Technology Flagship Presentation by Mr. Noel Kirkaldy, Head of Technology for Nokia Siemens Networks Middle East

1. Connecting Libya 2012
Nokia Siemens Networks
Noel Kirkaldy
Head of Technology
1 © Nokia Siemens Networks 2012

2. Agenda
Industry Landscape
Focus on Mobile Broadband
Break
Spectrum for Mobile Broadband
2 © Nokia Siemens Networks 2012

3. Agenda
Industry Landscape
Focus on Mobile Broadband
Break
Spectrum for Mobile Broadband
3 © Nokia Siemens Networks 2012

4. The market requirement in Libya
100%
ation 2011 (% of population, ITU)
Differentiation
Pressure Index
Finland
80% Australia of
Size Mobile
South Korea
USA Broadband Opportunity
UK
Hong Kong
Japan France Germany
o
60% Czech Republic
Poland
Italy
Iran
Portugal
40%
Morocco Brazil
Turkey Tunisia Russia
nternet penetra
China Peru Azerbaijan
Mexico Philippines Thailand Vietnam Size of Voice
20% Opportunity
Egypt
Nigeria Pakistan Kazakhstan
Sudan Kenya Indonesia Algeria
India Uzbekistan Iraq South Africa
Mozambique
Bangladesh
Ghana LIBYA
0%
In
0% 20% 40% 60%
% 80%
% 100%
% 120% 140% 160%
%
Mobile voice penetration 2011 (% of population, Informa)
Strongest opportunity for g
g pp y growth in Libya:
y
• Internet connectivity with Mobile Broadband
4 © Nokia Siemens Networks 2012

5. A systematic view on the industry landscape
Where everything is changing
y g g g
Regulation
Over-the-top players
Enterprises Consumers
Trends
Impacts
Ways forward
Operators
Technology
5 © Nokia Siemens Networks 2012

6. New traffic dimensions
- Collapsing traffic profitability
By 2015 video shall account for
more than 50% of all Internet traffic Capacity
30 x increase required by 2015
Internet Traffic
Internet Traffic
1000x increase may be needed by 2020
100%
90% Quality
31%
80% Network optimization for latency sensitive
52%
70%
72% video
60%
50% Video Traffic
Cost/byte
40% Other Traffic
69% 70% reduction mandatory by 2015
30%
20%
48% 93% reduction may b needed b 2020
d i be d d by
10%
28% (with 5% annual revenue growth)
0%
2010 2015 2020 Revenue
Needs to fl t
N d t reflect complete delivery chain
l t d li h i
Source: Cisco VNI Forecast Widget and Nokia Siemens Networks 2011
6 © Nokia Siemens Networks 2012

7. 7 © Nokia Siemens Networks 2012 Dept. / Author / Date

8. Who can tell me what LTE stands for?
L
T
E
8 © Nokia Siemens Networks 2012

9. Who cares, we need to stop selling technology?
Long
Term
Evolution
9 © Nokia Siemens Networks 2012

10. Let’s use a more relevant description?
Latency
Throughput
g p
End User Experience
10 © Nokia Siemens Networks 2012

11. Latency
Throughput
g p
End User Experience Entertainment
11 © Nokia Siemens Networks 2012

12. Latency
Throughput
g p
End User Experience Education
12 © Nokia Siemens Networks 2012

13. 13 © Nokia Siemens Networks 2012 Dept. / Author / Date

14. By 2020 an Average of 1 G byte of Personalized data
delivered for a US Dollar a day
Up to 1000 times more capacity
10x 10x 10x 1000x
Performance Spectrum Base stations capacity
14 © Nokia Siemens Networks 2012

15. LTE dongle pricing per GB, maximum package available
US$/GB Max GB/
month
$21 US$/GB 105
Unlimited Max GB package available
(consistent
$18 with fixed
90
offering)
80 Dongle f
D l focus, Smartphone focus,
focus
$15 cross-market roaming important cross-market roaming 75
less important $14.49
$12 60
$10.57
$9 45
$8.00
23 = Average
$6 30 30 30 30 30
Average = $5.17 $5.66
$5 66
20 18 $4.80
$4.26 15
$3 $3.00 $3.30
$2.85 9 10 10 10
$57/m $1.46 $2.62 7
$0.59
0 0
Deutsche Tele2 Sonera
D t h T l 2 S Telia
T li Telia
T li Bharti Vodafone
Bh ti V d f A1 SKT O2 Verizon B ll D C M + i t offer to May
V i Bell DoCoMo intro ff t M
Telekom Sweden Finland Sweden Sonera India Germany Austria Korea Germany, USA Canada Japan 2012 of unlimited
Denmark STC data for $56/mth
Saudi Arabia
Source: IHS Global Insight, January 2012
15 © Nokia Siemens Networks 2012

16. 16 © Nokia Siemens Networks 2012 Dept. / Author / Date

17. Apple sold more iPads last quarter than any computer
manufacturer in the world sold PCs
17 © Nokia Siemens Networks 2012

18. 18 © Nokia Siemens Networks 2012

19. One ‘Tablet’ per Child
We need a $50 tablet says Bharti Airtel
chairman at Mobile World Congress 2012
Sunil Mittal, chairman and MD of Bharti Airtel
said that India and Africa need a $50 tablet
tablet.
Mittal said that a low price point for devices
would spur broadband usage, which he said
would be a ‘game changer’ for some 300
million children in need of education.
19 © Nokia Siemens Networks 2012

20. Over the Top (OTT) / Internet Players
Are they Operators Friends or Enemies?
The way forward
Fri-enemies
20 © Nokia Siemens Networks 2012

21. FREE
21 © Nokia Siemens Networks 2012 Dept. / Author / Date

22. FREE
Access the Internet for FREE.
22 © Nokia Siemens Networks 2012 Dept. / Author / Date

23. FREE
Access the Internet for FREE.
FREE to access the Internet b
h I but……..
23 © Nokia Siemens Networks 2012 Dept. / Author / Date

24. Value proposition
Differentiate quality and get paid for it by complete chain
$ Access $ Quality $ Quality $ Content
End Communication Global Content Content Content
customer Service Provider Delivery Network aggregator provider
$ Multi-screen & Quality $ Content Revenue opportunities
Legacy revenues
Ke initiatives
Differentiated user pricing Differentiated delivery Smart capacity extension
• Speed based • Fair usage policy • Simplified architecture
• Quality based • Subscriber/application • Intelligence at edges e.g. Intelligent
caching
• Application based differentiation
• Multi device bundles • Policy control • Utilizing heterogeneous access ntks
• Traffic management e.g. Wi-fi offload
ey
• Usage type
g yp and enforcement
• E l ti t LTE
Evolution to
24 © Nokia Siemens Networks 2012

25. Value proposition
Leverage consumer relationships for profitable partnerships
Service
Service information sellers Seller 1
Services
Operator Seller 2
Seller 3
End Customer insight
customer Customer insight
Ke initiatives
Agile operation Multi-sided business Expand in vertical industries
• Evolve from silos to standard ICT • With local • Expand beyond
and customer centric models & content providers connectivity business
processes • With app stores & • Offer service enablers
• Optimize the value chain developers
ey
• Make combined offerings
• Drive virtualization • With social media
25 © Nokia Siemens Networks 2012

26. Agenda
Industry Landscape
Focus on Mobile Broadband
Break
Spectrum for Mobile Broadband
26 © Nokia Siemens Networks 2012

27. Broadband becoming a utility like electricity or water
27 © Nokia Siemens Networks 2012

28. Mobile Broadband Demand is unpredictable
Variation by time and location Sudden peaks
Suburbs
City
Residential
12am Time 12am Predictable Un-Predictable
Up to 80% idle capacity Up to 50% idle capacity
Users Content
Radio Core
28 © Nokia Siemens Networks 2012

29. Liquid Network
29 © Nokia Siemens Networks 2012

30. Softbank is leading the way in Mobile Data Monetization
“I foresee that the data
traffic will increase 4
times in the next two
years,
years and 100 times in
the next four years”
Masayoshi Son
CEO, Softbank Corp.
Source: Nikkei, 10th April 2012
Source: Softbank
30 © Nokia Siemens Networks 2012

31. LTE in the real world –
Seoul, Korea
14 May 2012
• Informal drive testing in cars
and on metro
• Ni h d t simultaneously
Nine handsets i lt l
streaming HD video and TV
while mobile, with a concurrent
do
download speed o 43 MB/s
oad of 3 /s
(peaked at 63 MB/sec)
31 © Nokia Siemens Networks 2012

32. Agenda
Industry Landscape
Focus on Mobile Broadband
Break
Spectrum for Mobile Broadband
32 © Nokia Siemens Networks 2012

33. Operators to adopt multi band and technology deployments
Main LTE bands in region are: 800, 1800 and 2600 MHz
Alternative / Additional bands: 700, 2300 and 3500 MHz
700
Typical Middle East frequency scenario
2.6/2.3 GHz unpaired auction TD-LTE
2.6/3.5 GHz Paired auction LTE
2.1GHz continue HSPA+
HSPA
1800MHz auction LTE 15-20MHz
GSM refarm
GSM
900MHz refarm HSPA+
GSM GSM
800/700MHz DD auction
LTE
2012 2015
33 © Nokia Siemens Networks 2012

34. Spectrum Overview – Suggest Technology and Service Neutral
“Legacy bands”
Legacy bands “Transforming bands”
Transforming bands “Emerging bands”
Emerging bands
2100 3500 EU800
2 x 60 MHz 200MHz TDD or FDD (up to 2 x 30 MHz FDD)
1800 2600 AP700
2 x 75 MHz 190MHz TDD & FDD (up to 2 x 30/45 MHz FDD)
900 2300
2 x 35 MHz up to 100 MHz TDD
p
• Existing users
• Predominantly today • Predominantly used for WiMAX (broadcasters) need to
used f 3GPP f il
d for family • Regulation open or underway in be moved to lower
of technologies most countries bands
(GSM/HSPA) • Suitable for evolution to LTE • Ideal spectrum to
•Clear evolution path
p ‘connect the
connect
to HSPA and LTE
unconnected’
34 © Nokia Siemens Networks 2012

35. Spectrum is valuable
How do you measure value in a
public safety environment?
Financial only?
Value to society ?
Value to individual?
35
35 © Nokia Siemens Networks 2012

36. Typical radio spectrum landscape
Short term Longer term
g
2600 TDD TDD LTE
2600 FDD FDD LTE
2300 TDD TDD LTE
FDD LTE
2100 WCDMA/HSPA
3GPP
FDD LTE
multi
technology
1800 GSM/EDGE
bands FDD LTE
900 GSM/EDGE
WCDMA/HSPA
EU-800 or FDD LTE (EU 800)
APT-700 FDD LTE (APAC 700)
36 © Nokia Siemens Networks 2012

37. 37 © Nokia Siemens Networks 2012

38. Suggest re-farming of Libyan 2.6 GHz band for FDD & TDD LTE
2.6 GHz
Band
(TDD)
Operator
operator
operator
operator
regional
usage
3rd
4th
1st
For
2nd
2620 MHz
2500 MHz
z
2540 MHz
z
2580 MHz
z
2660 MHz
z
2690 MHz
z
Band 7 (FDD) Band 38 (TDD) Band 7 (FDD)
2500 2570 2620 2690
38 © Nokia Siemens Networks 2012 Dept. / Author / Date

39. LTE Device ecosystem April, 2012
347 products launched, 63 manufactures
39 © Nokia Siemens Networks 2012

40. 40 © Nokia Siemens Networks 2012

41. 41 © Nokia Siemens Networks 2012

42. What is the Digital Dividend?
Analogue Broadcast
470
862 MHz
Harmonised Digital
Dividend
de d
Reshuffling of frequencies to
harmonise a sub-band
470 862 MHz
694 MHz or 790 MHz
42 © Nokia Siemens Networks 2012

43. WRC-12 - The allocation of 694-790 MHz to ITU Region 1
‘The worst thing would have been to have some countries using
700 MHz band with one frequency plan and other countries with
a different plan – it would have killed harmonization
harmonization’
43 © Nokia Siemens Networks 2012 Source: PolicyTracker Interview with Francois Rancy

44. Digital Dividend for the Middle East and Africa
Region 1 CEPT 800
CEPT-800
790 791 821 832 862
1
30MHz DL 11 30MHz UL
698 703 748 758 791 803 806
5 45MHz UL 10 45MHz DL 3
698 703 733 758 788 791
5 30MHz UL 25 30MHz DL 3
Keep same duplex distance as Region 3
Alternative/Additional Region 1 (EMEA)
•Leverage Region 3 (APAC) Ecosystem
•Coexistence with current Region 1 FDD
44 © Nokia Siemens Networks 2012

45. Harmonization of Spectrum Bands for Mobile Broadband
RCC
CEPT
NA
CITEL ASMG
ATU
LAC APT
45 © Nokia Siemens Networks 2012

46. Summary
Focus on Mobile Broadband
Differentiation of MBB services
Harmonization of MBB spectrum
46 © Nokia Siemens Networks 2012

47. Thank you
y