Lucent Technologies Media Gateway Enhancements Complement Lucent Softswitch, Providing Path to IP-Based Networks.

Business and Technology Editors

SUPERnet 2001

Booth #205

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 16, 2001

Media Gateway Software Enables Service Providers to Increase Revenues

and Reduce Infrastructure Costs on a Single, Converged Network

Lucent Technologies (NYSE: LU) today announced enhanced software for its industry-leading media gateway products designed to help service providers generate new revenue, reduce equipment costs, and relieve congested Class 5 switches. In addition, this new software will provide service providers a migration path from circuit to packet networks.

Together, the enhanced MAX TNT (r), APX 8000 (tm) and PacketStar (tm) PSAX Multiservice media gateways--which convert circuit-switched calls into voice over Internet Protocol (VoIP) or ATM packets--offer end-to-end and VoIP and voice over ATM solutions to service providers.

The enhanced media gateways complement Lucent's second-generation Softswitch architecture also announced today. Softswitch is an end-to-end solution that will allow service providers to manage the convergence of voice and data traffic on their networks, and deploy a broad array of innovative new services in a market expected to generate in excess of $100 billion in revenue. It offers a rich service creation capability, and increased reliability and scalability, all on an open computing environment.

"The media gateway and Softswitch announcements are clear examples of Lucent's leadership with service providers because we are providing them industry-leading voice and data services combined with softswitch-based SS7 signaling and control, all over one converged network," said Joe Sigrist, president of Lucent InterNetworking's Edge Access Group. "Lucent media gateways have the number one marketshare in the world. Now, with the introduction of our next-generation Softswitch and TAOS 9.0 for the MAX TNT and APX 8000, we are delivering voice quality network services over a more cost-effective data network infrastructure."

The enhanced media gateway capabilities complement the Softswitch announcement because service providers can protect their investment in Lucent's market-leading remote access server, VoIP and Voice-over-ATM media gateways while building a distributed softswitch-based signaling network with a rich array of competitive services.

The two software products announced today are:

- Release 9.0 of the True Access Operating System (TAOS (tm) 9.0) software,
which gives Lucent's MAX TNT and APX 8000 access products unique "Universal
Port" capability for supporting a rich array of voice, data and VPN services on
one chassis and provides much-desired VoIP calling features, such as "1+"
dialing, Web-to-phone and prepaid and postpaid calling card services; and

- The Softswitch Internet PRI Offload (SS IPO) solution, which in conjunction
with Lucent's PacketStar PSAX Multiservice Media Gateways, helps
large-to-medium-size competitive local exchange carriers (CLECs) meet
increasing port demand from ISPs while preserving their Voice-over-ATM service
revenues. The solution also helps relieve highly congested Class 5 switches
from dial-up modem calls destined for ISPs.

TRUE ACCESS OPERATING SYSTEM RELEASE 9.0

TAOS 9.0 provides "universal port" port capability, unique to Lucent Technologies, that enables the MAX TNT and the APX 8000 to support multiple services-data dial-up, voice, and Virtual Private Network (VPN)-all from a single chassis and Digital Signal Processor (DSP). Services are supported simultaneously and dynamically, so subscribers can access them at any given time.

In a "universal port" configuration, TAOS 9.0 supports enhanced Internet offload---a capability that allows service providers to divert voice and data traffic from the PSTN to the data network and alleviate overall congestion on the Internet-- and voice-over-IP capabilities designed to help service providers capture new revenue from their subscribers.

For example, TAOS 9.0 supports:

- Internet call diversion, which allows service providers to move

dial-up modem traffic off their circuit-switched networks to more

cost-effective data networks;

- Single stage 1+ dialing for residential long distance, which

enables VoIP service providers to address the $100 billion

long-distance voice market;

- Prepaid and postpaid calling card services, which enables VoIP

service providers to address the $5 to $6 billion calling card

market; and

- PC-to-phone capability, which enables VoIP service providers to

address the emerging Phone-to-PC market-slated to be a $2 billion

market in next few years.

TAOS 9.0 also has been tuned to interoperate with Lucent's new Softswitch through existing protocols such as IPDC (Internet Protocol Device Control) with a software migration path to H.248/MEGACO (Media Gateway Control) later this year. IPDC is used by today's leading service providers for putting media gateways under the direct control of the Softswitch. In a Softswitch-based application, TAOS 9.0 supports both Internet call diversion and single stage long distance dialing with future support for dual stage calling card applications as well as other subscriber-based services later this year.

With more than 1 million VoIP ports shipped and more than 3.5 million media gateway SS7 signaled ports shipped, Lucent's MAX TNT and APX 8000 are the industry's most reliable and scalable circuit-switched to IP-network gateways in the world.

SOFTSWITCH INTERNET PRI OFFLOAD

The Softswitch Internet PRI (Primary Rate Interface) Offload (IPO) solution is designed for medium-to-large CLECs who sell dial-up Internet access services to Internet Service Providers (ISPs) and traditional voice providers.

"Service providers today still get 80 percent of their revenue from voice traffic," said George Simmons, chief operating officer, Multiservice Core Networks and general manager, Multiservice Media Gateways for Lucent. "The goal is to capture and retain the voice revenue, while equipping their networks to capture new revenue for data services driven by the Internet. Lucent's Softswitch solution coupled with our media gateways enable service providers to achieve both goals."

Most people access the Internet by using dial-up modems connected through the public switched telephone network (PSTN). Those calls tend to last much longer than voice calls, which use up more channels and create congestion on the Internet.

Key elements of the Softswitch IPO solution are the market-leading PacketStar PSAX Multiservice Media Gateways and the Lucent Softswitch. The Lucent Softswitch provides SS7 and PRI signaling, call control, routing, number translation, and billing functions. The PSAX Multiservice Media Gateways provide 'any-port-to-any-port' switching between ILEC-side IMTs (Inter-machine Trunks) and ISP-bound PRI trunks.

The Softswitch IPO has the unique capability to support high-density multiservice modules and in excess of 10,000 connections per PSAX shelf.

The Softswitch IPO solution allows KMC Telecom to protect its telecom investment by offering a rich-array of services to its ISP customers.

"Lucent's Softswitch IPO allows us to protect our switching infrastructure, save on real estate and reduce expenses without deploying costly circuit switches," said Bill Lenahan, CEO of KMC Telecom. "Now, we can deploy more telecom ports per square foot in a cost-effective manner."

PRICE AND AVAILABILITY

TAOS 9.0 is available now on the MAX TNT, which supports up to 5,760 data and 4,032 voice sessions in a 7-foot telco rack; the APX 8000, which supports up to 8,064 data/voice sessions (24,000 later this year) in the same rack; and the entire MAX family of remote access servers. Pricing depends on configuration.

Softswitch IPO is available now. Pricing depends on configuration and port capacity.

Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com.