This document discusses strategies for driving profitability and growing networks smartly. It suggests evolving networks based on user needs, building on existing strengths, and taking advantage of new opportunities like the digital dividend. Specific recommendations include optimizing networks for multi-radio functionality, improving spectral efficiency, and preparing packet cores for mobile broadband. The overall goal is providing a smooth migration to long-term evolution while growing business opportunities in a cost-effective manner.

1. Drive profitability and grow smart
Dr. Dina Bartels
Strategic Marketing

2. Agenda
Match user
expectations and
profitability
Drive profitability
and
grow smart
Evolve according to
your needs Build on your
strength
2 © Nokia Siemens Networks

3. ixed is setting the scene
- mobile is picking up
Satisfaction with opening speed Further uptake powered by
s
it y o n
Tr ta
l
70 - 95% 50-60 %
af ke
ua tati
up
fic
2008: ~ 20 % access the Internet mobile;
… of websites & stability of Internet Qc
e 40% show interest
connections
xp in starting to use mobile Internet
e within the next 12 month
Data price erosion
Se
va rvi
fs
2008
rie ce
rif
2009
ty s
Ta
urce: Nokia Siemens Networks broadband study in Germany, France, and UK, 2008
3 © Nokia Siemens Networks

4. ata drives traffic explosion-
voice remains the main revenue contributor
EUR / month & subscriber
Mbyte / month & subscriber
2500 40
35
2000
30
Data
Data 25
1500
20
1000 15
10
500
Voice 5
0 0
2005 2006 2007 2008 2009 2010 2011 2012 2012 2011 2010 2009 2008 2007 2006 2005
t t
Mbyte / month & subscriber EUR / month & subscriber
3000 45
40
2500
35
Data
2000 30
25
1500
20
1000 15
10
500
Voice 5
0 0
2005 2006 2007 2008 2009 2010 2011 2012 2012 2011 2010 2009 2008 2007 2006 2005
Traffic
Revenues Revenues
urce: Nokia Siemens Networks market analysis, 2008 (Czech Republic & West-Europe), revenue in €
4 © Nokia Siemens Networks

5. ven in highly competitive markets
profitability can be maintained
40
K mobile market in 2008 Jan 08
35
30
25
Data
20
tariffs Jan 09
15
T-Mobile Orange Vodafone O2 3 UK
10
operators
verage churn rate: 36%
Successful operator
verage EBITDA margin: 20% managed
-2 ARPU
verage ARPU 27,4 less ARPU decrease with
OPEX/sub
Euro/month) higher OPEX reduction and
-7 EBITDA
verage OPEX per sub: 22,0 higher share of non-voice
Euro/month) Non-voice
traffic
-12
average successful than the average
5 © Nokia Siemens Networks

6. Agenda
Match user
expectations and
profitability
Drive profitability
and
grow smart
Evolve according to
your needs Build on your
strength
6 © Nokia Siemens Networks

7. obile internet for All – with little effort get more out of your
etwork
Build on your strengths
“I hate this … my phone is
“I hate this … my phone is Existing phyiscal network
Improved battery life basis
brand new and the battery is
brand new and the battery is -> enhance customer
for extended service
lasting way shorter than
lasting way shorter than
experience out of the
before… ““
before… usage network
Increase network
efficiency
Discontinuous transmission and
Optimization reception
CS voice over HSPA
Flexible radio link control
SW-update: minor changes,
3G / HSPA -> major benefits
Extended battery
Faster set-up time
Experience Capacity Always on experience
7 © Nokia Siemens Networks

8. ake the most out of traditional GSM band
proving the overall spectral efficiency
Refarming boosts spectral efficiency GSM spectrum efficiency SW
+20%
500
Relative capacity compared to EFR [%]
OSC push capacity
of up to 20-80%
LTE
400 DFCA provides capacity gain of
+200%
HSPA+
40-100%
LTE
EDGE SAIC boosts capacity
300
by 50%
5 MHz
1.4 MHz
200
AMR increases capacity
4.2 MHz
by 120-150%
100
WCDMA/HSPA
GSM
GSM
Enhanced FR
0
Unique WCDMA 4.2 MHz carrier bandwidth GSM capacity
feature maximize the GSM spectrum usage
8 © Nokia Siemens Networks

9. pportunities are coming up with opening of the digital dividend
Extended coverage
2100 MHz; voice especially suburban/rural
and indoor
800 MHz; voice
but
2100 MHz; 1 Mbps needs regulatory support
as examples show
800 MHz; 1 Mbps
0 20% 40% 60% 80% 100%
Cell area (relative), suburban, indoor
Country 790 – 862 MHz
Allocated to mobile Internet access for 100% of population
France
Bidding for service deployment until 2009
Allocated to non-broadcast services
Sweden
For differentiation and completion of 3G services
Allocated to mobile broadband communication after 2012 especially for rural coverage
Switzerland
Currently used for broadcast services, but not many channels actually in use
Germany
Government has decided to use 790-862MHz for wireless broadband; agreement of counties pending, but likely
9 © Nokia Siemens Networks

10. lexi Multiradio Base Station
Perfect match for multiradio future
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
Winner –
best technology advance
10 © Nokia Siemens Networks

11. Agenda
Match user
expectations and
profitability
Drive profitability
and
grow smart
Evolve according to
your needs Build on your
strength
11 © Nokia Siemens Networks

12. rive profitability and grow smart
Evolve based on your needs
Mobile backhaul goes
Mobile goes multiradio Packet Core goes
Carrier Ethernet mobile broadband
Common platforms Multi-layer optimization Capacity optimization
Capacity with QoS
SW upgradable
Fair use policy
Differentiate with
G/3G flexible pricing
Multi- IP/ MPLS
Multistandard Carrier Ethernet
standard
NW management goes
multi
-technology
-domain
-vendor
Radio Backhaul Control Backbone Core
Common network management
Scalability Smooth migration Long term evolution
Quality
goes live
Cost efficiently
Business opportunities
12 © Nokia Siemens Networks

13. veryone talks about long term evolution…
... It’s about how to get it into the network
Service
continuation
Global Voice
Service
Delivery
Smooth
migration
Simplified
path
operation
Inter-
operability
Consultancy
It’s not the question of one technology, the real solution is the
intelligent and efficient combination of relevant aspects
13 © Nokia Siemens Networks

14. … to be continued …
Talk with us.
14 © Nokia Siemens Networks