Bringing Mobile Broadband to Rural Areas. Ulrich Rehfuess Head of Spectrum Policy and Regulation Nokia Siemens Networks

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1 Bringing Mobile Broadband to Rural Areas Ulrich Rehfuess Head of Spectrum Policy and Regulation Nokia Siemens Networks

2 Agenda Drivers in Mobile Broadband Why LTE? Market Status, Networks and Devices Implementation and Performance LTE Advanced Digital Agenda Challenges in Rural Areas Vision on Convergence of Broadcast and Mobile Broadband 2 Nokia Siemens Networks

3 Strong momentum in mobile broadband Devices Services Over 6 billion mobile subscriptions Affordable phones for mass market Over 1.2billion mobile broadband users, 50% y-o-y growth Operators global MBB service revenue grow annually 25% 350 million mobile Facebook users, out of 800 million total YouTube generates 22% of global mobile data traffic Mobile broadband subscriptions expected to exceed wireline broadband users within 2 years Source: NSN BI, Industry analysts s Affordable & exciting MBB offerings Networks

4 Mobile broadband traffic more than doubles every year Video traffic has overtaken everything else Source: NSN BI, Industry analysts Source: NSN BI, Industry analysts

5 Why LTE? Superior mobile broadband user experience Throughput 100 Mbps 150ms latency Lower network costs to meet profitability challenge Traffic volume Network cost (existing technologies) <1 Mbit >42 Mbps GSM HSPA+ LTE <50ms 10ms GSM HSPA+ LTE Voice dominated Data dominated Revenue Profitability Network cost (LTE) Time Technology convergence Extensive range of radio spectrum support GSM WCDMA CDMA WiMAX TD- SCDMA FDD LTE >90% harmonized in 3GPP TD-LTE LTE Advanced 23 different FDD frequency band options 11 different TDD frequency band options Single operator may deploy both FDD+TDD LTE for maximum utilization of spectrum assets + new ones still being specified both for new band deployment and re-farming cases

6 LTE market status 89 operators have commercially launched LTE Nokia Siemens Networks is LTE supplier to 29 out of these, including 4 TD-LTE networks 150 commercial LTE networks in 53 countries expected by end 2012 E July 2012 figures 280 commercial LTE network commitments in 90 countries 326mn dual-mode (LTE+3G) and 260mn (LTE-FDD + TD-LTE) devices activated by 2016 Forecast by Maravedis (May 2011)

7 LTE user devices Wide range launched across device categories (majority LTE+CDMA2000) Source: GSA, July 3, LTE smartphones launched which is 73% higher than 6 months earlier Number of LTE-tablets launched has doubled in the same time-frame First fully integrated LTE smartphones commercially available in Europe Note: Typically several months between device launch and commercial availability

8 Designing smart network for smart devices and applications Laptops & tablets Portable usage High data volume High processing capacity Coverage Network impact to user experience Throughput Mobile routers Semi-permanent to full mobile usage Highest data volume for long periods Shared connection Smart & feature phones High volume of devices Highly mobile usage Always on applications Always Voice support Battery life time critical Signaling capacity Session density QoS & Traffic management Network latency Device power consumption Congestion control

9 Nokia Siemens Networks LTE Radio and Evolved Packet Core Efficient, flexible and scalable for sustainable traffic growth Flexi Multiradio BTS Software Defined Radio (same modules for all technologies) Smallest & most compact BTS Highest energy-efficiency weatherproof outdoor & indoor All-IP all integrated, incl. wirespeed IPSec Juniper Research Gold Award Winner 2010: Green Infrastructure Winner: Best Technology Advance 2009 #1 in ABI Research LTE Base Station Vendor Matrix, 2010 Winner 2009: Green Network Hardware and Infrastructure Threatening to competition, 6/2011 Unique 4D-Scaling Throughput for highest subscriber data traffic Session Density for massive always-on subscriber uptake Signaling Capacity for smartphone challenge and flat architecture Service Intelligence for traffic management and Quality of Service Flexi NG S-/P-GW, 2G/3G GGSN Flexi NS MME, 2G/3G SGSN on common platform

10 Field-proven Superior LTE Performance Consistently across major LTE band allocations incl. 800 MHz Sweden, March MHz 2600 MHz Average user throughput Downlink: 48 Mbps Uplink: Place Gothenburg 30 Mbps Denmark, Sept MHz 1800 MHz concurrently with GSM Average user throughput Downlink: 22 Mbps Place Copenhagen before commercial launch Sweden, Oct MHz 800 MHz Average user throughput Downlink: 21 Mbps Place Stockholm suburb along archipelago 1800 MHz re-farming and 800 MHz spectrum efficiency matches exceptional Gothenburg results 10 Nokia Siemens Networks 2012

11 Ensuring smooth evolution to LTE-Advanced Bandwidth Extension 100 MHz 8x MIMO 4x Backward compatible to LTE Smooth migration from LTE to LTE-A Cooperative Systems Relaying Mobility

12 Sub-1GHz Spectrum is of Particular Importance for Coverage Capacity Challenges in Cities - Coverage Challenges in Rural Capacity: Dense networks limited by interference Coverage: Sparsely built networks limited by noise at the cell edge 1000x Traffic 10x Performance 10x Base stations 10x Spectrum 10x Cell edge performance?x Performance?x Base stations?x Spectrum Doubling traffic each year over a decade leads to a 1000x capacity challenge Addressable by substantial performance improvements of the technical solution massive amount of additional base stations, primarily small cells near traffic hot spots massive amount of additional spectrum, high bands like 2600 MHz and 3500 MHz well suited for small cells Challenges in the physical constraints of the radio channel Addressable by costly performance improvements of the technical solution limited by return on invest additional base stations strictly limited by return on invest additional spectrum at low frequencies, e.g. at 700 MHz 12 Nokia Siemens Networks 2012

13 Example of a Possible Spectrum Strategy of a European Operator LTE in Digital Dividend 800 MHz, 1800 MHz and 2600 MHz Typical frequency scenario in Europe 2.6GHz unpaired new (auction) TD-LTE 1x 20MHz 2.6GHz new (auction) LTE 20MHz LTE deployment: new bands or re-farming large contiguous spectrum blocks 2.1GHz 1800MHz HSPA GSM evolve refarm HSPA+ 15MHz LTE 15-20MHz GSM Current Key LTE bands in EU: 800, 1800, 2600 MHz To be further complemented with 700, 2300, 3500 MHz etc. 900MHz 800MHz GSM refarm new (auction) HSPA+ 5(4.2)MHz GSM LTE 10MHz Nokia Siemens Networks 2012

14 Possible Evolution of Rural Mobile Broadband Downlink Rates Today LTE 2x2 MIMO Plus 700 MHz (2x) LTE-Advanced 4x4 MIMO (+ ~25%) Spectrum sharing (6x) LTE-Advanced 4x4 MIMO (+ ~25%) Theoretical peak 75 Mbps 300 Mbps (900 Mbps) Expected average *) 5 to 20 Mbps 10 to 50 Mbps 30 to 150 Mbps Cell edge *) 3 to 5 Mbps 6 to 15 Mbps 18 to 40 Mbps Contracted bandwidth up to 7.2 Mbps up to 15 Mbps up to 50 Mbps *) not quantifying load impact by change in usage patterns e.g. towards HD streaming not considering all possible but costly technology measures 700 MHz band for mobile broadband is a valuable step towards reaching DEA target data rates Together with spectrum sharing, 30 and 50 Mbps targets get into reach 14 Nokia Siemens Networks 2012

15 470 69x Convergence Potential of Terrestrial TV and Mobile Broadband An Integrated UHF Multimedia Network based on LTE-Advanced and embms SFN *) may resolve the competition for UHF spectrum between broadcast and MBB Rewards and challenges: Massively improved UHF spectrum utilization can free the bandwidth required for digital inclusion with massive video capacity also for non-linear broadcast content Terrestrial broadcast reach extends to smart phones and tablets, to indoors and mobile HD capability for terrestrial broadcast based on a global standard Interactive TV capability for broadcast including bandwidth required for non-linear content Flexibility regarding linear vs. non-linear content Shared infrastructure investment into existing base station sites Innovation potential in technical, regulatory and business model domains 320 MHz UHF spectrum (470 to 790 MHz) Digital Dividend SD broadcast HD broadcast, non-linear content and internet traffic 700 MHz WRC-12/15 30 MHz DL 30 MHz UL long term vision 2015 onwards *) embms SFN: enhanced Multimedia Broadcast Multicast System in Single Frequency Network, efficient technology to broadcast multimedia content in LTE and LTE-Advanced networks since Nokia Siemens Networks 2012

16 Conclusions LTE and LTE-Advanced quickly evolve to the global de-facto standard for Mobile Broadband. LTE and LTE-Advanced very successfully address Mobile Broadband capacity; still additional spectrum is required to meet the 1000x capacity challenge. LTE and LTE-Advanced well complement wire-line solutions to reach Digital Inclusion in rural areas. More efficient use of UHF spectrum by sharing and additional UHF spectrum in particular in the 700 MHz band help to reach the ambitious European Digital Agenda targets. Convergence of Broadcast and Mobile Broadband provides a vision on a more efficient common use of all available UHF spectrum with compelling technical benefits for Broadcast and Mobile Broadband. Nevertheless, challenges in business model and regulatory domain need to be addressed 16 Nokia Siemens Networks 2012

17 Thanks for your attention

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