Toward the networked society 2020

Jose Luis Ayala Director of Government Relations, Latin America

Ericsson Internal | 2013-07-24

THE Networked Society

Security

Management

Sustainability

Network Cloud

Services Devices

Wireless Connectivity

is key

Ericsson Internal | 2013-07-24

Traffic Growth

Ericsson Internal | 2013-07-24

9 billion subscriptions by 2018

140% PENETRATION in latam

by 2018

900 m SUBSCRIPTIONS in latam

by 2018

Ericsson Internal | 2013-07-24

Latam penetration by country, Q1 2013

Source: Informa Telecom June/13

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

350.00%

Ericsson Internal | 2013-07-24

3 GB

0.6 GB

0.45 GB

11 GB

2.7 GB

1.9 GB

2012 2018

Data traffic times 12 by 2018

Mobile Traffic Voice and Data

During 2013, overall mobile data traffic is expected to continue the trend of last years, of doubling each year.

Data Consumption per device and month

Ericsson Internal | 2013-07-24

SMARTPHONES FLOODING MARKETS

50% OF PHONES

SOLD IN Q1 WERE SMARTPHONES

4,5 B

0,8 B

1,2 B

0,3 B

17% OF SMARTPHONE

PENETRATION IN LATAM

Subscriptions with cellular connection

Ericsson Internal | 2013-07-24

video: half of data traffic in 2018

2012 2018

Video is the largest segment of data traffic in mobile networks expected to grow by around 60% annually until the end of 2018.

Ericsson Internal | 2013-07-24

Mobile subscriptions by Technology and Region

2012 2018

In Latin America by 2018, WCDMA/HSPA will be the dominant technology (~70%), however GSM/EDGE-only subscriptions will still have significant presence (~20%) and LTE will have ~10%

Technologies evolution

Ericsson Internal | 2013-07-24

Application coverage

@

SMS 10 Mbps 1

Mbps 0.1 Mbps

“App Coverage – the area where my app works as I expect”

Ericsson Internal | 2013-07-24

≈ 50%

≈ 5%

≈ 30%

≈ 15%

Heterogeneous Networks

Improve Densify

Add

Improve

Dense urban Sub-urban Urban Rural

Improve Densify

Traffic density

IMPROVE

ADD

DENSIFY

Site distribution in a typical European country

Ericsson Internal | 2013-07-24

Ericsson mobility report

www.ericsson.com/ericsson-mobility-report

Ericsson Internal | 2013-07-24

MEA Base: 2100 Future: 900, 1800 & 2600 2013+: CEPT800 & APT700

APAC Base: 2100, 900 & 850 Future: 1800, 2300 & 2600 2013+: APT700

Japan Base: 2100, 1700, JP850 Future: 1500, 900 & APT700

Europa Base: 2100 & 900 Future: 2600, 1800 & CEPT800

North America Base: 850, 1900, US700 & AWS Future: 2600

Out of a total 1177 MHz of identified spectrum in ITU RR, on average, ~ 1000 MHz available for licensing in each Region

Latin America Base: 850/900, 1800/1900, 2100 2013+: 1.7/2.1, 2500, 700 Future: 600, E850, 2.3, 1.5, & 3.5

spectrum Available for imt per region

Ericsson Internal | 2013-07-24

Source: Ericsson

• The lack of enough spectrum in the region is the major threat for massive MBB adoption

• Another challenge is the slow spectrum release process (i.e., typically between 6 – 10 yrs. from start)

529

380

240

440

192 180 179 178 170 170 170

120 110 118

260 262

Avai

labl

e S

pect

rum

per

Ban

d (M

Hz)

-

Nat

ionw

ide

Aver

age

292

Latam Spectrum availability, July 2013

Ericsson Internal | 2013-07-24

*UIT-R M.2078 Estimated spectrum required for IMT-2000 and IMT-Advanced services by 2020

Future spectrum needs

› WRC-07 estimated that a total of 1280 – 1720 MHz would be needed by 2020*

› NEW estimates for WRC-15 indicate a total spectrum need of up to 1900 MHz by 2020

› Additional 800-1000 MHz at WRC-15 for 2020

Ericsson Internal | 2013-07-24