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Innovation Day

com Universidade Estcio de S

Rio de Janeiro, Maio 2011


1 Nokia Siemens Networks

How to make money with 3G? / March 2009

Our market vision 2015 the world connected A major opportunity for everyone
Applications predominantly in the Internet Multitude of business models

5 billion people connected

Broadband everywhere
2 Nokia Siemens Networks

We are living in

exponential times
Typical 300 .. 500% growth
in HSPA data volume

within 6-12 months

Advanced terminals
3 Nokia Siemens Networks

HSPA radio networks

Internet applications

There are 33 Billion searches on Google every moth

In 2006, this number was around

2.7 Billion

Nokia Siemens Networks

It is estimated that more than 40 Exabyte's (40 x 1018)

of unique new information


will be generated worldwide this year

Nokia Siemens Networks

User surf internet

everywhere
Today is more than About 13% of mobile users access Internet Through mobile networks - 2008

40%

Nokia Siemens Networks

The near future of mobile communications is about browsing and online applications Communities, sharing
Mobility, broadband, and new device technology change the way people connect and communicate
Augmented reality News, information anywhere

Location

Business on the move, email, Skype Music and entertainment

New subscriptions and revenue are a huge opportunity


7 Nokia Siemens Networks

New device ecosystems are arising


and taking their share of the telecoms market

Nokia Siemens Networks

Smart phone market trends


In US, smart phone sales account for 25% of total units A notebook with a dongle creates 10 times the traffic of a smart phone But there will be much more smart phones than dongles in the market Between 2010 and 2015, 700 million smart phones will be sold
in Americas.
Mobile Internet traffic [ExaByte/year] [1018 Byte/year]
25 20 15 10 5 0
9

2010: Informa estimates that 65% of global mobile data traffic is generated by smartphones Average traffic per user: 85 MB per month (199 MB per month in Japan)

Mobile Internet access


Mobile Laptop Smartphones

2008

2009

2010

2011

2012

2013

2014

2015

Source: Nokia Siemens Networks 2010


Nokia Siemens Networks

Another hint of what is coming Mobile networked gaming


Zynga, founded 2007, dominates the social gaming space more than 80 million gamers so far, 5% of entire world internet population 2010: Zynga is delivering 1 Petabyte of data per day, 25% higher than the current global mobile internet traffic total of 0.82 Petabytes per day
Source: Tech Crunch, Informa, BroadbandGenie, 2010
10 Nokia Siemens Networks

October 2010: 3UK reports that on its network, Facebook generates the most mobile data traffic, with Zynga in 2nd place ahead of iTunes

Mobile streamed TV and movies

Mobile YouTube usage increased 123% in 1H2010 and now accounts for 13% of all global mobile traffic

Source: Allot, September 2010


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How much

Bandwidth each service need


~700Kbps 1.1Mbps

~250Kbps

~100Kbps

~300Kbps 400Kbps

~20Kbps 30Kbps

~2Mbps 3Mbps

~6Mbps 12Mbps

Web Browsing/email/P2P.. Etc.etc.etc.

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Nokia Siemens Networks

LTE has the latency to deliver a good online gaming experience


Latency (Rountrip delay) **
GSM/EDGE

HSPA Rel6

HSPAevo (Rel 8)

Nokia Siemens Networks latency measured in Telia network: 13 ms


0 20 40 60 80 100 120 140 160 180 200 ms

LTE

DSL (~20 - 50 ms, depending on operator)

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Nokia Siemens Networks

A hint of whats coming


Monthly data traffic by device type, November 2010
Monthly data consumed, GB
15 14.9 GB 12 9 6 3 375 MB 0 Fixed data traffic (Cisco) Smartphone data traffic (Telia Sweden) Dongle data traffic (Telia Sweden) LTE dongle data traffic (Telia Sweden) 5 GB 15 GB

Source: gigaom.com, November 2010


14 Nokia Siemens Networks

The most important factors to retain customers are network coverage, Voice& Internet quality and cost aspects
Acquisition & Retention Study Mobile Operators in Brazil 2010
Customer care
Device portfolio Service & Service configuration (incl. data card device portfolio aspects) Mobile data services Service bundling & 1 6 12 convergence 4 4 Network coverage 12 3 1 12 14 Voice quality 2

Request and complaint handling

Self care 10 Cost control Billing

Calling plans and rate structure

Cost & billing


Base: Total n=1003 respondents 15 Nokia Siemens Networks

6 9 4 2 Handset costs Mobile data/Internet costs Calling costs Contract

Messaging & Internet quality

Network & service quality

Mobile broadband connectivity is a growing revenue generator in emerging markets


Typical revenue contributions for operators in emerging markets

Voice

85%

Voice

80%

Introducing 3G has meant an increase in connectivity revenues, not content revenues


40% Mobile Internet = 8%

20% Mobile Internet = 3% 40%


Non-voice15% of total revenues SMS = 6% of total revenues Content = 6% of total revenues

of total revenues

30%
Non-voice20%

SMS = 6% of total revenues Content = 6% of total revenues

40%

30%

Operators with 2G only


(average)
Source: Ovum, 2010
16 Nokia Siemens Networks

Operators with 2G and 3G


(South Africa, UAE, Nigeria, Russia)

The next smart thing Smart objects enter the stage


Gross value of connected smart systems forecast *) ** Gross value of connected smart systems forecast *)

Revenue per year

50 Bn 40 Bn

CAGR: 27%

CAGR: 25%

CAGR: 34%

CAGR: 33%

CAGR: 34%

CAGR: 40%

CAGR: 29%

CAGR: 35%

20 Bn 10 Bn 0 Bn Health Care Retail Energy Transport Security Industrial IT & Networks

* Source Harbor Research Pervasive Internet & Smart Services Market Forecast (2010-2013)

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Nokia Siemens Networks

2010 2011 Building

30 Bn

2012

2013

60 Bn

Tomorrows business opportunities:


If you want to deliver high speed Internet everywhere, online mobile games or TV, M2M solutions .. What you would need to be able to say yes:
Are you getting ready for the evolutionary steps?

Data capacity Signaling capacity Low latency Policy control Appropriate billing Single sign on . . . what else?

, HSPA+

Supporting network and backend systems

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Nokia Siemens Networks

LTE in 4 numbers.

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Nokia Siemens Networks

More details on early LTE adopter drivers


New radio spectrum with need to create new ecosystem Close to 100% 3G penetration, need for improved efficiency LTE mandated in frequency license conditions Better 4G vs. 3G license position Legacy CDMA2000 challenges WiMAX ecosystem challenges and/or evolution for TD-SCDMA
20 Nokia Siemens Networks

Indian 2.3 GHz auction winners German 800 MHz auction winners

German digital dividend auction winners Sweden

Public LTE end user device examples

Samsung B3730 2600 LTE LTE/HSPA/EDGE E.g. TeliaSonera,

L-02C USB-modem 2100 LTE LTE/HSPA F-06C PC Express Cards NTT DoCoMo

LG Adrenaline AD600 1700/2100/700 LTE LTE/HSPA/EDGE AT&T

Huawei E398, 2100/2600 LTE LTE/HSPA/EDGE E.g. Tele2, Telenor

Samsung TD-LTE prototype

Sequans TD-LTE trial device

Pantech UML290 USB modem 700 LTE LTE/EVDO Verizon

LG VL600 USB modem 700 LTE LTE/EVDO Verizon

Samsung Craft 1700/2100 LTE LTE/CDMA MetroPCS

AVM FRITZ!Box WLAN router 800 (1800/2600) LTE O2 Germany

Huawei B390 Router 800 LTE DT, O2 Germany

Samsung N350 LTE/HSPA+

Many more devices coming in diverse band combinations along communication service providers requirements.
21 Nokia Siemens Networks

Chance favors the prepared mind. Louis Pasteur ... and the prepared network

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Nokia Siemens Networks

So Mobile Networks has evolved to meet the challenge

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Nokia Siemens Networks

Visit:
http://www.nokiasiemensnetworks.com/
http://www.nokiasiemensnetworks.com/portfolio/products/mobile-broadband/long-term-evolution-lte

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Nokia Siemens Networks

How to make money with 3G? / March 2009

Global LTE Development drivers Why LTE?


Better mobile broadband user experience
Throughput
100 Mbit 150

Industry commitment behind the ecosystem


> 300 million LTE subscribers by 2015
Forecast for LTE lead markets by Wireless intelligence

latency
50

>42 Mbit <1 Mbit 10ms

64+ LTE networks expected to be in commercial operation by end 2012 128 LTE network operator commitments in 52 countries

GSM

HSPA

LTE

GSM

HSPA

LTE

Technology convergence
GSM WCDMA CDMA WiMAX TDSCDMA TD-LTE FDD LTE
>90% harmonized in 3GPP

Support over extensive radio spectrum


22 different FDD frequency band options

LTE Advanced

9 different TDD frequency band options


+ new ones still being specified both for new band deployment and re-farming cases

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Nokia Siemens Networks

LTE spectrum & ecosystem


FDD LTE
Early FDD LTE ecosystem mainly building on 2600 (Europe, China, APAC) 2100 (Japan) 1800 (GSM refarming) 1700/2100 AWS (North America) 1600 (US wholesale) 800 digital dividend (Europe, APAC) Upper 700 MHz (Verizon) Lower 700 MHz, B/C (AT&T)

TD-LTE
Early TD-LTE ecosystem 2300 (India, APAC, China) 2600 (Europe, China ?, USA ?)

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Nokia Siemens Networks

Throughput evolution
326 Peak rates Average 173 Mbps

42 61 14.4 4x2.5 HSPA R6 HSPA Evo LTE 2x2 MIMO LTE 4x4 MIMO 36 4x6.5

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Nokia Siemens Networks

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