IEEE Summit Rio de Janeiro November 2018

1 © Nokia 2017 Spectrum assets downlink + uplink from 700 to 3600 MHz (12/2017)

Tele X (São Paulo): Spectrum MHz 20 MHz @ 700 MHz 250 5 MHz @ 900 MHz 40 MHz @ 1800 MHZ 200 30 MHz @ 2100 MHZ 150 20 MHz @ 2600 MHz

100

50

0 SKT Wind Sprint Optus Indosat Telia (SWE) Telia AT&T (USA) A1 Telekom A1 Orange (SLO) Orange Verizon (USA) Verizon T-Mobile (USA) T-Mobile T-Mobile (GER) T-Mobile Bharti (MUMBAI) Bharti Tele X (São Paulo) (São X Tele

2 LTE Spectral Efficiency in Live Networks Large Number of Live Nokia Networks

We estimate the spectral efficiency bps/Hz/cell 3.0 during busy hour in the busy areas 2.56 from >80 live networks from the 2.5 carried traffic per cell with a few 2.0 1.90 1.7 assumptions 1.5 1.2 • 20% of BTS makes 50% of traffic 1.0 • Busy hour is 7% of daily traffic 0.53 0.5 0.4 • Average busy hour load is 70% of the maximum 0.0 • No voice impact considered Top Top‐10% Median • Average LTE bandwidth 15 MHz HSPA LTE

3 Tele X Mobile broadband traffic growth 2015 – 2022 per customer

+43% CAGR

2015 2016 2017 20182019 2020 2021 2022 10-20x User Data Rates with 5G up to 1 Gbps

User data rate 1000 900 800 • 200-500 Mbps average 700 Simulated 5G 600 user data rates with 100 500 MHz 5G with mMIMO 400 Measured 300 LTE • 400-1000 Mbps 200 100 average user data rates 0 with 200 MHz 5G with US Best Load Load Load Load Load Load mMIMO Ookla urban 75% 50% 25% 50% 25% 25% (64TRX) LTE 5G (100 MHz) 5G (200 MHz)

5 In-Home 5G with 2.5 / 3.7 GHz – Cutting the Cord

Fixed wireless capacity with 2.5/3.7 GHz 7000 • 2.5 / 3.7 GHz brings a 100 MHz 200 MHz 6000 lot of capacity – 5000 potentially enough for fixed home access GB 4000 /house 3000 • 1-2 TB per household /month per month with 300 2000 households per BTS 1000 • No need for directional 0 100 200 300 400 500 CPE antenna Households per BTS

6 5G Motivations per Band

• Local solution with spectrum license 24-39 GHz • Peak rate > 5 Gbps Hot spots • Local solution without spectrum license 5 GHz • Improved quality compared to WiFi

• 100 MHz bandwidth for 2 Gbps 3.3-4.9 GHz • 10-20x more capacity than an LTE carrier

Macro 1.8 – 2.6 • 5G brings mMIMO capable eco-system grid GHz • 2-3x spectrum efficiency compared to LTE • Low latency coverage for new services Sub 1 GHz • Improve spectrum and energy efficiency vs LTE

7 3.5 GHz Spectrum Auctions Results

EUR/MHz/pop in 3.5 GHz auctions 0.40 0.36 0.35 0.30 • Major differences in 0.25 0.20 spectrum prices at 3.5 GHz 0.15 0.14 0.14 0.15 • Spectrum price in Italy 0.10 turned out to be expensive 0.05 0.05 0.04 (four operators & high data 0.00 usage) Spain UK Korea Ireland Finland Italy

8 28 GHz for Capacity Boost and Offloading

3.5 GHz only Outdoor Downlink Coverage (%) 81% 81% 74% 76% 65% 66% 49% 49% 3.5 + 28 41% GHz

US US US US EU Korea Korea Hong Japan City 1 City 2 City 3 City 4 City 1 City 1 City 2 Kong City 1

4x data rate with 28 GHz (250 MHz) + Dense urban outdoor coverage 40-80% 3.5 GHz (40 MHz) vs 3.5 GHz only with existing sites with 28 GHz

9 LTE Spectral Efficiency – Global Network Wide View

Radio efficiency benchmarking 3.0 Low load High load >2 bps/Hz 1.6 bps/Hz 2.5 • Low load typically shows 2.0 >2 bps/Hz • Very high load shows bps/Hz 1.5 <1.7 bps/Hz 1.0 • High efficiency & high load networks mainly 0.5 fixed wireless traffic 0.0 0 1020304050 PRB usage [%] Data collected from network counters 10 One dot is one complete network Expected Downlink Spectral Efficiency

bps/Hz/cell

Spectrum Bandwidth Antennas LTE 5G Lean carrier <1 GHz 10 MHz 2x2MIMO 1.7 2.2 1.7-2.5 GHz 20 MHz 4x4MIMO1 2.5 3.3 2.5/3.5 GHz 100 MHz mMIMO 64x42 6.3 10.5

Main factors improving spectral efficiency Spectral usage • Massive MIMO • Device antennas 20 MHz • 5G enhancements >19.6 MHz 150% gain assumed from 4x4 vs 2x2 2mMIMO gives 2.5..3.0x more capacity than 4TX 11 Low Latency with Short Transmission Time

Minimum transmission time Round trip time

2 ms 20-30 ms HSPA 1 ms LTE 10-15 ms

5G 0.125 ms 1 ms

12 Measured 5G Latency with 3.5 GHz TDD

• Measured latency 4-5 ms with 3.5 GHz TDD band with Qualcomm test device • 3.5 GHz TDD cannot provide <3..4 ms latency due to 2.5 ms TDD frame. • 2.5 GHz TDD cannot provide <6..10 ms latency if we need to follow TD-LTE frame structure (5 ms)

2 ms

Downlink Downlink Downlink Uplink

13 5G Latency and Spectrum

Best case latency 12

10 • 5G low latency (1 ms) can be 8 Nice latency for mobile obtained with low band FDD ms 6 broadband or with mmW TDD 4 Ultra-low • 2.5/3.5 GHz TDD can

2 latency provide nice latency (<10 ms) but not ultra-low latency 0 LTE today Low band 3.5 GHz TDD Low band mmW FDD FDD with mini‐slot

14 4G 5G iPhone XS Teardown

Application processor Toshiba flash A12 (7 nm) memory Apple Bluetooth & Wi-Fi Broadcom wireless charge Intel baseband XMM7560 (14 nm) Embedded SIM micro Skyworks PAs controller Avago high/mid band Murata 4x4 PA duplexer

Intel RF transceiver Intel power 15 management Cost of Connectivity in iPhones Keeps Increasing Faster speeds, more RF bands and more antennas

iPhone Bill of Material (BOM) for connectivity 50 • Cost of connectivity 45 parts in iPhones have 40 35 gradually increased 30 due to faster speeds, USD 25 20 more RF bands and 15 more antennas 10 • iPhone XS has 1 5 0 Gbps, 25+ bands and 4 bands 3 bands 3 bands 5 bands 5 bands 10 bands 20+ bands 20+ bands 20+ bands 20+ bands 20+ bands 4x4 2G only HSPA 3.6 HSPA 7.2 HSPA 7.2 HSPA 14.4 LTE 150 LTE 150 LTE‐A 150 LTE‐A 300 LTE‐A 450 LTE‐A 600 1 Gbps 4x4MIMO Mbps Mbps Mbps Mbps Mbps Mbps Mbps Mbps Mbps Mbps iPhone iPhone 3G iPhone iPhone 4 iPhone 4S iPhone 5 iPhone 5S iPhone 6 iPhone 6S iPhone 7 iPhone 8 iPhone XS • 5G and mmWs brings 3GS again new challenges 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 RF Baseband WiFi/BT/GPS

16 5G Device Penetration based on LTE History

LTE penetration hits 50% iPhone5 with LTE Korea Japan USA March UK Dec Europe September 2012 Sep 2013 Dec 2014 2015 2015 Dec 2016 LTE 2012 2013 2014 2015 2016

iPhone with 5G 5G penetration hits 50% 5G 2020 2021 2022 2023 2024

5G device penetration will hit 50% in most markets during 2023-2024 if we simply follow LTE history. Penetration of 30% typically 1-1.5 year earlier 2022-2023.

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