1 © Nokia 2016

The Programmable WorldOpportunities and Challenges

Guillaume Mascot

Head of Government Relations APJ & India

March 2017

2 © Nokia 2017

Megatrends are bringing the programmable world

Network, compute & storage

Broadband every-where, distributed cloud, near infinite storage

Connectivity for a trillion things

Internet of Things

Augmented intelligence

Human assistance and task automation at machine scale

Human & machine interaction

Virtual and augmented reality, reshaping how we interact with machines

Social & trust economics

Sharing economy and digital currencies making trust and security essential

Digitalization & ecosystems

Digitalization of operations expanding into consumer and biology

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4th Industrial Revolution is under way

Industrial change

Economic flexibility & social mobility

Social & human impact

2nd Industrial revolution

Electricity

Mass production

3rd Industrial revolution

IT

PCs, automation

1st Industrial revolution

Steam

Mechanization

4th “Industrial” revolution

5G

Artificial Intelligence, cloud, robotics, VR

People & Things

1770 1870 1970 2020EnablerDriver

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Ultra-dense(Low power) Wide area Crowd Outdoor

Mission-critical wireless control and automationGB transferred in an instantA trillion of devices with different needs

10 yearson battery

10-100 10 000

<1 ms

M2M

100 Mbps>10 Gbpsaverage throughput

ultra low cost

x more devices

peak data rates

x more traffic

latency# of Devices | Cost | Power

Smart citycameras

Massive broadband

Critical machine type communication

Massive machine type communication

(LTE-M)

e2e Security Telco –grade Reliability Massive ScalabilityService Flexibility

example:Public

Surveillance

example:Smart

Metering

example:Traffic

Management

The Network will radically changeNew user demands – with extremely diverse requirements

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Of IoT applications

1,000s

Need to satisfy the IoT thirst for connectivity Unprecedented demand means a huge opportunity

Numbers are according to Nokia Bell Labs and analyst researches

Connected devices by 2020

Cellular IoT global daily connection requests by 2020

Forecast M2M CAGR (2014-2019) revenue

Of IoT data will go unused

Differentiation opportunities for mobile operators

Max potential value of sized applications in2025

New, diverse and extreme requirements to existing networks

Up to 46 B Up to 135x

~90% New

$11Tn

27%

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Uplink data

Latency

Activity

Density

Coverage

Mobility

Module cost

Battery life

IoT services are very diverseNot all IoT devices and applications have the same connectivity requirements

Utilities

Gas metering

Smart City

Surveillancecameras

Connected car

Diverlesscontrol

Logistics

Containertracking

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LTE Advanced

LTE Advanced Pro5G

The Programmable World – Potential Use Case Evolution

Assisted driving• Vehicle hazard warnings

• HD location updates and situational awareness for intelligent vehicles

• Automated traffic and parking steering

Predictive health surveillance• Remote diagnostic surveillance and risk

assessment

• Early disease forecasting

Events and tourism• Tourism is 9.8% of world GDP

with growing competition

• Event visitors expect better connectivity and apps

Augmented location experience• Location finder

• Multicast

• Video replay on-demand

• Augmented reality

Automated driving• Cooperative advanced cruise control

• Vehicle Platooning

• Smart intersection control

• Dynamic environment zones

Remote treatment• Robot assisted examination and

tele-consultation in 4D and 5D

• Remote surgeries

Freely selectable 3D views• Freepoint viewing

• Player perspective

• Virtual reality

Business driverAutomotive• 1.2 million lost lives - 90% of

crashes by human error

• Time & energy waste by traffic

• Industry to re-define mobility

Health• Aging societies - leveraging

remote medical support

• 2030: 52 million deaths by non communicable diseases

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LTE Advanced

LTE Advanced Pro5G

The Programmable World – Potential Use Case Evolution

Industry 4.0• 50% higher productivity

• Mass individualization

• Defragmentation of communication systems

Cognitive maintenance• Sensor connectivity for monitoring and

predictive maintenance

• Augmented (AR-supported) maintenance

• VR supported plant planningHomes and buildings• Cost efficient multi Gbps

access deployment

• Efficiency and security gains, a multi B€ market

Building management• Energy management

• Home security

• Home maintenance: notification of leaks, smoke or high water levels

Mega cities• Public safety, efficient

energy supply and traffic management for dense urban population

Public safety and supply• Mission control for public safety

• Video Surveillance

• Connected mobility across all means of transport

• Environment monitoring

• Public parking and traffic steering

Artificially intelligent production• Common communication platform for all

manufacturing use cases

• Wireless zero latency robot collaboration

• Autonomous vehicles in warehouses

Super-efficient home• UHD media to every home

• Home automation

Super efficient mega cities• Intelligent traffic infrastructure

• Surveillance drones

• Tourism AR/VR

Business driver

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IoT Low Power Wide Area (LPWA) technologiesExisting NW evolution and Disruptive technologies

SIGFOX LoRa CIoT(CleanSlate)

NB-IoT(Rel. 13)

eMTC (LTE-M)

(Rel. 13)EC-GSM(Rel. 13)

5G(targets)

RangeMax.CouplingLoss

<12km160 dB

<10km157 dB

<15km164 dB

<15km164 dB

<10km156 dB

<15km164 dB

<12km160 dB

Spectrum

Bandwidth

Unlicensed900MHz100Hz

Unlicensed900MHz<500kHz

Licensed7-900MHz

400 kHz

Licensed200kHz in-band,

guard-band, stand-alone

Licensed1.4MHz in-band

Licensed8-900MHz

200kHz

Licensed

Data rate <100bps <50kbps <150kbps <40-50kbps <1Mbps 10kbps <1Mbps

Module cost 4.00$ (2015)2.64$ (2020)

4.00$ (2015)2.64$ (2020)

4.00$ (2015)2.64$ (2020)

4$ (2015)2-3$ (2020)

5.00$ (2015)3.30$ (2020)

4.5$ (2015)2.97$ (2020)

<$2

Network cost,US example

10 $/year/km2

(new HW)10 $/year/km2

(new HW)12 $/year/km2

(new HW)1 $/year/km2

(SW upgrade)1 $/year/km2

(SW upgrade)1 $/year/km2

(SW upgrade)<1 $/year/km2

Impact onnetworks

Large Large LARGE (totally new RAT)

Small to Moderate

Small Moderate Requires 5G NWs

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Service providers are embarking on NB-IoT around the world

20 Commercial

NB-IoT Networksare forecasted byend of 2017 by GSA

24 Operators are

committed todeploying NB-IoT

Source: GSA, June 2016

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IoT and Future Networks: Key policy domains

Connectivity & spectrum

Data protection / ownership / location

Security

Digital Skills

Net Neutrality

Standardization

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