Technology Leadership and Technology Trends

Håkan Eriksson Senior Vice President, R&D and CTO

2005-09-72

R&D Excellence to stay in the lead

R&DInvestment

R&DOperationalExcellence R&D

Investment

Reallocated investments to maintain Technology Leadership

Do what we do today more efficiently

2005-09-73

Mobile BroadbandIt’s already happening

Source: Web advertisements, H2 2004

2005-09-74

MobileHome Office

Telephony

WWW@

TV

Mobile

Mobile Triple Play

2005-09-75

10 kbit/s

100 kbit/s

1 Mbit/s

10 Mbit/s

100 Mbit/s

1 Gbit/s

End-user bit rate

GSM

WCDMACDMA

Broadcast

Application

”Super 3G”

Mobile

HSDPAEVDO

Technology overview

WiMax

Fixed

ADSL

ADSL2+

Fiber

DVBMBMS

2005-09-76

10 kbit/s

100 kbit/s

1 Mbit/s

10 Mbit/s

100 Mbit/s

1 Gbit/s

End-user bit rate

GSM

WCDMACDMA

BroadcastApplication

”Super 3G”

Mobile

HSDPAEVDO

Technology overview

WiMax

Fixed

ADSL

ADSL2+

Fiber

DVBMBMSW

irelin

e

Wire

less

2005-09-77

Wireless Broadband (WiMAX) vs Mobile Broadband (3G)Different starting points - different use

Optimised for full mobility

Builds on existing 2G/3Gmobile networks

Full system standard

Global roaming

Nationwide coverage

DSL complement

Optimised for fixed or nomadic usage

DSL complement & expand reach offixed broadband

Layer 1 & 2 standard only

Mobile BroadbandWireless Broadband

2005-09-78

Strong R&D and strong IPRStrongest patent portfolio in the industry

More than 16,000 granted and 15,000 pending patentsHigh proportion essential patents

– All companies in the industry needs a patent license agreement with Ericsson– Offensive, Defensive and Competitive benefits

Clear leadership in:– GSM/GPRS/EDGE– WCDMA– IMS

Very strong position in several other standards/technologies:

– CDMA– WiMax– OFDM– WLAN– etc

2005-09-79

First demo in a live network

First demo of HSDPA with 11 Mbps

First demo of HSUPA with 1.8 Mbps

Ericsson’s Leadership in HSDPA

2005-09-710

< 150 components< 0.6 rel. size

< 100 components< 0.4 rel. size

HSDPAWCDMAEDGEGPRS

GPRS

2006

WCDMAGPRS

GPRS

300 components1 rel. size

150 components0.7 rel. size

2004

Evolution mobile phone integrationEricsson Mobile Platforms

HSDPA chip set in 2006 is smaller than today’s GPRS chip

2005-09-711

HSDPA mobile terminalsCommercial availability

2H05:– PC cards, 1.8 Mbps

1H06:– First handheld terminals, 3.6 Mbps– PC cards in volume

2H06:– Mass market 3.6 Mbps terminals, GRAKE from SonyEricsson

High resolution screens, high update rate4 Mpixel cameras

– 2nd generation PC cards 7.2 Mbps, G-RAKE / Rx Diversity

2005-09-712

Summary: HSDPA and EUL

High PerformanceHigher bit rates Low latencyWide-area mobility

Cost EfficientHigher system capacityGlobal standard, high volumesUpgrade of existing network

Roll-out in 2005Field tests ongoingPC cards available for launchFirst networks to launch in ’05

2005-09-713

WCDMA in different frequency bandsTwo bands, already in commercial operation

2006Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4

2007Q1 Q2 Q3 Q4

2100 MHz2100 MHz 850 MHz850 MHz

17/2100 MHz17/2100 MHz

900 MHz900 MHz

2500 MHz2500 MHz1900 MHz1900 MHz

17/1800 MHz17/1800 MHz

HSDPA and Enhanced Uplink support in any band

2005

2005-09-714

MGW

GGSN

RAN

TD-SCDMAZTE-RBS

WCDMAUE

WCDMAUE

TD-SCDMAUE

TD-SCDMAUE

Ericsson WCDMA and TD-SCDMA Network Topology

PSTNIP

Network

SGSN

MSCServer

CN

TD-RNCEricsson

TD-SCDMAZTE-RBS

MGW

WCDMA-RNCEricsson

WCDMARBS

EricssonEricsson

WCDMARBS

Ericsson

OSS+RCEricsson

WCDMA/TD-RNCEricsson

2005-09-715

Super 3G

Major step in performance and capabilities– Data rates up to 100 Mbps in local area– Latency less than 10 ms– Improved spectrum efficiency– IP optimized– Broadcasting– Spectrum flexibility

Wider carrier bandwidth based on AML-OFDM(up to 20 MHz, scalable downwards)

HSDPA Enhanced ULWCDMA evolved 4G

≈2013≈2006

3G Super 3G

≈2009

New Spectrum2G / 3G Spectrum

2005-09-716

3GPP Schedule for ”Super 3G”

20052004 2006 2007

#25

#28

#27

#26

#29

#32

#31

#30

#33

#36

#35

#34

#38#37

Study Item (SI) period

Work Item (WI) period

Study Item (SI) periodJoint Work Group Study meetings

Work Item (WI) periodDetailed work to update specifications.

2005-09-717

IP, SIP and IMS

IP Connectivity – ”The Roads”

SIP Signalling – ”The Map”

IMS Control – ”The Rules”

2005-09-718

IMS – New Services and Reduced OPEX

IP Control (IMS)

IP Back-bone

Home Mobile

Office

Shared competence

Shared functions

GatewaysFixed and mobile access

Service Network

2005-09-719

Ericsson Mobile Softswitch- Solutions in commercial service*

200420032003

CosmoteGreece

VodafoneNetherlands

MobitelSlovenia

TeliaSoneraSweden

3Australia 3

Sweden 3Denmark

TIMItalyTelefónica

MóvilesSpain Amena

Spain

T-MobileUK

Tele2Sweden

SingTelSingapore

SwisscomSwitzerland

20052005

Telenor MobilNorway

3Italy

KPNNetherlands Vodafone

Greece

TelcelMexico

* Ericsson has 23 live commercial networks (out of 33 worldwide)

2005-09-720