Mobile telephony evolution - supporting voice over LTE Analyst telebriefing 26 jan 2011 Speaker: eric ericsson, Manager Multimedia Telephony, product area core&IMS, business unit networks

THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS. SUCH STATEMENTS ARE BASED ON OUR CURRENT EXPECTATIONS AND ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD NEGATIVELY AFFECT OUR BUSINESS. PLEASE READ OUR EARNINGS REPORTS AND OUR MOST RECENT ANNUAL REPORT FOR A BETTER UNDERSTANDING OF THESE RISKS AND UNCERTAINTIES.

Public | © Ericsson AB 2011 | 2011-02-26 | Page 2 (16)

Ericsson LTE/EPC Contracts 16 networks in 11 countries on 3 continents › Telia Sonera – – – – – – –

› › › › › › ›

Telia Sonera, Sweden (World’s first) Telia Sonera, Norway Telia Sonera, Finland Telia Sonera, Danmark Telia Sonera, Estonia Telia Sonera, Latvia Telia Sonera, Lithuania

Verizon Wireless, USA MetroPCS, USA TDC, Danmark AT&T, USA Vodafone, Germany NTTDoCoMo, Japan CMHK, Hong Kong

› Two non disclosed operators Public | © Ericsson AB 2011 | 2011-02-26 | Page 3 (16)

ERICSSON Market Position CIRCUIT CORE AND IMS › 325 Mobile Softswitch (GSM/WCDMA) networks in commercial service (~50% market share) › 1.8 Billion subscribers handled by Ericsson HLR (~50%) › 82 IMS commercial contracts – 47 in commercial service (>75%)

Public | © Ericsson AB 2011 | 2011-02-26 | Page 4 (16)

Lte beyond voice Communication Easy to use supplementary services (conf calls, call forwarding etc)

HD video

File Sharing

HD voice

Messaging

Active Sofia: Luigi is amazing

CHOOSE A SPONSOR

Drag and drop any sponsor into your address book and get free messaging and gifts!

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Address Book

Presence

VoLTE Drivers

Voice services in LTE

Seamless services across accesses

VoLTE

Evolved voice services Public | © Ericsson AB 2011 | 2011-02-26 | Page 6 (16)

Efficiency – One Core -

Voice over LTE Introduction - The evolution impacts devices, accesses and services Legacy GSM / UTRAN

Spotty LTE coverage

LTE

CSFB

LTE

LTE

LTE

LTE

Continous IMS voice over PS coverage LTE

LTE

CS CS

Circuit Switched

LTE

SRVCC

LTE

LTE

LTE

LTE

Legacy CS voice

Areas with continous LTE coverage

CS voice service via CSFB

LTE

LTE

LTE

LTE

LTE

LTE

LTE LTE

LTE

LTE LTE LTE

LTE LTE

LTE LTE LTE

3G / HSPA LTE

LTE

LTE

LTE

LTE

LTE

IMS Voice service over LTE and CS access

LTE LTE LTE

LTE

LTE LTE LTE

LTE LTE LTE

LTE LTE LTE LTE LTE LTE LTE LTE

LTE LTE LTE LTE LTE LTE LTE

IMS Voice service over LTE and HSPA

LTE Legacy Phone

CS attach

MSS

Legacy architecture

CSFB Phone

CSFB CS attach

MSS

CSFB Architecture

CSFB = Circuit Switched Fallback SR-VCC = Single Radio Voice Call Continuity ICS = IMS centralized services Public | © Ericsson AB 2011 | 2011-02-26 | Page 7 (16)

VoLTE Phone

SRVCC & ICS

SRVCC CSFB CS attach

IMS MSS

SRVCC / ICS Architecture

VoLTE Phone

LTE HSPA

IMS

Mobile telephony evolution target architecture

The same evolution path doesn’t suit all operators LTE LTE

LTE LTE LTE

LTE LTE

LTE LTE LTE

3G / HSPA LTE LTE LTE

LTE

LTE

LTE

LTE LTE LTE

LTE

LTE LTE LTE

LTE LTE LTE

LTE LTE LTE LTE LTE LTE LTE LTE

LTE LTE LTE LTE LTE LTE LTE

LTE

CS SRVCC

Circuit Switched

LTE

LTE

LTE

LTE

LTE

LTE

LTE

LTE

LTE LTE

LTE

LTE

LTE LTE

CSFB LTE

CS LTE

LTE

LTE

CSFB = Circuit Switched Fallback SR-VCC = Single Radio Voice Call Continuity Public | © Ericsson AB 2011 | 2011-02-26 | Page 8 (16)

GSMA VoLTE (IR.92) UNI profile Technical summary Telephony Service UNI

MMTel

UNI IMS UNI

– MMTel Supplementary Services – OIP, OIR,TIP, TIR – CDIV (CFU, CFNL, CFB, CFNRc, CFNR) – CB (ICB, OCB, ICB-R, OCB-IC) – HOLD – MWI – Comm. Waiting – Conf – Supplementary service management using Ut with XCAP procedures

IMS feature part EPC

UNI

LTE

– – – –

ISIM based authentication (USIM fallback). IPSec protection of signaling. Both Tel-URI and SIP URI SIGCOMP GBA (recommended) or http digest authentication for Ut – Early dialogues – IMS Emergency

LTE radio capabilities

Bearer management

IMS media

– GBR EPS bearer (QCI1) for voice – Non-GBR EPS bearers for SIP and XCAP – RoHC in PDCP

– Well known “IMS APN” with local PDN GW – The IMS APN with signaling bearer (QCI=5) established at initial attach – P-CSCF Discovery

– – – –

Public | © Ericsson AB 2011 | 2011-02-26 | Page 9 (16)

AMR NB and WB Codec & payload format RTP profile / Data transport RTCP usage Jitter buffer management

Expandable profile

Multi-media

Extended supplementary services

› Extendable and upwards compatible with full IMS Multimedia Telephony capabilities

VoLTE (IR.92)

Multi-device

› GSM-alike supplementary service set

Multi-access

Secures communication evolution path to retain customers and maximize revenue Public | © Ericsson AB 2011 | 2011-02-26 | Page 10 (16)

Ericsson Telephony evolution OFFEring IMS Connected Home

FIXED BROADBAND

SIP DSL/Fiber/Cab le

IP

SIP

eNb

Mobile Broadband Terminals

N

or w et

SGSN

SIP

RNC

HSPA

MSC-S

GSM / WCDMA MGw

Public | © Ericsson AB 2011 | 2011-02-26 | Page 11 (16)

k

SIP SIP

MOBILE NARROWBAND

MRFP SBG

SBG

MMTEL SOLUTION

MOBILE CORE NETWORK MSC-S MSC-S MGCF MGCF

MOBILE BROADBAND

LTE

Mobile Narrowband Terminals

HSS HSS

MSAN

SIP

Fixed Mobile Terminal

CSCF CSCF

DSLAM

SIP

IMS POTS

MTAS MTAS

TELEPHONY CORE DOMAIN IPWorks WUIGM

ISUP or SIP-I

PSTN PSTN MGW MGW

Leverage on installed base MSS A feature suite for optimized LTE / CS co-existence

SRVCC – Handover from LTE to CS

SMS over SGs for SMS in LTE

MSS & LTE

CSFB for early LTE launch, roamers and as fallback

IMS Centralized Services ICS – MMTel service delivery to CS

Add LTE support features to MSS, EPC, IMS Optimize coexistence and user experience Public | © Ericsson AB 2011 | 2011-02-26 | Page 12 (16)

VoLTE market introduction

“Early Movers”

VoLTE trial

VoLTE commercial VoLTE comm. VoLTE trial CSFB commercial

General market

VoLTE phones incl SR VCC VoLTE phones CSFB handsets LTE Devices Dual Radio phones (CDMA) VoLTE trial

2009

2010

2011

2012

2013

Indicative timeline based on Ericsson’s knowledge about operator/industry activities Nov 2010, subject to change. Public | © Ericsson AB 2011 | 2011-02-26 | Page 13 (16)

VoLTE market introduction Ericsson end-to-end

VoLTE conversational

VoLTE including

quality for trials

CS co-existence

Full VoLTE

and early launch

and handover

(incl SR-VCC)

Trial/acceptance

Commercial launches

test Q1 2012

Q1 2013

preparation

offering

1H 2011

“Early Movers”

VoLTE trial

VoLTE commercial VoLTE comm. VoLTE trial CSFB commercial

General market

VoLTE phones incl SR VCC VoLTE phones CSFB handsets LTE Devices Dual Radio phones (CDMA) VoLTE trial

2009

2010

2011

2012

2013

Indicative timeline based on Ericsson’s knowledge about operator/industry activities Nov 2010, subject to change. Public | © Ericsson AB 2011 | 2011-02-26 | Page 14 (16)

Summary

Market and devices materializing

Industry alignment

VoLTE

Service evolution key Public | © Ericsson AB 2011 | 2011-02-26 | Page 15 (16)

Efficient end-toend solution

Questions and answers