Ericsson CDMA 450

September, 2011

CDMA 450 & M2M

1

Ericsson in CDMA

Mobile Broadband

2

The M2M Role of CDMA?

50 billion connections

3

What verticals are ripe for M2M?

Smart Metering

4

What is the Ericsson offering?

Ericsson your M2M Partner

Ericsson Internal | Page 2

Nortel acquisition Top-tier North America Footprint Industry-leading technology

B C

Highly-regarded people and skill-sets

A M

Scale

Strategic and profitable business linked with broader Ericsson portfolio Ericsson Internal | Page 3

Ericsson cdma market position Enabler Network for 50B Connections

Industry Leading Broadband Technology

Winning New International Business

Serving Multi-Tier North America Footprint Ericsson CDMA #2 Globally and #1 in EV-DO Deployments. Source: Informa

STRONG TECHNOLOGY & GLOBAL MARKET POSITION Ericsson Internal | Page 4

CDMA450 Market Opportunity

More than 130 operators in 70+ countries have deployed or planning to deploy CDMA450

Strong CDMA450 Ecosystem: 159 devices with 31 suppliers

Market size 350-500 M USD – serving 21M subscribers globally

Ericsson Internal | Page 5

CDMA450 Market

Number of Operators

Number of Countries

In Commercial Operation

118

62

In Trials and Deployment

17

9 Source: CDG, March 2011

450MHz ‪ coverage & Penetration 450 MHz

850 MHz

1900 MHz

2100 MHz

CDMA450 coverage area: • 2.8 times better coverage than 850 MHz • 13.6 times better coverage than 1900 MHz

450MHz

850MHz 1900MHz

CDMA450 provides the largest coverage area and excellent in-building propagation characteristics Ericsson Internal | Page 6

Extra Long-Reach Extended Cell Key Considerations › Access to broadband in extremely remote locations › Available practically everywhere: land and sea › Economical replacement for satellite coverage Efficient coverage option for remote and sparsely populated areas

13 km 1900 MHz

Ericsson Internal | Page 7

50 km 450 MHz Nominal

120 km 450 MHz Extended Cell* * Net 1 has achieved 200 km with offshore coverage

CDMA 450 & M2M

1

Ericsson in CDMA

Mobile Broadband

2

The M2M Role of CDMA?

50 billion connections

3

What verticals are ripe for M2M?

Smart Metering

4

What is the Ericsson offering?

Ericsson your M2M Partner

Ericsson Internal | Page 8

Net 1 & Ericsson CDMA450: Superior Coverage

Forestry

Air Ambulance

Fishing Fleet

SCA Forest Products - automated work-flow - remote diagnostics

SOS Helicopter - enhanced services - life-critical reliability

Wilson Shipping - satellite replacement - reduced costs

Smart Grid

Mobile Hot Spot

Ice Breakers

Vattenfall Power - power line inspection - remote operations

Flygbussarna Charter - popular service - builds brand loyalty

Swedish Maritime Admin. - satellite replacement - Government opportunity

CDMA450 broadband network addressing multiple opportunities “Our key asset is coverage, coverage, coverage and the ability to provide secure VPN communication to transform our customers’ business.” Gösta Kallner COO, Net 1 Ericsson Internal | Page 9

CDMA-based M2m ‪ Now!

A SAMPLING… Ericsson Internal | Page 10

Source: CDG, Harbor Research, Alliander

CDMA M2M Device certification M2M Devices

Electric Meters

Vehicle Routers

Water Meters

CDMA Interoperability Interoperability services services for M2M devices for M2M devices in closed loopinRF closed loop RF with environment environment commercialwith Ericsson commercial Ericsson infra-structure infra-structure components components

Medical Monitors

Partnership with with operator operator Partnership M2M solution and and end-customer to bring new devices providers to bringon-line new devices on-line

Device Certification Minimizes Unforeseen Device Issues Ericsson Internal | Page 11

High-Performance Mobile Broadband Key Considerations › Increasing demand for bandwidth hungry applications ‪ E.g. Video Surveillance/downloads, Medical Monitoring, Gaming

› Fixed internet alternative in remote areas › Mobile broadband for rural and nomadic customers

EV-DO Rev B UL: 5.4 Mbps

DL: 14.7 Mbps

MC EV-DO UL: 5.4 Mbps

DL: 3.1 Mbps

UL: 1.8 Mbps

DL: 9.3 Mbps

EV-DO Rev A

Ericsson Internal | Page 12

End-to-end Quality of Service Key Considerations › Security › Availability & Reliability › Performance › Video/image transmission QoS-enabled traffic prioritization Application Flows

Delay Sensitive Application Signaling Rate Sensitive Best Effort

Ericsson Internal | Page 13

Applications

VoIP Traffic VoIP/PTT Signaling Video Traffic Web Browsing

Inter-user prioritization available when network is under congestion

What is QoS? Why is it important? Enables different types of traffic to share the resources

Prioritize by packet TYPE DS – Delay Sensitive AS –Application Signaling RS – Rate Sensitive BE – Best Effort Each Packet gets exactly what it needs, when it needs it. Ericsson Internal | Page 14

Other Key Enablers for M2M Data over Signaling

Admission Control

Avoid setting up traffic channel when sending small data bursts

Prioritize new connections based on operator defined criteria – Service mix, Real Time measurements or Class

Benefits • Fast call set-up, low latency • Low network resource consumption

Benefits • Systematic management of resources

Traffic Channel Set-up Optimization

Enhanced Paging

Prioritize traffic channel set-up based on Quality of Service settings

Variable paging cycles based on appl.

Benefits • Channel set-up for time-critical apps

(100ms) • Optimized based on application priority

Ericsson Internal | Page 15

Benefits • Network efficiency • Low latency • Maximize battery life

CDMA 450 & M2M

1

Ericsson in CDMA

Mobile Broadband

2

The M2M Role of CDMA?

50 billion connections

3

What verticals are ripe for M2M?

Smart Metering

4

What is the Ericsson offering?

Ericsson your M2M Partner

Ericsson Internal | Page 16

Smart Meter opportunities Utility company advantages › Meet Regulatory Requirements › Optimize Electrical Power Generation › Improve Customer Service

User Benefits › Enable Better Management of Power Consumption › Lower Utility Usage › Cost Savings Ericsson Internal | Page 17

Smart meter example

Full 2-way Communications Pathway of Telemetry Data Energy Meter with Internal CDMA / EVDO Modem Standard ANSI Meter

Standard IEC Meter Ericsson Internal | Page 18

Wide Area Network CDMA / EVDO (450/800/1900MHz/AWS)

Direct Read by Utility Meter Data Management System

Provides customer with web-based meter data

CDMA 450 & M2M

1

Ericsson in CDMA

Mobile Broadband

2

The M2M Role of CDMA?

50 billion connections

3

What verticals are ripe for M2M?

Smart Metering

4

What is the Ericsson offering?

Ericsson your M2M Partner

Ericsson Internal | Page 19

M2M Go to Market model - Example

Customer

Operator

Ericsson

Device Provider

Utilities, Telematics Vendors, Hospitals, Pharmacies

CDMA and M2M Operator

Ericsson is the operator…s M2m Partner

Partners with ericsson to certify apps and devices

Ericsson Provides End to End M2M Solutions to Operators Ericsson Internal | Page 20

CDMA M2M Device certification M2M Devices

Electric Meters

Vehicle Routers

Water Meters

CDMA Interoperability Interoperability services services for M2M devices for M2M devices in closed loopinRF closed loop RF with environment environment commercialwith Ericsson commercial Ericsson infra-structure infra-structure components components

Medical Monitors

Partnership with with operator operator Partnership M2M solution and and end-customer to bring new devices providers to bringon-line new devices on-line

Device Certification Minimizes Unforeseen Device Issues Ericsson Internal | Page 21

Service-Driven Market Approach Utility Industry Wireless Network Operator Consulting

Prime Integrator

Customer Support

Managed Services

Business casing

Installation and Integration

Hardware Support

System Support

Customer communication

Meters, concentrators

Software Support

Lifecycle management

Operational transformation

Data- and Control-center

First Call Support

Capacity Management

Audit and benchmarking

System Integration

Repair and Return

Managed Operations

Network strategy / design

E2E solution delivery

Managed Spares

Hosting

Plan, Build, Support, Operate M2M at Telecom Industry Quality Ericsson Internal | Page 22

Summary › CDMA Optimized for M2M Solutions ‪ Optimized to provide maximum capacity per Hertz ‪ Largest Coverage Area

› Ericsson supplies some of the world’s largest CDMA networks ‪ Network scalability critical in M2M era

› Ericsson can provide complete M2M solutions ‪ M2M Application Partnerships ‪ M2M Services Enablement and Support

Ericsson is Your M2M Partner Ericsson Internal | Page 23

Ericsson Internal | Page 24