Drive profitability and grow smart

Dr. Dina Bartels

Strategic Marketing

2 © Nokia Siemens Networks

Drive profitabilityand

grow smart

AgendaMatch user

expectations and profitability

Build on your strength

Evolve according to your needs

3 © Nokia Siemens Networks

Data price erosion

20082009

2008: ~ 20 % access the Internet mobile; 40% show interest in starting to use mobile Internet within the next 12 month

Further uptake powered by

70 - 95% 50-60 %… of websites & stability of Internet connections

Satisfaction with opening speed

Qual

ity

expec

tatio

ns Traffic

uptake

Services

variety Tariff

s

Fixed is setting the scene

- mobile is picking up

Source: Nokia Siemens Networks broadband study in Germany, France, and UK, 2008

4 © Nokia Siemens Networks

RevenuesRevenuesTraffic

Data drives traffic explosion-voice remains the main revenue contributor

0

500

1000

1500

2000

2500

3000

2005 2006 2007 2008 2009 2010 2011 2012

t t

Data

Voice

Source: Nokia Siemens Networks market analysis, 2008 (Czech Republic & West-Europe), revenue in €

Data

Voice

Data

0

5

10

15

20

25

30

35

40

45

2012 2011 2010 2009 2008 2007 2006 2005

0

5

10

15

20

25

30

35

40

2012 2011 2010 2009 2008 2007 2006 2005

EUR / month & subscriber

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009 2010 2011 2012

Mbyte / month & subscriber

Mbyte / month & subscriber EUR / month & subscriber

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Even in highly competitive markets

profitability can be maintained

UK mobile market in 2008

5 operators

average churn rate: 36%

average EBITDA margin: 20%

average ARPU 27,4 (Euro/month)

average OPEX per sub: 22,0 (Euro/month)

Datatariffs

10

15

20

25

30

35

40

T-Mobile Orange Vodafone O2 3 UK

Jan 08

Jan 09

Successful operatormanaged

�less ARPU decrease with

�higher OPEX reduction and

�higher share of non-voice traffic

than the average-12

-7

-2

average successful

ARPU

OPEX/sub

EBITDA

Non-voice

6 © Nokia Siemens Networks

Drive profitabilityand

grow smart

AgendaMatch user

expectations and profitability

Build on your strength

Evolve according to your needs

7 © Nokia Siemens Networks

Build on your strengths

Improved battery life basis

for extended service usage

Mobile internet for All – with little effort get more out of your network

“I hate this … my phone is brand new and the battery is lasting way shorter than before… “

“I hate this … my phone is brand new and the battery is lasting way shorter than before… “

Existing phyiscal network

-> enhance customer

experience out of the

network

���� Increase network

efficiency

� Discontinuous transmission and reception

� CS voice over HSPA

� Flexible radio link control

SW-update: minor changes,

-> major benefits

� Extended battery

� Faster set-up time

� Always on experience

3G / HSPA

Capacity �Experience �

Optimization

8 © Nokia Siemens Networks

Make the most out of traditional GSM bandImproving the overall spectral efficiency

Unique WCDMA 4.2 MHz carrier bandwidthfeature maximize the GSM spectrum usage

Refarming boosts spectral efficiency

0

100

200

300

400

500

GSM capacity

Rela

tive c

apacity c

om

pare

d to E

FR

[%

]

GSM spectrum efficiency SW

WCDMA/HSPA

4.2 MHz

GSMGSM

Enhanced FR

AMR increases capacity by 120-150%

SAIC boosts capacity by 50%

DFCA provides capacity gain of 40-100%

OSC push capacity of up to 20-80%

1.4 MHz

LTE

EDGE

+200%

5 MHz

LTE

HSPA+

+20%

9 © Nokia Siemens Networks

Opportunities are coming up with opening of the digital dividend

0 20% 40% 60% 80% 100%

800 MHz; voice

800 MHz; 1 Mbps

2100 MHz; voice

2100 MHz; 1 Mbps

Cell area (relative), suburban, indoor

Currently used for broadcast services, but not many channels actually in use

Government has decided to use 790-862MHz for wireless broadband; agreement of counties pending, but likely

Germany

Allocated to mobile broadband communication after 2012 especially for rural coverageSwitzerland

Allocated to non-broadcast services

For differentiation and completion of 3G services

Sweden

Allocated to mobile Internet access for 100% of population

Bidding for service deployment until 2009

France

790 – 862 MHzCountry

Extended coverageespecially suburban/rural

and indoorbut

needs regulatory support as examples show

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� Easy to install, small, modular, weatherproof

� 6+6+6 GSM, 4+4+4 WCDMA, 1+1+1 LTE@20MHZ

� Multi technology - concurrently

� High output power 3 x 60 W RF

� Energy efficient: 790 W for common WCDMA/GSM site

Flexi Multiradio Base StationPerfect match for multiradio future

Winner –best technology advance

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Drive profitabilityand

grow smart

AgendaMatch user

expectations and profitability

Build on your strength

Evolve according to your needs

12 © Nokia Siemens Networks

Smooth migration

Cost efficientlyBusiness opportunities

QualityScalability

Long term evolutiongoes live

Mobile goes multiradio Mobile backhaul goes Carrier Ethernet

-technology -domain-vendor

Packet Core goes mobile broadband

Common platforms

SW upgradable

Multi-layer optimization

Capacity with QoSFair use policy

Capacity optimization

Differentiate with flexible pricing

NW management goes multi

Multistandard Carrier Ethernet Multi-standard

IP/ MPLS

Common network management

2G/3G

Control Backbone CoreRadio Backhaul

Drive profitability and grow smartEvolve based on your needs

13 © Nokia Siemens Networks

Everyone talks about long term evolution…... It’s about how to get it into the network

It’s not the question of one technology, the real solution is the intelligent and efficient combination of relevant aspects

Simplified operation

Global Service Delivery

Service continuation

Voice

Inter-operability

Consultancy

Smooth migration

path

14 © Nokia Siemens Networks

… to be continued …

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