5G Update. Kai Sahala, Head of 5G E2E Sales APJ May 2018

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1 5G Update Kai Sahala, Head of 5G E2E Sales APJ May 2018

Telco market opportunity and new value creation Consumers Industry Traditional Market flat Traditional CSP service revenues in mature markets* are flat Cloud Services growth but limited value

2 Telco market opportunity and new value creation Consumers Industry Traditional Market flat Traditional CSP service revenues in mature markets* are flat Cloud Services growth but limited value captured by CSPs ($B) New DSP markets offering significant revenue expansion x * Western Europe, Canada, USA, Japan, South Korea, Singapore, Australia, and NZ Source: Gartner Source: Gartner BPaaS = Business Processes as a Service Estimated 2025 value creation potential - McKinsey Global Institute MUST DO MUST BECOME Nokia

3 Mobile data traffic growth must be managed Global internet traffic 6000 TB/day Global mobile traffic 8000 TB/day 2018 Finland mobile traffic 8000 TB/day 5G target Sports stadium single game 4000 TB/game 3 Nokia 2018

km 2 5G Latency <1 ms radio latency Multi-radio Edge Distributed

4 5G fulfils the future network requirements >10 Gbps peak data rates Capacity 100 Mbps whenever needed Connectivity 1,000,000 devices per km 2 5G Latency <1 ms radio latency Multi-radio Edge Distributed Network slicing Core Centralized 10 years on battery Reliability 4 Nokia 2017

5 5G Enables up to 25x Capacity per Cell 5x More Spectrum and Up to 5x More Efficiency 1800 MHz 3.5 GHz 20 MHz 2 bps / Hz Up to 25 x 100 MHz Up to 10 bps/hz LTE1800 2x2 MIMO 40 Mbps cell throughput Mbps cell throughput 5G 3500 with massive MIMO beamforming 5

5G coverage footprint Combination of low

Extreme local capacity with mm waves LTE

1 Gbps Extended capacity by matching LTE

6 5G coverage footprint Combination of low and high bands 5G mmwaves 10 Gbps Extreme local capacity with mm waves LTE G 3500 mmimo/beamforming Co-siting 1 Gbps Extended capacity by matching LTE 1800 coverage with 5G 3500 LTE 800 5G 700 Co-siting 100 Mbps IoT and critical communication with full coverage Nokia

7 5G NR Frequency Bands NR frequency range 1, below 6 GHz Band Uplink Downlink Duplex n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz TDD n MHz MHz TDD n MHz MHz TDD n MHz MHz TDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n MHz MHz FDD n75 N/A MHz SDL n76 N/A MHz SDL n GHz GHz TDD n GHz GHz TDD n GHz GHz TDD n MHz N/A SUL n MHz N/A SUL n MHz N/A SUL n MHz N/A SUL n MHz N/A SUL NR frequency range 2, above GHz Band Uplink Downlink Duplex n GHz GHz TDD n GHz GHz TDD n GHz GHz TDD Additional bands still expected to be added to the specifications in June (bands 13, 25, 26, 34, 39, 40 ) Bands not completed in due time may be taken away from Release 15. Very large number of band combinations in addition to the bands being proposed Nokia

5G standardisation status 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2

(NR main) Option 7 (elte main) NSA NR+LTE with 5GC

8 5G standardisation status Q1 Q2 Q3 Q4 Q1 Q2 Rel-15 NSA ASN.1 Rel-15 ASN.1 Rel-15 late ASN.1 drop Rel-15 freeze Rel-15 late drop freeze Option 3 NSA LTE+NR with EPC Option 2 SA NR with 5GC Option 4 (NR main) Option 7 (elte main) NSA NR+LTE with 5GC EPC 5GC 5GC NR NR elte LTE NR 3GPP 2018 <based on RP > 8

9 Motivations for Non-standalone (NSA) and Standalone (SA) Why Dual Connectivity with NSA? Option 3x LTE+5G under EPC EPC Why Standalone SA? Option 2 SA 5G under 5GC EPC 5G core LTE 5G LTE 5G Available 6 months earlier than SA Existing EPC core used Existing LTE idle mode used Data rate aggregation LTE + 5G VoLTE in LTE 5G end-to-end for new services Lower latency without LTE leg Lower setup time in 5G No need for LTE network upgrades 9

10 When can you buy 5G handset? 5G Schedule based on LTE History LTE 3GPP Release 8 March 2009 Telia LTE launch December LTE launches 2H/ G 3GPP Release 15 March2018 5G launchbyend Several 5G launches Nokia

5G early market use cases Dense city area use cases Highway use cases Public transport use cases Dedicated use cases Structural 5G deployment area Events 4K/8K

11 5G early market use cases Dense city area use cases Highway use cases Public transport use cases Dedicated use cases Structural 5G deployment area Events 4K/8K video streaming VR/AR Hotspots Industry Truck platooning In-vehicle infotainment Home Hotspots Healthcare Drones Powerful Efficient Intelligent Flexible Nokia

Nokia supporting KT 5G trial at Korea 2018 major sport event KT 5G-driven

bobsledder s viewpoint Interactive Time Slice forward/backward time line

broadcasting Omni-point view viewersto catch up witha certain athlete s

Arena Footage combined to create 3D videos and freeze-frames of figure

12 Nokia supporting KT 5G trial at Korea 2018 major sport event KT 5G-driven visual demos supported by Nokia Sync View 3D live performances from a bobsledder s viewpoint Interactive Time Slice forward/backward time line review (user controlled«instant reply») 360-degree VR (virtual reality) live broadcasting Omni-point view viewersto catch up witha certain athlete s performance Time Slice 100 cameras, arranged in a 180-degree arc in the Ice Arena Footage combined to create 3D videos and freeze-frames of figure skaters Viewers can rotate around, like watching Neo dodge bullets in The Matrix Time Slice 12 Nokia 2018

13 Always open Build the flexibility required in 5G era Open interfaces open API s for 3 rd party plug-ins and data exposure Open community collaboration + data democracy Nokia s Openness approach Open analytics data-powered everything for cognitive control Open Ecosystem Network Nokia

14 Key take-aways Standards schedule unchanged Nokia Trials 2018, handful of launches by mid 2019 embb and Fixed wireless use cases first

Making 5G a commercial reality

Making 5G a commercial reality Dr. Brahim GHRIBI Head of Government Relation Middle East & Africa Nokia 1 Nokia 2016 Public The journey for human technology Mobile networks today and tomorrow Mobile Voice