© 2005 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Achieving agility, simplicity and value in the NSP industry

Jerry EarleVice PresidentNSP – Americas

February 2005 2

Every process willbe digital, mobile,virtual and personal

February 2005 3

Many forces are re-shaping the media andnetwork provider landscape

New access technologies (Internet/ broadband)− Multiple devices (PC, iTV, phone, PDAs)− Centralized data controls to integrate multiple platforms− Available at home and in the officeReconfiguration of content formats & digitization− Conversion of all media types to digital formats (video, music, voice)− Potential for unbundling content (e.g., Album)− Dynamic reformatting of digital content to match platforms− Massive media storage and redundancy needs

Shifts in customer characteristics− Increased media use with simultaneous use of multiple media− Anytime, anywhere, any device− More detailed consumer data, enables personalization but requires

storage and management

Expansion of industry players− Extension of Telcos in video and Cable operators into voice− Emergence consumer generated video content (e.g., phone, PC)− All SPs position assets as content delivery networks

Sophistication of advertisers− Cross network promotions and more integrated communication− Finer target groups

Economic climate improves, but cautious− Recovery permits spending to decrease opex and increase revenues− IT as business enabler

Everything is

digital, mobile

andvirtual

February 2005 4

SoftwareHundreds of Firms

MediaSeveral Key Firms e.g.

Bertelsmann TimeWarnerWalt Disney CNN

Multi-media

Computers & ElectronicDevices Manufacturers

Several Dozen LargePlayers e.g.

Sony Matsushita Philips, Intel

Samsung,Palm

Network OperatorsDozens of Key Players

NetworkEquipment

ManufacturersA dozen Large Players

e.g. Nokia, Lucent, Cisco,Motorola, Ericsson

Entertainment& Content CreatorsHundreds of Firms e.g.

Disney/ABC, GE/NBC, NewsCorp Bloomberg, Dreamworks

Outsourcing ServiceProviders

Dozen of FirmsxSPs

Hundreds of players

Cable OperatorsFew large Firms e.g.

BSkyB, Comcast

High-tech Service firms

Content AggregatorsFew large Firms e.g.IMG, RealNetworks,

Yahoo, AOL

Telecommunications, Information Technology and Content ServicesMarkets converging, creating the NSP market

February 2005 5

NSP industry segments

Serviceproviders

Media & entertainment

Network equipment providers

NSP value prop

• Integrated Service Management (ISM)• Service Delivery Platform (SDP)• Digital Media Platform (DMP)• Mobility and Subscriber Management• New business models• Joint go to market

Focused solutions

Open standards IP networks

Accelerate time to market for innovative services

Reduction of COGS

Shorten time-to-market for new services

Digital Content creation

Enablement of new channels

• Advanced Open Telecom Platform (AOTP)• Supply chain integration• Joint go to market

• Digital Media Platform (DMP)• Digital media storage• Integrated Service Management (ISM)• Infrastructure support for new

business models

February 2005 6

IDC’s View on NSP telecom

• Dealing with moderate IT growth (through 2008)• Targeting finer-grained segments for growth• Convergence, consolidation around high-value solutions

− …and solution-enabling platforms

• Aggressive attack on cost structures• Dynamic IT* as a foundation in the enterprise

− …based on SOA, Web-based standards (including Web services), virtualization, standard components, and end-to-end awareness from metal to business process

• Consolidation in the U.S. telecommunications industry will continue− The green light is on at FCC− Strategic deals are across networks

• Triple play will become a grand slam in consumer market− Integrating wireless is next step for telcos and cablecos− True integration of the delivery platform is key

• VoIP will go mainstream, change the market in 2005− More enterprises, globally, focus on strategic convergence − Consumer market goes from “announcements and trials” to lots of offerings from incumbent carriers

*Source: Hinge Technologies for the Dynamic Enterprise, May 2004, IDC#31371

Source: IDC Dec 2004

February 2005 7

10,056

4,705

2003 2004 2005 2006 2007 2008

VOIP DSL Subs (000)

VOIP Cable ModemSubs (000)

IDC Consumer VOIP Market ForecastVOIP Over Broadband via Terminal Adaptor

Source: IDC 2004-2008 Consumer VOIP Service Forecast and Analysis

Source IDC December 2004

February 2005 8

Mobile Content Market Poised for Dramatic Growth

Source: Merriman Curhan Ford & Co. December 2004

February 2005 9

The future will be simpler

• We envision a world where businesses and individuals tap into information and services -whenever they want and wherever their day takes them

• A world where these services are personal, rich with content, and adapt to human ambition

• A world where network, service and content providers are highly adaptive, and able to anticipate and meet the needs of their customers

Ubiquitous services

Personalized content

Radical Simplicity

February 2005 10

Network & service provider industry

Network

Operations

Enabling Technologies

Services

2002-2004 2004-2006 2006-2008

Business priority evolution

Serv

ice

offe

ring

evol

utio

n

Business and enablement services (NGOSS)

Service enablement

platform

Adaptive managed infrastructure

Flexible NSP multi-service platforms

Internet

Virtual Servers

Virtual StorageVirtual

Network

Virtual Application

Content management / rich media

Mobility / universal availability

Federation environment

An evolutionary journey

Services/Revenue

Virtualization (network, services)

Rationalize/Consolidate

February 2005 11

Reduce network equipment provider COGS and service provider TCO by providing flexible and scalable carrier grade platforms and new integrated network elements

Evolve and integrate existing OSS and BSS systems to enable complete service life cycle management

Expand service delivery platform capabilities to enable service providers to create, deploy and manage a highly dynamic portfolio of new services with their partners

Expand integrated environment for delivery of digital media services, from digital content management to content delivery and consumption across a variety of access methods and devices

HP NSP focuses its value creation along critical Industry building blocks

February 2005 12

Platforms & Infrastructure•Carrier grade servers, Storage, mobile & consumer devices•In-Network Software-signaling, subscriber dbases, service control, gateways•Standard protocol and messaging support (IMS, SIP, Parlay, etc.)

HP NSP Solutions Overview

Open, standards based interfaces and Services Oriented ArchitecturesModular components integrated to meet unique requirements

•Service Delivery Platform•IP based Services, Mobile Applications•Best of Breed Partner Integration

Service Enablement

•Digital Media Platform•Content Management & Distribution•Best of Breed Partner Integration•Partner Bazaar

Rich Content Integration

Operational & Business Support Systems

•Integrated Service Management•Billing•Revenue Assurance, Fraud Mgmt, CRM•Best of Breed Partner Integration

February 2005 13

HP as an Adaptive Enterprise partner for Network & Service Providers

• Intellectual property, best-in-class partnerships and capability to deliver end-to-end solutions

• IT competence integrated with deep understanding of the NSP business

• Expertise enabling new and existing players in the converged content and service providers market

• Proven success with market-leading customers

More than$8B business

Over 800 sales reps,over 500 pre-sales consultants,

over 3000 consultants,over 1000 R&D engineers,

over 500 support specialists

February 2005 14

NSP leadershipproof points & customers

• More than 170 telecom operators and communications companies rely on theHP OpenView TeMIP solutions suite

• Nearly 60 telecom operators and more than 140 million subscribers depend onthe HP Fraud Management System

• 4,000 OpenCall signaling platforms deployed worldwide; own 70% of Signaling Protocol Software market

• Over 100 million people and 35 operators on 5 continents depend on the OpenCall mission critical Home Location Register

• HP supports 90% of the North American CDMA e911 deployments

February 2005 15

HP… a diversified industry leaderacross global technology markets

by Business Segmentby Customer Segmentby Region

Ranked #11 on Fortune 500 with $80B annual run rate

Americas$4.3

EMEA$28.5

AP$8.0

Japan$3.1

U.S.$29.2 Enterprise

$36.0SMB$21.0

Consumer$16.1

$21.2

$22.6$15.4

$12.3$1.9

EnterpriseSystems

HP Services

PersonalSystems

Imaging& Printing

HP FinancialServices

February 2005 16

Where do we go from here?• It’s no longer about “mobility”• It’s a services game

• Content is the key – software is the great enabler!!• Segmentation is the strategy• Customer knowledge is the enabler • Superior customer experience is the goal

• IP is the foundation• IT is making it happen

• Ubiquitous services• Personalized content• Radical simplicity

February 2005 17

Summary• HP has the intellectual property, best-in-class partnerships and decades

of experience in the heart of service provider networks needed to build the bridge between telephony and content

• HP’s unique understanding of the consumer and SMB experience, and its broad capabilities in the enterprise market are of tremendous value to service providers seeking to bring new services to market

• HP enables NEPs to significantly reduce COGs and to focus on developing next generation content rich services that help service providers drive new revenues

• HP is empowering new and existing players in the converged market to collaborate and capitalize on new opportunities

• HP has deep relationships with the world’s largest and most complex carriers, equipment providers and media companies that demonstrate its long standing commitment to this key industry