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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 1

Make the most of Mobile Broadband- an enabler of the digital economy and sustainable society

EEET International conference, Athens june 17-18, 2010

Torbjorn Nilsson -- Senior Executive Advisor to ericsson

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 2

New competing Mobile business modelsBundling of devices and services

RIM pushes

Applications w/o

Carrier notification

Leverage existing

XBOX Live and

Zune

Market place

3billion

Application

Downloads

The Apple model started it

• Apple keeps % of the apps/ music revenue and retain customer relations

• Handset vendors are copying the Appstore model

• Google and Operators opens up the model

• 7 billion downloads 2009, 50 billion in 2012

Mobile Operators vs Over The Top providers

Free or Paid Applications/ Open vs Closed / Ads

Battle for brands and all-inclusive

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 3

3/4 G Enhanced revenue streams

Better and New Services

Notebooks now! Smartphones 2009/2010

Rural broadband Telephony

HD Voice/MMTel

Tablets 2010

Consumer devices

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 4

Telstra: +31%

Vodafone: +26%

Telefonica: +37%

Rapid growth in MBB

drive revenue growth and subs

AT&T: +37%

Sources:

Financial reports and

analyst presentations

from the respective

companies

Telstra Broadband ARPUs, A$

Telstra Broadband Net Adds (000s)

Mobile broadband challenging ADSL

in many 3/4 G markets

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 5

Mobile broadband redefines the market- more than 50 % of all subs 2010, 50 % of broadband

revenues in 2015

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

20082009201020112012201320142015

BU

SD

Mobile data, incl. mobilePC access & SMS

Mobile voice

Fixed corporate dataservices

Fixed

broadband

IPTV

Fixed VoIP

Fixed narrowband voice

Source: Ericsson

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2008 2009 2010 2011 2012 2013 2014 2015

Su

bscrip

tio

ns (m

illio

n)

Mobile

Fixed

Broadband subscriptions (millions) Operator revenues/Broadband services

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 6

Rapid subscriber uptake Exceptional traffic growth

Strong growth in mobile broadband- the base for Introduction of LTE/HSPA+

500 million WCDMA/HSPA

subscribers

10-15 million new HSPA

subscribers per month, 220

million in total

HSPA is deployed in 341

networks in 143 countries/

territories. 2349 HSPA devices.

93% of the traffic in WCDMA/

HSPA networks is data

LTE/HSPA+ will accelerate this trend further – more spectrum needed!

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mar 07 jun 07 sep 07 dec 07 mar 08 jun 08 sep 08 dec 08 mar 09 jun 09 sep 09 dec 09 mar 10

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tim

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H T

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/h)

Total BH Speech Traffic Total BH Packet Traffic

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 7

Continuous development

HSPA+ / LTE

HSPA+ Evolution LTE Deployment

42Mbps in Telstra

Live Network

@Dec. 2009

84Mbps planned

@2011 by 3 Scandinavia

164/84 Mbps in the standardisation

52 Commercial Networks 2 Commercial Network, 22 in 2010

World first@Dec. 2009.

Two cities.

Single mode dongle

80 operators committed

in 33 countries.

CDMA operators

aggressive to LTEWorld first 84Mbps HSPA+ demo

@Mobile World Congress 1.2Gbps DL demo

@Mobile World Congress

TD-LTE commercally tested 2010

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 8

Downlink Throughput Stockholm

Independent Consumer Broadband Evaluation Site

0

10

20

30

40

50

60

70

80

90

100

-10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28

SINR

Mb

ps

20 MHz

10 MHz

4G/LTE service by Teliasonera

Very high data rates and latency ~20ms

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 9

Mobile traffic forecast - About 2/3 video 2014 (Cisco)

Traffic growth in mobile networks- Data traffic surpassed voice in 2009 – Source Ericsson

0

10

20

30

40

50

60

2008 2009 2010 2011 2012 2013 2014 2015

Ye

arly E

xa

byte

s

Data

Voice

More and wider spectrum needed.

Traffic/Tariff caps? WiFi offloading

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 10

Lack of licensed spectrum criticalSome country examples (end 2009)

550

MHz

110MHz

320

MHz

280

MHz

320

MHz

Peru

Finland

China

Canada

USA

300

MHz

Brazil

315

MHzItaly

350

MHzJapan

140

MHz

Mexico

340

MHz

Indonesia

188

MHz

India

408

MHz

AustraliaSpectrum requirements (ITU-R): 2015~1300MHz, 2020~1500MHz

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 11

[MHz]

spectrum for mobile broadband- Regional mainstream hspa & lte deployments

JapanBase: 2100, 1700 & JP850

New: 1500 & re-farm/LTE

2011+: re-farming/LTE

APACBase: 2100

New: 900 & 850

2011+: 2300, 2600 & 700

MEABase: 2100

New: 900 & 850

2011+: 2600 & 800

EuropeBase: 2100

New: 900 & 2600

2011+: 800 & 1800

North AmericaBase: 850, AWS & 1900

New: US700

2011+: re-farming/LTE

Latin AmericaBase: 850 & 1900

New: AWS & 2600

2011+:

Harmonized spectrum and standards for massmarket and convenience

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 12

Relative cell coverage area

0.5 1.0

(DD) 800 MHz

900 MHz

2,100 MHz

1,800 MHz

2,600 MHz

Assumptions: Propagation based. Suburban environment. Reference frequency is 800 MHz.

5 dB higher antenna gain at 2,100 MHz and 6 dB higher antenna gain at 2,600 MHz.

LTE and HSPA: re-use 1

HSPA

LTE

Broadband capacity & coverage- typical deployment by a European operator

FDD DL 5 MHz

FDD DL 10 MHz

FDD DL 20 MHz

FDD DL 15 MHz

FDD DL 10 MHz

Radio link throughput proportional to

Coverage

bands

Capacity

bands

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 13

Important regulatory issues

Remove silo regulation in converged markets-Convergence of media – telecom – Internet

-All screens have it all

Closed vs Open Networks & Services- Fragmentation vs Interoperability

- Exclusivity or DRM – Content exclusivity being challanged

- Net Neutrality & Internet freedom

New value chains- New market players-Over The Top players

-Asset & Managed & shared service players

-Mobile broadband also competitor to fixed BB

Stimulate broadband build-out not regulate-More, wider and harmonized spectrum

-Technology neutrality/wireless inclusion

-The new backbone of the economy and sustainable society

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mar 07 jun 07 sep 07 dec 07 mar 08 jun 08 sep 08 dec 08 mar 09 jun 09 sep 09 dec 09 mar 10

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tim

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d B

H T

raff

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TB

/h)

Total BH Speech Traffic Total BH Packet Traffic

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Do not add objects or Public | © Ericsson AB 2010 | 2010-06-09 | Page 14