5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações

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5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
5G
Market Update

Paulo Bernardocki
Director, Solutions and Technology
Ericsson Telecomunicações
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
Cope with high data growth

                                                                                 Improve operational efficiency

Industry                                                                               Increase revenue
challenges
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 2
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
Diverse opportunities with 5G

                2G                                                         3G          4G                     5G
VOICE                                                       BROWSING             VIDEO                 MULTIPLE
                                                                                                       INDUSTRIES
Massive mobile Voice                                        Feature phone and    Smartphone uptake
communication                                               mobile broadband     and exponential       Any device can provide
                                                            introduction         mobile data traffic   access to content and
                                                                                 increase              enable new business
                                                                                                       opportunities across
                                                                                                       industries
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 3
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
Mobile subscriptions by technology

                                                                                                     5G
                                                                                                     LTE
                                                                                                     WCDMA/HSPA
                                                                                                     GSM/EDGE-only
                                                                                                     TD-SCDMA
                                                                                                     CDMA-only
                                                                                                     Other

Note: IoT connections and Fixed Wireless Access (FWA) subscriptions are not included in this graph

                                                                                                                     Source: Ericsson Mobility Report
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 4
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
The LTE race has hardly started
25 markets offers more than 90% LTE coverage

100%                                                                                                    Top 10 major markets
                                                                                                        Norway
  90%                                                                                                   United States
  80%
                                                                                 3G                     Japan
                                                                                                        China
  70%                                                                                                   Czech Republic
                                                                                                        South Korea
  60%                                                                                     2G            Taiwan
  50%                                                                                     3G            Estonia
                                                                                                        Belgium
  40%                                                                                     4G            Switzerland
  30%
  20%
                            4G
  10%
     0%
                                                                                      Source: Analysis performed by Ericsson based on Ookla’s
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 5                    "Speedtest Intelligence data” from 2019-01
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
5G will enable more use cases and new
revenue streams
    Massive MTC                                                                    Critical MTC

    Enhanced MBB                                                                 Fixed Wireless
                                                                                        Access

2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 6
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
A pragmatic view: improve LTE, rollout 5G
eMBB and the rest will follow!
    Massive MTC                                                                    Critical MTC

    Enhanced MBB                                                                 Fixed Wireless
                                                                                        Access

2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 7
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
Examples of 5G use cases

                                      Short term                                              Mid/Long term

             CONSUMERS                                        INDUSTRIES             CONSUMERS                  INDUSTRIES

      — Gigabytes in                                 — Large network of sensors   — 5G augmented events      — Cloud robotics
        seconds                                      — High-speed internet on     — AR and VR cloud gaming   — Autonomous vehicles
      — Hot zones                                      public transport           — VR cinema                — Remote quality
      — FWA, 5G TV                                   — Predictive maintenance                                  inspection

2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 8
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
Example: Mobile Gaming

                                                                                 — Video game developers &
                                                                                   publishers more keen than ever
                                                                                   before to work with operators

                                                                                 — Telco opportunities to target
                                                                 Mobile gaming     gamers
                                                                 + advertising      — Gaming focused smartphones &
                                                                                      offerings
                                                                                    — Sponsoring mobile eSport events
                                                                                    — Partnerships around cloud gaming

                                                                                 — Evolve the network for a great
                                                                                   gaming experience
                                                                                    — Bandwidth, latency, packet loss

2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 9
5G Market Update - Paulo Bernardocki Director, Solutions and Technology Ericsson Telecomunicações
5G global update
 North America                                                                                                Asia
 — 2018 launch in mmWave                                                                                      — Korea launch with mid-band in
    spectrum, initially for FWA                                                                                  April, mmWave to follow in '19
 — Verizon launch in April 2019,                                                                              — China taking lead in SA
    additional launches in Mid &                                                                              — Additional markets like Australia

                                                                                         5G
    low-band for eMBB to follow                                                                                  & Singapore during '19
                                                                                                              — Large rollouts in China & Japan
                                                                                                                 in 2020

 Europe and Latam                                                                                             Middle East
 — Initial focus on mid-band                                                                                  — 2018 launches on midband,
 — Focus on industry use-cases                                                                                   with mmWave as second wave
 — Low-band NR for coverage                                                                                   — Mobile broadband and FWA
 — High-band as capacity booster
 — Swisscom launch April 2019

           Early deployments focus on                                             Low-band NR and spectrum       Initial focus on mid-band with
              eMBB using 5G NSA                                                     sharing for NR coverage      mmW as an option for hot spots
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 10
Global 5G race for technology leadership
 First smartphone networks launched after FWA launches

                                                                           Park Jung-ho, SKT CEO at 5G launch showcase- April 3rd
Hans Vestberg, CEO Verizon, on CNBC to announce
5G launch as a world’s first – April 3rd                                                                                            Swisscom officially launched the first commercial 5G
                                                                                                                                    network in Europe with Ericsson – April 17th

 Verizon launches 2 markets                                               Korean operators launch with                                Swisscom launches 5G
 — Chicago & Minneapolis in 28 GHz band                                   Samsung S10 5G                                              — Oppo Reno 1st 5G smartphone in Europe
   — Both Ericsson RAN cities                                                                                                           May 1st achieving 1.86 Gbps DL
                                                                          — More than 260,000 subscribers (May 1st) is
   — 20 more cities by end 2019                                             exceeding analyst expectations                            — LG, Samsung & Huawei devices to follow
 — Moto Z3 wih mod & Samsung S10 5G for                                   — Large scale mid-band launch with M-MIMO                   — Ericsson 100% RAN
   pre-order; both Qualcomm chipsets                                        (64T & 32T) & 4T classic radios in 3.5GHz                 — Initial deployment of 100 sites in 54 cities
 — 450 Mbps DL typical, 30ms latency                                      — Nationwide H2 2020; mmWave H2 2019                        — Nationwide coverge H2 2019 enabled by
                                                                          — LG V50 next device confirmed for May                        Ericsson Spectrum Sharing

2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 11
Why 1st with 5G? Verizon view…
4 initial business cases for 5G:

1.       Residential broadband: “5G Home”
         •         mmWave intially deployed in 4 cities, ultra wideband network
         •         Expand and use for mobile network

2.       Market share gain in mobile
         •         Historically, transition to new ”G” enabled market share gains
         •         Secured 2 early devices with Samsung & Motorola for H1 2019

3.       Increased market for business segment

4.       Lower costs
                                                                                                 Verizon at UBS Global Media Communications Conference December 4th 2018

                                                                 1st for competence, for technology, for customers
2019-05-07 | 5G Market Update TIM Brazil | | Commercial in Confidence | Page 12
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