Network Vision: Preparing Telefónica for the next generation of services. Enrique Blanco Systems and Network Global Director

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1 Network Vision: Preparing Telefónica for the next generation of services Enrique Blanco Systems and Network Global Director

2 Mobile Access Vision Increasing 4G coverage, features and network efficiency while preparing for 5G

performance and capacity >90% Europe >60%

+sectors, new features) Indoor Small Cells

3 Completing 4G rollouts to reach similar coverages to 2G/3G by 2020 while improving performance and capacity >90% Europe >60% LatAM LTE coverage Towards nationwide LTE coverage Similar to 2G&3G 2 While evolving LTE Macro (CA, MIMO, +sectors, new features) Indoor Small Cells Ourdoor Small Cells New features (IoT, FWA, IPComms, etc.) Having Devices Ready Assessing our Mobile Backhaul needs to cope with expected traffic needs

4 Increasing efficiency by reducing investment in legacy technologies and dedicating most of spectrum to LTE Clear plan for total 2G decommission Migrate traffic and clients to 4G Considering RAN sharing scenarios Dedicating more of our spectrum to LTE Unlicensed spectrum for small cells (LTE LWA, LWIP, MPTCP, LAA) Acquiring additional spectrum 3 While preparing for 5G

5 Transport and Core Network Major transformation through Telco Cloud, IP and optical transport optimization

6 Virtualization technology, as a lever of transformation, will also be key in deploying 5G VIRTUALIZATION PATH NETWORK SLICING CONCEPT 5 Network Slicing from Core to NR

7 Telco Cloud architecture will support new services and applications, traffic growth and all connected devices 6

8 5G Paving the way for 5G

9 5G is the driving paradigm of the current network change On the Road to: 5G VIVO QUALITY 4,5G / 4,9G CORE 8 SERVICES

10 Telefonica is focusing on key features of the network evolution roadmap following an incremental 5G investment Coverage Fiber Spectrum Antennas Densification Cloud / Virtualization 9 Services

New technologies for 5G New Radio to open a new world of services Integrated access and backhaul Hyper dense deployments Coordinated spatial techniques New shared spectrum paradigms

11 New technologies for 5G New Radio to open a new world of services Integrated access and backhaul Hyper dense deployments Coordinated spatial techniques New shared spectrum paradigms Multi-connectivity Advanced receivers Mobilizing mmwave Beam forming Multicast Redundant links Ultra-reliable links Narrowband Internet of Things Multi-hop V2N Grant-free uplink transmissions. E.g. RSMA Massive MIMO Advanced channel coding e.g. LDPC Dynamic Low-latency TDD/FDD V2V Wide bandwidths Device-centric mobility New levels of capability and efficiency 10 10x Experienced throughput 10x Decreased in endto-end latency 10x Connection density 3x Spectrum efficiency 100x Traffic capacity 100x Network efficiency

12 5G driven by demand and uses cases... A wide range of consumer and enterprise use cases will be supported by Enhanced mobile broadband Ultra-reliable and low latency communications Massive machine type communications Multi-Gbps data rates Extreme capacity Uniformity Deep awareness Ultra-low latency High reliability High availability Strong security Low cost Ultra-low energy Deep coverage High density Mobile devices Networking Automotive Robotics Health Wearables Smart cities Smart homes And Fixed-Wireless is emerging as a fourth use case 11

13 5G Keep evolving our infrastructure to give support to the next generation of services while preparing for 5G

14 13

15 e-mbb will be driven by mass adoption of bandwidth-intensive apps (although there is a short term opportunity in FWA) Demand and Service Evolution embb (Enhanced Mobile Broadband) use cases are mostly an extension of the existing 4G value proposition %Telco Upside Potential (*) Comms + Services Comms Only Demand (Throughput / DoU per month) 5-10 Mbps 5-10 Gb Cloud Gaming Video (HD) Cloud Work Place Mbps 50 GB Augmented Reality Next-gen Gaming Video (4K) Vehicle Info-tainment Programmable VPN // Mbps 100 GB Virtual Reality +10,4% +3,0% >50 Mbps 500 GB Fixed Wireless Access economics need further evaluation, especially when exploiting higher frequencies (mmwaves) %Telco Upside Potential (*) Comms + Services Demand (Throughput / DoU per month) 5-10 Mbps 50GB ADSL-like BB Comms Only Fiber-Like UBB n.a. n.a. >50 Mbps >200GB o Max Speed: >10 Gbps per cell (distance, spectrum and #beams) o x LTE Capacity Technical Requirements Increase Throughput Reduce Latency Network Architecture Current LTE LTE-A LTE-A Pro (&Massive MIMO). Initial 5G hotspots 5G LTE & LTE-A (FDD + TDD Spectrum) 5G Radio (mmwaves) Beyond Beyond 2025 (*) Incremental revenues over total Telco Sector revenues Source: Ericsson ( The 5G Business Potential, 2017) & Team Internal Analysis

16 in IoT, technologies like NB-IoT or LTE-M (already in use) could cope with current demand (many Mission Critical Services are yet to be developed) Demand and Service Evolution In Massive IoT, a radical change in scale is expected in the midterm, from thousands to millions of connected devices %Telco Upside Potential (*) Comms + Services Demand Density (#Connected Devices / Km 2 ) 1Ks devices Smart Home Wearables Comms Only 10Ks devices Logistics Smart Cities 100Ks devices Massive IoT (Tracking, agriculture, Energy, remote monitoring ) // +15,4% +5,7% Millions All things Connected Ultra-low latency, Ultra-high reliability Use cases are still emerging markets, dependent on innovation across many sectors %Telco Upside Potential (*) Demand (Use Cases) Augmented Reality Industry Automation and Control Assisted Driving Comms + Services Comms Only 7,0% 2,3% Drones Tele-Surgery Robotics Autonomous Vehicles Technical Requirements Increase device density per km 2 Reduce Energy consumption Deep coverage Increase Throughput Reduce Latency Increase reliability (towards 99,999%) 15 Network Architecture Current LTE Networks (leveraging NB-IoT, LTE-M, D2D ) Continue of NB-IoT 5G IoT (enhanced capabilities) Beyond 2025 (*) Incremental revenues over total Telco Sector revenues Source: Ericsson ( The 5G Business Potential, 2017) & Team Internal Analysis LTE supporting V2X (Vehicle to Everything) Future LTE supporting Aerial Vehicle comms. Private deployments (unlicensed spectrum with LTE-A Pro or 5G network slicing) 5G advanced deployment with edge computing Beyond 2025

5G Design and Technology. Durga Malladi SVP Engineering Qualcomm Technologies, Inc. October 19 th, 2016

5G Design and Technology. Durga Malladi SVP Engineering Qualcomm Technologies, Inc. October 19 th, 2016 5G Design and Technology Durga Malladi SVP Engineering Qualcomm Technologies, Inc. October 19 th, 2016 Mobile fueled the last 30 years interconnecting people 1980s Analog voice 1990s Digital voice 2000s