Press release 50 million devices now managed by Motive Home Device Manager
500% increase in less than twenty four months reinforces Motives market leadership Austin, Texas, December 14, 2010 Motive, a leading provider of customer experience management software for broadband and mobile data services, and an Alcatel-Lucent company (Euronext Paris and NYSE: ALU), today announced it is ending the year with more than 50 million devices under management with its Home Device Manager (HDM) product. This is up from 10 million devices under management just 24 months ago. In the same period, Motive has added 25 customers; HDM is now deployed by more than 85 service providers worldwide. Motive HDM combines robust provisioning, maintenance and support capabilities into a single product. This allows service providers to configure, upgrade and manage a wide range of customer premises equipment (CPE) - including residential gateways, IPTV set-top boxes, VoIP adapters, femtocell access points and other home networking devices - using a single, deviceagnostic interface. This simplifies management and allows service providers to make considerable savings on maintenance and support without affecting the end users quality of experience - in fact, by avoiding service interruptions and service calls, the user experience can be improved. One nationwide service provider in EMEA reported savings of approximately $10 million by using Motive HDM, through reduced customer support calls and technician costs. Motives leadership role in industry-shaping organizations such as the Broadband Forum and the Home Gateway Initiative has also helped Motive to establish strong partnerships more than ninety leading CPE and chipset manufacturers. Additionally, Motives interoperability verification program (MotiveSmart) draws on these partnerships to give service providers confidence that new device features they deploy will work properly, while giving them more options when working with industry vendors. This increase in devices under active management validates Motives strategy to remain CPE vendor-independent. Motives unique approach to managing devices in the home reduces the complexities and risks associated with the deployment and management of next-generation broadband devices and services. This helps service providers to move towards a future of smarter, IP-based and converged networks - Alcatel-Lucents model for the High Leverage Network. By simplifying device management, Motive HDM accelerates the delivery of services such as high speed Internet access, IPTV and VoIP calling, and increases end users confidence in moving to new services by minimizing downtime and technical issues around new hardware and services. Service providers will be able to successfully deliver their services to home devices, enabling them to differentiate themselves by introducing new capabilities that will improve the quality of experience for end users, assisting them in their evolution toward a fully converged, high leverage network Passing the 50 million device mark is an industry first and demonstrates the strength of Motive HDM and the quality of our customer relationships, says David Stevenson, Vice President and General Manager of the Motive Product Division. With our help, service providers can successfully deliver their services to home devices, enabling them to differentiate by introducing new capabilities that will improve the quality of experience for end users.
About Motive Motive, an Alcatel-Lucent company, provides digital life management software for broadband and mobile data services. Motive's software is helping wireline, wireless, cable and satellite operators worldwide deliver a new generation of IP-based services that seamlessly integrate voice, video and data into a single, connected experience.
With Motive products, operators can leverage one service management platform to automate and remotely manage key customer touch points throughout the service lifecycle, across multiple services, networks and devices. The result is a consistent, unified experience for both end-users and service providers that increases revenues from new and converged services, reduces fulfillment and support costs, and drives greater customer satisfaction and loyalty. For more information, visit Motive on the Internet: http://www.motive.com About Alcatel-Lucent Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted transformation partner of service providers, enterprises, strategic industries such as defense, energy, healthcare, transportation, and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP and optics technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 15.2 billion in 2009 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow us on Twitter: http://twitter.com/Alcatel_Lucent. Alcatel-Lucent Press Contacts Peter Benedict Leonard Pesheck Alcatel-Lucent Investor Relations Frank Maccary Don Sweeney Tom Bevilacqua

CASE STUDY

Telefnica de Argentina simplifies activation and management of complex broadband services
Turnkey solutions from Alcatel-Lucents Motive Product Division lowers Telefnicas OPEX and drives a superior customer experience
We had a 60 percent reduction in the incoming calls for technical support
from customers using the self-installation kit that connects the Customer DSL Modems to the ACS powered by the Motive solution.
Jose Luis Caresani, Head of Broadband Services Provisioning and Management, Telefnica de Argentina
Telefnica is the first and largest integrated telecommunications provider for the Spanish-Portuguese speaking world and provides local, domestic long-distance, and international fixed-line telephone services, Internet, mobile and Pay TV services to over 300 million customers in Latin America. In 2009 Telefnica de Argentina, the Local Operation of Telefnica Group in Argentina, implemented a multiphase Total Broadband Care and Home Device Manager solutions using technology from Alcatel-Lucents Motive Product Division to improve the customer experience while driving measurable operational savings.

CHALLENGE

Customers were having difficulty activating or upgrading broadband services Technical Call Center was receiving an increasing number of calls Increased level of field support (truck rolls) for minor problems Increasing OPEX due to increase in customer support services

SOLUTION

Complete solution for Broadband Services Deployment and Support: Motive Self-Service Manager, Motive Customer Service Manager, and Motive Home Device Manager Automated self-help tools with a virtual assistant for activation, support and maintenance of broadband services with guided resolution of common technical problems Deliver broadband service intelligence to Help Desk personnel related to PC and CPE configuration issues Integration of network and customer support platforms for a complete Service Quality View

BENEFITS

Incoming calls to Technical Call Center reduced by 60 percent Faster first-call resolution of customer problems by Help Desk agents Easier management of CPE such as DSL Modems, Routers, residential gateways, IP set-top boxes and other devices Reduced field support and truck rolls Faster deployment of complex services including triple-play and fixed mobile services Improved average revenue per user (ARPU) and measurable OPEX reductions Better customer experience through simplified and quicker activation of complex broadband services and resolution of problems

THE CHALLENGE

Providing activation and technical support services that are responsive to customer needs while being cost effective to deliver is a key challenge faced by all telecom providers. Part of the problem is that most customers are not technologically sophisticated. Yet broadband services and the home network have become ever more complex.
Strategic planning for the Smart Speedy Project began in 2009. Specific objectives included: Deliver ready to use broadband services and make it easy to provision value-added services Drive measurable cost savings in support and service processes Ensure Telefnica would be positioned to smoothly scale to meet growing customer demand
Today, service providers must cope with the set up and management of a wide variety of a proliferation of customer premises equipment (CPE) such as home computers, wireless home routers, VoIP gateways, and set-top boxes., This complexity is a major impediment to fast activation of new services and why 40 percent of broadband customers experience a problem within the first year.
Improve service quality and reduce churn Identify and offer new value-added services in an efficient and profitable way

WHY ALCATEL-LUCENT?

The foundation of the Smart Speedy Project, and the key to OPEX reductions, were new tools that empowered customers and Help Desk personnel alike. Specifically, the Smart Speedy Project required: Simple, easy-to-use self-service tools that would enable customers to quickly activate new broadband services and proactively solve many routine technical problems themselves, and; Large scale remote device management tools that would provide Call Agents with greater visibility on the entire service chain, including CPE, and accelerate time to an accurate diagnosis and problem resolution.
Our Technical Call Center received an increasing number of calls about Internet Connectivity issues, confirms Jose Luis Caresani, Head of Broadband Services Provisioning and Management, Telefnica de Argentina. Many of these calls were related to changes in the customers PC or the CPEs configuration: problems not easily resolved by our Call Center Agents. The result was an increasing level of field support, often to resolve minor set-up issues.

We needed a solution that would transform our whole approach to Broadband Care and drive measurable cost savings in support and service processes, says Caresani. Telefnica de Argentina called this new initiative the Smart Speedy Project: a CPE-vendor agnostic solution that would reduce incoming calls and the need for field support, improve the customer experience, and simplify the deployment of new broadband services. Telefnica de Argentina chose Motive because of its ability to unconditionally meet these requirements and support a smooth, trouble-free implementation of the Smart Speedy Project. We saw that Motive solutions would provide us with a view of the entire service chain: from CPE and customer PCs through the network backbone right to our service platform, says Caresani. Our Call Center agents would be able to see all configurations and inconsistencies between different platforms or elements in the network, and rapidly correct whatever parameters were wrong, he says.
We needed a solution that would transform our whole approach to Broadband Care and drive measurable cost savings in support and service processes.
In addition, Telefnica greatly valued the consultative approach taken by Motives project team. Telefnica not only wanted Help Desk agents to resolve problems more quickly it also wanted to acquire critical CPE information to support data mining and analysis. This was part of a proactive and predictive maintenance strategy with the overriding goal of transforming customer support into a revenue generating opportunity. The project team had a relevant background to quickly address frequently experienced problems associated with a complex, multi-phase implementation, and could recommend the best solutions used by other telecom providers around the world, says Caresani. For example, Motives Self-Service Manager, a key tool used in the Telefnica solution, has the widest deployment in the industry and has been installed on over 100 million PCs around the world. This experience and the consultative approach [by Motive] gave us assurance that we would get our broadband services and support platform working quickly and meet key milestones in our Smart Speedy Project, acknowledges Caresani. Faster troubleshooting and resolution Motive Self-Service Manager (Motive SSM) provides a twotiered customer service experience that starts with proactive self-service. Motive SSM quickly and efficiently guides Telefnicas subscribers through a wide range of common technical issues including broadband connectivity, e-mail setup and configuration, and Web browser optimization and configuration. Many of these problems can be resolved without the subscriber ever having to call Telefnicas Help Desk for support. Motive Customer Service Manager (Motive CSM) gives customers the option to open a chat session and escalate the support request if the problem cannot be solved with self service. This provides a seamless transition between selfservice and assisted-service. At this point, Motives SSM uses a powerful, automated data telemetry submission to send diagnostic information directly to Telefnicas Call Centre. This data Phased implementation The Smart Speedy Project was implemented in three phases and branded by Telefnica as Asistente Virtual to help end customers solve the typical issues related to their broadband connection. Phase 1 consisted of construction of the customer self-install kit, CPE remote management and support, and PC health check and care. Phase 2 resulted in proactive and predictive service maintenance, and service quality monitoring. Phase 3 introduced Doctor Speedy as a new value added service for complete digital home care. Motive Home Device Manager (Motive HDM) compliments this by supplying data from the actual gateway itself. Motive HDM allows Telefnica to remotely manage CPE, such as residential gateways, IP set-top boxes, and VoIP terminal adapters that gives Help Desk Agents through Motive CSM immediate insight to the customers PC, how it is configured, and the type of broadband connection they have. They are immediately able to pick-up where the subscriber left off in their trouble shooting process and more quickly resolve the problem. Telefnica de Argentinas Asistente Virtual

THE MOTIVE APPROACH

Motive supported the Smart Speedy Project with the deployment of three integrated products: Self-Service Manager, Customer Service Manager, and Home Device Manager. Self-Service Manager provides a virtual assistant that enable Telefnicas subscribers to activate their broadband services and resolve problems independently of Help Desk support. Home Device Manager provides the activation and key Auto Configuration Server (ACS) technology required for remote CPE management, while integrating with Telefnicas CRM to drive measurable operational improvements.
comprise a home networking environment. Motive HDM is now being used to manage over 60 million CPEs globally. Motive HDM supports one-to-one and bulk device management including configuration, troubleshooting, firmware upgrades, event management, user management, and reporting. Together, Motive SSM, Motive CSM, and Motive HDM give Telefnicas Help Desk Agents the critical real-time information they need to quickly troubleshoot and resolve a customers activation or service problem. Easy activation right out-of-the-box The final plank in the Motive solution to support Telefnicas Smart Speedy Project was an auto-installation tool that dramatically simplifies the activation of new broadband services. This capability was provided by Motives Home Device Manager (HDM): a tool that guides subscribers step-by-step through the initial PC verification and connectivity steps, then through an online flow to complete the activation process. Compelling benefits During phase 1, Telefnica experienced a measurable reduction in support calls 30 days after the deployment of Motive HDM. We had a 60 percent reduction in the incoming calls for technical support from customers using the self-installation kit powered by the Motive solution, says Caresani. Put another way, customers that used Telefnicas customer self-install kit and connected to HDM were 60 percent less likely to call-in for help versus users that did not use the kit. When Telefnica compared the universe of CPE under management to legacy (un-managed) CPEs, it found an average reduction of 22 percent in the incoming calls for both technical support and dispatched field technicians. This means an average of 18 percent fewer truck rolls to provide field support, confirms Caresani.

customers with a tiered self-help strategy and an easy to use auto-installation kit for new service activation. This has resulted in measurable operational and economic benefits while ensuring a superior customer experience. Not only can Telefnicas subscribers resolve many common technical issues by following the step-by-step guidelines of a virtual assistant, they also spend less time on hold waiting for an available Help Desk Agent. Perhaps the greatest value provided by Motive solutions are the recommendations provided by SSM, CSM and the wealth of data related to CPE from Motives HDM. This data is driving operational improvements while providing Telefnica with a straight line to new value added services, revenue, and higher ARPU. We are able to discover what kinds of devices our customers are using and are getting insight to their digital life, confirms Caresani. For example, Telefnica now gets numbers on how many customers have iPods connected to their home WiFi network. We are using this type of CPE information to develop new value added services with quick deployment; and turn customer care into a revenue generating opportunity, says Caresani.

SUMMARY

Telefnica has not only raised the bar on customer support for Broadband services in Argentina it has introduced a new business model: one that has set the stage for identifying, developing and rapidly deploying new value added, revenue generating services. Moreover, the economic benefits that have been realized from deploying Motive solutions in Argentina are now being repeated in other Latin American countries. We are using the same platform to provide a new level of customer care support to broadband customers in Columbia, Brazil, Peru and Chile, confirms Caresani. Latin American customers want easy, ready to use broad-

VALUE ADD

The solution provided by Alcatel-Lucents Motive Product Division enabled a much higher percentage of Telefnicas Help Desk agents to reach an exact diagnosis and solution at the first level of Call Center support while simultaneously empowering
band services with quick installation, upgrades and fast problem resolution. Thats exactly what theyll get from the Telefnicas Broadband Care Support programnow powered by technology from Alcatel-Lucents Motive Product Division.
www.motive.com e-mail: info@motive.com
Motive, Alcatel, Lucent, Alcatel-Lucent and the Alcatel-Lucent logo are trademarks of Alcatel-Lucent. All other trademarks are the property of their respective owners. The information presented is subject to change without notice. Alcatel-Lucent assumes no responsibility for inaccuracies contained herein. 2011 Alcatel-Lucent. All rights reserved. 02062011