1. superior
network
performance
key for operator growth
Ulf Ewaldsson
Senior Vice President and CTO

2. Trendspotting
› Mobility Everywhere
cements ubiquity of networks
› Broadband & Cloud
establishes a new paradigm
› Industry & Regulation
shapes opportunities
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 2

3. The big picture
Available spectrum
continues to be the most
scarce industry resource
Continued traffic growth but
focus shifts from throughput
to customer experience
The fully enabled mobile
enterprise through broadband, mobility, and cloud
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 3
Accelerating quest
for simplicity and
automation as networks
become more complex
Transformation from
nodes and domains to an
integrated system E2E
Blurring of traditional IT
and Telecom creating
new opportunities

4. Then & now
Mobility
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 4

5. Then & now
the cloud
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 5

6. Powering
mobile roadband 2013
6.5B
subscriptions
1.5B
mobile bb
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 6
1.1B
smartphones
80%
data traffic

7. Mobile data 2018
emulates fixed broadband
6.5B
4.5B
4.3x mobile bb
4x smartphones
1.5B 1.1B
mobile bb
smartphones
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 7

8. A new language…
› Text.. Tweet
› Call.. Poke
› Phone.. Device
› Download.. Upload
› Broadcast.. Podcast
› Signal Strength…App Coverage
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 8

9. demands
network performance
1. Network Performance
20%*
16%
2. Value for money
11%
3. Ongoing communication
4. Tariffs plans offered
5. Customer support
*Relative impact between each driver and Net Promoter Score
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 9
10%
9%
Source: Ericsson Consumer Lab, June 2013

10. And drives
operator growth
Frontrunners’ revenue growth
Peer group’s revenue growth
220%
200%
Inflection
Point
180%
160%
140%
10,2 %
CAGR
120%
(2008-2012)
100%
80%
2007
2008
2009
2010
2011
2012
Source: Strategy Analytics, Ericsson Analysis
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 10

11. Some essential
growth CODES
Experience-centric KPI:s
“Streetwise Metrics”
Visionary Investing
Quality-led Marketing
“Gap Minding”
“Show Casing”
Lead by superior
network performance
Lead by innovative
Marketing & Offering
Visionary Collaboration
Redefine Subscription
“Co-Partnering”
“Unboxing”
Open-ended Innovation
“Ecosystematic”
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 11

12. Cities as organisms…
› Accelerating Urbanization
› Breakout Nations
› Global Cities
› Sustainability & Intelligence
› Connectivity is Hygiene
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 12

13. …based on
networked societies
Network
beyond operator networks
capillary networks
network the limit of new services
Connected devices
a wide range of devices
human usage a special case
performance and experience the limit
of new services
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 13

14. The sentient network
is central to everything
› Self Aware, Self Healing
› Scaleable, Sliceable
› Always On, Everywhere
› Subscriptions to
Connections to Sessions
› With Five 9’s security
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 14

15. Areas of momentum
Heterogeneous
networks
4th Generation
IP, Cloud &
SDN
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 15
OSS / BSS
& real-time
analytics

16. A Year of Progress for
Service Provider SDN
› Service Provider
SDN vision validated
› Service Chaining
use case introduced
with Telstra and
others
› OpenStack,
OpenFlow and
OpenDaylight
› Extending SP SDN
vision to provide
enterprise services
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 16

17. Unlocking network potential
Service Provider SDN,
nfv & cloud
APIs, Exposable Services & Assets
Cross-Domain Orchestration
Integrated Network Control
Access
IP & Transport
Mgmt & Control
Mgmt & Control
Cloud
Mgmt & Control
Abstraction & Virtualization
Network
Data Center
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 17

18. performance needs
industry beyond smartphones
Cars
Processing Utilities Transport
Throughput
Network Performance
Drivers
Latency
QoS
Volumes
Coverage
Capacity
Security
Location
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 18
Media
NSPS

19. The dynamic
network slices
@
An OPEN network platform on
Dynamic and Secure Network slices
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 19

20. Innovating for
performance
with our technology x services
leadership
SYNERGY
Circle
Superior
EXPERIENCE
MASTERING
Complexity
Demand
Leveraging
SCALE
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 20
Network

21. Extending the cloud indoors with
the dot
10x
Capacity
0.5x
cost
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 21
*indicative figures vs traditional DAS systems

22. Running Virtualized applications on the
ssr8000
Multiapp
with no performance impact
snp4000
Custom NPU
10’s of millions of sessions
C/c++ programming
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 22

23. Time to content for social media with
internet.org
April 2012: from
22 sec
time to interact (2G)
Sept 2013: to
<6 sec
time to interact (2G)
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 23

24. › Devices & Services in dramatic flux.
Consumption & Creation
› Cloud establishes new paradigm.
Virtualized & Ubiquitous
› Networks take centerstage.
Technology is a differentiator
© Telefonaktiebolaget LM Ericsson 2013 | BBWF Amsterdam | 2013-10-23 | Page 24