1) The document discusses the rapid evolution of mobile broadband technology, with applications and bandwidth needs doubling every year. 2) It notes that 4G networks can provide bandwidth speeds up to 100Mbps, thousands of times faster than early 2G networks, and that consumer demand for bandwidth is virtually unlimited as new applications and services are developed. 3) The conclusion is that competitive pressures are driving continuous technological advances to increase speeds but also control costs, and that both mobile and fixed network infrastructure will need to accommodate unlimited growth in bandwidth demand from users wanting access anywhere and anytime across multiple devices.

1. 11
Faster is better
Tero Kivisaari
President, TeliaSonera Eurasia
Presented at Digital Communications Event 2010
September 21st, 2010
Almaty

2. 2
Changing competitive dynamics
Applications
Web
Browser & search engine
Content distribution
Hardware
Access Telcos

3. 3
3G
– UMTS
0.384 - 21.1 Mbit/s
Ten thousand times faster in 10 years
2G
– GSM/GPRS
9.6 kbps – 250 kbps
4G
– LTE
100Mbit/s
2009
1999

4. 4
Pioneering mobile telecommunications
2009
World’s first
mobile network
1956

5. 5
Mobile broadband is exploding – case Sweden
0
200
400
600
800
1 000
1 200
FY
06
FY
07
Q1
08
Q2
08
Q3
08
Q4
08
Q1
09
Q2
09
Q3
09
Q4
09
Q1
10
Mobile Broadband subscriptions
Thousands
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Q1 06 Q1 07 Q1 08 Q1 09 Q1 10
Mobile data growth
Megabytes (‘000)

6. 6
Traffic will double every year
200,000
25,000
2007
Tbyte
2008 2009 2010 2011 2012 2013 2014
100,000

7. 7
Eurasia - mobile broadband potential
0
2 000
4 000
6 000
8 000
10 000
12 000
08
Jan
08
Apr
08
Jul
08
Oct
09
Jan
09
Apr
09
Jul
09
Oct
10
Jan
10
Apr
Data grow th, volume index (January 2008 = 100)
Moldcell – data growth
3G services launched
October 1, 2008
0 % 20 % 40 % 60 % 80 % 100 %
Nepal
Uzbekistan
Tajikistan
Moldova
Kazakhstan
Georgia
Azerbaijan
Data Other VAS Voice/Other
Revenue split Country 3G license
√
√
√
√
√
n/a
n/a
• In Q2 2010, UCell was awarded a 4G license in Uzbekistan

8. 8
Drivers for mobile broadband
• Cost control
• Perceived value for money
• Changed consumption behaviour
– Personal content
– Always on
• Laptops taking over as preferred PC
• Smartphones

9. 9
Any screen – device independent

10. 10
1996 2000 2003 2006 2010 2012 2015
Bandwidth1
Mbit/s
Time
Basic Internet
browsing
Peer-to-peer
music sharing
• IPTV
• Video
streaming
• Video on
demand
• HD TV
• 3D in
multiplayer
gaming
• Multiple
streaming
HD/3D TV
• Mass-market
cloud
computing
• Full-scale
3D emulation
• Full 3D
virtual
collaboration
(real-time &
voice & 3D
holography)
• Other
services
yet to be
invented!
Demand for bandwidth is unlimited
- services available at different bandwidth speeds
3G
2G
4G
VDSL2
ISDN
DSL
ADSL
ADSL2+,
VDSL
0.128
1-2
6-16
25-50
50-100
100-250
>250
1) Downlink bandwidth supported by respective technologies, respective uplink speeds are considered accordingly
Source: McKinsey
Always the same question:
“Will we need that
much bandwidth?”
█ Existing infrastructure
█ FTTH required
• True HD
• Remote
hosting
• 3D TV
and full
interaction
solutions

11. 11
Technology evolution
- requires high capacity transmission solutions
Radio
Today up to
100Mbit/s
Fiber
Core
Internet

12. 12
New pricing logic in mobile broadband
- from flat rate to volume based
Price related
to usage
Volume
Speed
2G
3G
4G
1-10 MB/s
10-100 MB/s
0,1-1 MB/s
2 GB
10 GB
20 GB
30 GB

13. 13
Next step - value based pricing
+Monthly fee
Volume cap
Defined speed

14. 14
Utilizing all possibilities in frequencies and technology
Keeping costs under control
• Rapid technology development with
price pressure
• Network planning
• New technology more efficient
• Spectrum more efficiently used with
technology neutrality
• Network sharing

15. 15
Conclusion
• Competitive landscape changing
• People want access and services
– Device independent
– Anywhere and anytime
– Multi-tasking without losing speed
– Significantly shorter response times
– Technology not important
• Unlimited demand for bandwidth
– Technology evolution – speed increases constantly
– Frequency re-use/re-farming and technology neutrality
• Develop business models
• Fixed network needed for multiple users at fixed locations
and high capacity mobile access

16. 1616
www.teliasonera.com