network know-how with theability to integrate multi-vendor networks and third-party applications

• Quality, security and reliability from network readiness, networkplanning, design, deployment to operations

Solutions — New solution partner programs and open, programmableplatforms leverage the creativity of third-party developers

Conclusion

Accelerate™ VoIP solutions are designed to bring value to IP via a flexibleset of applications that enable rapid service provider revenue. An extensiveand complete VoIP portfolio addresses solution elements at all levels of thenetwork, including call control, transport, access, and applications — allwith Service Intelligence™. Lucent’s solutions and value become evenmore powerful when coupled with strategic partnerships with industryleaders that drive additional value and speed to market. Lucent’sAccelerate™ VoIP strategy is made tangible through support from theirworld-class services team in the design, engineering and implementation ofsolutions that result in carrier value with rapid ROI.

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Glossary

Acronym Meaning

3GPP Third Generation Partnership ProgramAPI Application Programming InterfaceCDMA Code Division Multiple AccessDSL Digital Subscriber LineGSM Global Systems for Mobile CommunicationsHSUPA/HSDPA High Speed Uplink Packet Access/

High Speed Downlink Packet AccessMGCP Media Gateway Control ProtocolOA&M Operations, Administration, and MaintenancePDA Personal Data AssistantPOTS Plain Old Telephone ServicePSTN Public Switched Telephone NetworkQoS Quality of ServiceROI Return on InvestmentSIP Session Initiation ProtocolSMS Short Message ServiceS-DHLR Super Distributed Home Location RegisterTDM Time Division MultiplexingUMTS Universal Mobile Telecommunications SystemVoIP Voice over Internet Protocol

For more information about Accelerate™ solutions:www.lucent.com/accelerate

This document is for planning purposes only, and is notintended to modify or supplement any Lucent Technologiesspecifications or warranties relating to these products orservices. The publication of information in this document doesnot imply freedom from patent or other protective rights ofLucent Technologies or others.

AnyMedia, AnyPath, APX, Brick, Flexent , iMerge, MAX TNT,Metropolis, Navis, PacketIN, PacketStar, SurePay, and Stingerare registered trademarks of Lucent Technologies, Inc.

5E-XC, Accelerate, iGEN, MiLife, and Service Intelligent aretrademarks of Lucent Technologies, Inc.

Copyright © 2004Lucent Technologies Inc.All rights reserved

About Lucent Technologies

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designsand delivers networks for the world’s largest communications serviceproviders. Backed by Bell Labs research and development, Lucent relieson its strengths in mobility, optical, data and voice networkingtechnologies as well as software and services to develop next-generationnetworks. The company’s systems, services and software are designed tohelp customers quickly deploy and better manage their networks andcreate new, revenue-generating services that help businesses andconsumers.