day 2-keynote-1200 ip-hong-20120524

ⓒ Samsung Electronics. All Rights Reserved. Confidential and Proprietary.

At the Forefront of Telecom and IT Convergence

1

IP Hong Vice President, Head of Global Marketing [email protected]

ⓒ Samsung Electronics. All Rights Reserved. Confidential and Proprietary. 2 Page

27,100

-

5,000

10,000

15,000

20,000

25,000

30,000

2007 2008 2009 2010 2011

Voice

Data

(TB/Month)

Mobile Data & Voice Traffic (A in USA)


Mobile Data & Voice Traffic (B in Korea)

14,527

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1Q.10 2Q.10 3Q.10 4Q.10 1Q.11 2Q.11 3Q.11 4Q.11

Voice

Data

(TB/Month)

Galaxy S

Galaxy S2

Galaxy Note


Mobile Data & Voice Traffic (C in Japan)

4,199

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1Q.10 2Q.10 3Q.10 4Q.10 1Q.11 2Q.11 3Q.11 4Q.11

Voice

Data

(TB/Month)


Mobile Voice & Data Revenue (C in Japan)

Data Revenue

Voice Revenue

`07 `11 `09 `08 `10

[U$B]


Mobile Voice & Data Revenue (D in Japan)

Data Revenue

Voice Revenue

`07 `11 `09 `08 `10

[U$B]


Service Revenues in USA and Korea

Music

Cloud SVC

VOD U$ 9.99

U$ 4/5/6/10

U$ 3/4/6/8/10 U$ 9.99

U$ 4/5/8/16

U$ 9.99

U$ 9.99

U$ 8

U$ 4.4

Navigation

Location

Service Application

U$ 9.99/14.99

U$ 4

U$ 5

Individual(U$4/13)/Enterprise

Individual (10GB)/Enterprise

Enterprise

http://upload.wikimedia.org/wikipedia/en/4/48/Sprint_Nextel_logo.svg


Telco Service Trend

Traditional Telco IT Transformation

SMS Data

Voice

Music VOD Storage Computing

Corporate VPN

QoS Voice

Basic subscription fee (5GB or unlimited)


Ethernet

Ethernet

IT Transformation

TELCO

IT

Fiber Optic


Samsung Smart LTE for KT

12 Central Sites cover Seoul (600km2, 10mn pops)


Samsung Smart LTE Improves Speed

Cell edge and average throughput increase up to 1.8 times

[Source: KT]

Smart LTE


Smart LTE Networks Benefit

Test Date Smart OFF Smart ON Times

3/28 10 18 1.8

3/29 7 13 1.6

3/30 10 18 1.8

4/02 9 15 1.7

[Source: KT ]

The maximum number of users to maintain 2Mbps HD video quality


LTE TV Commercials in Korea

darth_bin2.wmv


Individual 3G & 4G Units

Multimode 3G & 4G Units Combined

Sprint Smart MBS

LTE

CDMA

TD-LTE

3GPP Smart MBS

LTE

HSPA+

GSM

TD-LTE

Seattle

San Francisco

Chicago

Sprint Network Vision Project


TD-LTE Leadership

Mobily USA China India


LTE in Korea

LTE Speed tests

in Seoul

(10MHz)

January 2012

Underground shopping mall In the subway

5 Million Today

12 Million EOY 2012

30 Million EOY 2013

[LTE Subscribers in Korea]

On the street

25% of LTE subscribers in

the world


LTE Leads to Increased ARPU

Source: SKT, May 2012

2.4

6

29

38

46

SKT LTE subscribers in million

SKT ARPU in USD

April 2012 Year end objective

Total ARPU Smartphone ARPU

LTE ARPU

LTE subscribers growing really fast… … and improving ARPU

Consensus: SKT will hit its target


LTE to Raise ARPU by 25% in the next 3 years

LTE subscribers to 10mn in 3 years

Subscribers forecast (millions)

0

2

4

6

8

10

12

2011 2012 2013 2014

Analyst forecast

LGU+ forecast

In the 2 months after the LTE launch, LGU+ share price increased by 30%

Source: LG U+, Oct 11

and LG U+ plans to increase ARPU by 25%

ARPU forecasts (USD)

2011 2012 2013 2014

28

30

33

36


Early VoLTE Commercial Plans

VoLTE commercial in Q3 2012, SRVCC

VoLTE commercial in October 2012

Nationwide VoLTE commercial in October 2012 Turn off CDMA in 2015 and only VoLTE for voice


VoLTE - Challenges & Solutions

Challenge in VoLTE : quality degradation in boundary area

VoLTE performance enhancement via Samsung Smart LTE Networks

Conventional LTE Smart LTE Performance

Enhancement

Ch

ann

el Q

ual

ity

A B C

A B

C


High Quality VoLTE Service

LTE

Samsung Smart LTE Networks

Average Cell Performance

1.8 times

Cell Edge Performance

1.8 times

3G-equivalent VoLTE service is made possible by Samsung Smart LTE Networks


Samsung Synergy

Telecom Systems Mobile & IT Solution Media Solution Center

Earlier service introduction, earlier and better optimization


Europe Operation Teams

●SESA

● SEF

● SENA

● SEBN ● SELS (WEDC)

● SEPOL

● SEH

● SEP

● SEI ● SDM

● SEGR

● SEAG ● SEROM ● SEAD

● SEH(P)

● SEPM

● SEB

Samsung Europe Organization

● SPRC

41 organizations (28 countries)

ETO

Portfolio Management

Service & QA

Global Operators

Local & Retailers

Europe Telecom Operations (Mobile)

ENO

Account Management

Product Management

Operations

Europe Network Operations (Infra)

● Sales & support: 27 ● R&D: 2 ● Design: 2 ● Logistics: 2 ● Production: 4 ● Others: 4

● SEG

● ETO

● EHQ, IPC ● SDE

● SEUK

● SERI

● EEDC ● SESK

ENO


Samsung Network Service (SNS)

Network Deployment

Managed Service &

Maintenance

Network Design

& planning Transfer

System Integration

Training

Customer Support

SNS


Appreciation from Customers

• Scope: Network deployment, system integration and maintenance

• 1 of 3 best vendors in quality, technology, cost, delivery, service, overall

• Scope: Network deployment, system integration and maintenance

• “ Predictability is critical to Vision program success, and Samsung is best in class in this case. I would like to extend my personal thanks to the entire Samsung Team for all you are doing to effectively manage the Vision program

to expectation. ” - John Harrison, VP – Network Deployment

• Scope: Network deployment and managed service

• "Samsung has been a great managed services partner for Mobily." - Mohammed E. Alzaaidi Director, Access Infrastructure Operations


KDDI LTE Project

Tokyo

Outdoor (20,000 Units)

• Shipping now

• Commercial in NOV 2012

• Nationwide deployment

Indoor (5,000 Units)

Macro cell Small cell


Mobily TD-LTE Project

Saudi Arabia

• Soft launch in SEP 2011

• Commercial service launch in MAY 2012

• 2,300 Cell sites (2.5 GHz, 20 MHz)

• CPE, USB dongle

Central Western

Central scheduler

eNB

EPC

Ethernet

"Samsung has been a great managed services partner for Mobily."

- Mohammed E. Alzaaidi

Head of Access Infrastructure Operations

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