1. GREEN GROWTH AND
NETWORK QUALITY IN A
HIGH-GROWTH MARKET
Martin bäckström,
Vice president Technology,
Ericsson APAC Innovation§

2. Customer demands are changing
Mobile Voice User
10 kbps
10-50 MB/month
1
Smartphone User
100-1,000 kbps
100-500 MB/month
10
Mobile Broadband User
>1 Mbps
1-5 GB/month 100
© Ericsson AB 2010 2 2010-02-16

3. Network modernization drivers
› Consumer demand boosting
mobile data traffic
› Increased quality demand
› Cost efficiency
› Energy efficiency
© Ericsson AB 2010 3 2010-02-16

4. Modernization meets demand
Many operators’ equipment older than 2004:
› Not possible to upgrade to EDGE, HSPA or LTE
› Poor energy efficiency
€
€ €
€ € › Higher costs for operation and maintenance
€
€€
€
© Ericsson AB 2010 4 2010-02-16

5. 5 million base stations installed
Radio Base Stations (3GPP)
(thousands)
5 000
3G RBS
4 000
3 000
1.5 million would
benefit from being
2 000
modernized
2G RBS
Ericsson RBS represent
only 25% of installed base
1 000 in need of modernization
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Source: Ericsson All vendors
© Ericsson AB 2010 5 2010-02-16

6. Modernization cost savings
1
RBS 6000 reduction
in cabinets (3 to 1) ~30%
2
More 3 6
100 efficient HW Less staff, 5
site visits and Investment Total
9 O&M 4 (HW/SW + roll-out Investment
Fewer units depreciated 8 years)
8 to support
10
70 9
2
72
Legacy cost Site rental Power Operation & Fewer units & New cost Investment
Maintenance less spares level (HW + roll-out)
© Ericsson AB 2010 6 2010-02-16

7. e1
Improved quality drives top-line
Speech Quality Index
80 – 100 % Good
60 – 80 % Poor
0 – 60 % Bad
>20% longer
average calls
in this example Before Modernization After Modernization
Bad Poor Good
Traffic
Speech Quality
Speech Quality
© Ericsson AB 2010 7 2010-02-16

8. Slide 7
e1 Remove % signs.
ekariha; 2010-05-07

9. Complete modernization approach
Project Management
Planning & Operations
Consulting Build Integration Optimization
Design & Support
Turnkey Network Rollout
© Ericsson AB 2010 8 2010-02-16

10. Vodafone essar, india
Customer Challenges "Swapping a commercially live network with
› Unequalled growth of new subscribers near zero service deterioration is a very
› Technological limitations of installed base demanding task. I am pleased that Ericsson
managed to undertake and complete such a
› Deteriorating performance of old network
challenging project in record time."
Ericsson Solution Naresh Gupta,
› Replacement of 10,500 GSM sites at Technical Director at Vodafone Essar
peak-rate of 1 site per minute!
› Delivery of 16,000 RBS and 250 BSCs
› 13 months (2 months ahead of schedule)
Customer Benefits
› Improved network performance
› Near zero interruption in network services
› Improved cost efficiency and sustainability
The worlds largest replacement of a live network – performed at record pace!
© Ericsson AB 2010 9 2010-02-16

11. TCO2 Approach to
Energy efficiency

12. Challenge: Realize Telecom CO2
Potential and Manage Energy cost
GLOBAL CO2 CHALLENGE COMMITTED CO2 REDUCTION
Global CO2 ICT Industry
Emissions footprint, 2% BT 80% by 2018
Vodafone 50% by 20201
20% by 2020
Orange
15% by 2020
Telefonica
1800 1850 1900 1950 2000 2050 Note 1. excluding Turkey and India
What we have › ICT have limited CO2 footprint itself but is a critical enabler to others
observed in › Reaching CO2 targets may demand use of expensive green energy
the market and taxations have potentially very high cost impact
Source: ABI Research, Ericsson
© Ericsson AB 2010 11 2010-02-16

13. CARBON INTENSITY
Tonnes CO2e
CARBON Revenue
$M Revenue
INTENSITY
A MEASURE
OF CO2E Tonnes CO2e
EMISSIONS Traffic
MB
RELATIVE TO
BUSINESS
OUTPUTS Kg CO2e
Subscribers
Subscriber
© Ericsson AB 2010 12 2010-02-16

14. Drivers for telecom SECTOR
Brand image
Energy Cost
Government Directives
Power disturbances
Off-grid sites
© Ericsson AB 2010 13 2010-02-16

15. TCO2
TCOTCO2 CO2
CO
© Ericsson AB 2010 14 2010-02-16

16. TCO and CO2
› TCO2 is an approach to optimize CO2 and cost at the same
time using TCO techniques
CO2 module
CO2
TCO model CO2
TCO
TCO
NW design alt 1 NW design alt 2
© Ericsson AB 2010 15 2010-02-16

17. Power in – traffic out
less energy, more traffic optimize kWh/sub
© Ericsson AB 2010 16 2010-02-16

18. Energy efficient business
solution: The Complete picture
Network energy consumption
Energy efficient
Network Design Radio
(coverage & Modernisation
Capacity)
energy Saving Energy Control
Features
identify and re-deploy
redundant equipment
Optimized Power
Alternative Supply
Energy Sources
Energy Efficient
Cooling concepts Site Design
© Ericsson AB 2010 17 2010-02-16

19. TELSTRA’S CARBON CHALLENGE
TELSTRA IS CHALLENGED TO REDUCE ITS CARBON INTENSITY IN A
LARGE, RAPIDLY EXPANDING NETWORK.
“Telstra is committed to assisting Australia in reducing its carbon emissions
by aspiring to reducing its own carbon intensity by at least 10% and up to
15% by 2015”
3G Data Driving Traffic Growth
6th largest land mass Australia
9th lowest population density1
Annual MB
06/07 07/08 08/09 09/10 10/11 11/12
FINANCIAL YEAR
Source: Telstra
› >100% mobile penetration
› Driven by broadband-enabled PCs
› Single national network: and content
> 2.1 million km2 > 99% population
› Data traffic doubling every 8 month
© Ericsson AB 2010 18 2010-02-16

20. Telstra Potential REDUCTION IN
CARBON EMISSIONS BY 2014
Radio Access Core
Network Network
-11%
-22%
-30% -31%
-56%
© Ericsson AB 2010 19 2010-02-16

21. Conclusion
› Consumer demand forces operators to
continuously evolve their networks
› Network modernization enables better
quality, increased revenues and
reduced cost
› Combine TCO and CO2
› Ericsson offering: Efficient Energy
Business Solution
› Ericsson in a prime position to address
the market
© Ericsson AB 2010 20 2010-02-16

22. © Ericsson AB 2010 21 2010-02-16

24. References
› China Unicom 3G Roll-Out 2009
– World’s largest green-field network deployment
› AT&T Broadband Access 2009
– Full systems solution for fixed broadband access
› Telstra 3GSM National Network 2007
– Largest geographic WCDMA network deployment
› Metro PCS / USA 2009
– Mobile Broadband (LTE) deployment
› Eco-smart for TIM in Italy 2009
– Solar-powered sites – up to 100% of energy needs
© Ericsson AB 2010 23 2010-02-16

25. 3G NETWORK Upgrade
China Unicom, china
Customer Challenges
› Tight deadline for fast time-to-market
› Fierce competition
› Large geographical area (15 provinces)
Ericsson Solution
› High speed 3G coverage to tens of
millions of subscribers
› 31,000 RBS’s in 7 months
› 200 RNC’s in 3 months
Customer Benefits
› Commercial launch on time Oct.1
› Enabling 3G high-speed communications
› Nationwide commercial launch of 3G
Massive turnkey network rollout at record pace
© Ericsson AB 2010 24 2010-02-16

26. Continent-wide HSPA Upgrade
Telstra, Australia
Customer Challenges ”This project allows us to take our services
› Broadband connectivity in rural areas a step further and provide a comparable
› Vast geography of Australia level of service to all of our customers.”
› Low subscriber density in those areas
Mike Wright
Ericsson Solution
Executive Director, Telstra
› Countrywide HSPA network deployment
› Ericsson’s Mobile Broadband Router as
alternative to traditional copper lines
› Coverage for 99% of population
Customer Benefits
› Providing wireless broadband to areas
where it previously was impossible
› Fast time to market
› Cost efficient solution enabling a rural
subscriber offering equivalent to the city
Groundbreaking 3G rollout across the whole continent of Australia
© Ericsson AB 2010 25 2010-02-16

27. Network Modernization
O2, Ireland
Customer Challenges ”A dedicated team, fully committed to the
› Strong customer demand for broadband project and led by a team of specialists
› Interoperability quality issues meant that services were maintained
› Gaining overall leadership in the market throughout.”
Karim Benabdallah,
Ericsson Solution Advisor to CTO and CEO office, O2 Ireland
› Full Service Broadband solution (2G & 3G)
› Swap of 2,500 radio base stations
› Accelerated 3G network deployment
Customer Benefits
› Improved network quality
› IP migrated future-proof network
› Improved competitive position
Live network swap replacing two existing vendors with Ericsson network
© Ericsson AB 2010 26 2010-02-16