Ericsson s view on the different wireless access technologies
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1 Ericsson s view on the different wireless access technologies Ulf Ewaldsson Vice President and Head of Radio Access Networks CAPITAL MARKETS DAY 2007 May 10 Copyright Telefon AB LM Ericsson All rights reserved 1
2 The new broadband market Competition, consolidation & cooperation Copyright Telefon AB LM Ericsson All rights reserved 2
3 Broadband growth 1.5 billion subscriptions Millions Mobile Broadband Fixed Broadband Sources: Ovum, Wireless Intelligence, Strategy Analytics, Gartner and Ericsson calculations/extrapolations Broadband becomes personal Copyright Telefon AB LM Ericsson All rights reserved 3
4 Total mobile traffic development need for increasing capacity Gigabytes per year Other information based services Downloads TV/Streaming Messaging Mobile PC Video Telephony Voice Mobile traffic to grow tenfold by 2012 Copyright Telefon AB LM Ericsson All rights reserved 4
5 Growth in active mobile subscriptions Active subscriptions (Millions) GPP family Analogue & Other CDMA TDMA PDC Mobile WiMAX GSM HSPA/WCDMA Year End Source: Ericsson and Gartner The GSM / HSPA 3GPP standards offer economies of scale Copyright Telefon AB LM Ericsson All rights reserved 5
6 Typical Opex for a cell site Addressable market vs telecom spending Transmission Business OPEX & Profit Power Site rental RAN Site & Civil O&M Terminal OPEX Leading volumes a prerequisite for economies of scale Copyright Telefon AB LM Ericsson All rights reserved 6
7 Ericsson leaders in TCO - Minimize OPEX GSM Power Business OPEX & Profit 1.2kW RF performance for up to 50% less sites Transmission 0,24 m^2 50% lower power consumption 60 W 30% better MTBF MTBF: 20kh Site rental O&M 50% fewer sites than competition 2048 TRX 4 cabinets 50% lower transmission costs AMR HR in Abis Abis IP Better than % ISP % Leading volumes a prerequisite for economies of scale Copyright Telefon AB LM Ericsson All rights reserved 7 CAPITAL MARKETS DAY
8 Typical Capex for a cell site Addressable market vs telecom spending Spares & Training NRO RAN Equipment Site Equipment Civil Works RAN Site & Civil Terminal OPEX Leading volumes a prerequisite for economies of scale Copyright Telefon AB LM Ericsson All rights reserved 8
9 Ericsson leaders in TCO - Minimize CAPEX Outdoor BTS Main - Remote BTS Spares & Training NRO Busines s OPEX & Profit Site Equipment RAN Civil Works Tower and Antenna Solutions Site Solutions Leading volumes a prerequisite for economies of scale Copyright Telefon AB LM Ericsson All rights reserved 9
10 Technology Evolution 3GPP GSM EDGE WCDMA HSPA TD-SCDMA 3G LTE/SAE 3GPP2 CDMA1X EV-DO EV-DO Rev C WiMAX e Copyright Telefon AB LM Ericsson All rights reserved 10
11 Future proof WCDMA RAN Evolution of performance WCDMA HSDPA HSPA HSPA evolved phase 1 HSPA evolved phase 2 LTE 20 MHz DL Mbps >100 UL Mbps ~12 ~12 >50 Latency (ms) ~150 ~75 ~50 ~25 ~25 ~10 Copyright Telefon AB LM Ericsson All rights reserved 11
12 Strong momentum for HSPA At all continents > 100 commercial launches > 50 countries > 5 million HSPA enabled subs growth/month Copyright Telefon AB LM Ericsson All rights reserved 12 CAPITAL MARKETS DAY
13 >250 HSPA enabled devices Commercially launched as of April mobile phones 43 PC with HSPA embedded 74 PC cards and USB modems 29 wireless routers 3 Media players The first camera Copyright Telefon AB LM Ericsson All rights reserved 13
14 Industry growth opportunities Next Billion GByte All communicating world Mobile Music Mobile TV Mobile Broadband Internet going Mobile Communication for All Mobile Broadband Capacity Coverage Next Billion Users Copyright Telefon AB LM Ericsson All rights reserved 14
15 Copyright Telefon AB LM Ericsson All rights reserved 15
Copyright Telefon AB LM Ericsson 2009. All rights reserved 11. Ericsson Capital Markets Day May 8, 2009
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