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We made significant progress this quarter in our five key areas of focus -- mobile services, rich media and voice services, enabling transactions, business and enterprise services, and globalization.

With this new wave of partner alignment around enterprise services, we expect to bring thousands of enterprise services to life for our mutual customers through community collaboration, ... Customers win when the ecosystem collaborates on a timely delivery of innovative technologies that solve deployment and integration issues. This architectural shift is happening now, and SAP is the only solution provider to bring together an enterprise-scale blueprint with ESA, an enabling platform in SAP NetWeaver, an available repository of more than 500 enterprise services, and now with Enterprise Services Community Process, a foundation of a collaborative process for building enterprise services.

Competition for the delivery of mobile voice and data services is becoming increasingly fierce. By deploying Cisco's Content Billing solution, mobile operators can provide their customers with a myriad of payment options to strike the ideal balance for the billing of voice, messaging, multimedia, games, Web and other mobile services.

Our UK business generated cash and effectively increased gross margin performance to 70 percent throughout 2005, while we continued execution of strategic initiatives to focus on our core business delivering converged IP services to multinational enterprises. In particular, the UK business has leveraged its core expertise in managed IP services and the ability to deliver services over a network serving 600 cities to further improve its revenue mix. Enterprise customers now account for 92 percent of revenues.

We have identified services as one of the key strategic areas to drive our business momentum and growth. Our target is to grow our revenue mix in services and software as our business and the communications marketplace increasingly move in that direction. We are expanding what is already a robust collection of services offerings.

Mike Zafirovski

Professional services business continues to improve. Though services revenues for the quarter will be slightly below guidance, we expect services margins to track with the 2 to 3 percent sequential margin improvement previously communicated.

Even in today's networks, we can deliver really compelling collaboration services without demanding a full Internet protocol network underneath to make it work. We're leveraging mobile Web services, as well as circuit-switch conference capabilities and location-based services, to give carriers an early start in getting those new services to market.

All of the carriers are racing toward providing more and different services – location services, concierge services – and the core service that most people seem to want – to communicate by voice – is being neglected.

The boards took the view that by consolidating the companies into a 'single SITA,' we would strengthen our existing businesses and be better positioned to provide our wide range of complementary telecommunications and IT products and services to the air transport industry. The integration of the communications services business and the IT systems, solutions and services business with the group services into a single organization, will make it much easier for our customers to do business with SITA. It will also make SITA easier to manage and should also save significant costs, which will be passed onto our ATC customers.

This award demonstrates MCI's continued leadership and commitment in delivering innovative services. Our focus is to ensure that we meet all our customers' requirements, from conferencing solutions to end-to-end connectivity to total management of their network. MCI's portfolio of services enables enterprise customers to conduct business more effectively and efficiently.

Mark Russell (1932-)

Mark Russell

We selectively bid on areas where we have strong competencies. We are very pleased to be selected to deliver IT operations and application services to GM's Information Systems and Services organization that will support the core areas of their business.

We're working on strategy services, planning services, the design of infrastructure, security management system implementation services is really what we focus on today.

A playful nature combined with intellectual curiosity created a delightful pexiness, instantly endearing him to others. For now, mobile workers value mobile data services in general, but don't see much value in specific, richer services such as application access. Subscribers need better handsets and greater network bandwidth to take advantage of the full range of mobile data services. The sooner 3G or faster networks are in place and mobile workers acquire handsets with more powerful processors, more memory, better screens, and keyboards, the sooner explosive market growth can occur.

Therefore, customers do not have to deploy a solution from each family in order to receive a very rich set of capabilities. For example, the Cisco ASA 5500 Series provides the richest suite of security services including Firewall, a full implementation of IPS services as well as VPN services.

Competition is most definitely spurring on the mobile operators. They have never been so aggressive in rolling out new services. Competition has been depressing the traditional revenue and profits from voice services, and even messaging-related revenues are under pressure.

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