Convergent Solutions for Next Generation Communication

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Convergent Solutions for Next Generation
Communication

• James Ding
• President CEO
• AsiaInfo Holdings, Inc.

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? A Brief Introduction on AsiaInfo AsiaInfo
s Role in Convergent Telecom Industry
Continued Dominant Position of AsiaInfo in
Chinas Telecom and Internet Infrastructure
Market
Agenda
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AsiaInfo, a leading convergent solutions provider
for next generation communication services
providers.
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The Chief Architect of Chinas Internet and
Communication Infrastructure

• Leading Internet Network Solution Provider
• ChinaNET, UniNET, CMNet CNCNET
• Leading Internet/Communication Software Provider
• Carrier Class Internet, Wireless and Convergent
  Billing
• Carrier Class Multi-service Oriented Network
  Management
• Carrier Class Email and Unified Messaging
• Dominating Market Share in China
• 6 Years Operating History and 650 Employees

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Current Products Carrier Class Internet and IP
Telephony CMB Software
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Current Products Carrier Class E-mail and
Messaging Software
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Current Products Wireless Long Distance
Telephony CMB Software
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Strong Financial Performance in 2000
Software Revenues (USMM)
Total Net Revenues (USMM)
1999
2000
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Gross Margins Continued to Improve in 2000
Gross Margin
Gross Profit as of Net Revenues
Gross Profit from Solutions as of Net Revenues
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AsiaInfo in 2001
Operating Income
USM
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Convergence Deregulation
Main Growth Drivers in Telecommunication Industry
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Regulated Market with Separated Networks, via
Separated Appliances and for Separated Services
From
To
Convergent Communication Industry
Convergent Services Voice, Data, Internet,
Video
Convergent Networks xDSL, HFC, FTTH,
B-Wireless, Satellite
Convergent Appliances PC, PDA, GPRS Phone,
STB/TV
gt Using multiple appliances to access
multiple-services provided from multiple
multi-service(convergent) networks.
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Convergence of Mobile and Internet
Full Convergence
Mobile Subscribers
Partial Convergence
Internet Subscribers
2000
2001
2002
2003
2004

• From voice-only to multimedia mobile services,
  access Internet at anytime and anywhere with
  mobile Internet

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Future Telecom Services

• Network services
• Access services
• Value-added services
• Portal community
• Content and application
• E-commerce, M-commerce
• Converged multiple services

today
future
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Future Operators

• Network operators
• Access service providers
• Internet based value-added service providers
• Multi-service providers will have strong
  advantages

Changes in the business process results in a
changed strategy
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What Will Be Different

• For end users
• Always-on access
• Location-based application
• Personalization
• E-commerce/M-commerce
• For operators
• Business model will change, multi-service is
  necessary
• Value-added service will become the top service
• Business operating support and management become
  more important and more complex

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Challenges for Operators

• How to operate and manage multiple businesses
• How to bill all different services
• How to manage the complex networks, services and
  applications

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A Full Spectrum of Convergent Solutions From
AsiaInfo

• Convergent Billing Solutions
• Multi-Service Oriented Network Management
  Solutions
• Multi-service Business Operation Support
  Solutions
• Unified Messaging Solutions

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AICBS, the Convergent Billing Solution

• AsiaInfo Convergent Billing System (AICBS)
  is a next generation billing system. With its
  open and flexible architecture, AICBS provides a
  powerful convergent billing engine to carriers
  interested in providing customers with flexible
  and high quality services.

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Features of AICBS(1)

• Flexibility
• Real convergent architecture supports wireless
  services and data services, content services and
  future 3G services
• Easy implementation of new services, fast
  time-to-market
• High Performance
• CORBA-based architecture and distributed
  Computing
• Configurable real-time/batch billing to balance
  performance and resources
• Memory database technology
• Powerful Selling Tools
• Bundled services and cross-selling
• Billing personalization (special discounts, etc)
• 3P model for business operation

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Features of AICBS(2)

• Easy Management for Business Operation
• Unified management of all services
• Dynamic strategy extension and implementation
• Low operating and maintenance costs
• Reliability
• Multi-level audit mechanism
• Focused application monitoring and management
• Low Risk
• Realistic convergence plan
• Low risk in new service implementation
• Strong local support

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Benefits to Operators

• Improve quality of services at operators
• Attract and retain more customers
• Increase revenue via cross marketing IP, voice
  and content services
• Provide bundled services for stronger product
  line
• Fast time-to-market for new services
• Reduce operating and maintenance costs

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AIUM, Carrier Class Unified Messaging Software
Product
AIUM2.3 (2001) AIUM1.0 (2000)
Features

• Support TTS, VR, PSTN/Fax/WAP access email,
  multi- attachment files support
• Seamlessly integration with all mainstream email
  systems

Key Customers
China Mobile IP Backbone China Telecom in
Liaoning and Jiangsu
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AISerBase, Carrier Class Service-oriented Network
Management Software
Product
AISerBase (2001)
Features

• Real time, scalable carrier class solutions for
  multi-service convergent network
• Provide service, function and customer-oriented
  network management services, to help the
  operators manage their networks and applications
  by service and customer priorities

Key customers
China Telecom in Hebei
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Continued RD Investment Generating New Product
Features
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Increasing demand and intensified competition
will continuously fuel the growth of the
convergent solution market in China.
Telecommunication Growth in Post-WTO China
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China Internet Users Ramping Faster Than Expected
Internet Users in China (Millions)
CAGR 63
CNNIC Data
Computers with Internet access
CAGR 54
Internet users
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AsiaInfo Premier Customers Accelerate Spending
CAGR 50
2,349
IP Infrastructure Investment(US Millions)
China Telecom
1,554
China Unicom
China NetCom
China Mobile
1,012
JiTong
761
CATV
Others
468
Source MII, 2000
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AsiaInfos Competitive Advantages
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The Software Provider of Choice

• China NetCom

VoIP Billing
MIND
Messaging, Billing

• China Mobile

Portal, MIND
Portal, Openwave
Messaging, Billing, CM

• Beijing Telecom

• Sichuan Broadcasting

Cable Internet Billing
GoldenTech
Langchao

• Sichuan Mobile

GPRS Wireless IP Billing
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Summary
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QA