Post on 18-Dec-2015
transcript
NORTEL NETWORKS
The New Market RealityWireless Data Networks
Scott WickwareDirector, UMTS Product Solutions
2NORTEL NETWORKS
• US $17.5B in Revenue in 2001
• Customers in over 150 countries
• US $3.2B in R&D in 2001
• 1/3 of employees are engineers, designers & scientists
• Leadership Categories (HQ in Brampton, Canada)• Wireless Networks (Châteaufort, France)
• Wireline Networks (Richardson , Texas, USA)
• Optical Networks (Montréal, Québec, Canada)
• Enterprise Networks (Santa Clara, California, USA)
Nortel NetworksIndustry Leader and Innovator
3NORTEL NETWORKS
Wireless Data Market Drivers
North AmericaWireless Sub & MOU Growth
Wireless Revenue GrowthInternet Users Flat – 182M
OverallSubscribers still growingVoice traffic still growing
Wireless Data traffic risingInternet Usage rising (18% annually)
Nua Internet SurveysNua Internet Surveys
South AmericaWireless Sub GrowthLowest Cost Service
Strong Internet Growth – 33M
EuropeWireless Growth FlatWireless Data Growth
Internet Growth 20%+ - 190M
AsiaWireless Sub GrowthWireless Data Growth
Internet Growth 20% - 187M
4NORTEL NETWORKS
Network & Traffic Growth Examples
Revenues & Subs growing - MOU growing faster
0%
50%
100%
150%
1H 01 2H 01 1H 02
1H02 Revenue $37B
0%
50%
100%
150%
1H 01 2H 01 1H 02
1H02 Subs 134M
0%
50%
100%
150%
1H 01 2H 01 1H 02
1H02 MOU 296M
0%
50%
100%
150%
1H 01 2H 01 1H 02
Global Internet - # of Hosts• >25% annual growth• Exceeds 162M globally
CTIACTIA
ISCISC
US Wireless in 1H 2002
5NORTEL NETWORKS
The New Reality: Access is Wireless
0
500
1,000
1,500
2,000
2,500
82 84 86 88 90 92 94 96 98 00 02 04
Mobile now exceeds Fixed in almost 100 countries
MobileDevices
FixedDevices
Source: ITU, 2001
6NORTEL NETWORKS
Traffic & Revenue Don’t Match
Source: Nortel & analyst estimates
0
2
4
6
8
10
12
14
16
1999 2000 2001E 2002E 2003E 2004E 2005E
IP
Private (mixed)
Switched non-IPData
LD Voice
US Backbone Traffic (Exabytes)
0
50
100
150
200
250
300
350
400
2000 2001 2002 2003 2004 2005
Asia
CALA
EMEA
North America
Millions of Mobile IP Users: Global
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
1999 2000 2001E 2002E 2003E 2004E 2005E
Wireline Data
Wireless Data
Wireless Voice
Wireline Voice
Total Service Revenue: US• Business Case is shifting
• Traffic is Data
• Revenues are Voice
• Volume is growing
• Low Service Cost is critical
7NORTEL NETWORKS
The End of the Voice ONLY Business Case
3G License Debt
Bandwidth Bubble
OverInvestment
Recession
Wireline VoiceAnalog & 2G Wireless
Voice Business Case
Voice Business Cycle is Ended
VoP and Packet Data2.5G and 3G Wireless
Voice & Data Business Case
Application BusinessCycle is Starting
Industry needs to redefine itself
8NORTEL NETWORKS
Fundamentals of the New Business Case
• Core Networks evolve to low cost Packet Architecture• Voice and data treated homogeneously
• Low cost broadband Wireless access• High mobility voice and thin applications
• Nomadic bandwidth-intensive applications
• Application Enablers• Service Management: making a business of applications
• Network Applications: building blocks to tap network capabilities
• Media Gateways: interfaces for multiple networks & traffic types
• Service Integration: support for third party apps and services
• Carrier Business Evolution• From Traffic management, to Retailing and Marketing
9NORTEL NETWORKS
Universal solution in the Core:Packet Transport & Switching
TelecomSynchronous / Circuit
Wireline / WirelessVoice Optimized
DatacomAsynchronous / Routed
Wireline / OpticalData Optimized
Nortel Packet CoreCarrier-Grade Platforms, Multi-Service
Switching & Optical Transport
10NORTEL NETWORKS
Broadband Wireless Access:Two Solution Sets – Mobile & Nomadic
Mobile Voice and<2Mbps Data2.5G / 3G network
Real-time voice & data applications
Ubiquitous coverage
Nomadic Data 2Mbps+
Best-effort data applications
Local coverage, Mbps speeds
Telecom / Voice Datacom / WLAN
Nortel Wireless AccessGPRS / EDGE / CDMA2000 /
UMTS / WLAN
11NORTEL NETWORKS
Applications Development & Delivery:Ecosystem Tools & Support
Network ApplicationsCommercial grade services such as VPN, Firewall, Security, VoP, Authentication, QoS, SIP, etc.
Media GatewaysApps built on industry standards
such as IMS for voice, data, & video; wireline and wireless
Service ManagementCommercialization services such as billing, metering, SLA support,
& ecommerce
Service IntegrationNetwork integration for third party servers and applications with core
network services
ApplicationsDeveloper driven such as MMS,
SMS, WAP, xTML, email etc.
12NORTEL NETWORKS
Nortel’s Value Proposition:Packet Traffic: End to End Care & Delivery
• Integrated Optical and Wireline packet transport networks
• Support for multiple services: IP, ATM, MPLS, etc.
• 1x CDMA upgrades, UMTS overlays for dense GSM/GPRS
• 802.11 PWLAN today, evolving to mesh extensions in future
• Support the creation, deployment, and billing of IP services
• Switch, route, repair, manage, secure & prioritize Packets
• Simple, high performance network elements
• Common across Optical, Wireline, and Wireless networks
Packet Core: low-cost, high performance connectivity
Efficient Access: matched to growth & usage
Service Enablers: supporting revenue creation & collection
Carrier-grade Platforms: Pre-engineered performance
13NORTEL NETWORKS
Market Update: Wireless Data Today
Sprint1x launched
Bell Mobility5k 1x data Subscribers
Verizon35k 1x data Subscribers
VodafoneSoft-launch
Vodafone live!
HutchisonSoft-launch
MobilkomSoft-launch
KTF / SKT / LG7.5M 1x data Subscribers
DoCoMo136k Foma Subscribers
KDDI805k 1x data Subscribers
Unicom1x Pilot
2.5M+ GPRS Subscribers16.7M+ 1xRTT Subscribers47 MMS networks launched
Stats as of 2Q02Stats as of 2Q02
Telesp / Telerj35k 1x data SubscribersSmartcom
1x launched
14NORTEL NETWORKS
Wireless Investment:2006
Other
CDMA/1x
GSM/GPRSUMTS
Other
CDMA/1x
GSM/GPRSUMTS
2006EGlobal
TechnologyMix
Other
CDMA/1x
GSM/GPRS
UMTS
Other
CDMA/1x
GSM/GPRS
UMTS
EMEA39% of market
Other
CDMA/1x
GSM/GPRS
UMTS
Other
CDMA/1x
GSM/GPRS
UMTS
CALA5% of market
Other
CDMA/1x
GSM/GPRS
UMTS
Other
CDMA/1x
GSM/GPRS
UMTS
North America18% of market
Other
CDMA/1x
GSM/GPRS
UMTS
Other
CDMA/1x
GSM/GPRS
UMTS
Developing Asia22% of marketOther
CDMA/1x
GSM/GPRS
UMTS
Other
CDMA/1x
GSM/GPRS
UMTS
Developed Asia15% of market
Black represents “other”Black represents “other”
15NORTEL NETWORKS
Nortel Networks and WirelessOther, $44
Optical$1,121
Enterprise$1,928
Wireless$3,199 Wireline
$1,748
2002 Contracts • China Unicom (4 - China)• Microcell (Canada)• Ufone (Pakistan)• Cingular (USA)• Telefonica (Spain)• TSTT (Trinidad)• ACS (USA)• O2 (Pan-Europe)• Dutchtone (Netherlands)• Pelephone (Israel)• T-Mobile (Pan-Europe)• Alltel (USA)• C&W (CALA)
• Ratelindo (Indonesia)• US Cellular (USA)• Triton PCS (USA)• Edge Wireless (USA)• Bellsouth Int’l (Ecuador)• China Mobile (2 - China)• Telgua (Guatemala)• Dobson (USA)• Centertel (Poland)• Smartcom PCS (Chile)• Aycell (Turkey)• Chunghwa (Taiwan)• Deutsche Bahn (Germany)• Vesper (Brazil)
2002 Q3 YTDRevenue
Mix
Nortel Revenue by Segment
$0
$5
$10
$15
$20
$25
$30
1999 2000 2001
US
$ B
illio
n OtherSegments
Wireless
• Stable Revenues from
• Global Diversity
• Multiple Product lines
• Services & Support
16NORTEL NETWORKS
Overtaking the Incumbents Top 6 Western Europe Operators
Top 6 WE Operators account for >75% of SubscribersVodafone - mmO2 - DT - Orange (FT) - TIM - Telefonica
Source: Nortel Networks Q3/02
Includes Industry Estimated Contract Values
62%
28%
28%
14%
21%21%
52%
Nortel
Nokia
Ericsson
Siemens
Motorola
Lucent
Alcatel29%
26%
9%34%
49%
2G Network Presence 3G Network Presence
Nortel Networks is the only vendor to increase presence as advanced networks are deployed
Totals >100% due to multi-vendor networks
17NORTEL NETWORKS
Nortel Networks Wireless Presence
AT&TAT&T WirelessWireless
TelusTelus
Sprint PCSSprint PCS
BellBell MobilityMobility
TelstraTelstra
CingularCingular
VoiceStreamVoiceStream
ChinaChina UnicomUnicom
ChinaChina MobileMobile
ChungHwaChungHwa
OrangeOrange
O2O2T-MobileT-Mobile
VerizonVerizonVodafoneVodafone
Anticipating gains as Wireless Data Networks continue to roll outCapitalizing on global diversity, and multi-technology portfolio
Winning new business with Optical & Multi-service market leadershipDemonstrated end-to-end IP expertise
TelefonicaTelefonica
NextelNextel
Bouygues TelecomBouygues Telecom
18NORTEL NETWORKS