Investor and FinancialAnalyst Seminar -
Mobile Systems Update
Mikael HalénDirectorMobile System WCDMA & GSM
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Safe Harbour Statement
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 for a better understanding of these risks and
uncertainties.
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Outline
• Market area update
• Status in rollout of 3G
• New generation products
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
World15%
North America 45%
Latin America17%
CEMA7%
Japan (excl. PHS)
53%Western Europe*
76%
*Western Europe includes the EU countries + Norway and Switzerland
APAC8%
Cellular penetration/region end-Q4 2001
Investors Briefing at CeBit’02, March 15, 2002
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
MobileGoal
GiantDictionary
Bioritmix
Mobile Organizer
MobileGreeting
SecretAdmirer
MobileNews
VivaPresident
ChatPlaza
Mobile Juke Box
LocationWorm
Hangman
For Rent
CityGuide
GiantEye
FinanceAnywhere
TURKCELL
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Turkcell GPRSLand – post-launch figures
0Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01
WAP Airtime (minutes)
0Jun-01 Jul-01 Aug-01 Sep-01 Oct-01 Nov-01 Dec-01
Number of WAP users
Entertainment67%
Games20%
Information13%
TURKCELL
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Minutes of Use (MoU) in Western Europe
0
50
100
150
200
250
98 Q4 99 Q1 99 Q2 99 Q3 99 Q4 00 Q1 00 Q2 00 Q3 00 Q4 01 Q1 01 Q2
Contract MoU
Total MoU
Pre-Paid MoUMin
utes
of U
se (
per M
onth
)
MoU of contract customers has steadily increased
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
2005
Source: EMC World Cellular Database & Ericsson
GSM & WCDMA 80%
Other 20%
CDMA 12%
PDC 7%
GSM 71%
TDMA 10%
950 million Subs
2001
Technology TrendsGlobal digital mobile subscribers
1,600 million Subs
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
3G/EDGE & WCDMA Schedule
The Americas
• Starts with EDGE
• Later WCDMA
Europe/Asia
• Starts with WCDMA
• Later EDGE
• Handset availability• Roaming agreements• Charging and Billing schemes• Applications and Services
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Ericsson’s positionGSM/GPRS/EDGE
• Breakthrough of 3G/EDGE in NA– AT&T, Cingular, Voicestream and Rogers AT&T
• 3G/EDGE– Deliveries of the new generation GSM/EDGE radio base stations
since fall 2001. Volume deliveries start now.– All GSM macro base stations, shipped since 1995, can be
upgraded with an EDGE capable transceiver unit.
• GPRS– > 40% Market Share– Commercial agreements – 78 of 164– 32 Commercial launches, rest by mid year– All GSM radio base stations shipped since 1991 are ready for
GPRS with a SW upgrade.
Commercial GPRS Launches
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
• Commercial agreements with 35 of 63 customers
• Initial WCDMA Systems shipped to more than 30 operators
• Delivery of WCDMA radio base stations since March 2001
• Launched networks: – NTT DoCoMo (Commercial) – Telenor, Sonera, Swisscom, Hi3G and Svenska UMTS-Nät (Technical)
Ericsson’s positionWCDMA
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Focus areas in WCDMA deployment
• Soft-Handover & power control
• GSM < > WCDMA Handovers
• Multi-vendor integration of infrastructure
• Interoperability testing of mobile handsets
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
3GPP ReleasesTime Schedule
3GPP Release 4
3GPP Release 1999
Versions of3GPP Release 1999
Versions of3GPP Release 4
3GPP Release 6
3GPP Release 5
1998 20011999 2000Q2Q1Q3 Q2 Q3Q4 Q4 Q1Q1 Q2 Q3 Q4Q4 Q3 Q1
1097 8542 3 141311 121
3GPPTSGsPlenaryMeetings 6
Q2
2002
1615
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
2 phases of network deployment in Europe
Initial phase First expansion phase
Regulatordriven
Subscriberdriven
• Phone Availability• GPRS Success• Applications• Regulator• Economy
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Hand-over between WCDMA and GSM/GPRS
GSM/GPRS
WCDMA
Initial Deployment First Expansion
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Mobile Systems
Ericsson’s Position in Mobile Networks
Other Mobile Networks
• #1 in Mobile System (~30%)• #1 in GSM/GPRS/EDGE (~40%)• #1 in 3G/WCDMA (~40%)• #1 in TDMA (~60%)• Strong in PDC (~30%)• Growing in CDMA/CDMA2000 (~5%)
• #1 in Global Services/Networking Consulting• #1 in Pre-paid• #1 in Billing Mediation• #1 in Short haul microwave• #1 in Bluetooth licensing
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Meganetwork segmentShare of subscribers in networks >10 million
2001 2006
32 % 42 %
Source: EMC
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Ericsson market shareGSM/TDMA, Meganetwork segment
Ericsson
Lucent
Nokia
Alcatel
Siemens
MotorolaNortel
Source: Ericsson
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
The GSM/EDGE base station 2206
• 12 TRX capacity, Double TRU concept
• Supports Transmitter Coherent Combining forextended coverage
• All GSM bands (800, 900, 1800 and 1900 MHz)
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
The WCDMA base station 3202
• 3 sectors with 2 carriers in 1 cabinet
• Pooled resources
• Multi Carrier Power Amplifier (MCPA)
• High output power: 20W/40W carrier
• The IMT-2000 band 2GHz
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
AXE 810 MSC
Processorcapacity
AP
Z 21
2 20
AP
Z 21
2 30
AP
Z 21
2 33
AP
Z 21
2 25
AP
Z 21
2 40
• High capacity– handles up to 1M subs– based on commercial processors
• Scalable• Reduced cost of ownership
– Large reduction of footprint– pre-tested delivery
• Improves performance of2G and 3G networks
AXE 10 MSC1st generation
AXE 10 MSC2nd generation
AXE 810 MSC3rd generation
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
EricssonAXB 250 06 GGSN
Combining best in class mobility and best in class Gigabit routing
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Why Operators Choose Ericsson?
• Business partner– Never a competitor
• The leader in standardisation– Future proof products
• Broad experience from all 2G & 3G technologies– Evolution at low risk
• Global/Local presence– relationships, resources, coverage
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
MMS - Why Vodafone Choose Ericsson?”
• Can deliver fully standardised and complete End-To-End solutions
• Global presence allows parallel implementation on aglobal basis
• Partnering with content providers through Ericsson’s“Mobility World”
• Long relationship with proven track record
Investor and Financial Analyst Seminar - CeBit’02 - March 15, 2002
Summary
• The leading market position
• 2.5G will be fully deployed this year
• 3G deployment is underway
• New generation of high performance infrastructureproducts
Ericsson is the leader in mobile systems