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Managing and optimization aspectsOf the telcommunication network

Olaf Parasiewicz – Ericsson Board MemberWojciech Smoczyński – Manager Managed Services RWCE

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Experience from more than 370+ Managed Services contracts

Proven industry leadershipin Managed Services-globalLy

Managing networks that together serve over 1 billion subscribers

Capability of managing multi-vendor and multi-technology networks –Over 50% non-Ericsson

More than 20,000 operator staff in-sourced to Ericsson

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services Solution Framework

› BSS & OSS› Business Support

Services › Enterprise Services› Service & Network

Mgmt

› Services› Value Added Services› Service Delivery

Platform› Content Services

› Network › Customer Premises

Eqmt.› Outside Plant› Access (mobile & fixed)› Transmission› Circuit & Packet Core

Service Functions

Domains

1st Level Operations

Help Desk2nd Level Operations

Customer Problem Manage-

ment

Deploy-ment

Optimi-zation

Applications Development

& 3rd Level Support

Service & Resource Fulfilment

Field Services

Technology Integration

Planning / Engineer-

ing

Network operationField operation

s

BuildDesign &

Plan

Operate

Operations Management

Ericsson provides E2E Services Capability

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Vimpelcom, Russia

Customer drivers› Increase operating efficiency› Effectively optimize costs and network management by

transferring the network maintenance and support to Ericsson.

› Be able to focus on business development, improve the quality of services for their customers and provide additional quality services.

What we provided

› Ericsson will manage both fixed and mobile network operations on VimpelCom's behalf at more than 10,000 base stations in 41 cities, as well as overseeing more than 10,000km of optical transport cables and an extensive fixed network across Siberia and the Urals in Russia.

› Ericsson will be responsible for network operations and field maintenance for active and passive network components, for the operator's mobile, fixed and transport networks.

Site Infra Manage

ment

2G, 3G, CDMA,

Site Infra

Core network

Trans network & OFC

Access network

Strategy

Operational Plan &

EngineeringField

operations Network

operations

Operate

Build

Operator responsibility Ericsson responsibility

The Company› Provides voice and data services through a range of wireless, fixed, and broadband technologies under the "Beeline", "Kyivstar",

"djuice", “Wind”, "Infostrada" “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands.› Operates in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria,

Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada, covering total population of about 767 million people

› 214 million mobile subscribers worldwide

Optimization

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The Customer› Swedish municipality with 37,000 inhabitants› 20,000 of the inhabitants are located in rural areas› An industrial center for northern Sweden › Host of leading research center for fiber technology

Customer drivers› Broadband for all – economical growth› Cost efficient delivery of multimedia services › Strengthen R&D capabilities in fiber optics› Open up the city network to attract service providers

What we provided› 7-year managed services contract for Zitius, signed in

2009 › Including build and management of open access

network › First contract for expansion and operation of a city

network

City of Hudiksvall, Sweden

Businesssupportsystem

Service network

Core network

Trans network

Access network

Strategy Design PlanField

operations Network

operations

Operate

Build

Operator responsibility Ericsson responsibility

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We grow along with youHistory milestones

2006 First netiams contract

signed

2008 NOC IN E/// WARSAW

2010 netiams contract

EXTENSION

2012 NEW NETIAms contract

2013 NEW NO

KATOWICE

2008200820082008

2007200720072007

2006200620062006

2009200920092009

2010201020102010

2011201120112011

2012201220122012

2013201320132013

2013-10-22 | Page 7STANDARD MAINTENANCE STANDARD SERVICE DELIVERY STANDARD MAINTENANCE STANDARD SERVICE DELIVERY STANDARD MAINTENANCE STANDARD SERVICE DELIVERY STANDARD MAINTENANCE STANDARD SERVICE DELIVERY Special ProjectsSpecial ProjectsSpecial ProjectsSpecial Projects

Network OPERATIONSMAIN Processes in OPERATIONS

NETWORK OPERATIONS NETWORK OPERATIONS NETWORK OPERATIONS NETWORK OPERATIONS CENTER (NOC /FO)CENTER (NOC /FO)CENTER (NOC /FO)CENTER (NOC /FO)

1st Level Operations

Customer ORDERS Customer ORDERS Customer ORDERS Customer ORDERS CENTER (COC)CENTER (COC)CENTER (COC)CENTER (COC)

Business and ADV ServicesVOICE and MASS Services

BB AND MASS SERVICES

Service DELIVERY & Service DELIVERY & Service DELIVERY & Service DELIVERY & PROVISIONING CENTER (SPDC)PROVISIONING CENTER (SPDC)PROVISIONING CENTER (SPDC)PROVISIONING CENTER (SPDC)

Standard DELIVERYNON-Standart DELIVERY

COORDINATION

2nd Level Operations

NETWORK OPERATIONS NETWORK OPERATIONS NETWORK OPERATIONS NETWORK OPERATIONS CENTER (NOC/BO)CENTER (NOC/BO)CENTER (NOC/BO)CENTER (NOC/BO)

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MethodsProcesses & Procedures

People &Organization

Systems &Tools

MS Delivery Cornerstones

Management & Control

Strategic andEnterprise Planning

EnterpriseEffectivenessManagement

Enterprise RiskManagement

Human ResourceManagement

Product LifecycleManagement

Infrastructure LifecycleManagementStrategy & Commit

Service Development & Management

Resource Development & Management

Marketing & Offer Management

Supply Chain Development & Management

ServiceDevelopment &

Retirement(SD&M-PLM)

ResourceDevelopment& Retirement(RD&M-PLM)

Service & OperationsCapability Delivery

(SD&M-ILM)

Resource &Operations

Capability Delivery(RD&M-ILM)

Operations Supportand Readiness

Fulfillment Assurance Billing

Service ProblemManagement(SM&O-A)

Service QualityAnalysis, Action

& Reporting(SM&O-A)

Service Management & Operations

Customer Relationship Management

Resource Management & Operations

Supplier / Partner Relationship Management

Resource ProblemManagement(RM&O-A)

Resource QualityAnalysis, Action

& Reporting(RM&O-A)

S/P PerformanceManagement(S/PRM-A)

S/P ProblemReporting &Management(S/PRM-A)

Resource DataCollection, Analysis

& Control(RM&O-AB)

ResourceProvisioning &Allocation to

Service Instance(RM&O-F)

ServiceConfiguration& Activation(SM&O-F)

Readiness(RM&O-OSR)

Readiness(SM&O-OSR)

Service DataCollection, Analysis

& Control(SM&O-AB)

Deployment

Planning&

Design

Readiness

Configuration

Management

Fault

Management

Performance

Management

Data

Collection

FM,PM,….

Management & Control

MS TOP

NetOBMSDP

BLUEPRINT

HRmanager

Planning &Design Center

SI/AdviceNetwork Rollout /

SI Center

ServicesManager

(VP Services)

Service

DeliveryManager(s )

BusinessControlmanager

SolutionsManager

Accountmanager(KAM)

Field technicians

Dispatch function(Work Force management)

MS Operation

InventorySpare part

Field Operations

Field Operations

RegionalField

Operations

Field technicians

Planning& Design

Deployment

Plan/DesignProject

DeploymentProject(s)

MSIP

Network Operations Center

NOC

Front Office Engineer(s)/Shift leader

Technician(s)/Shift leader

Back Office SystemEngineer(s)

Service Engineer(s)

OperationsSupport Tools/System

Admin(s)

EDM(s)

Spoke

Hub

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Our five levers of cost reductions

Staff optimization Work automation

Off shoring Consolidation 3rd party negotiations

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Saving 21 percent of addressable opex for high-grow th market operator

+ 1.6 p.p. EBITDA

11.1%0.6%

0.5%0.6%

0.5%0.7%14.0%

-21%

Other/G&A

Marketing and sales

Term. & roamingTerminals

Customer mgmtSite Costs

Service dev/BSS

Network O&M

Network developmentStaff

optimizationOff-shoring

Work automation

3rd Party negotiatio

ns

Consolidation of

operations

Partly address

ed

With outsourcing

Own operations

OPEX

financial impact of outsourcing

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Partner to leverage your business

Extensive experience

> more than 15 years of managing multi-vendor and multi-technology

networks

financial stability

> strong Operating income and cash flow

MARKET LEADER IN Managed services

> +370 Managed Services contracts, serving networks of above 1 billion subscribers

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