© Nokia Siemens Networks

Smart transport for an ever-changing world of communications

2 © Nokia Siemens Networks

Social Networking, cloud services and more:What is the impact on operators?

Social networking Cloud based/online backup

High bandwidth entertainment

New services arise – and change the game

Home/office telepresenceRemote access to home content

3 © Nokia Siemens Networks

Expected development within the next 3 years

Increases strongly (++)

Decreases strongly (--) Increases (+)Decreases (-)

Stays the same

87

62

61

63

65

62

65

58

62

77

16

Multi-sided business

Fixed Broadband

IPTV

Other VAS

Advertising

Carrier services

VoIP

Messaging

Others

Mobile Voice

Mobile Internet

Entertainment

86

2

3 5

5

3 7

8 18

4 21

6 31

21 44

16 83

36 37

54 25

44 33

52 20

43 24

57 14

34 9

48 6

29 6

25 6

10 2

27

20

14

28

27

29

47

19

40

31

22

1

This is what service providers expect to happen…

Source: Nokia Siemens Networks operator survey 2010

4 © Nokia Siemens Networks

… and this is what it means: the traffic explodes – but revenues don’t

40

60

80

100 (ExaByte/month)

2009 2011 2013 2015

Global WIRELINE traffic

Residentialunicast TV

Residential internet

Business internet

Voice traffic

1.0

1.5

2.0

2.5 (ExaByte/month)

2009 2011 2013

Global MOBILE traffic

Smartphones

Mobile Laptop

Voice traffic

2015

Voice dominated

Data dominated

Traffic volume

Revenue

Time

Source: Nokia Siemens Networks 2011

5 © Nokia Siemens Networks

The service providers’ force field: three key success factors make the difference

Multi-screen broadband

Declining loyalty

Web x.0 drives

behavior

Customerexperience

Transforma-tional agility

Cope with ever increa-sing demand

Consumers

Cloud computing is

taking off

Web2.0, UC and mobility

join

Vertical services gain momentum

Enterprises

Overthe top players

New ecosystems

New experiences

New business

rules

Disruptivego-to-market

strategies

Indifferent broadband

offers

Dynamic service

landscapeCSPs

6 © Nokia Siemens Networks

Current transport networks are too complex for the challenge: Simplification is needed

residential

enterprise mobile

Efficiency

Evolution

Experience

• Easy operation• Lower cost per

bit

• High Throughput

• Low Latency

• Ready for new services

• Ready for new business models

7 © Nokia Siemens Networks

Next Generation Optical Transport (NGOA):Simplified, converged access for the future

up to 100 km

ONT

Splitter

Metro

POP1Gbit/s

DS & US

Network Simplification

Simplify connectivity and

aggregation layers

Several thousand

wavelengths

Point-to-point connectivity

over a fibre tree

Passive infrastructure

Coherent detection for

increased reach

Investment Protection

New revenue streams

up to 1000customers

8 © Nokia Siemens Networks

Open Lambda Initiative:Multi-purpose, multi-operator models

Passive splitter

Passive filter/combiner

CSP1

CSP2

CSP3

Longdistance office

Full spectrumon fiber is shared

Spectrum management

& coordination

CSPs can run different applications/technologies over same fiber

Build one network and assign wavelengths to CSPs

Build one fiber infrastructure to serve several CSPs

And further 5 major European operators without public reference

9 © Nokia Siemens Networks

Recognition for a new idea: FTTH’s Innovation Award in Technical Category

Milan, February 2011

10 © Nokia Siemens Networks

Thank you