Findings from the latest edition of the Ericsson (NASDAQ:ERIC) Mobility Report show that by 2020 advanced mobile technology will be commonplace around Latin America & Caribbean: smartphone subscriptions will more than double, reaching 603 million, and 86% of the Latam’s population will be using smartphones. The report, a comprehensive update on mobile trends, shows that growth in mature markets comes from an increasing number of devices per individual. In developing regions, it comes from a swell of new subscribers as smartphones become more affordable; Latin America will add +330 million smartphone subscriptions until year-end 2020.

1. June 2015
Global and Latam figures

2. Mobile
Subscriptions
Update

3. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 3
Mobile subscriptions
APAC, India, Africa drive net additions
› Similar YoY growth rate (5%) we have seen
now for the last 2 years
– Top 5 countries by net additions are all from
APAC(+ 47 million): India, China, Myanmar,
Indonesia and Japan
– Latin America added 8 million in Q1
– Mobile subscriptions will surpass world
population during the year (~H2 2015)
› Smartphone subscription uptake is strong
– More than 700 million smartphone subscriptions
added in 2014
– 70% of world’s population will have a
smartphone by 2020, 86% in Latin America
– 75% of all mobile phones sold in Q1 2015
– Room for uptake as currently only ~ 40% of total
mobile subscriptions are for smartphones

4. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 4
Mobile subscriptions
Q1 2015
8 million new subscriptions in Latam,
reaching a total of 730 millions in Q1,
from which ~300 million are MBB
30% growth
Year-on-Year

5. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 5
Mobile penetration
Q1 2015 regional
4.9 billion subscribers
vs
7.2 billion subscriptions

6. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 6
90% of the world’s population
will have a mobile phone by 2020
• 9.2 Billion mobile subscriptions by
the end of 2020, 825 million in Latin
America
• 85% of mobile subscriptions will be
for mobile broadband by the end of
2020 (7.7 billion)

7. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 7
Subscription outlook –
growth in hspa and LTE
In 2020:
› 9.2 billion mobile subscriptions
› 3.7 billion LTE subscriptions
› 3.8 billion WCDMA/GSM subscriptions
› 5G will be commercially deployed
Global
Latin America Subscriptions by technology (billion)
262
millions
in
Latam
466 m
262 m
825 million
92 m

8. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 8
Smartphones subscriptions set
to more than double by 2020
It took over 5 years to reach the first billion smartphone subscriptions (2012), and less than 2
years to reach the second billion

9. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 9
Regional subscriptions
outlook
14%
growth
in Latam

10. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 10
Latin America
subscriptions per device
By 2020:
More than 600 million
smartphones
Around 40 million
Mobile PC/Tablets/routers
Feature phone will
decrease to 183 million

11. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 11
TEChnology by region
10%
35%40%
WCDMA/GSM

12. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 12
Connected devices
› Growth in the number of connected devices is accelerating, driven by growing range of applications
and business models, supported by falling modem costs
› 13.5 billion connected devices in 2014
› 26 billion connected devices by 2020. confirming we are well on the way to reaching our vision of 50
billion connected devices
› 230 million cellular M2M subscriptions at the end of 2014, from those, 20 million in Latam, expected
to grow 3 times by 2020

13. Mobile Traffic
Update

14. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 14
Mobile Traffic Update
q1 2015
Global total monthly traffic in mobile networks, 2010-Q1 2015
› Note: Based on actual measurements.
› Traffic does not include DVB-H, Wi-Fi, or Mobile WiMax. Voice
does not include VoIP.
› YoY: 55% growth in
mobile data traffic
› QoQ: 12% growth in
mobile data traffic
Driven by rise of
mobile data
subscriptions and
continued increase of
average data volume
per subscription

15. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 15
9 times Mobile data
Traffic by end of 2020
4.2 GB
1.9 GB
1.0 GB
Monthly consumption per device type
17.3 GB
8.4 GB
4.9 GB
2014 2020 CAGR 45%

16. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 16
Screen size matters
› Screen size, resolution and display clarity are important
factors influencing the mobile user experience and
affecting the extent to which various services are used
› Small screens could be a barrier for web browsing and
social networking due to, for example, the
inconvenience of reading and writing on smaller
screens. However, too large a screen also decreases
usage. .
› Video consumption on tablets is 50 to 70
percent higher on average compared to usage
on phablets.
› Average tablet user spends 50 percent more
time watching videos online than average
mobile broadband users .

17. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 17
Smartphone data traffic
Regional
› More smartphone
subscriptions
› More traffic per
smartphone
› Monthly
smartphone
consumption/sub
scription by 2020
– NA: 14 GB
– WE: 9.5 GB
– APAC: 4 GB
– LATAM: 3 GB

18. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 18
Regional mobile traffic
Mobile data traffic increase
between 2014 and 2020:
• Asia Pacific: X11
• Central Europe and Middle
East and Africa : X11
• Western Europe: X9
• North America: X8
• Latin America: X7

19. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 19
Latin America mobile
data traffic per device
86% of the mobile
data traffic in the
region will be
generated by
smartphones

20. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 20
13X more video traffic in 2020

21. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 21
13X more video traffic in 2020
Total mobile video traffic over the next 6 years
will be more than 22 times that of the last 6

22. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 22
Top 25 app usage in three
countries
App time that users in each country spend using
the top 25 apps (i.e. not all apps)
› In the US, around 13 percent of app time is
spent streaming video, while in Russia and
Sweden it is half that.
› Social networking is significant in all three
countries.
› ‘Russia stands out, with users spending more
than 40 percent of app time on social
networks. Russia is also notable for high
levels of navigation app use, and the variety of
such services available.
› Swedes spend a greater percentage of app
time communicating.

23. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 23
Beyond average data
consumption
› Compares subscriber and traffic shares, as well as the
application mix for different subscriber clusters in
advanced mobile broadband markets. Mobile services
consumption patterns of subscribers differ a lot for
different monthly usage clusters.
› In many mobile networks a significant proportion of
traffic is generated by a limited number of users.
The top 10 percent users generate around 55
percent of the traffic and 20 percent of users
generate around 70 percent

24. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 24
Beyond average data
consumption
› Social networking, web browsing and audio
traffic share is highest in medium groups, while
the shift to video as the dominant traffic is
apparent in the heavy user group. Video is
dominant among heavy and power users,
representing almost 70 percent of traffic
› Heavy data users, those who consume more
than 10 GB per month, share of video
consumption is as high as 70% of their total
data consumption. and watches around 1 hour
video per day on average, which is 20 times
more than an average user

25. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 25
population Coverage
› Around 90% of world´s population covered by WCDMA/HSPA in 2020
› More than 70% of world’s population covered by LTE in 2020

26. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 26
HSPA network status
› Around 85% of HSPA networks upgraded to DL peak of 7.2 Mbps or higher
› Around 70% of HSPA networks upgraded to DL peak of 21 Mbps or higher
› Around 30% of HSPA networks now have speeds of up to 42 Mbps in whole or
parts of the network

27. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 27
LTE network status

28. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 28
Voice evolution

29. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 29
Voice evolution

30. The digital
signatures of
sport

31. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 31
The digital signatures of
sport
Football world championships
2014
› Activities like real-time viewing,
sharing results and social
networking have become integral
parts of sports events, enabling
them to become digital experiences
› The network challenge
› Mobile traffic patterns
› Consumer behavior patterns
› Connection types
› Network loads

32. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 32
The digital signatures of
sport
Comparing premiere league, UEFA Cup final, WC final
› Traffic analysis from other major football matches shows similar
voice call patterns. Call activity peaks 1.5 hours before kick-off, and
decreases 30 minutes before kick-off. Matches are followed by 45
minutes of peak call activity.

33. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 33
The digital signatures of
sport
Nordic World Ski Championship
2015
› Going digital at events – the role of
apps
› Level of Internet and social media
sentiments around two top athletes
› Data and voice traffic intensity (app,
voice, uploads) during the main relay
event
› Mobile network loads at different
distances from the main skiing arena
› Meeting the common network
challenges
› Network planning, real-time traffic
management, capacity and
coverage adaptations, LTE BC,,
services differentiation (QoS,
prioritization), etc

34. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 34
The digital signatures of
sport
Nordic World Ski Championship 2015
› App usage, data upload and voice activity during men’s 4x10 km relay
› The most popular single event measured through live results app usage
was the men’s 4x10 km relay. The live TV and video app usage was also
seen to peak in the last 30 minutes of the relay event

35. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 35
Global Key Highlights
9.2 billion mobile subscriptions
>2X smartphone
subscriptions
7.7 billion MBB subscriptions
9X mobile data traffic –
driven by video
In 2020…
Population coverage
- 90% WCDMA/GSM
> 70% LTE
“Already today, users expect fast and reliable mobile access, wherever they go.
They want sufficient app coverage”
70 percent of the world´s population will
have a smartphone

36. Ericsson mobility report slides kit for sales | Ericsson Internal | EAB-15:027614 Uen, Rev B | 2015-05-29 | Page 36
Key Highlights
latin america
825 million mobile
subscriptions
86% smartphone
penetration
600 million MBB
subscriptions
7x mobile data traffic –
driven by video
Population coverage
- 90% WCDMA/HSPA
- 65% LTE 100 million M2M
connections
260 million LTE
subscriptions
In 2020…