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Investor and FinancialAnalyst Seminar -

Mobile Systems Update

Mikael HalénDirectorMobile System WCDMA & GSM

Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002

Safe Harbour Statement

This presentation contains forward looking statements. Such

statements are based on our current expectations and are

subject to certain risks and uncertainties that could

negatively affect our business. Please read our earnings

reports for a better understanding of these risks and

uncertainties.


Outline

• Market area update

• Status in rollout of 3G

• New generation products


World15%

North America 45%

Latin America17%

CEMA7%

Japan (excl. PHS)

53%Western Europe*

76%

*Western Europe includes the EU countries + Norway and Switzerland

APAC8%

Cellular penetration/region end-Q4 2001

Investors Briefing at CeBit’02, March 15, 2002


MobileGoal

GiantDictionary

Bioritmix

Mobile Organizer

MobileGreeting

SecretAdmirer

MobileNews

VivaPresident

ChatPlaza

Mobile Juke Box

LocationWorm

Hangman

For Rent

CityGuide

GiantEye

FinanceAnywhere

TURKCELL


Turkcell GPRSLand – post-launch figures

0Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01

WAP Airtime (minutes)

0Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01

Number of WAP users

Entertainment67%

Games20%

Information13%

TURKCELL


Minutes of Use (MoU) in Western Europe

0

50

100

150

200

250

98 Q4 99 Q1 99 Q2 99 Q3 99 Q4 00 Q1 00 Q2 00 Q3 00 Q4 01 Q1 01 Q2

Contract MoU

Total MoU

Pre-Paid MoUMin

utes

of U

se (

per M

onth

)

MoU of contract customers has steadily increased


2005

Source: EMC World Cellular Database & Ericsson

GSM & WCDMA 80%

Other 20%

CDMA 12%

PDC 7%

GSM 71%

TDMA 10%

950 million Subs

2001

Technology TrendsGlobal digital mobile subscribers

1,600 million Subs


3G/EDGE & WCDMA Schedule

The Americas

• Starts with EDGE

• Later WCDMA

Europe/Asia

• Starts with WCDMA

• Later EDGE

• Handset availability• Roaming agreements• Charging and Billing schemes• Applications and Services


Ericsson’s positionGSM/GPRS/EDGE

• Breakthrough of 3G/EDGE in NA– AT&T, Cingular, Voicestream and Rogers AT&T

• 3G/EDGE– Deliveries of the new generation GSM/EDGE radio base stations

since fall 2001. Volume deliveries start now.– All GSM macro base stations, shipped since 1995, can be

upgraded with an EDGE capable transceiver unit.

• GPRS– > 40% Market Share– Commercial agreements – 78 of 164– 32 Commercial launches, rest by mid year– All GSM radio base stations shipped since 1991 are ready for

GPRS with a SW upgrade.

Commercial GPRS Launches


• Commercial agreements with 35 of 63 customers

• Initial WCDMA Systems shipped to more than 30 operators

• Delivery of WCDMA radio base stations since March 2001

• Launched networks: – NTT DoCoMo (Commercial) – Telenor, Sonera, Swisscom, Hi3G and Svenska UMTS-Nät (Technical)

Ericsson’s positionWCDMA


Focus areas in WCDMA deployment

• Soft-Handover & power control

• GSM < > WCDMA Handovers

• Multi-vendor integration of infrastructure

• Interoperability testing of mobile handsets


3GPP ReleasesTime Schedule

3GPP Release 4

3GPP Release 1999

Versions of3GPP Release 1999

Versions of3GPP Release 4

3GPP Release 6

3GPP Release 5

1998 20011999 2000Q2Q1Q3 Q2 Q3Q4 Q4 Q1Q1 Q2 Q3 Q4Q4 Q3 Q1

1097 8542 3 141311 121

3GPPTSGsPlenaryMeetings 6

Q2

2002

1615


2 phases of network deployment in Europe

Initial phase First expansion phase

Regulatordriven

Subscriberdriven

• Phone Availability• GPRS Success• Applications• Regulator• Economy


Hand-over between WCDMA and GSM/GPRS

GSM/GPRS

WCDMA

Initial Deployment First Expansion


Mobile Systems

Ericsson’s Position in Mobile Networks

Other Mobile Networks

• #1 in Mobile System (~30%)• #1 in GSM/GPRS/EDGE (~40%)• #1 in 3G/WCDMA (~40%)• #1 in TDMA (~60%)• Strong in PDC (~30%)• Growing in CDMA/CDMA2000 (~5%)

• #1 in Global Services/Networking Consulting• #1 in Pre-paid• #1 in Billing Mediation• #1 in Short haul microwave• #1 in Bluetooth licensing


Meganetwork segmentShare of subscribers in networks >10 million

2001 2006

32 % 42 %

Source: EMC


Ericsson market shareGSM/TDMA, Meganetwork segment

Ericsson

Lucent

Nokia

Alcatel

Siemens

MotorolaNortel

Source: Ericsson


The GSM/EDGE base station 2206

• 12 TRX capacity, Double TRU concept

• Supports Transmitter Coherent Combining forextended coverage

• All GSM bands (800, 900, 1800 and 1900 MHz)


The WCDMA base station 3202

• 3 sectors with 2 carriers in 1 cabinet

• Pooled resources

• Multi Carrier Power Amplifier (MCPA)

• High output power: 20W/40W carrier

• The IMT-2000 band 2GHz


AXE 810 MSC

Processorcapacity

AP

Z 21

2 20

AP

Z 21

2 30

AP

Z 21

2 33

AP

Z 21

2 25

AP

Z 21

2 40

• High capacity– handles up to 1M subs– based on commercial processors

• Scalable• Reduced cost of ownership

– Large reduction of footprint– pre-tested delivery

• Improves performance of2G and 3G networks

AXE 10 MSC1st generation

AXE 10 MSC2nd generation

AXE 810 MSC3rd generation


EricssonAXB 250 06 GGSN

Combining best in class mobility and best in class Gigabit routing


Why Operators Choose Ericsson?

• Business partner– Never a competitor

• The leader in standardisation– Future proof products

• Broad experience from all 2G & 3G technologies– Evolution at low risk

• Global/Local presence– relationships, resources, coverage


MMS - Why Vodafone Choose Ericsson?”

• Can deliver fully standardised and complete End-To-End solutions

• Global presence allows parallel implementation on aglobal basis

• Partnering with content providers through Ericsson’s“Mobility World”

• Long relationship with proven track record


Summary

• The leading market position

• 2.5G will be fully deployed this year

• 3G deployment is underway

• New generation of high performance infrastructureproducts

Ericsson is the leader in mobile systems

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