Insert Picture Here Communications Transformation The Oracle

Communications Transformation & The Oracle Communications Opportunity Matt Mc. Ferrin, Senior Industry Director Oracle Communications

Communications Primer Q: How many bell logos where there? A: Six

History Of “Bell” Transformation • 1876, when Alexander Graham Bell transmits the first complete message - "Mr. Watson, come here, I want you!“ • July 30, 1878 to April 17, 1880, a series of Massachusetts corporations controlling Mr. Bell's patent rights are organized • March 3, 1885, the American Telephone and Telegraph Co. (e. g. AT&T) is established as a subsidiary of American Bell Telephone • On December 30, 1899, AT&T succeeds American Bell as the parent of the Bell System

History Of “Bell” Transformation • The U. S. Department of Justice files an antitrust suit against AT&T on July 24, 1913. • Later that year, AT&T Vice President Nathan Kingsbury agrees to provide long-distance connection of Bell System lines to independent phone companies • The U. S. government runs the telephone system during the only time in American history from July 1, 1918 to June 30, 1919 • President Franklin D. Roosevelt signs the Communications Act on June 19, 1934. The law places interstate telephone business under the regulation of the newly formed Federal Communications Commission (FCC).

History Of “Bell” Transformation • In 1956, AT&T opens for service TAT-1, the first trans-Atlantic telephone cable • In 1962, AT&T placed the first commercial communications satellite, Telstar I, in orbit, offering an additional alternative especially suited to international communications. • AT&T opens TPC-1 in 1964, the first submarine telephone cable across the Pacific. It went from Japan to Hawaii, where it connected to two cables linking Hawaii with the mainland. • The FCC reaches its Carterfone decision on June 26, 1968 • Largest Corporate Identity Program in the United States of America. Consisted of redesign of 135, 000 Bell System fleet vehicles; 22, 000 buildings; 1, 250, 000 phone booths; With, 1, 060, 000 employees; 80, 000 customers. It took five years to implement this program - from 1969 -1972 - and without the aid of computers!

So, A Quick Quiz Q: What was the Carterfone decision, made on June 26, 1968? A: Carter Electronics of Dallas sought to interconnect its two-way radios with the nationwide phone system. The FCC ruling struck down interstate tariffs that prohibit attachment or connection of non-Bell System communications equipment to the public network. And it opens the way for competition. Q: What year were Call Waiting, Three-Way Calling, and Call Forwarding introduced? A: In 1971, by Illinois Bell Q: What is the significance of the date January 1, 1984? A: Date AT&T agreed that it would divest itself of the 22 Bell Operating telephone companies. As a result of divestiture, the seven RBOCs - Ameritech, Bell Atlantic, Bell. South, NYNEX, Pacific Telesis Group, Southwestern Bell Corp. and US West become the parents of 22 local Bell companies. Cincinnati Bell and SNET, which were not wholly-owned subsidiaries of AT&T, carry on as distinct firms. Q: Why did Verizon select the ticker symbol (Vz)? A: It uses the two letters in the Verizon logo that graphically portray speed, while also echoing the genesis of the company name : veritas (Latin for certainty/reliability) and horizon (e. g. forward looking/visionary)

Putting It Together – Why We Are Here Today Q: Who in here is focused on (yes I am talking compensation) the communications industry? Q: Anybody work with/for one of the seven RBOCs Ameritech, Bell Atlantic, Bell. South, NYNEX, Pacific Telesis Group, Southwestern Bell Corp. or US West ?

Quick look at Transformation Drivers 1 -Year Revenue Growth & Revenue / Employee 1 -YEAR REVENUE GROWTH REVENUE / EMPLOYEE Percent ($) Source: One. Source Data as of 04/20/2009 Oracle Internal 8

Quick look at Transformation Drivers Net Profit Margin & Operating Profit Margin NET PROFIT MARGIN OPERATING PROFIT MARGIN Percent Source: One. Source Data as of 04/20/2009 Oracle Internal 9

Connect to Everything from Anywhere Regardless of their physical location, consumers' access to content and applications will affect all service sectors. Image source: Flickr Oracle Internal 10

Word of the Day : Transformation Q: Who in here has discussed “transformation” with a carrier in the past year? Main entry : trans·for·ma·tion *As defined by Merriam-Webster Pronunciation: – ˌtran(t)s-fər-ˈmā-shən, -fo r- 1: an act, process, or instance of transforming or being transformed 2: false hair worn, especially by a woman, to replace or supplement natural hair 3: the operation of changing one configuration or expression into another in accordance with a mathematical rule ; especially : a change of variables or coordinates in which a function of new variables or coordinates is substituted for each original variable or coordinate 11

Transformation Focus By Operator Type Fixed network operators - next-generation network transformation and organizational restructuring Alternative fixed network operators - actively seek new customers and quickly launch new services via next gen OSS / BSS and channel focus Mobile operators - need to transform to quickly launch new services, to deliver feature-rich content messaging services and provide advanced, real-time customer intelligence Cable operators – Leverage applications and services offered over a converged network, esp in commercials space 12

Customer Strategy…Oracle Vision (example) Vision Retail & Network Evolution • Enhanced retail channel • Optimize network operations Tactics Consolidated Supply Chain Retail inventory Mgmt Network Capacity Planning Service Delivery Transformation • Real-time Provisioning Demand Planning • Integrated Service Delivery Provisioning POC Order & Svc Mgmt Improve Customer Experience Operational Efficiency • Optimized B 2 B Sales • Customer Foundation Consolidated SFA Wireless Self-Service Unified Customer Data • Enhanced Fleet Operations • SOA Transformation Intelligence Everywhere Transportation Mgmt Business Process Mgmt

Customer Strategy…Oracle Vision (example) Vision Tactics Next Best Treatment Improving The Customer Experience • Total Customer Management • Talent Management Retail Site Mgmt Procurement Automation PSFT HR upgrade Customer modeling Campaign Management Strengthening Our Brand • Retail Transformation Loyalty program • Demand Driven Supply Chain Grid infrastructure Demand Planning Service Delivery Platform Enhancing Profitability • Enterprise performance management • Content Value Chain Transportation Mgmt Risk and Compliance Atlas Replacement Profitability analytics Product Life Cycle Mgmt

Enabling the Shift to Platforms and Software Legacy Approach Platform Approach Vertical Networks (single service) Horizontal Network (multi-services) Services Transport, Switching & Access Networks

Oracle Communications Footprint (2004) Supply Chain Oracle ISV Partners Procurement

Investing In Market Leaders

Oracle Communications Footprint (2008) Demand Planning Oracle Supply Chain ISV Partners Procurement Logistics

Multi-Channel Strategy Consistent AND Unique Customer Experience for all Interactions Enterprise-wide customer platform as foundation Contact Center Retail Field Mobile Web Partners Service Storefront SFA Mobile Self Care Custom Supply Chain Social Custom Sales Channel & macro level process enablement PRM Customer Foundation Integration Order Management Billing Supply Chain Intelligence Everywhere Business Intelligence Customer Real-time decisions Performance Management Financials Technical AND data integration into back-office

Example - CRM Initiatives / Tactics Extend Oracle to Improve Customer Experience and Manage Churn Tactic Solution • SFA & PRM On Demand B 2 B SFA Replacement • Superior analytics w/ trend reporting • Implementation to focus on seamless transition Marketing Next Best Offer • Single Offer Management system • Extend Siebel Marketing to 100% of B 2 B Campaigns • Extend Siebel Marketing, to use more functionality, align Sales & Marketing • Real-time, contextual, targeting of offers to maximize service uptake Proven Impact § 432% ROI & payback in 2. 4 months § Improved access to customer data, replacing SFDC in just 6 weeks § Fully integrated front-to-back §office in 10 months 815 Campaigns Executed – 894% Increase YOY § 405, 669, 109 Leads Generated – 1, 013% Increase YOY • Market flexible bundles to existing customers for increased cross-sell § 10% Uplift in Offer Take Rates § 40% Reduction in Churn § Increased cross-selling revs by 15% § Increased avg # prods sold by 24% • Provide Real-time Churn Reduction § Increase revenue per sale by 25%

Integrated Service Delivery Strategy Customer facing + Network Facing + Supply Chain Facing Ensure successful order capture across all channels Retail Field Mobile Web Partners Multi-Channel Customer Interaction & Order Capture Retail Inventory Procurement BPM Customer Planning Order Management Retail Supply Chain Product Network Supply Chain Workforce Mgmt Financials Business Intelligence Contact Center Impact margins by tying into network and retail supply chain and inventory OSS (Availability, Design, Activation, Inventory) Asset Business Process Mgmt Billing Rating & Charging Service Delivery Platform Integration - Ordering Infrastructure - Ensure successful orders with process integration to Order Management, OSS and billing Business Intelligence Data Management Integration and business process with proven infrastructure foundation

Supply Chain…Value Chain ? ? ? • Modular functions • Integrated Processes • Business needs driven Demand Supply PREDICT Supply to Demand Market Demand ADAPT Sourcing, Inventory, Production, Fulfillment ALIGN Product to Demand Operations to Corporate Objectives Product to Supply INNOVATE New Product Development Product

Supply Chain…Value Chain Enabled By Oracle Strategy • Modular functions • Integrated Processes • Business needs driven Demand Supply PREDICT ADAPT Numetri x? ? ? ALIGN ERP INNOVATE • Primavera Product

Oracle BI Applications Complete, Pre-built, Best Practice Analytics Auto Comms & Media Complex Mfg Consumer Sector Energy Financial Services High Tech Insurance & Health Life Sciences Public Sector Travel & Trans Sales Service & Contact Center Marketing Procurement & Spend Supply Chain & Order Management Financials Human Resources Pipeline Analysis Service Effectiveness Campaign Effectiveness Direct / Indirect Spend Revenue and Backlog General Ledger Employee Productivity Forecast Accuracy Customer Satisfaction Customer Insight Buyer Productivity Inventory Accounts Receivable Compensation Sales Team Effectiveness Resolution Rates Product Propensity Off Contract Purchases Fulfillment Status Accounts Payable Compliance Reporting Up-sell/ Cross-sell Service Rep Efficiency Loyalty & Attrition Supplier Performance Customer Status Cash Flow Workforce Profile Cycle Times Service Cost Market Basket Analysis Purchase Cycle Time Order Cycle Time Profitability Retention Analysis Lead Conversion Churn & Service Trends Campaign ROI Employee Expenses BOM Analysis Expense Management Return on Human Capital and Other Operational & Analytic Sources Source adapters: Oracle BI Suite Enterprise Edition Plus 24

Application Integration Architecture (AIA) Oracle Communications Focus Front Office Applications Siebel e. Billing Siebel CRM Enterprise Business Services 3 rd Party Enterprise Business Objects Application Business Connectors Service Fulfillment Billing and Revenue Management Financials & Supply Chain BSS & OSS Applications • Seamlessly unites best-in- class applications for Communications • Integrated industry bestpractices built on open standards • Delivered as extensible, productized components; adaptable by partners and Customers

AIA for Communications Planned & Delivered Integrations Processes Capabilities • Sales & Order Capture • Multi-channel order capture • Billing • Complex order fulfillment • Order Management 1. Order to Activation & Billing Applications • Change & error management • Activation & Inventory 2. 3. 4. 5. Self Care and Agent Assisted Billing Care • Call Center Service • Multi-channel bill presentment • On-Line Self Service • Usage & charge inquiry • Billing • Payment & Dispute Integrated Revenue Accounting • Billing • Month-end accounting for Comprehensive Master Data Management • Centralized Product • Central product catalog Catalog • Customer Master • Synchronize common Network Build & Asset Management • Network Inventory • Network build planning • Network Planning • Procurement to build • ERP Financials • Oracle Asset Tracking currency and non-currency resources definitions across platform

Oracle Communications Enabling Transformation Enable Next Generation Services Drive Customer. Centric Business • • Deploy the Network for Next Generation Services Automate Order to Fulfillment Deliver Any Service or Content to Any Device Monetize Next Generation Services and Content • Improve Customer Satisfaction • Gain Customer Insight • Maximize revenue through efficient service delivery Transform Information Architecture • Leverage Common Data Across All Systems • Increase the Agility of Your Business Processes • Reduce the Costs of Network Infrastructure Improve Cost Control and Compliance • • Accelerate Financial and Regulatory Reporting Manage Network Assets Efficiently Reduce Back Office Administration Costs Monitor & Improve Business Performance In Real Time Oracle Internal 27

Q & A Oracle Internal 28