LTE Market Nokia Siemens Networks Solution Certification

Domain: Market Level: Associate Topic: LTE Market overview

Arne Schlicke, MCA LTE product marketing
For internal use NSN Solution Certification LTE Market 1 Nokia Siemens Networks 2012

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LTE market development: mid 2011 mid 2012 350% growth in number of launched LTE networks
Market snapshot July 12 , 2012 89 commercial LTE networks launched in 45 countries incl. 9 TD-LTE networks 280 LTE network operator commitments in 90 countries
Source: GSA, Evolution to LTE report (July 12, 2012)

Market snapshot December 15, 2011 36 commercial LTE networks launched incl. 3 TD-LTE networks 185 LTE network operator commitments in 66 countries
Source: GSA, Evolution to LTE report (October 12, 2011) + Sky, Brazil (Dec.13)

Market snapshot May 12, 2011 20 commercial LTE networks launched 154 LTE network operator commitments in 60 countries
Source: GSA, Evolution to LTE report (May 11, 2011).

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LTE subscriber and coverage growth in advanced mobile broadband markets

, Japan
3500 3000 2500 2000 1500 1000 500 0

4 mn subscribers
(July 22nd, 2012)

LTE subscribers (thousands)

Smartphone, tablet launch

July 2012: 12mn LTE subscribers exceeded in Japan+Korea

, South Korea
LTE subscribers (millions)
25
20 15 10 5 0 2011 2012 2013 2015

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June

, South Korea

2011

2012

1mn new LTE subs. in 1.5 months

June 8th: 3mn LTE subs. July 22nd: 4mn LTE subs

65% of total data traffic will be handled by LTE networks in 2014

4.2 mn subs
(July 2012)

, Denmark
Oct. 10, 2011: 50% population coverage End 2011: 75% population coverage
For internal use NSN Solution Certification LTE Market 5 Nokia Siemens Networks 2012

99% population coverage reached (March 2012)

3mn subs
(July 2012)

2012: Korea and Japan the most dynamic LTE markets

LTE subscriber penetration in Korea: >8mn LTE on 50mn inhabitants
4mn LTE subscribers
as of July 22nd, 2012 1mn new LTE subscribers during since June 8th

Japan

4.2 mn LTE subscribers

Korea

as of July, 2012 1.2mn new LTE subscribers since June 6th

3mn LTE subscribers

Korea Korea

as of July 2012 1.5mn new LTE subscribers since March 2012

1.4mn LTE subscribers as of July

2012 (launch Jan.3)

LTE subscribers as of July 2012 1. USA 1516 million 2. Korea 8.6 million 3. Japan 45 million
============================ Worldwide 3032 million
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Japan and Korea LTE(FDD) market presence

-

Korea, August 8, 2012 Worlds first nationwide launches of VoLTE

Jium VoLTE

"The minute I purchased the phone, I tried out the VoLTE service and was impressed with its superior call quality and call connection time. one of the first customers of SK Telecom for the HD Voicecompatible Galaxy S3 LTE

For internal use NSN Solution Certification LTE Market 7 Nokia Siemens Networks 2012

Compelling drivers for early LTE introduction

New spectrum allocations for more competitive broadband strategy
Example: Northern Europe

Necessity to join the largest ecosystem: global standard of 3GPP

Example: CDMA LTE

Immediate need for further mobile broadband capacity

Example: advanced mobile broadband markets, like Japan

or a combination of all above

Example: South Korea

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Operator challenges The widening gap between traffic and revenue

Mobile network traffic and costs

Traffic volume

Network cost (existing technologies)

LTE reduces the cost/Mb

Revenue
Profitability Network cost (LTE)

LTE improves user experience

Time Voice dominated
Source: Light Reading (adapted)
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Data dominated

LTE introduction challenges

Spectrum availability for LTE deployment
This might be true for new bands. But what about refarming (GSM to LTE) in the 1800MHz band. Operators may have spare capacity in this band. Network sharing options (national roaming, RAN sharing, wholesale operators,...) Generally frequency bands which are used already by other operators should be preferred, as there is a risk of too much fragmentation of the frequency landscape with the consequence of missing device availability for niche bands

CAPEX conflict with ongoing 2G/3G rollouts

this opens the opportunity to talk about SingleRAN with Flexi Multiradio BTS or 2G/3G/LTE capability of Flexi NG/Flexi NS. (all investments are future-proof)

Operational complexity in adding a third layer on top of 2G and 3G networks Network simplicity with Single RAN and common core for 2G/3G/LTE Automation with Self Organizing Networks Professional services along entire network lifecycle
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LTE market status

89 operators have commercially
launched LTE in 45 countries 150 commercial LTE networks in 64 countires expected by end 2012

280 commercial LTE network

commitments in 90 countries

1bn LTE connections by early 2017 Mainly driven by LTE smartphones

Forecast by Strategy Analytics (May 2012)

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Multimode devices for LTE ready subscriber base High-end smart phones launched with LTE built-in
, Sweden : Mobile broadband packages 1H2011
Starter
Entry offering (prepaid,) Premium offering (30GB incl.,)

1H2012

Entry offering (prepaid,)

Premium offering (30GB incl.,)

Small

Intermediate

Large

Total 4G LTE USB dongle

Start

Small

Intermediate

Large

Total

3G USB dongle

LTE multimode USB dongle

March 2012: High-end smartphones and tablets come with LTE built-in
Samsung Galaxy II LG Optimus Android 2.x / 3.x

Nokia Lumia900 LG Optimus, Vu Samsung Galaxy S II, III, Note Google Nexus S

Earlier smartphone and tablet launches without LTE -support

LG Optimus Pad
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Samsung Galaxy Tab8.9, 10.1

Apple iPad3

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Market Potential: LTE vendor selections ongoing and preparation of 2G/3G for smooth LTE introduction

LTE is a global technology from the very beginning Essentially, all mobile broadband markets go for LTE. In these markets, all mobile network investments need to be future proof (= enabling smooth introduction of LTE) Increasingly, LTE deals come together with 2G/3G modernization deals The speed of the introduction of LTE depends on regulatory environment and competitive pressure.

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Nokia Siemens Networks - leading the LTE market with 63 commercial LTE customers
Canada

STATUS: August 7, 2012

Canada

Sweden

Sweden

Latvia

Latvia

South Korea

USA IMS USA

Denmark

Denmark

Finland

Finland TD-LTE

Lithuania

South Korea

Germany

Germany

Estonia

India

Estonia

South Korea

USA
56 LTE radio deals (incl. 7 TD-LTE) 32 LTE EPC deals 31 commercially launched networks (incl. 4 TD-LTE)

Croatia

Austria

Slovenia

Azerbaijan

Singapore

Japan

TD-LTE
Brazil Portugal Italy TD-LTE Bahrain Australia Japan

TD-LTE Saudi Arabia

Saudi Arabia

Saudi Arabia

UAE

Japan

For internal use NSN Solution Certification LTE Market 18 Nokia Siemens Networks 2012

We are LTE supplier to 31 commercial LTE operators serving 40% of all LTE subscribers
Radio Radio Radio EPC Radio EPC

STATUS: August 7, 2012

1.4mn subs (July 2012)
Radio

Canada

Canada

Sweden
Radio

Sweden
Radio

Latvia
Radio EPC

South Korea
4.2mn subs (July 2012)
Radio

Denmark
Radio EPC

Finland
Radio

Finland
Radio
Radio EPC

South Korea
3mn subs (July Radio 2012)

IMS

Radio

USA

USA

Germany
Radio

Germany
Radio

Estonia
Radio

Australia
TD-LTE Radio EPC

South Korea
4mn subs (July
22nd, 2012)
Radio EPC

63 commercial LTE network contracts on 6 continents on 11 frequency bands Experience from most advanced markets like Korea, Japan and Northern Europe and North America

Austria

Slovenia
TD-LTE Radio

Croatia
Radio EPC

India
Radio

Japan

Brazil

EPC

Portugal
TD-LTE Radio TD-LTE Radio EPC

UAE
Radio EPC

>12mn LTE subscribers

Note: commercial LTE operators = operators who have already commercially launched LTE service

Saudi Arabia

Saudi Arabia

Saudi Arabia

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Nokia Siemens Networks position in the LTE market One of the leading LTE vendors

STATUS: August 7, 2012

LTE subscriber view: Our LTE radio access customers serve roughly 40% of all LTE subscribers worldwide LTE subscribers as of July 2012 USA 1516 million Korea 8.6 million Japan 45 million ============================ Worldwide 3032 million Ericsson: globally present largest LTE subscriber share NSN: gloabally present, but not yet live with tier one networks in the US. Strengths: presence in Korea and Japan (only LTE radio access vendor to Softbank, KDDI and Docomo) Huawei: not present in Korea, Japan or US tier one operators; not a single LTE radio customer with >0.4mn LTE subs. current global LTE subscriber share below 5%.
For internal use NSN Solution Certification LTE Market 20 Nokia Siemens Networks 2012

Nokia Siemens Networks LTE Industry analyst evaluations, 2012

#1 in innovation #1 in implementation
Considering changes in this matrix since its last 2011 edition, ABI Research believes that Nokia Siemens Networks retains the overall #1 position, thanks to the number of contracts it has won and innovation in the small cell area.
The LTE Base Station Market, Nick Marshall, Aditya Kaul, ABIresearch, March 2012

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Nokia Siemens Networks LTE, analyst evaluations 2012: A leader in the Gartner Magic Quadrant for LTE
Overall, the worldwide LTE infrastructure market for radio and core service architecture evolution equipment is expected to grow from $4.1 billion in 2012 to $21.1 billion in 2016.

LTE is expected to grow at a compound annual growth rate of 58.5% in that period, and will be the fastest-growing segment within mobile network infrastructure (radio and core).
Gartner Magic Quadrant for LTE Network Infrastructure by Sylvain Fabre, Frank Marsala, Jessica Ekholm, Akshay K. Sharma, Joy Yang, Akiyoshi Ishiwata, Deborah Kish, Tina Tian. Published 12 July 2012
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Nokia Siemens Networks. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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Agenda

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Why Nokia Siemens Networks for LTE? Unique experience from advanced markets Only vendor to supply all three Korean operators and the big three Japanese operatores Docomo, Softbank and KDDI Strong global footprint with GSM and 3G networks We know the existing networks and how to introduce LTE most efficiently Outstanding products and solutions See the respective LTE solution trainings

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This presentation reflects the LTE market as of August 2012 Updated infos always on the LTE Portal
LTE Portal in Intranet
https://inside.nokiasiemensnetworks.com/global/Work/Sales/Sales_Materials/NWSsalesportal/MBBSalesPortal/LTE/Pages/LTE_Portal.aspx

Information about LTE market and operator launches and tariffs

Reference material and analyst evaluations Executive and management presentation

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Nokia Siemens Networks - Solution Certification

Thank you.
Arne Schlicke, MCA LTE product marketing

For internal use NSN Solution Certification LTE Market 26 Nokia Siemens Networks 2012