Winners. TeliaSonera

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2 Winners TeliaSonera Faster is better When it comes to the deployment of LTE, the Nordic countries are definitely leading the world. Proclaiming Faster is better, Tommy Ljunggren, VP of System Development for TeliaSonera, could barely contain his optimism for the new technology during his speech at Global MBB Forum By Tommy Ljunggren Editor: Long Ji 33

3 The average speeds on TeliaSonera s LTE network are 40Mbps downlink and 35Mbps uplink. These are true average speeds, as TeliaSonera is not picking and choosing spots or anything like that for the measurement. Tommy Ljunggren, VP of System Development for TeliaSonera First in the world with LTE In December 2009, TeliaSonera commercially launched the world s first LTE network in Oslo and Stockholm at the same time on the same day offering the same type of user experience. About it, a question is often asked: What is this commercial launch? The answer can be found in the dongles commercially available in shops. Currently, TeliaSonera has a few thousand LTE subscribers, and there has been no massive takeup yet because multimode terminals were not available until the second quarter of It has promised all of its customers that it would take the single-mode modems back and replace them with multimode modems. Now the promise has been kept, and a real take-up is taking place. TeliaSonera has started extensive rollouts. In Sweden, it is offering LTE services in five cities, where customers can buy dongles in shops and subscribe to LTE services. It recently launched subscription packages, which allow subscribers to combine their LTE with different UMTS subscriptions and even with their fixed broadband at home. Before the end of 2010, 28 cities and recreation areas will have LTE. By the end of 2011, 228 cities will have LTE. This makes one wonder if there are 228 cities in Sweden. Actually, most of them are quite small. TeliaSonera is at a heavy rollout stage in Norway, where all the major cities and some recreation areas will be LTE-ready by the end of While soft-launching LTE in Finland, Denmark and Uzbekistan, TeliaSonera has run trial LTE connections in the Baltic countries, connecting to the Swedish and Norwegian networks. So far as LTE is concerned, TeliaSonera has been alone in both Norway and Sweden, but it is not alone in the world. There have been delighting and encouraging developments in the U.S., which will continue to push the market further forward by bringing consumers in. LTE is also being embraced in other parts of the world like India. Compared with the hassle of launching 2G and 34

4 Winners For TeliaSonera, as many as 70% of its sites can be reused, allowing for the addition of LTE capabilities to the existing UMTS network at no extra cost, especially in a SingleRAN environment. UMTS previously, launching LTE was so easy that it turned out to be quite boring. By rolling out its LTE network, TeliaSonera is pushing the industry a bit. With the ease of launch and the many advantages of LTE, global operators should waste no time in launching LTE services themselves. Outstanding LTE performance Advantages of LTE The advantages of LTE are clear. The average speeds on TeliaSonera s LTE network are 40Mbps downlink and 35Mbps uplink. These are true average speeds, as TeliaSonera is not picking and choosing spots or anything like that for the measurement; they remain the same whether in the Gothenburg area or the Stockholm area. As another key ingredient of LTE, low latency is also significant. The fast uplink speeds and the low latency are what drive new applications and new usage, which is best illustrated by the telecast of the recent royal wedding that was covered by the media in nearly real time. The royal wedding During the wedding of the Crown Princess of Sweden in June 2010, LTE mobile cameras were placed in the carriage of the bride and groom, together with laptops and LTE dongles when they went through Stockholm. This was a brave decision made by the channel TV4 in an attempt to get good footage when the couple went through the city. They did, and they showed it live on TV. While deploying a lot of outdoor broadcasting cars, TV4 used ten different mobile camera teams, equipped with laptops and LTE dongles and normal cameras. That was the only way they could cover the whole thing because, as soon as the wedding started, they could not move their buses those big buses with satellite dishes and so on. But the mobile teams could go around in the city filming, and streamed live pictures to the TV center at a speed that was so good that they could use it as footage from the wedding. TV4 was the only channel to get the kiss outside the church as it was transmitted/telecast over LTE, so it was very happy. Another benefit goes to press photographers. Previously, they had been using the wireless LAN for connection, as evidenced by the small device with the camera. During this royal wedding, 20 press photographers were stationed in the area, each with a laptop connected over LTE. They uploaded the pictures immediately to their websites and sold the pictures in seconds. That made a great difference for them and meant a lot of money hundreds of thousands of dollars earned by using LTE during the wedding. This is one of the killer applications that people are looking for on LTE, and there will be more of them to come. 35

Dramatic growth of network traffic and usage Mobile data traffic at least doubles every year in the Nordic countries. Why is this happening or why have we adopted LTE services so early?

According to the Europe Digital Competitiveness Report by European Commission dated May 2010, Sweden, Norway, and Denmark rank among the top three countries in the percentage of population using

First let us talk about the sources of mobile data.

5 Dramatic growth of network traffic and usage Mobile data traffic at least doubles every year in the Nordic countries. Why is this happening or why have we adopted LTE services so early? It is best answered by the fact that people are often tech-savvy in the Nordic countries. According to the Europe Digital Competitiveness Report by European Commission dated May 2010, Sweden, Norway, and Denmark rank among the top three countries in the percentage of population using mobile phones via UMTS to access the Internet and the percentage of population using laptops via wireless to access the Internet. TeliaSonera believes this is good business and a good place to be. First let us talk about the sources of mobile data. As already shown by the GSMA, mobile broadband takes a large chunk of the traffic, though its number of users is smaller when compared with smartphones. Actually a usage shift has been seen during the last month or so: more and more of usage coming from smartphones, with usage patterns different from laptop users. Meanwhile, machineto-machine is starting to take off in a big way. This offers a massive opportunity for operators to earn revenues from and offer good solutions for corporate users. While serving private users, LTE can also deliver the quality that corporate users are looking for this is the promise we have already seen delivered in the new technology. Value-based pricing In spite of all these usage patterns and statistics, can operators make money out of LTE? Yes, it is possible, but they have to be very careful about the business and pricing models they choose. As there s no such thing as a free lunch, they have to have some kind of cap a monthly fee and a defined speed. But they should be able to add things when they want to, including additional usage, additional speed, QoS, and fee for VoIP or for gaming. Future pricing should be something like Lego blocks, and operators need to use these add-on pricing models or see their business ruined. While pricing models have to be carefully looked into, there is a fear that CAPEX and OPEX will skyrocket with this mobile broadband explosion. But this fear is unfounded, at least for TeliaSonera, given plummeting software costs and the degree to which network infrastructure could be reused. For TeliaSonera, as many as 70% of its sites can be reused, allowing for the addition of LTE capabilities to the existing UMTS network at no extra cost, especially in a SingleRAN environment. LTE is not like HSPA that required costly hardware/ software upgrades all the time. For LTE, the operator can get a lot for less if it upgrades its network at the same time, and can monetize this mobile broadband business if the right pricing model is chosen. LTE is promising and is really working. 36

The mobile broadband revolu0on!

09-06-22 The mobile broadband revolu0on! Anders Cajander Head of Innova+on Management TeliaSonera Mobility TeliaSonera Leading Nordic total telecommunications provider 1 21 Mobile Operators in 18 countries