1 © Nokia Siemens NetworksFor internal use

MULTI-SERVICE ACCESSMore bang for the buck

2 © Nokia Siemens Networks For internal use

The broadband challengeFast reliable broadband access to billions of subscribers

Billions of people will connect to services via fixed-broadband access !

2015 – THE WORLD CONNECTED

Fixed-broadband access technology is a key enabler for connecting customers to innovative and affordable broadband services

3 © Nokia Siemens Networks For internal use

Broadband and Value Added Services arefundamental for operator revenue to increase

Homeentertainment

Rev

enu

e

Time

Decliningvoicerevenues

Businesscommunication

Homecontrol

Fixed-MobileConvergence

NEW Value Added Services

BTS

Carriers business will grow based on high capacity broadband services

4 © Nokia Siemens Networks For internal use

Personalized content already today demands high broadband consumption …

Video

•0

•2

•4

•6

•8

•10

•12

•14

•05/

2005

•06/

2005

•07/

2005

•08/

2005

•09/

2005

•10/

2005

•11/

2005

•12/

2005

•01/

2006

•02/

2006

•03/

2006

•04/

2006

•05/

2006

Source: Comscore, June 2006

Online video sharing (monthly visitors)

Vis

ito

rs (

mil

lio

ns

)

Personal content creation and sharing rise dynamically

5 © Nokia Siemens Networks For internal use

Source: OVUM, August 2006

… and the expected IPTV growth will ask for even more broadband

Community TVPersonal programming

Self publishing spaceTransaction media

IPTV Drivers IPTV Growth in Western Europe

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2005 2006 2007 2008 2009 20100

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

10 000 000Total IPTV subscription revenues $ (000s)

IPTV subscribers (000s)

6 © Nokia Siemens Networks For internal use

Consumer multimedia services drive network evolution by requiring more bandwidth

Networkedgame client

Traditional data networking interface

VoIP

Home entertainment

HDTV

Mobile device

Entertainment center

Dual mode WiFi/ cellular handset

Broadband gateway

Source: Internet research, 2006

Triple Play pie(example)

True Triple Play services require bandwidth from 25 to 100 Mbit/s per user!

7 © Nokia Siemens Networks For internal use

We believe this race isn’t going to be over soon

Multimedia servicesdrive bandwidth demand

Competition drives downrevenue for data transfer

Revenue per MB

2006 2007200820092010

Western EuropeMiddle East & AfricaUS & CanadaChina

10%

Annual

Decrease

Service providers need be prepared for an even more demanding end-users behavior

Bandwidth goes up, prices go down …

THE VICIOUS CIRCLE OF BROADBAND BUSINESS

8 © Nokia Siemens Networks For internal use

• Launch Triple-Play offering with up to 50Mbit/s using DSL technology over existing copper lines

• Connect massive amount of subscribers and backhaul cellular traffic

Residential triple-play

copper

Cell-site aggregation

CopperMSAN

fiber

Offer highly competitive services by using installed copper base

Service providers need to move fast to delivertriple-play services ahead from their competition

9 © Nokia Siemens Networks For internal use

More bandwidth over all-fiber optical infrastructure

• Active/passive all optical network with GPON and p-t-p Ethernet technology

• More than 100Mbps per subscriber or cell-site

• High-capacity matrix with 10Gbps backhaul capability

Fiber to the home

Fiber to the cell

Hybrid fiber/VDSL2

copper

fiber

Optical MSAN

Optical splitter

The future is already here, the future is now!

10 © Nokia Siemens Networks For internal use

Flexible Service Deployment andNetwork Evolution

Multi service Access Node

Copper AccessxDSL

Eth

ernet

TelephonyPOTS / VoIP

OLTMSAN

Optical A

ccess

GPON

Lea

sed

Lin

esE

1

MSAN is the optimum access solution in multi-service environment

Increase bandwith and

service flexibility

Reduce CAPEX & OPEX