The document discusses the growth of mobile networks and connectivity. It makes three key points: 1) Mobile data usage and the number of mobile connections are growing rapidly worldwide and are expected to continue growing significantly in the coming years, driven by factors like increased smartphone adoption, new mobile applications and services, and lower data prices. 2) This growth is placing enormous demands on mobile networks, with video traffic in particular accounting for the bulk of data usage. Mobile network operators are evolving their networks using technologies like LTE and small cells to help meet this growth in capacity needs. 3) Latin America represents a major growth region for mobile connectivity, with countries like Brazil seeing very strong adoption of smartphones and mobile data usage.

1. MOVING FORWARD
TOWARDS THE
NETWORKED SOCIETY
Héctor De Tommaso
Head of Marketing
Latin America
Public | © Ericsson AB 2012 | 2012-11-20 | Page 1

2. ERICSSON VISION: 50B
CONNECTIONS BY 2020
THINGS 50 B
55 hexabytes
Digital Society
Sustainable World
Personal
Mobile
Inflection
points PEOPLE 5.0 B
Global
Connectivity
PLACES ~0.5 B
1875 1900 1925 1950 1975 2000 2025 Source: Ericsson
Inflection points driving our business…
Public | © Ericsson AB 2012 | 2012-11-20 | Page 2

3. TECHNOLOGIES FOR
THE NETWORKED SOCIETY
+ +
MOBILITY SERVICE AWARE CLOUD
BROADBAND NETWORK
Public | © Ericsson AB 2012 | 2012-11-20 | Page 3

4. Public | © Ericsson AB 2012 | 2012-11-20 | Page 4

5. HIGH DATA VOLUMES IN METRO
AREAS
Ericsson Traffic and Market report June 2012
Public | © Ericsson AB 2012 | 2012-11-20 | Page 5

6. ERICSSON CONSUMERLAB - the voice of the consumer
WE CONDUCT WE OFFER
STRATEGIC MARKET
CONSUMER CONSUMER
CONSUMER REALITY
INSIGHT SEGMENTATION
ANALYSIS SIMULATION
REPORTS & ADVISORY MODELS
TOOL
MEASURING REPORTING ANALYZING TRACKING
FUTURE
SMARTPHONE
SCHOOLS
USAGE PRIVACY
RURAL & COMMUNI-
APP
CITY LIFE TV & CATION
CONSUMER CULTURE
VIDEO TRENDS
EXPERIENCE
NEW INSIGHTS
IN KEY AREAS
MORE THAN IN MORE THAN REPRESENTING IN MORE THAN
1Million 70 1.1Billion 40
RESPONDENTS COUNTRIES SINCE 1995 INDIVIDUALS COUNTRIES/ANNUALLY
BUILDING THOUGHT LEADERSHIP - SHAPING THE NETWORKED SOCIETY
Public | © Ericsson AB 2012 | 2012-11-20 | Page 6

7. HIGH SMARTPHONE OWNERSHIP
Another type of mobile phone
An Android phone
An iPhone › Only around 10% of the
100% worldwide installed base
90% of subscriptions use
80% smartphones (*)
70%
60% ”City Study 2011” results:
50%
40%
› Approximately 40% of city
30% citizens own an iPhone or
20% an Android phone
10%
0% › There are major
differences between cities
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(*) Source: Ericsson Traffic and Market
Data Report Interim Update (Feb. 2012)
Public | © Ericsson AB 2012 | 2012-11-20 | Page 7

8. HIGH USAGE OF INTERNET SERVICES, INCLUDING
HIGH CAPACITY SERVICES
› More than 10 Internet services are used daily by at least 30% of the city citizens,
including high capacity services such us watching videos
Browsing the Internet (Personal use)
Personal E-mail
Social Networks: Read/check
Work E-mail
Read newspaper/magazines
Chat/messaging
Browsing the Internet (Work usage)
Social Networks: Update/write/upload
Product info/price comparisons
Watch Video clips 35%
Listen to music
On-line gaming
Watch longer videos 28%
Internet banking
Check time schedules/traffic information
IP-Telephony
Distance learning Percent of city
Buy products population
(Daily users)
0% 10% 20% 30% 40% 50% 60% 70% 80%
Public | © Ericsson AB 2012 | 2012-11-20 | Page 8

9. WHAT IS “GOOD QUALITY”?
“Works efficiently”
“Easy to use”
“You don’t have to do
“The number one thing too many complicated
is convenience” things with it”
“Something that
“Quality is having access to doesn’t crash on you”
the network anytime,
anywhere, the provider is
“I would say good quality is
responsible for this”
something that works consistently”
Public | © Ericsson AB 2012 | 2012-11-20 | Page 9

10. POOR QUALITY IS…
Waiting… No access Crashing
Slowing down Draining Battery Complicated/
Confusing
Public | © Ericsson AB 2012 | 2012-11-20 | Page 10

11. CONCLUSIONS: DRIVERS OF INCREASED
USAGE OF MOBILE DATA
BETTER LOWER
SPEED PRICE OF BETTER
DATA BATTERY
LIFE BETTER
40-45%
30-45% COVERAGE 20-30%
Least in
Brazil Strongest in 30-40% Strongest Indonesia
Indonesia & Strongest in BETTER
Brazil UK & US 30-40% COST
Strongest in MGMT
Indonesia
IF AFFORD
15-25% BETTER
Strongest in Brazil & Indonesia PHONE
MORE
PHONE
15-25% MEMORY
Strongest in Brazil & Indonesia
Source: Ericsson ConsumerLab, Smarter MBB Offering – The Consumer View, 2012. UK, US, Brazil & Indonesia
Public | © Ericsson AB 2012 | 2012-11-20 | Page 11

12. MARKET TRENDS 2012
Categories Market Trends
Mass market adoption of smartphones and
1 Smartphones, tablets &
connected devices emerging connected devices business
Life goes mobile with social networks, apps,
2 Content, apps, social
networks & cloud content, cloud services, commerce and more
Innovation, collaboration and new business
3 Monetizing mobile broadband models unlocking the value of networks
Growth and efficiency driving transformation and
4 Efficiency & outsourcing outsourcing of OSS/BSS and networks
Network performance, technology Focus on high performance mobile broadband
5 evolution & next generation networks
networks
Public | © Ericsson AB 2012 | 2012-11-20 | Page 12

13. Public | © Ericsson AB 2012 | 2012-11-20 | Page 13

14. MOBILE
BROADBAND
Carlos Barnes
Principal Consultant
Latin America
Public | © Ericsson AB 2012 | 2012-11-20 | Page 14

15. MOBILE TRAFFIC GROWTH
Based on actual measurements
DVB-H, Wi-Fi, and WiMax are not included
Public | © Ericsson AB 2012 | 2012-11-20 | Page 15

16. WHAT'S DRIVING THE GROWTH?
› Number, Availability and Price of Smartphones
› New connected devices
› Better User Interface
› Mobile Applications
› Laptop Penetration
› Cheap Dongles
› HSPA Networks
› Effective Pricing Plans
› Clients Usage Profiles
Public | © Ericsson AB 2012 | 2012-11-20 | Page 16

17. A LONG ROAD AHEAD…
Global Smartphone vs Mobile Phone Users 2012 E
+4
5 BILLION
5,0
Global Users (MM)
4,5
4,0
3,5
3,0
2,5 5
2,0
1,5
1 BILLION
1,0
0,5 1
0,0
Smartphones Users Mobile Phone Users
Note: 1 user may have multiple devices…
Source: Morgan Stanley
Public | © Ericsson AB 2012 | 2012-11-20 | Page 17

18. ANYTHING IS POSSIBLE…
• Smartphones > 5B
• TV => Tablet
• App Centric lifestyle
• Augmented Reality
• 40% of Phones sold
during Q3 were
Smartphones!
Fast Forward to 2020
Public | © Ericsson AB 2012 | 2012-11-20 | Page 18

19. NETWORK TRAFFIC DEVELOPMENT
Industry estimates place global IP traffic
quadrupling over the next 4 years.
• CAGR of 35%
• 90% will be Video
• 60% will be Internet Video
Source: Frost & Sullivan
BY 2015 90% OF ALL
NETWORK TRAFFIC WILL
BE
VIDEO
Public | © Ericsson AB 2012 | 2012-11-20 | Page 19

20. WINNING STRATEGY
HIGH END &
SERVICE NETWORK IS THE
MASS MARKET
DIFFERENTIATION DIFFERENTIATOR
DEVICES
Price
Demand-based
pricing / QoS
S/N
Subs
Public | © Ericsson AB 2012 | 2012-11-20 | Page 20

21. NETWORK DESIGN, TUNING &
OPTIMIZATION
Key for Customer Experience & Satisfaction
Public | © Ericsson AB 2012 | 2012-11-20 | Page 21

22. COVERAGE & SPEED KEY TO
END USER SATISFACTION
Public | © Ericsson AB 2012 | 2012-11-20 | Page 22

23. TECHNOLOGY MOMENTUM IN
NETWORKS
Key Technologies for Evolving the Network
Public | © Ericsson AB 2012 | 2012-11-20 | Page 23

24. HETEROGENEOUS NETWORKS:
WAY FORWARD FOR CAPACITY &
SPEED
IMPROVED MACRO
Enhanced macro site with extended
functionality providing higher
capacity and higher data rates
Higher
data rates
DENSIFIED MACRO
Additional sites
Higher capacity
Very high
HETEROGENOUS NETWORK data rates
Macro + ”Small Cells” providing very
high capacity and very high data rates
Very high capacity
Public | © Ericsson AB 2012 | 2012-11-20 | Page 24

25. MBB GROWTH WORLDWIDE
85% WCDMA/HSPA Population
Coverage by 2017
Public | © Ericsson AB 2012 | 2012-11-20 | Page 25

26. STRONG LATAM GROWTH
Active iOS and Android devices TIM Brazil pre-paid success
YoY growth d
Data revenue [billion BRL] Smartphone % of new sales
+40.3%
Chile 279%
1,03
79
0,73
Brazil 220% 54
Argentina 217%
Q2 2011 Q2 2012 Q2 2011 Q2 2012
Mexico 193%
Daily plan
Source: Flurry - Data access $0.25
10M unique users/day
Latam Top Growth Region Innovative Smartphone Data Plans
Public | © Ericsson AB 2012 | 2012-11-20 | Page 26

27. LTE DIFFERENTIATION TRENDS
Fraction of Operators by Tariff Type
100%
80%
Speed based
60% (only or combined with
data allowance)
40%
Volume based (only)
20%
Unlimited
0%
Africa Americas APAC Europe Middle East Global
Smartphone Dongle Source: Wireless intelligence operator survey (July 2012)
dominated dominated
Volume Based offerings in
Smartphone Dominated Markets
Public | © Ericsson AB 2012 | 2012-11-20 | Page 27

28. OPEN MOBILE: PUERTO RICO
Public | © Ericsson AB 2012 | 2012-11-20 | Page 28

29. UNE COLOMBIA
Public | © Ericsson AB 2012 | 2012-11-20 | Page 29

30. TELCEL MEXICO
20 Mbps downlink
speeds
commercially
No price
differentiation
between 3G and
4G LTE
65% of population covered by
June 2013 (26 cities)
Public | © Ericsson AB 2012 | 2012-11-20 | Page 30

31. BRAZIL
Providing LTE capabilities to ALL
operators!
Public | © Ericsson AB 2012 | 2012-11-20 | Page 31

32. LATIN AMERICA NEW SPECTRUM AUCTIONS
ANNOUNCED GOVERNMENT INTENTIONS Q4 2012
2010 2011 2012 2013 2014 2015 2016 2017+
Argentina • AWS • 700 MHz
Bahamas • 700 MHz
Bolivia • 700 MHz
• 1900 MHz • 800 MHz • 450 MHz
Brazil • 2100 MHz • 1700 MHz • 2.5 GHz • 700 MHz
• 1800 MHz • 3.5 GHz
Chile • 1900 MHz • 2.5 GHz • 700 MHz
• AWS
• 1900 MHz • 700 MHz
Colombia • 2.5 GHz • 1900 MHz • AWS • 900 MHz
• 2.5 GHz
• 850 MHz
Costa Rica • 1800 MHz • 700 MHz
• 2100 MHz
• 900 MHz
Dom. Rep. • AWS • 700 MHz
Ecuador • 1900 MHz
• AWS
El Salvador • 1900 MHz
• 1900 MHz • AWS • 2.5 GHz • 700 MHz
Mexico • AWS
Nicaragua • 700 MHz • 1900 MHz
Panama • 700 MHz
* Already licensed
Paraguay • AWS • 2.5 GHz * Auction ongoing
* Risk of delay
Peru • 1900 MHz • 900 MHz • AWS
• 700 MHz * Tentative Plan
Puerto Rico • 700 MHz
• 850 MHz
T&T •1900 MHz • 700 MHz
• 900 MHz
Uruguay • 1900 MHz • 2.5 GHz • 700 MHz
• AWS
Venezuela • 1800 MHz
• 1900 MHz
Completed/ongoing Auctions Tentative new Auctions Source: RLAM Regulators (Oct. 2012)
Public | © Ericsson AB 2012 | 2012-11-20 | Page 32

33. IT IS NOT ABOUT THE
KILLER APPLICATION, BUT
THE KILLER EXPERIENCE...
Public | © Ericsson AB 2012 | 2012-11-20 | Page 33

34. Public | © Ericsson AB 2012 | 2012-11-20 | Page 34

35. 4TH GENERATION
IP NETWORKING
Tomás Lynch
Senior Solution Architect
Fixed Broadband & Convergence
Latin America
Public | © Ericsson AB 2012 | 2012-11-20 | Page 35

36. THE NETWORKED SOCIETY
› When one person is connected their life changes. When
everything is connected our world changes. In the world of
50 billion connected devices, everything benefiting from a
connection will have one.
Public | © Ericsson AB 2012 | 2012-11-20 | Page 36

37. A NEW ERA
Network …
3
2
1
Analogue Digital Broadband
Era Era Installation
Era
…. The Networked
Society
Public | © Ericsson AB 2012 | 2012-11-20 | Page 37

38. THREE INSTRUMENTAL INSIGHTS
THE WORLD NEW SERVICES NETWORK = THE
GOES MOBILE & AND BUSINESS KEY
BB. FAST. MODELS DIFFERENTIATOR
4 000
Mobile Broadband Subscriptions (million)
3 000
2 000
1 000
0
2010 2015
Public | © Ericsson AB 2012 | 2012-11-20 | Page 38

39. BROADBAND SERVICES
MOVING TO THE CLOUD – GETTING PERSONAL & MOBILE
to the Cloud
personal & mobile i
Public | © Ericsson AB 2012 | 2012-11-20 | Page 39

40. THE 4TH GENERATION OF IP
NETWORKING
A CORNER-STONE OF
ERICSSON’S OVERALL
NETWORK VISION FOR
THE NETWORKED http://www....
SOCIETY
4th Generation
IP IP 3rd Generation User to User/
Network/Cloud
User to Network
2nd Generation
1ST Generation Network to
Host to host Network
Public | © Ericsson AB 2012 | 2012-11-20 | Page 40

41. 4TH. GENERATION OF IP
NETWORKING
1 SIMPLE
› Challenge – the network is
2 SMART
› Challenge – the network
3 SCALABLE
› Challenge – growth of
over-layered, complex & needs to be aware of users, bandwidth, subscribers,
costly, but traffic centralized devices, content, location devices & sessions
› Solution – optimize with › Solution – look inside the › Solution – increase capacity
verified network solutions, pipe & control the content while distributing intelligence;
de-layer, apply glue flow with intelligent policy focus on new signaling
technology, i.e. MPLS technology control technologies
AN AMAZING EXPERIENCE
User value, operator profits
Public | © Ericsson AB 2012 | 2012-11-20 | Page 41

42. Public | © Ericsson AB 2012 | 2012-11-20 | Page 42

43. OSS&BSS
TRANSFORMATION
Fernando Saito
Head of New Business Development
Latin America
Public | © Ericsson AB 2012 | 2012-11-20 | Page 43

44. THE MOBILE BROADBAND EVOLUTION
Mobile broadband 1st wave Mobile broadband 2nd wave Mobile broadband 3rd wave
ESTABLISH GROW AND EXPAND THE NETWORKED SOCIETY
Standard Smart Scale
Price
Connections
Price
50 billion
One size Demand-based connections
fits all pricing / QoS
Invisible
Broadband
Subs Subs Time
Public | © Ericsson AB 2012 | 2012-11-20 | Page 44

45. TODAY`S CHALLENGES
IN OSS&BSS
OSS&BSS Complexity
New
New
OpCo
services
Acquisitions
Infrastructure
Wireless access Multi access edge Transport Service layer Wireline access
UNWIELDY OSS&BSS ARCHITECTURE HINDERING EFFICIENCY,
COMPETITIVENESS AND CUSTOMER EXPERIENCE
Public | © Ericsson AB 2012 | 2012-11-20 | Page 45

46. IMPLICATIONS FROM AN OPEX AND
TIME-TO-MARKET PERSPECTIVE
Legacy IT Fragmented
pressuring OPEX Intelligence
Investments on non-standard, Business logic fragmented
and non-reusable technology across multiple systems
Cost of changes increase as legacy N-Play synergies are limited by
technology evolves organically the fragmented architecture
Substantial amount of resources New business rules often
to maintain operations Require new system/modules INCREASED
OPEX AND
TIME-TO-
Service innovation hindered
by technology limitations
Distributed customer data. Lack MARKET
of a customer-centric approach
IT complexity directly impacting Large data processing volumes
service performance and TTM impacting customer experience
Considerable effort to Response-time resulting in
maintain existing offerings poor customer satisfaction
Innovation Technology focus
challenged by IT vs. Customer focus
Public | © Ericsson AB 2012 | 2012-11-20 | Page 46

47. A STAGED APPROACH TOWARDS
OSS&BSS TRANSFORMATION
Initial projects
Key OSS&BSS Requirements to support
2nd & 3rd Waves of Mobile Broadband
Business Impact
> Customer Experience
Management & Assurance
> Integrated Policy & Charging
> Unified Product Catalog
> Flow-through Provisioning
> 360º Customer View
> Convergent Charging & Billing
Importance/urgency
CLEAR STRATEGY – ONE PROGRAM – MULTIPLE CHANGE PROJECTS
Public | © Ericsson AB 2012 | 2012-11-20 | Page 47

48. OSS&BSS TRANSFORMATION
DELIVER RESULTS
Our experience from working with various operators around the world has
proven that OSS&BSS Transformation can deliver significant results:
60% 40% 20 to 30% 0.5 to 3%
HARMONIZATION LEVEL TIME TO MARKET OPEX OPTIMIZATION REVENUE INCREASE
Consolidation of platforms and Harmonization of systems Process simplification, Using a structured approach
systems can streamline more and platforms can result in consolidation of systems and to recover and prevent
than half of all IT environment 40% faster time-to-market organizations or outsourcing revenue leakages
Public | © Ericsson AB 2012 | 2012-11-20 | Page 48

49. Public | © Ericsson AB 2012 | 2012-11-20 | Page 49

50. CONTACTS
› HECTOR DE TOMMASO › CARLOS BARNES
Head of Marketing Principal Consultant
› Latin America › Latin America
› hector.detommaso@ericsson.com › carlos.barnes@ericsson.com
› TOMAS LYNCH › FERNANDO SAITO
Senior Solution Architect Head of New Business
› Latin America Development
› tomas.lynch@ericsson.com › Latin America
› fernando.saito@ericsson.com
Public | © Ericsson AB 2012 | 2012-11-20 | Page 50