QITCOM 2011

1. Smart transportfor an ever-changing world of communications

2. Social Networking, cloud services and more: What is the impact on operators? Social networking Cloud based/online backup New services arise – and change the game Remote access to home content Home/office telepresence High bandwidth entertainment

3. Mobile Internet 1 16 83 Entertainment 36 37 27 Multi-sided business 2 54 25 20 Fixed Broadband 3 5 44 33 14 IPTV 52 20 28 Other VAS 5 43 24 27 Advertising 57 14 29 Carrier services 3 7 34 9 47 VoIP 8 18 48 6 19 Messaging 4 21 29 6 40 Others 6 31 25 6 31 Mobile Voice 21 44 10 2 22 This is what service providers expect to happen… 87 62 Expected development within the next 3 years 61 63 65 62 65 58 62 77 16 86 Increases strongly (++) Decreases strongly (--) Increases (+) Decreases (-) Stays the same Source: Nokia Siemens Networks operator survey 2010

4. Global WIRELINE traffic Residentialunicast TV Residential internet Business internet Voice traffic 100 (ExaByte/month) 80 60 40 2009 2011 2013 2015 … and this is what it means: the traffic explodes – but revenues don’t Traffic volume Global MOBILE traffic 2.5 (ExaByte/month) Smartphones 2.0 Revenue Mobile Laptop 1.5 1.0 Voice traffic 2015 2009 2011 2013 Time Voice dominated Data dominated Source: Nokia Siemens Networks 2011

5. The service providers’ force field: three key success factors make the difference Overthe top players New business rules New ecosystems New experiences Multi-screen broadband Cope with ever increa-sing demand Enterprises Declining loyalty Customerexperience Cloud computing is taking off Web x.0 drives behavior Web2.0, UC and mobility join Transforma-tional agility Vertical services gain momentum Consumers Disruptivego-to-market strategies Indifferent broadband offers Dynamic service landscape CSPs

9. Ready for new business modelsEvolution Photonic IP core

10. Next Generation Optical Transport (NGOA):Simplified, converged access for the future New revenue streams Several thousand wavelengths Network Simplification Investment Protection Point-to-point connectivity over a fibre tree Metro POP up to 1000customers Splitter 1Gbit/s DS & US ONT Passive infrastructure up to 100 km Simplify connectivity and aggregation layers Coherent detection for increased reach

11. Open Lambda Initiative:Multi-purpose, multi-operator models Spectrum management& coordination Passive splitter Longdistance office Full spectrumon fiber is shared CSP1 CSP2 CSP3 Passive filter/combiner Build one fiber infrastructure to serve several CSPs And further 5 major European operators without public reference Build one network and assign wavelengths to CSPs CSPs can run different applications/technologies over same fiber

12. Recognition for a new idea: FTTH’s Innovation Award in Technical Category Milan, February 2011

13. Thank you