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1 #ericssonlive
2 Market, Industry & technology evolution - Pioneering at the digital frontier Ulf Ewaldsson CTO & Head of Strategy
3 Situational context Macro-economy Recessionary trends impact technology sector Geo-politics National agendas drive Internet & technology evolution Regulation Internet governance, Security top of agenda Industry Continued momentum in digitalization trend, early IoT Market Networks flat but growth in IT/Digital, Cloud and Media Operators Low growth, tighter spending but digitalization key opportunity Consumer Enhanced user experiences, media & video key, new devices (AR/VR) Competition Traditional, new ICT and Webscale/OTT players Networks & Technologies Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 3 Page 3
4 Mobility drives our networked society 2022 outlook Ubiquitous Mobility 8.9B subscriptions 6.8B smartphones 80% LTE coverage Pervasive Data 8X Mobile Data Traffic ~75% Video 90% MBB subscriptions Connected Things 29B Connected Devices 550M 5G Subscriptions LINK: Ericsson Mobility Report, Nov 2016 Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 4 Page 4
5 Network efficiency & performance Mobility & Connectivity Cloud & Data Analytics & Automation Applications & Services Smartphones/ MBB App Cloud Increased efficiency (lower cost per bit) & higher capability for Mobile Broadband Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 5 Page 5
6 Increased Network relevance for other industries Devices/IoT Mobility & Connectivity Cloud & Data Analytics & Automation Applications & Services Enterprise IT Cloud X End-user Data Rates A horizontal, programmable Network platform to connect all clouds to all devices Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 6 Page 6 5X Lower Latency 1000X Mobile Data Volumes 10X Battery Life X Connected Devices
7 global architecture Devices / Local NW Access sites Distributed sites National sites Global sites Application Cloud Management & Monetization Mobile Fixed Access - Mobility - Network applications Cloud Infrastructure Transport Energy Performance Security Programmable IP, Cloud Technologies, Full Mobility, Data & Analytics, Automation Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 7 Page 7
8 Our reading on networks & operators TECHNOLOGY OPERATOR BUSINESS Applications decoupled from network Cloud deployed applications Increased automation with software Multi purpose transport and access Network essentials - trust, security and availability Operators will focus on Network as an open platform Experimentation with services above the Network Operators see digital transformation as new Enterprise opportunity Operators capitalizing on their local presence and looking to partner for global presence Technology developments influencing operator business transformation Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 8 Page 8
9 BROADBAND AND MEDIA EVERYWHERE 5g USE CASES SENSORS EVERYWHERE SMART VEHICLES, TRANSPORT INFRASTRUCTURE, MONITOR AND CONTROL CRITICAL CONTROL OF REMOTE DEVICES INTERACTION HUMAN-IOT Broadband & Media leading, more use cases leveraging enhanced capabilities Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 9 Page 9
10 One network for multiple industries Devices / Local NW Access sites Distributed sites Application Cloud National sites Global sites Management & Monetization Network Slices Mobile Fixed Access, Mobility, Network applications Cloud Infrastructure Transport Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 10 Page X Mobile Data 5X Volumes 10X Lower Latency Battery Life X End-user Data Rates X Connected Devices
11 First 5G Federated Network Slicing Global service for Industry segments one global deal Manage Service Experience and Service Control Service provider establishes NW slice in Home and Remote network Remote NW slice through Federated agreement: Deploy VNF s Connect VNF s to partner NW Connect other resources Management & control World s First Service Providing Operator NW Slice Partner Operator VNF NW Slice for hosted service Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 11 Page 11
12 5G Around the Globe Overall progress Strong unity on overall 5G view Strong focus on time Launch NR work item 1H17 Pre-commercial launches 2018 Launch Broad acceptance of one standard Mobile Broadband and IoT focus 2017 Hardware requirements 2018 Release 15 Market Drivers Likely launch period North America Verizon: Fixed Wireless Access focus AT&T Europe Fiber alternative Early commercial launch 3GPP time plan Strong on consumer and IoT New revenue streams Standard with high flexibility, wide range of applications North East Asia Technology focus External trigger points (Olympics) China & Japan: global standard Standardization Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 12 Page 12
13 driving a comprehensive 5g agenda 5G Doors open for new industry verticals 5G for industries Open Source momentum broadens within the industry Industry/Customer initiatives Ericsson engagements Establishing the framework for 5G Standardization Spectrum Key driver in the intelligent transport systems space Infrastructure, vehicle electronics, operators, car manufacturer, chip manufacturer, road regulators etc. Industry Engagements Leading industry transformation through partnerships Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 13 Page 13
14 5G Spectrum possibilities pending decisions 1 GHz 3 GHz 4 GHz 5 GHz 20 GHz 30 GHz 100 GHz? entu Early Longer-term MHz GHz GHz GHz GHz Future allocations possible with Global synergies in both low & high bands Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 14 Page 14
15 T-Mobile AT&T Verizon Vodafone Group Deutsche Telekom Telefónica Telia MTS Lifecell China Mobile Swisscom China Unicom TIM Turkcell Korea Telecom NTTDoCoMo Alfa SK Telecom Softbank Etisalat LG Uplus KDDI Ooredoo Far EasTone Group Singtel América Móvil Telstra 28 Signed 5G operator agreements Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 15 Page 15 *As of Oct 2016
16 Industry Pilots & engagement Automotive Mining Manufacturing Transport Develop end-to-end solutions for future mobility and transportation services, impact regulation and standardization Evaluate mobile communication for underground mining, incl. safety and increased productivity Evaluate 5G and IoT opportunities to improved the production efficiency, enabled by data analytics, cloud and industrial IoT and more Explore use of 5G for intelligent transport and investigate as-a-service offerings and reduce fleet operations costs SMART VEHICLES CRITICAL CONTROL OF REMOTE DEVICES INFRASTRUCTURE, MONITOR & CONTROL SMART VEHICLES, TRANSPORT Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 16 Page 16
17 First multi-vehicular 5G trials BMW, SKT & Ericsson 5G trial system Multiple sites Full mobility between sites between beams 28 GHz Sustained Gigabit/s speed (~4Gbps) at 170km/h BMW driving center in Seoul BMW cars with 5G connectivity Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 17 Page 17
18 E2e 5g Based on our leading Portfolio Services Security ERICSSON DIGITAL SUPPORT SYSTEMS Management, Orchestration & Monetization NETWORK SLICING ERICSSON RADIO SYSTEM with enhanced 5G access & transport ERICSSON 5G CORE SYSTEM with NFV SDN distributed cloud and network slicing Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 18 Page 18
19 Ericsson Radio System Reaches new heights Market s first global 5G Access and Transport portfolio 5G Radio AIR G NR Mid-band 5G NR High-band 5G Transport Fronthaul on Rail 10 Gbps MINI-LINK Indoor MINI-LINK Unit Bandwidth Notification Router on Rail Compact Router RAN Evolution 5G Plug-ins Massive Fronthaul MIMO Multi-user on Rail MIMO Latency Reduction Intelligent Connectivity RAN Virtualization CAT-M1 NB-IoT Gigabit LTE Baseband 4T / 4R Radios Gigabit LTE 4x4 MIMO 256 QAM Carrier Aggregation Lean Carrier License Assisted Access Dual-band Radio Dot 4T / 4R Dual-band 4T / 4R Low-band LTE Foundation Vault Radio Low Energy Scheduler App Coverage Booster Shared Carrier Tower Company Portfolio Battery on Rail Launched earlier Launched today Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 19 Page 19
20 5g core system Launching 5 new capabilities Network slice Management Federated Network Slicing Policy & User data for Network Slices Distributed Cloud 5G Transformation services Devices / Local NW Access sites Distributed sites Application Cloud National sites Global sites Management & Monetization Network Slices Mobile Fixed Access, Mobility, Network applications Cloud Infrastructure Transport Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 20 Page 20
21 Ericsson security manager (ESM) Contextual & Automated Networks, Cloud, Enterprise 5G and IoT Devices / Local NW Access sites Apps security context Distributed sites Application Cloud National sites Global sites Devices/IoT Security context Mobile Access security context Fixed ESM Management & Monetization Management & Monetization security context Access - Mobility - Network applications Apps, NFVi security context Infra security context Cloud Infrastructure IT security context Transport security context Transport Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb MWC 2017 Feb 2017 Page 21 Page 21
22 Telefonaktiebolaget LM Ericsson Industry & technology Evolution, Feb 2017 Page 22
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