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GlobalPress
IT Summit
Mark F. Whittier
Vice President, Corporate Marketing
These presentation materials describe Tekelec's present plans to develop and make available to its customers certain
products, features and functionality. Tekelec is only obligated to provide those deliverables specifically included in a
written agreement signed by Tekelec and customer.
About Tekelec
Tekelec is a high-performance network
applications company focused on
accelerating the transition to IMS networks.
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Industry leader in next-generation signaling, switching, and value-added
applications
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Leading the transition to IP Multimedia Subsystems (IMS) architecture
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Proven track record with over 25 years in the industry
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Financially solid -- strong growth in all markets
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Corporate headquarters near Research Triangle Park in Morrisville,
North Carolina, with R&D facilities, customer support, and sales offices
worldwide
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World-wide market leadership…
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Worldwide Market Leadership
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Tekelec is the number one leading global provider of signaling equipment in
2005. According to Venture Development Corp. (VDC), Tekelec has
approximately 38% global signaling market •share,
including 61% market
.
share in North and South America1.
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Tekelec is the number one provider of signaling equipment in North and
South America for 20051.
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100% market share of stand-alone STPs in India2.
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Tekelec is the leading provider of hybrid media gateway softswitches in 2005
with over 25% market share, when ranked by revenue3.
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Tekelec is leading global provider of media gateway – ATM channels in
20053.
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Tekelec is first in worldwide media gateway voice over packet (VoP)
shipments, second in overall VoP ports shipped in Q3 20054.
1. Venture Development Corp. Worldwide Core Infrastructure Report, June 2006.
2. Tekelec Research and Current Customer Base
3 . Dell’Oro, IP Telephony Carrier Report, Q1’06 5/25/06.
4. Dittberner, Next Gen Voice Equipment Report, November 2005.
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Heritage of Innovation and Leadership
Argentina – ‘06
Africa – ‘06
‘04
Communications
Software
Portfolio
Introduced
Russia – ‘06
Middle East – ‘05
Thailand – ‘05
’05 iptelorg
acquired –
advancing IMS
portfolio
India – ‘04
Mexico – ‘03
’00 Advanced IN
and Packet
Applications
Singapore – ‘03
Brazil – ‘02
’03-’04 NGN
Switching
Portfolio
Introduced
England – ‘98
’92 STP
Introduced
’89 MarketLeading SS7
Test Equipment
1979
’99 First IP
Signaling
Network
For over 25 years, Tekelec has recognized and seized growth
opportunities, and with its ability to adapt and evolve,
the company has led key telecom market segments.
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
2006
Accelerating Convergence 2006
Recent Awards
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Tekelec Honored by AT&T as Outstanding Supplier
 Tekelec received one of 49 supplier recognition awards for its work in
helping the AT&T companies deliver outstanding service to its
customers during the past year.
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Frost & Sullivan Award for Product Line Strategy for the
World Application and Media Server Markets
 Tekelec has employed Best Practices that when combined allow it to
maintain its product line strategy leadership in the application and
media server markets.
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Diverse Global Customer Base
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Billions of calls a day; millions+ subscribers - 1,000 systems - 300 different networks - 30 different countries
Over 1 billion mobile calls through our NGN MG T8000
VoIP Applications Server reaches 100 customers, 150 networks, 500K lines
Over 225 switching customers worldwide
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Solid Financial Performance (Q3-06)
• Revenue 2005 – Record $536.9M – up 46% Year-over-Year (YoY)
from $368.9M in 2004
• Orders 2005 – Record $629.3M – up 22% YoY
• Backlog 2005 – $573.3M – up 19% YoY
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Revenue (YTD) - $399.2M – up 15% YoY
Over 40% of revenue in Q4 ’05 came from international sales
Significant revenue growth YoY in all of our regional markets
23% of revenue devoted to R&D investment
Twenty-five years of financial stability and growth
even during the industry’s most challenging years.
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Recent Press Announcements
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Tekelec Announces TekCore IMS Core Platform
CSCF capabilities evolve EAGLE 5 ISS for delivery of IMS services today
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Tekelec Announces TekMedia ‘IMS-Ready’ SMS Solution
Greater network control and efficiency, network security, real-time data
management, pre-paid billing, message storage
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Tekelec, TechnoServ A/S Enable Real-Time Information Improved
Service for 3.2M SMARTS Customers in Russia
Tekelec Honored by AT&T as Outstanding Supplier
Tekelec Joins Global Interoperability Trial to Drive the Adoption
of ‘Plug & Play’ in the Telecom Industry
Tekelec Joins Global Interoperability Trial to Drive the Adoption of ‘Plug & Play’ in
the Telecom Industry
A Tekelec 8000 Converged Multimedia Gateway will be controlled by a thirdparty mobile switching center (MSC) server/wireless softswitch using the
3GPP Open Mc standard interface.
Tekelec Confidential /
For Discussion Purposes Only /
Tekelec Confidential
Non-Binding
2006 |
Tekelec’s Focus – the Transition to IMS
Access
Control
Applications
Tekelec provides high performance network applications – accelerating a seamless
transition to the converged network.
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Providing integrated performance and service-management functionality
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Developing value-added fixed, mobile, and IP services
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Leveraging expertise in signaling – the core of the network – to transform
the delivery of services
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Providing the core CSCF to unleash the power of next-generation
applications today…while building tomorrow’s foundation
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Enabling operators to offer new revenue-generating services, both
fixed and mobile, with gateways and mobility services
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Leading the industry with advanced VoIP delivery for business and
residential users
Tekelec Confidential /
For Discussion Purposes Only /
Tekelec Confidential
Non-Binding
2006 |
Tekelec’s Solution Families
Signaling &
Session Control
Unsurpassed signaling expertise
offering SS7, SS7 over IP & SIP
solutions: operators save costs,
achieve efficiencies, easily roll out new
services and transition to next-gen
(IMS) networks
Messaging
Next-gen messaging solutions —
store-and-forward SMS to advanced
multimedia; reduces costs; simplifies
OA&M; based on open 3GPP
standards using SIP core.
Number Portability
Industry-leading number portability
solution: porting for GSM networks,
CDMA networks, fixed networks, and for
intra-carrier (TDMA/CDMA-to-GSM)
number retention
Switching &
Media Gateways
An array of Class 4/5 switches, gateways
and application servers supporting IP,
ATM and TDM switching, as well as 2G3G-FMC integration with an IMS-ready
architecture
Mobility Management
Flexible routing solutions integrated
on EAGLE® 5 ISS for mobile
network management -virtual HLR
manager (G-Flex®) & Equipment
Identity Register (EIR)
Convergence
Solutions
IMS solutions transform today’s
networks; guide transition to create
access-independent networks that
open up lucrative new markets
Performance
Management (IAS)
Revenue Generating
Applications (SCS)
Hosted VoIP
Integrated applications ensure in-depth
understanding of networks; enable
wireline & wireless operators to make
sound business investment & costreduction decisions
Versatile IN applications; enable creation &
customization of services rapidly & costeffectively, improving customer satisfaction,
reducing churn & generating new revenue
Leading hosted IP telephony
applications that enable service
providers to reliably and costeffectively deliver VoIP solutions
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Tekelec’s Focus on IMS Transition
Solutions for
Revenue
generation today maximize return
from TDM services
and IMS
investment
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IMS
Services
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Transitional
Network
Elements
TDM
Services
TDM
Future ProofCreate the IMS
foundation today
and operators to
optimize network
investment
IMS
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Voice services to seamlessly
roam from mobile to fixed
networks = “FMC”
Messaging services for
2.0/2.5/3G networks
• Capacity relief for core SS7
network
• network optimization by
utilizing broadband data
channels vs. narrowband
voice channels
• Interwork SMS and IM
environments
Add value to presence with
TDM call status
Forward compatible call agents,
media gateways, and media
gateway controllers – No
stranded investment
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
“CIO’s Dilemma”
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Decline in use of desk Stations (PBX,
Key Systems, Centrex)
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Continued Opex, and Capex renewal
Upgrades to IP under consideration
Increase in use of mobile devices for
internal use
Need for a converged service for
Enterprise and Cellular Service to
reduce overall service cost and provide
improved business continuity
Continuing Investment in WLAN - often
is “network of choice” and wide
coverage
Increase in use of mobile devices for
internal use
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Voice primarily but messaging/email
increasing use
Single Number
Single Service
Enterprise & Cellular
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Drivers for Fixed Mobile Convergence
Enterprise
1. Integration of WiFi
Assets with Macro
Cellular to reduce
cost of telecom
Fixed Networks
Mobile Networks
1. Customer retention
by providing
mobility
1. Penetrate enterprise &
become single provider
for voice services
2. Combat VoIP carriers and
stop reduction in ARPU
3. Reduce roaming charges
4. Offload 2G radio in Dense
Areas
2. Elimination of
Dormant PBXs & PRI
Interconnect
2. Bundled services
along with voice,
data, and video/
entertainment
3. Single Number &
Single Device
3. Combat VoIP
Carriers
Fixed/Mobile Networks
1.
Service layer convergence
(prepaid, VPN, free phone,
IN/SCP, etc.)
2.
Combat VoIP carriers
MVNO’s
1. Reduce cost and offload
from cellular to IP
2. Reduce roaming charges
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Tekelec IMS & FMC Solutions
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Tekelec FMC Architecture
Prepaid
Single Identity
IN SCPs
SIP Front
Application
Server
Wireless SIP
Convergence
Legacy Front
T-6000
Next Gen SCP
SIP
T-3300
VLR SMS SSP
S-CSCF
SIP
MGCF
MGW
T-3000
MSC
T-8000
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Summary
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Enterprises are using mobile service as a primary voice service
vehicle
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Cost overruns in enterprises for mobile services is forcing the major
corporations to work with their mobile carriers to develop new
solutions for cost reductions
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Opportunity for Network Operators (Mobile & MVNOs) to provide new
enhanced hosted enterprise services to reduce the overall cost of
running enterprise networks
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New revenue opportunities for the mobile and MVNOs
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Tekelec has market leading IMS-enabled solution for seamless
mobility and in deployment with various carriers around the world
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006
Tekelec Differentiators
Tekelec has unparalleled experience and expertise in:
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The media, control and application layers of the network
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Core session control and subscriber management
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Low latency, high transaction, mission critical network applications
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High value revenue generating, real-time applications
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High capacity and distributed media gateway & control capabilities
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Integrated data acquisition and end-to-end business intelligence across legacy and IMS
networks
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Network migration of multiple technologies.
Tekelec solutions …
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Leverage existing investment in the network, enabling a graceful transition to the converged
network
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Optimize the IMS core for high performance multimedia applications
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Are truly next gen and not based on legacy technology
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Are based on open network topology
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Have highly integrated OAM
Tekelec’s experience, expertise and significant footprint in network applications,uniquely
positions us to seamlessly transition carriers to the converged network
Tekelec Confidential / For Discussion Purposes Only / Non-Binding
Accelerating Convergence 2006