===!"§Deutsche Telekom

Deutsche Telekom AGZentralbereichInnovation

Language Technology as a Motor for InnovationLanguage Technology at Deutsche TelekomMay 2004

Page 2

Approach towards InnovationThe last mile is wherever our customer is - today, many different technologies co-exist…

... in the office.•WLAN•WiMax•DVB•...

•UMTS•GPRS•GSM•...

•WLAN•WiMax•DVB•...

example

•Ethernet•DSL•WLAN•WiMax•...

... travelling...

At home...

•PSTN•DSL•Ethernet•FTTH•...

… thus, integration and creation of seamless customer experience is key.

Page 3

Clear needs structureSeven central needs drive human communication

Individuality Pleasure

ProductivityBelonging

Comfort

SecurityInformation

Source: Zukunftsinstitut, Z_Punkt, various sources at TZD

Page 4

Complex communication patternsPeople‘s private and working worlds and subsequently

communication patterns increasingly complex

At work

At home

Out-and-about

In free timeCoordination with partner

Coordination with

colleagues

Coordination of appointment with

workmenMeetings with

friends

Tailback of tasks to be completed

Increasing mobility

Less time

New life-working hours models

Reorganization of families

Singularization

Knowledge society

Erosion of family

Information overload

Economic crisis

Profiling consumption

Pleasure society

Social insecurity

Page 5

Customer

Situations/ locations

Actual state of fulfilment of needs Congruence between demands and framework parameters

not optimal at present

Applications

Page 6

More efficient fulfilment of needs More complex lifestyles require more customer-focused and individualized ITC solutions

Infrastructure development

Applications Customer

Situations/ locations

IntegratedCommunication

Intuitiveusability

Integratedcommunication

Page 7

CompletenessFocus areas cover the entire ITC spectrum and relate directly to the basic communication drivers

IntuitiveUsability

IntegratedCommunication

IntelligentAccess

InfrastructureDevelopment

Network infrastructure

Device

Application

User

ITC spectrum

Productivity

Security

Individuality

Information

Belonging

Comfort

Pleasure

Communication drivers Focus areas

Segment-specific definition

„4i“

Page 8

R&D Projects

Focus Areas Enablers

INTELLLIGENT ACCESS

INTEGRATED COMMUNICATI

ON

INFRA-STRUCTURE

DEVELOPMENT

INTUITIVE USABILITY

Selection of Enablers based on required capabilitiesin the FocusAreas

Overarching AAA

Enhanced user interfaces

Multi-access service platform

Broadband wireless access

Tracking and tracing

Pervasive computing

Next-generation-network/GSN

ZB I supports the realization of the focus areas through selected enablers.

Voice Relevance

Page 9

Applications & Services

Application Area Services / Features

Voice technology enables different application scenarios and services.

Telephone Services

Information Services

Messaging

Operator Services

Enterprise Telephony

Mobile Commerce

Security Services

Voice-activated dialing, Voice commands

Voice Portals, Wireless Web, Telematics

Voice-activated voice mail, email and unified messaging

Concierge services, “Intelligentes Freizeichen”

Call centers, CRM

Voice enabled event notification, Mobile transactions

Speaker verification, Biometrics

Enablers

Text-to-Speech

Speaker Verification

Natural Language

Understanding

Automatic Speech

Recognition

Page 10

AAA is relevant for offering services in the prioritized business fields

Broadband wireless access

Multi access service platform

Overarching AAA

Enhanced user interfaces

Tracking and tracing

Pervasive computing

Seamless backbone

eHealth Telematics

Mobile office

TelehomeeGovernment

Generic consumer

Generic business

Identification of patient with electronical medical report (authenti-cation) with smart card

Authorization of pharmacy to create ePrescription

Authentication via fingerprint for entertain-ment down-loads at destinations

Fingerprint authentication for access to company ERP information

Authentication for each inhabitant for special services (e.g.,, access to video on demand)

Authentication of citizen for administration purposes eVote, eMarriage

Authorization to search in libraries

Replacement of physical ID

Voice recogni-tion for checking voicemail box (authenti-cation)

Voice Trust Center for automation of password reset

Fingerprint authorization for the execution of banking/ payment transactions

Authorization logic for entering high security areas

7,9

3,06,4

Market potential for Eastern and Western Europe of prioritized business fields 2007EUR billions

Enabling market access to ...

VoiceIdent: Importance of AAA EXAMPLES

37,947,4

n/a n/a

Page 11

Build upon the current customer base and make the step-up to an overarching Trust Center that enables:

— Secure transactions— Easy service access— Standardized payment and

billing solutions

AspirationCurrent situation

DT Group currently authenticates more than 80 million customers via Pot and SIM Card

DT Group has access to relevant information for authorization about customers, e.g. payment behavior, customer preferences etc.

DT Group sends out more than 80 million bills per month

DT Group has a payment relation to over 40 million households in Germany

Authentication

Authorization

Accounting

DT Group is participating (technically) in nearly all electronic transactions in

Germany

DT Group is natural owner of a Trust Center.

Source: Team

Biometric Trust Center

Page 12

BiometricsVarious technologies for authentication.

Palm print

Veins

Hand geometry

Signature

Retina

Dynamics of typing

IrisFingerprint

Face recognitio

n

Shape of ear

DNA Thermo-pictures

Walk

Biometric Technologies

Voice

Page 13

CeBIT 2004 demonstrator was nominated as for “Best of CeBIT Award”

Project was successfully based on Telekom patent (for authentication based on voice print and CLI)

4 new patents have been submitted Communication on patent handling in

MyTeamNet

VoiceIdent @ CeBIT 2004Successful Proof of Concept.

Page 14

timeline

VoiceIdent

„Use what you sell“ – VoiceIdent first deployed Telekom-internally, subsequently e.g. for external call center, finally for other types of voice applications.

complexity

“Use what you sell”: VoiceIdent used for password reset within Deutsche Telekom

Subsequently, VoiceIdent is used for other call center automations

July/2004 January/2005

July/2005 January/2006

July/2006 January/2007

VoiceIdent deployed for automation of external call centers with password reset being the initial application

VoiceIdent used for Deutsche Telekom services (T-Netbox, Rechnung Online, ISDN configuration etc.)

VoiceIdent - Phase 2

[VoiceIdent]

Wide range of Deutsche Telekom and 3rd party voice applications enabled by VoiceIdent (payment etc.)

[VoiceIdent]

VoiceIdent – Next Steps

Page 15

Voice is an important part of communication, but not the only one.

Different Perspective

„Man kann nicht nicht kommunizieren.“ Beispiel

3D Displays

Nano-Schalter

Nano-Sensoren

„Virtual keyboards“

„Augen-Maus“

Emotions-Erkennung

3D Drucker

RFID-Tags

Page 16

Backup

Page 17

Customer Behavior and NeedsIn-depth understanding of drivers behind trends are used for business case evaluation of enablers and disruptive technologies.

Drivers of Beha-viors &

NeedsAfforda-bility

Requirement to act

Impact

on D

T

highlow

limited

strong

Evaluation for prioritized analysis

Conveni-

ence

Convenience

Technical Ability

Mobility

Time Budget

Efficiency Support

Belonging /Peer Pressure

Affordability

Margin / Scale

..

Trend Clusters Behaviors &

NeedsAging, Health

Fitness

Singling

Personal Rewarding

Mediatization

Servicing

Specialization

Knowledge Workers

Financial Pressure

..

Technical

Ability

Mobility

Time Budget

Efficiency

Support

Belonging Margin

/ Scale

..

Page 18

Desire for

• Comfort

• Productivity

Focus area: Intuitive Usability“Simplify your life”

Applications must be easy to operate for all users of a target group.

Intuitive operation of products and services generates greater efficiency and effectiveness.

Acquisition of larger customer groups for more complicated products and services as well (“design for all“).

Voice authentication instead of password

Service control by way of natural speech

Individualized dialog systems

Programming of settings is often cryptic at present

Authentication is usually done with a password or by entering a PIN

Input: *67# <call number>

Hello Ms. Müller, how can I help you?

Hello!

Today Tomorrow

Page 19

Focus area : Intelligent Access “Always best connected”

Technology must ensure the optimal connection in every situation without any help from the user.

There are no limits to accessibility and communication. Services are available via different devices and networks according to each

situation.

Seamless handover Best quality available Provision of necessary bandwidth in

each case

User must dial explicitly into a specific network via a device

Often necessary to dial into a new network when location changes

Today Tomorrow

GPRSISDN

UMTS

DVB-TW-LAN

ISDN

Desire for

• Comfort• Belonging• Productivity• Security

Page 20

Focus area: Integrated Communication“Everything talks”

Networked applications must satisfy individual needs increasingly independently.

Today Tomorrow

Direct communication from machine to machine relieves the user and makes processes more effective.

Context-sensitive and personalized products and services generate higher added value.

Everday objects will be intelligent Networking of all objects and devices New forms of communication and

interaction Intelligent applications by way of

spontaneous networking

Stand-alone devices in private sphere

Desire for

• Information• Comfort• Belonging• Productivity• Security• Pleasure• Individuality

Page 21

IP network

Focus area: Infrastructure Development“High quality at reasonable cost”

The cost/benefit ratio of production systems must be optimized.

Today Tomorrow

Optimization of the infrastructure has priority for Deutsche Telekom. More efficient production systems enable higher bandwidths and better quality

without increased costs.

Simplified and unform core network Equal treatment of voice and data in

core network Network convergence reduces costs

and increases quality, e.g. lower supply times

Parallel networks currently exist (PSTN, IP network, ...)

Service-specific growth

Corporate network

IP-Netz

Desire for

• Productivity

PSTN

ISDN

Page 22

Project description: German Version VoiceIdent: 06151-4283-121 English Version VoiceIdent: 06151-4283-122

German Version VoiceIdent + Ring tone download: 06151-4283-123

Demo